Title
Sale of City-Owned Property on Johnnette Drive for Affordable Housing
Action
Action:
A. Adopt a resolution approving the sale of 0.619 acres of city-owned property at 6048 Johnnette Drive (parcel identification number 103-221-16) to TDC Farm Pond, LLC for $14,250, and
B. Authorize the City Manager, or his designee, to negotiate and execute all documents necessary to complete the sale of the property.
Body
Staff Resource(s):
Rebecca Hefner, Housing and Neighborhood Services
Phil Reiger, General Services
Gregory Crawford, General Services
Explanation
§ The city owns an approximately 0.619-acre property at 6048 Johnnette Drive (Property) in Council District 5.
§ The Property was acquired by the city in 2012 and has been identified as suitable for affordable housing.
§ TDC Farm Pond, LLC (Buyer), a North Carolina limited liability company and affiliate of The Drakeford Company, desires to obtain the Property to combine it with adjacent contiguous parcels consisting of approximately 19 acres to develop a residential project currently known as the Harvest Hill Drive Subdivision (Development).
§ At the Buyer’s request, City Council approved rezoning (RZP-2024-072) of the Development, including the Property, to N1-D(CD) on March 17, 2025; a community meeting about the Development was held as part of the rezoning process.
§ An appraisal of the Property on July 6, 2023, established a fair market value of $28,500.
§ Staff supports the sale of the Property for affordable housing subject to certain terms and conditions:
Affordable Housing Terms
- The Development will provide two for-sale affordable housing units for households earning at or below 80 percent of the area median income at prices not to exceed the then-applicable House Charlotte sales price limit (Affordable Units);
- The Affordable Units shall have an affordability period of 15 years;
- The Affordable Units must be among the first 55 units built within the overall Development; and
- The Affordable Units shall be available for occupancy no later than September 30, 2027, with the option to extend this date for two consecutive 180-day terms or the Property shall revert to the city upon request for $1.00.
Other Terms
- Purchase price: $14,250;
- Earnest money deposit: $1,425;
- Due diligence period of 90 days; and
- Closing to occur within 30-days from the end of the due diligence period.
Background
§ As part of the mandatory referral process, the Planning Commission reviewed the Property on February 17, 2025, and had no comments.
§ This action is consistent with the goals of the Housing Charlotte Framework, Anti-Displacement Strategy, and Affordable Housing Funding Policy to create and expand the supply of high-quality affordable housing homeownership opportunities including leveraging city-owned land for this purpose. It is also consistent with the City-Owned Real Estate and Facilities Policy and Guidelines for Evaluation and Disposition of City-Owned Land for Affordable Housing.
Fiscal Note
Funding: Proceeds from the sale will be deposited in the Pay-As-You-Go (PAYGO) Fund.
Attachments
Attachment(s)
Map
Resolution