WILMINGTON — A residential complex, wholly dedicated to workforce housing, is on track for approval in Wilmington.
READ MORE: Citing rising interest, Starway developers ask for $1.25M more from city, county
Wilmington Planning Commissioner Ace Cofer told his colleagues at its Aug. 7 meeting this is the first time he had seen a 100% workforce housing development come before the board.
Unanimously approved, Avenue Flats will consist of 184 units on approximately 6.56 acres of land on South Kerr Avenue, beside the Seahawk Cove apartments. These units will be affordable to households earning between 30% and 80% of the area median income, with affordability restrictions in place for at least 30 years.
Planning staff concurred it only sees development so this caliber once or twice a year, if not less frequently. The last two entirely workforce housing projects to come through were Sterling Reserve on Carolina Beach Road and a development on Mosley Road — both of which are exclusively for seniors.
Blue Ridge Atlantic applied for a conditional rezoning from a medium-density single-dwelling district (R-10) to a high-density multiple-dwelling residential district (MD-17(CD)) for its new project. Site plans for Avenue Flats and photos of similar developments were presented by Amy Schaefer, an attorney for the developer. Blue Ridge specializes in affordable housing.
It was recently on the receiving end of funds from New Hanover County. As part of its Workforce Housing Services Program, the county allocated Blue Ridge $600,000 to cover the 72-unit affordable senior housing project, Residence at Canopy Pointe, now open.
Avenue Flats is hoping to be funded by tax-exempt bond financing through the North Carolina Housing Finance Agency. It applied to utilize the 4% Low-Income Housing Tax Credit (LIHTC) program, which incentivizes developers to build affordable housing by offering a 10-year tax credit.
Accessing these funds requires developers to partner with a local entity, such as a government agency or public housing authority, to issue the bonds. In this case, the Wilmington Housing Authority (WHA) is the local partner.
Lauren Edwards, spokesperson for the city, told Port City Daily due to the structure of WHA, the bond will go before Wilmington City Council, though the city is not liable for them.
Schaeffer presented to the city planning commission 56 one-bedroom units, 80 two-bedroom units, and 48 three-bedroom units distributed across three four-story buildings, each approximately 55 feet tall. The development will also include a clubhouse, picnic area, playground and stormwater pond.
Five mature oak trees currently on the property will be preserved. The development will have two entrances, one on South Kerr Avenue and another on the adjacent Kimberly Way.
The site plans are flexible, known by the city as a “bubble plan.” This approach was established in a text amendment from the planning commission in 2022.
“I just learned — right now in real-time — when a project, which is the first that’s come in front of me during my tenure on this board that was 100% workforce component,” Cofer said. “Then it allows this, what you called a ‘bubble plan,’ or some grand flexibility.”
A bubble plan is specifically for developments to include 100% workforce housing for at least 15 years. Commissioner Chair Jeannie Lyle noted these developments typically lack the upfront funding needed to present a plan with the level of detail usually required for conditional rezoning.
Bubble plans include a basic site plan and project narrative, allowing for some flexibility within the code of ordinances. In this case, the site could potentially increase its density from 28 to 36 dwellings per acre. If this is done, the plan would need to come back in front of the planning commission.
“That was an amendment that we put forward to streamline that process and make it a little bit easier for those projects, understanding that they don’t have the same kind of capital as a market-rate project does,” Lyle said.
The Wilmington Housing Authority approved the issuance of the multifamily revenue bonds at their board meeting on Aug. 6. The $30-million bond could generate $300,000 in revenue for the authority, as they charge a 1% fee for the issuance.
WHA’s Executive Director Tyrone Garrett told Port City Daily on Wednesday it makes the project more affordable, keeping it within the range to offer lower rental prices.
Garrett noted at the WHA meeting other developments have previously utilized the authority for similar purposes. Starway Villages, a 278-unit apartment complex off Carolina Beach Road, and Cypress Cove, a 200-unit apartment complex off Princess Place Drive, have also applied for tax-exempt bonds with the assistance of the housing authority.
“We’re just a conduit for the funding,” he said at the board meeting.
Schaefer told commissioners Aug. 7 if the development does not receive the tax credit, the project will not go further.
During the meeting, commissioner Jack Pollock asked about the state of the current site and if there were structures on it. The developer does not yet own the property; currently, there are a few single-family homes located where the development is planned.
Patrick O’Mahoney, planning manager for the city, said he would need to defer this question to the applicant.
“They had property-owner signature; they have to have that to submit this,” O’Mahoney said.
Port City Daily contacted Blue Ridge Atlantic to ask about the status of the parcels and did not receive an answer by press.
One person spoke during the public hearing, in favor of the development. Resident Logan Secord, who is a senior project manager for developer, Pine Gate Renewables expressed excitement for more affordable housing in the area.
Secord recommended to commissioners and developers that impervious materials be used for the parking lot to reduce flooding and stormwater runoff into waterways. Currently, the site plans show 61.3% of impervious surfaces. It also includes 250 parking spaces, though only 192 are required for the 182 units.
He also suggested converting the stormwater pond into a stormwater wetland by adding vegetation, which could enhance the aesthetics and help prevent pollution in the pond.
“These are homes where teachers can live, where public servants can live, where blue-collar workers can live,” he said.
If funding is secured, the project is slated to begin construction in quarter one or quarter of next year according to Weldon.
Reach journalist Jalyn Baldwin at jalyn@localdailymedia.com.
Want to read more from PCD? Subscribe now and then sign up for our morning newsletter, Wilmington Wire, and get the headlines delivered to your inbox every morning.
