City Council regular meeting — June 22, 2021

Finance Director Tony McDowell said that this is the consideration of adopting the Fiscal Year 2021-22 Annual Operating Budget. Background:

• The Fiscal Year (FY) 2021-22 Proposed Annual Operating Budget was presented to City Council on May 25, 2021.
• In accordance with the North Carolina Local Government Budget and Fiscal Control Act, a summary of the Proposed Budget along with a notice of the Public Hearing was published on May 28, 2021.
• City Council conducted a public hearing on the Proposed Budget on June 8, 2021.
• The following changes have been made to the Proposed Budget since it was presented to Council on May 28, 2021:
• At the June 8, 2021, meeting, City Council took action to amend the FY 2020-21 Budget to budget $2.1 million from the White Lab sales proceeds for Reparations.
• With Reparations funding approved in the current fiscal year budget, staff has removed the $1.2 million in funding that was included in the FY 2021-22 Proposed Budget.
• An additional $25,000 is included in the General Fund to budget the revenues and expenses associated with the Reparations Speaker Series.
• The FY 2021-22 Proposed General Fund Budget that was presented on May 25th was balanced with an ad valorem tax rate of 41.30 cents per $100 of assessed value, which was 3 cents above the revenue-neutral rate.
• In the Budget Ordinance being considered tonight, staff has revised the proposed ad valorem tax rate down by 1 cent to 40.30 cents per $100 of assessed value.
• In order to keep the FY 2021-22 General Fund Budget balanced at this lower ad valorem tax rate, staff is proposing the following adjustments:
• Utilize $1.0 million in American Rescue Plan (ARPA) funding to support transit operations, which will allow the City to reduce the General Fund transfer to the Transit Services Fund by $1.0 million in FY 2021-22.
• Increase the FY 2021-22 sales tax revenue budget by $400,000 based on updated estimates and continued strong growth in retail sales as the economy recovers from the COVID-19 pandemic.
• Appropriate $500,000 in unassigned fund balance based on projections that unassigned fund balance in the General Fund will exceed the City’s 15% policy goal. Committee(s):
• N/A Pro(s):
• Ensures City’s compliance with North Carolina General Statutes that require local governments to adopt a balanced budget ordinance by July 1 of each year.
• General Fund budget is balanced for ongoing operating expenses and all essential City services are continued. Con(s):

None Fiscal Impact:

• As noted above, the Proposed FY 2021-22 General Fund budget is balanced with an ad valorem tax rate of 40.30 cents per $100 of assessed value, which is 2 cents above the revenue neutral tax rate.
• The Proposed General Fund budget includes $150,000 to fund the City’s participation in Buncombe County’s new Homeowner Grant Program which is designed to help mitigate the impact of property tax increases for low-income homeowners. Mr. McDowell said that the proposed budget is based on internal work, Council priorities, and community input including a continuation of the reimaging public safety process. The proposal is a balanced and fiscally responsible budget. It funds investments in Council priorities through a property tax rate above revenue neutral. It funds core community services in a time of rising costs. And, it continues funding for the capital improvement program. Work will continue during the next fiscal year, including reimaging public safety, reparations and strategic use of American Rescue Plan Act funding to achieve goals. The Fiscal Year (FY) proposed budget was presented to City Council on May 25. City Council conducted a public hearing on the proposed budget on June 8. He then outlined the adjustments to the proposed budget (1) adjustment for reparations funding; and (2) adjustment to property tax rate. Mayor Manheimer said that the public hearing on the budget was held on June 8, 2021, and no further comments will be accepted.

Background:

• The City of Asheville owns and controls a telecommunications tower located at 57 Crestwood Drive, primarily for the purpose of vital public safety communications.
• Excess space on the tower is available for telecommunications companies through license agreements with the City.
• U.S. Cellular originally built the tower at Royal Pines in 1987 and has occupied it since that time.
• Their most recent agreement was executed in 2012, at a rental rate of $30,000 per year with an annual escalation rate of 3%.
• The current license agreement expires September 30, 2022 and US Cellular’s agent has approached the Real Estate Coordinator with a request for an extension.
• The Real Estate Division with the support of IT Services contracted with APC Telecom in Raleigh for an analysis of the current license agreement and its terms, including fair market value rental rates.
• They recommended an increase of over 10% of their current rent and to maintain the escalation rate of 3%.
• Finally, APC Telecom recommended a term as long as possible.
• US Cellular agreed to a term of ten (10) years at a rental rate of $42,300 per year with 3% escalations. Committee(s):
• None Pro(s):
• This license agreement will ensure that the City has a stable tenant on this tower.
• US Cellular will be paying Fair Market rent with an acceptable escalation clause. Con(s):
• None.

Fiscal Impact:

• The City will be receiving $3,525 per month or $42,300.00, which benefits the General Fund.

Background:

• Ozone is a key part of the water treatment process at the Mills River Water Treatment Plant.
• Liquid oxygen is a required precursor for the onsite production of ozone.
• The City’s existing eight year liquid oxygen contract with Air Products expires in July 2021.
• The City held a competitive bid for the supply of liquid oxygen to Water Resources for the next eight years.
• In response to the bid advertisement, the Water Resources Department received three (3) bids on May 6, 2021.
• The following companies responded with estimated first five year total costs:
• Matheson, Irving, T.X. $359,550
• Andy Oxy, Asheville, N.C. $1,755,000
• Air Products, Allentown, P.A. $322,674
• Since the costs reflect a multiple year contract, Council approval is required before City staff may award the contract to the lowest responsive bidder. Committee(s):
• None Pro(s):
• Ozone helps to reduce the total organic carbon that is the precursor to Disinfection By-Products (Total Trihalomethanes and Haloacetic acids
• HAA 5).
• Ozone is used as the initial disinfectant reducing the need to use chlorine at this step in the treatment process.
• High levels of total organic carbon combined with chlorine can form Disinfection By-Products.
• Enhances the level of water treatment. Con(s):
• Increased costs to produce high quality potable water due to loss of ozone treatment resulting in other treatment processes having shorter life cycles.
• The City risks being out of compliance with the EPA Disinfection By-Products rule without liquid oxygen.

Fiscal Impact:

• $322,674 over five years to be funded as part of the Water Resources Fund operating budget as one-year allocations.

Background:

• The primary focus of FEMA’s Assistance to Firefighters Grant program is to provide assistance in funding for firefighting safety and protective equipment that can reduce the risk of exposure to cancer-causing carcinogens.
• AFD was successful in its last request for $36,000 to fund four sets of personal protective equipment washers and dryers.
• The goal of the current request is to increase the safety and health of our firefighters by increasing the accessibility of breathing air compressors within the Asheville Fire Department.
• The Department requested funds to purchase two SCBA air compressors.
• This equipment would be utilized to support the department's Air Management and Cancer Prevention Policies.
• Due to the prevalence of carcinogenic materials being emitted throughout the duration of a firefighting operation, the department’s Cancer Prevention Policy requires SCBA usage at all fires for a minimum of 90 minutes after air monitoring indicates a clear environment in a fire occupancy.
• This policy has significantly increased the usage of breathing air at all of our fires while creating a safer work environment for our firefighters.
• AFD assigns approximately 40 members to every working fire incident.
• To fill bottles for these members, AFD relies upon neighboring fire departments that support a countywide air unit which responds to the incident scene.
• This unit is reliable, but there are times where it is unavailable due to being used by one of the other 21 Buncombe County fire departments or being serviced.
• The additional air compressors would allow greater accessibility to air refill by firefighters.
• This request also supports the SCUBA program which is one of two within the western region of North Carolina and the AFD Hazardous Materials Team which is contracted by NC Emergency Management as a regional resource for the 18 western NC counties.
• The overall request for funding via FEMA’s Assistance to Firefighters Grant is to increase the safety for all members by providing increased access to breathing air compressors to support the increased usage of SCBA on firegrounds for firefighter safety. Committee(s):
• Public Safety Committee
• June 22, 2021 Pro(s):
• Firefighter safety would be increased significantly Con(s):
• The City’s one time match would be $13,091

Fiscal Impact:

• Requires a 10% local match.
• The grant amount, if awarded, would be $130,910.
• One time local match would be $13,091
• Asheville Fire Department could absorb this match in its operating funds (from the General Fund) in Fiscal Year 2021-22.

Background:

• The City of Asheville joined the Community Rating System (CRS) program, a program through the Federal Emergency Management Agency (FEMA), and administered by the Insurance Services Office (ISO) in 2014.
• As required by the CRS program, a Repetitive Loss Area Analysis (RLAA) was prepared in 2014 by Brown and Caldwell to supplement the Buncombe-Madison Regional All Hazards Mitigation Plan.
• Brown and Caldwell is an international Engineering and Consulting firm with a regional office in North Carolina. The team that developed the RLAA Report focuses on flood mitigation and hydrologic engineering.
• Participation in the CRS program provides lower insurance premiums under the National Flood Insurance Program.
• Currently, Asheville property owners receive a 10 percent reduction in their flood insurance premiums through the City’s participation in the CRS program, based on the CIty receiving a Class 8 determination in the program.
• The classes are determined by points awarded based on program elements that enhance or are higher standards than requirements of the National Flood Insurance Program administered by FEMA.
• In order to maintain the current status in the CRS program, staff is required to provide to Council the annual report of the Flood Mitigation Actions Items that were part of the RLAA report from Brown and Caldwell adopted by Council on December 10, 2013.
• The Annual Flood Mitigation Actions Report is provided as Exhibit A.
• Highlighted in the report, staff from multiple departments continue to work together, looking for ways to reduce flooding and damage from floods.
• These efforts include community outreach through the City website, social media, flyers, and events; working with the Army Corps of Engineers and other partners on flood mitigation opportunities; and working with developers and property owners on ways to protect their properties from flooding.

Vendor Outreach Efforts:

• Not Applicable. Committee(s):
• None Pro(s):
• Asheville property owners will continue to receive a 10% reduction on their flood insurance.
• Provides a higher level of protection through the current flood ordinance and improves resilience.
• Promotes public education on the dangers of flooding and the Special Flood Hazard Areas. Con(s):
• Considerable amount of staff time is necessary to maintain these requirements and improve our program.

Fiscal Impact:

• There is no additional fiscal impact to continuing the efforts necessary for the CRS program. Staff time is currently programmed into the annual operating budget.

Background:

• City Council approved contract #91800148 with Sam Schwartz Consulting, LLC to provide consulting and engineering services to evaluate and advise City Council on the design of the I-26 Connector project via Resolution #17-204 on September 12, 2017.
• Sam Schwartz Consulting, LLC reviewed the project plans and met with the North Carolina Department of Transportation (NCDOT) and various stakeholder groups to help address design tweaks.
• Sam Schwartz Consulting, LLC prepared a report that was included in the Final Environmental Impact Statement.
• The City of Asheville established an I-26 Connector Project Aesthetics Committee on April 24, 2018, and the initial committee members were approved on July 24, 2018 via Resolution # 18-192.
• Sam Schwartz Consulting, LLC has prepared a report on behalf of the I-26 Connector Project Aesthetics Committee that is currently being reviewed by the NCDOT.
• The work for the Aesthetics Committee included reviewing the possibility of reducing the overall French Broad River crossing's footprint, the possibility of reducing the project’s impact on property within Asheville, and maintaining the anticipated capacity of the proposed design.
• This work was much more involved and included more feedback from the committee than anticipated. Committee(s):
• None Pro(s):
• Through the efforts of Sam Schwartz Consulting, LLC, the NCDOT and the City of Asheville have been able to agree on design tweaks that support the City’s goals. Con(s):

None Fiscal Impact:

• Funding for the $7,000 increase will come from previously budgeted Capital Improvement Program contingency funds.

Background:

• This extension will be the second and final one year extension to the original contract and brings the total value of the contract to $96,666.
• The contract is for maintenance of City-owned planting beds throughout the City.
• The extension will take effect at the end of the current extension (July 7, 2021) and run through July 7, 2022.
• The bids for the contract were opened on July 17, 2019 and the following bids were received: Rivertop Contracting of Swannanoa, NC $32,222 per year Smith and Lloyd Landscaping of Asheville, NC $58,110 per year BuckTom Services of Asheville, NC $66,000 per year B.H. Graning Landscapes of Sylva, NC $92,315 per year Appalachian Paving and Concrete of Swannanoa, NC $119,800 per year

Vendor Outreach Efforts:

• Outreach was not performed due to this being an extension.
• This is the final extension for this contract. When the next contract is bid, staff will make a special effort to do appropriate outreach to try to attract minority and women owned businesses. Efforts will include listing the project on the State’s Interactive Purchasing System, contacting minority contractors currently known to the City and searching the NCDOT and State of North Carolina Office for Historically Underutilized Business databases for MWBE contractors. Committee(s):
• N/A Pro(s):
• Will help maintain city-owned planting beds and islands. Con(s):
• In some areas the work may temporarily impede pedestrian or vehicular traffic.

Fiscal Impact:

• Funding for this contract is in the Fiscal Year 2021-2022 Public Works Department budget.

Background:

• This software is used to track the energy consumption and carbon emissions from the City’s buildings which supports Resolution 11-77, the City’s 80% carbon reduction goal.
• This will be the third year the City has utilized this software vendor.
• This software demonstrates that carbon emissions from city facilities are predominately from electricity consumption (74%).
• Through the use of the Dude Solutions Energy Manager software system, the Office of Sustainability and Capital Projects Department have been able to confirm energy savings from efficiency projects.
• For example, the city experienced a 5% reduction in carbon emissions in City Hall following the boiler replacement project.
• Dude Solutions Energy Manager software demonstrates that the most carbon intensive buildings are the Mills River Water Treatment Plant, Harrah’s Cherokee Center, North Fork Water Treatment Plant, the Municipal Building, and City Hall.
• The Office of Sustainability and Capital Projects Department utilize this software to identify renewable energy opportunities to help mitigate the City’s carbon emissions from buildings.
• Additionally, Dude Solutions is utilized by the Capital Projects Department for facilities work order system allowing an opportunity to connect the two systems.

Vendor Outreach Efforts:

• In 2017, staff performed outreach through a solicitation process which included posting on the State’s Interactive Purchasing System
• No MWBE firms submitted bids with this prime contractor. Committee(s):
• None Pro(s):
• The contract also includes importing energy usage from the City’s Duke Energy bills which otherwise takes considerable staff capacity.
• The software is compatible with the City’s facilities work order system.
• This may enable the City to more easily track and measure efficiency projects such as lighting, HVAC upgrades, and track maintenance requests for the solar energy systems that are a new city asset. Con(s):

None Fiscal Impact:

• This contract has a fiscal impact of $39,352.17 for fiscal year 2022. The three year total will be $117,205.10.
• The Green Savings account will be utilized to fund this contract.

Background:

• This is a formal policy to establish ethical standards of conduct for advisory board members.
• The policy will help ensure that all public meetings are a welcoming, respectful, safe, and productive atmosphere to conduct business.
• Topics covered within the policy include Meeting Rules of Deorum; Operating Code of Conduct; Harassment; Social Media, and Conflict of Interest for advisory board members
• The policy provides the Board Chair, Council Liaison, City Staff Liaison with the authority to further investigate and/or enforce violations of this policy.
• On November 23, 2010, City Council adopted Code of Ethics for Asheville City Council.

Vendor Outreach Efforts:

• N/A Committee(s):
• Boards & Commissions Council Committee
• June 8, 2021
• Unanimously recommended to full Council. Pro(s):
• Establish guidelines for ethical standards of conduct for board and commission members
• Helps ensure that public meetings are welcoming and respectful of members, staff and community members. Con(s):
• None noted.

Fiscal Impact:

• None.

Background:

• In May, 2018, Council authorized the issuance of a Limited Obligation Bond Anticipation Note (BAN) in an amount not to exceed $48 million.
• In March, 2021, Council approved resolutions authorizing City staff to proceed with the issuance of long-term fixed rate Limited Obligation (LOBs) and Special Obligation (SOBs) Refunding Bonds to pay off the existing amount utilized on the BAN.
• The funds generated from the issuance of the Refunding Bonds, which totaled $35.4 million, were used to pay off the existing bond anticipation note and so do not represent additional money available for City use.
• The Fiscal Year (FY) 2020-21 budget did not include appropriations reflecting the funds generated from the issuance of the Refunding Bonds.
• This technical amendment incorporates these appropriations into the budget in order to ensure that the General Fund does not exceed the approved annual budget in the City’s annual financial reporting. Committee(s):
• None Pro(s):
• Amends the FY 2020-21 General Fund budget in order to ensure statutory budgetary compliance. Con(s):

None Fiscal Impact:

• There is no net fiscal impact from this technical budget amendment.
• It will amend the FY 2020-21 budget in the General (2100) Fund to reflect the receipt of refunding proceeds from the bank and the subsequent payment to bondholders to pay off the prior debt issuances.

Background:

• The building at 99 Riverside Drive was constructed in the 1960s.
• A recent survey showed that the existing loading dock is located on the City right-of-way.
• The “Old Wood Company” operated at this site has closed after twelve years in business.
• The space will now have a new tenant.
• The new tenant would like to use the old loading dock in the front of the building as their new entrance.
• There is ample area between the loading dock and the new improvements completed as part of RADTIP.
• Staff believes that granting this easement will in no way impede the flow of pedestrian, bike and auto traffic along Riverside Drive.
• The Real Estate Office has proposed a permanent easement instead of an encroachment, because this improvement is a permanent part of the building and is an existing issue.
• A survey has been completed and the easement area is 312 square feet.
• The property owner will be charged fair market value for the square footage that is needed, for a total amount of $5,000. Committee(s):
• None Pro(s):
• City staff has determined the granting of this easement will in no way impede traffic on Riverside Drive.
• The City is being compensated $5,000 which is fair market value. Con(s):
• The City will be losing some right of way.

Fiscal Impact:

• The City is being paid $5,000 for this easement.

Background:

• The City was approached by Anne and Michael Powell who reside in Georgia.
• They asked if the City was interested in land that was owned by Ms. Powell’s late father, Robert Hunter.
• The parcel is 0.12 acres and is located across the street from Fire Station #10 at the corner of Old Haywood Road and Eastview Circle.
• It is vacant land with no improvements.
• The Real Estate Office contacted the Fire Department and they indicated they would have a useful purpose for the land.
• The Fire Department intends to place a basic shed on the property for storage associated with the Fire Station #10.
• This triangular shaped parcel has a tax assessed value of $4,000 and is being donated by the heirs of Robert C. Hunter’s Estate, heirs of Joseph L. Hunter’s and Heirs of Edward B. Shoff.
• The City has commissioned an Environmental Phase I for this property and the transfer of land will not be finalized until the site receives a clean report. Committee(s):
• None Pro(s):
• This land could be used to provide much needed storage for Fire Station #10.
• The land is being donated at no cost to the City. Con(s):
• The City will no longer be receiving property tax revenues.

Fiscal Impact:

• The donation of the land comes at no cost to the City.

Background:

• Homeward Bound is proposing a permanent supportive housing (PSH) apartment project for our homeless population.
• The agency intends to acquire the Days Inn located at 201 Tunnel Road.
• This project will be an adaptive reuse of the existing motel and will create 85 affordable housing rental units for people experiencing chronic homelessness.
• The motel sits on a 2.95 acre site and contains 128 guest rooms in two, 2 story buildings.
• Homeward Bound will convert 85 of the 128 rooms into permanent supportive housing units by adding a small kitchenette to each of the 85 units.
• The remaining rooms will be converted into office space for case managers, program managers, clinical staff, a permanent supportive housing director, and other agency staff. Space will also be provided for community partners to deliver on-site supportive services to residents.
• A Phase 1 Environmental Review / Environmental Assessment has been conducted with no findings.
• Housing units are targeted to special needs and underserved populations.
• This is a critical strategy in ending chronic homelessness and a key component of the Continuum of Care, providing an exit from homelessness for people with the most complex needs.
• The project will be affordable housing in perpetuity with a deed reflecting this agreement.
• The total project cost is estimated at approximately $12.6 million with $6.5 million associated with property acquisition.
• The requested funding, as outlined below, will be used entirely for property acquisition.
• Homeward Bound anticipates closing on the property by August 14, 2021.
• Homeward Bound is seeking funding from the following sources for acquisition: Funding Source
• Acquisition Amount City of Asheville $2,000,000 Dogwood Health Trust $2,000,000 Buncombe County $2,000,000 Private Donor $500,000 TOTAL $6,500,000 Homeward Bound anticipates needing $6,900,000 to upfit the property for Permanent Supportive Housing & $1,214,262 in annual operation costs, with annual revenues anticipated at $1,236,900.
• Homeward Bound has requested that the City’s funds be structured as a grant to Homeward Bound in the amount of $2 million for acquisition costs to provide 85 permanent supportive housing units.
• While the City has not determined the source of funds, the City is committed to providing formal approval, recognizing that Homeward Bound hopes to close on this acquisition by August 14, 2021, and that the lives of the chronically homeless in our community will greatly benefit by expediting this project.
• The City understands that this commitment is important for Homeward Bound as it seeks other governmental/HUD sources of support for acquisition and renovation. Committee(s):
• Housing & Community Development Committee
• May 18, 2021
• Approval 3-0 Pro(s):
• This funding would support 85 permanent supportive housing units.
• The proposed project is targeted to end homelessness for at least 85 people experiencing chronic homelessness, which aligns with the City of Asheville’s Consolidated Plan goals.
• This investment per unit will be $23,529 which is below our per unit investment for permanently affordable housing.
• Permanent Supporting Housing Project can save a jurisdiction or municipality anywhere from $17k to $37k per person. Con(s):
• None noted.

Fiscal Impact:

• Staff is analyzing potential funding sources, including Housing Trust Fund, General Obligation (GO) Bonds, or American Rescue Plan Act (ARPA) funding.
• Financial analysis will be completed prior to presentation to City Council in July or August 2021.

At the applicant’s request,

Community Development Programs Director Paul D’Angelo said this is the consideration of updating the Land Use Incentive Grant Policy. Background:

• In November of 2010, City Council first adopted a Land Use Incentive Policy that provided incentives to encourage development projects that fulfill important public purposes directly addressing annual strategic goals set by Council such as affordable housing.
• Council directed that the Policy be reviewed yearly after its adoption.
• Since that time, the Policy has been revised six times in March of 2011, January of 2013, August of 2014, September of 2015, September of 2018, October of 2019 and November of 2020.
• A continued goal of Community Development, per community discussions with stakeholders and developers, is to make policies easy to comprehend, usable & equated to an investment partnership dollar amount to be used as a source in a proforma / balance sheet.
• Changes of note
• - Allow a LUIG for partner developers who purchase an existing market rate building and would like to add at least 20% of the units, for individuals and families at or below 80% Area Median Income (AMI), for a minimum of 20 years.
• The LUIG is a grant back of the tax value on the full building value, but not the land value.
• 25 pts. for converting at least 20% of the units, within 2 years, for individuals and families at or below 80% Area Median Income (AMI), for a minimum of 20 years.
• 40 pts. for converting at least 20% of the units, within 2 years, for individuals and families at or below 80% Area Median Income (AMI), for a minimum of 30 years.
• 50% of the affordable units should be rented to Housing Choice Voucher holders / Rental Assistance. The developer must demonstrate good faith efforts if 50% of the affordable units are not rented to Housing Choice Voucher holders.
• Community Outreach & Engagement for Affordable Units Committee(s):
• Affordable Housing Advisory Committee (AHAC)
• May 6, 2021, approved for HCD.
• Housing & Community Development (HCD) Committee
• May 18, 2021, approved for City Council Pro(s):
• The proposed amendments come from staff based on recent usage of the updated LUIG Policy dated November, 2020, and developers interested in adding affordable units to their purchase to be a part of the solution.
• Potential quicker addition of affordable units (within 2 years) versus waiting for new construction.
• The policy follows Community Development efforts of creating policies that are easy to comprehend, usable & equated to a partnership investment dollar amount to be used as a source in a proforma / balance sheet.
• Additional clarity from an Equity lense with our Equity & Inclusion Department. Con(s):
• Concern of foregoing / reduction of future property tax dollars in exchange for affordable housing.

Fiscal Impact:

• Future LUIG grant subsidies should remain the same or could potentially increase if we are able to preserve affordable housing units with this update.
• Like all LUIG updates, the more use of this policy as an affordable housing tool would require a higher yearly budgeted amount to cover the grant of the property taxes. Mr. D’Angelo explained that this LUIG update will allow existing market rate units to convert to affordable units to help preserve and protect affordable housing. Affordable units from existing housing stock can be added more quickly than new construction which can take 2 to 3 years to come online. We are asking our development partners to assist more with the acceptance of Housing Choice Vouchers
• Individuals & Families at or below 60% Area Median Income. There has been community outreach and marketing for equity & inclusion. He then explained the City’s role in affordable housing which is to produce, preserve and protect affordable housing in partnership with funding, city-owned land, regulatory and convener/collaborator. With the current LUIG, every 5 points can earn one year of economic incentive. Equivalent to City property taxes (with full improvement calculated) in excess of currently assessed city taxes at the time of LUIG application for one year applied annually, to be dated from the date of release of all occupancy permits for the project. LUIG not to exceed 20 years plus one. LUIG’s are paid with General Fund dollars and are budgeted annually. With the updated LUIG, every 5 points can earn one year of economic incentive. Equivalent to City property taxes (with full improvements calculated) in excess of currently assessed city taxes at the time of LUIG application for one year applied annually, to be dated from the date of release of all occupancy permits for the project. LUIG not to exceed 20 years plus one. For adding affordable units to an existing all market rate rental complex, the tax value on the building will be granted back but not the land value. Twenty-five points for converting at least 20% of the units, within 2 years, for individuals and families at or below 80% Area Median Income for a minimum of 20 years. Forty points for converting at least 20% of the units, within 2 years, for individuals and families at or below 80% Area Median Income for a minimum of 30 years. Mr. D’Angelo then gave examples for new construction and conversion. Other changes of note is that at least 20% of the units must meet the affordability standards set by the City of Asheville for individuals and households earning 80% or less of the Area Median Income, which would include at least 50% of the affordable units accepting Rental Assistance like Housing Choice Vouchers. Regarding community engagement and outreach for the affordable units for equity & inclusion, whether building new or purchasing old, Community Development expects our development partners to reach out to organizations, groups, and stakeholders about the affordable units coming online for rent. Community Development encourages our development partners to outreach and engage with all their neighbors in the immediate vicinity of the build or building purchase. At a minimum, Community Development requires the builder to outreach and meet with, in a timely lease-up manner, the following organizations
• Housing Authority of the City of Asheville; Homeward Bound; Mountain Housing Opportunities; Asheville Area Habitat for Humanity; Thrive Asheville; Asheville-Buncombe Community Land Trust; OnTrack, the nearest neighborhood association; and all churches and businesses within a half mile. Councilwoman Turner said we gave good tools around new construction, and that this is one way we can now tap into the preservation and protection of existing homes, whether it’s a single-family home, an apartment complex, or a four-plex. In response to Councilwoman Roney's question about the possibility to consider a "ban the box" initiatives as part of the City's LUIG program, City Attorney Branham said that, generally speaking, many of the rules around housing are governed by federal laws and outside of City authority. He would have to explore that more deeply before offering a final opinion. When Mayor Manheimer asked for public comments, none were received. Mayor Manheimer said that members of Council have been previously furnished with a copy of the resolution and it would not be read.