City Council regular meeting — September 27, 2022

Background:

• This contract provides free Lead Testing for all City of Asheville Water Customers to help expand the Lead Awareness Education Program.
• The program will help customers determine if there is a lead issue with their household plumbing or service lines.
• The lead analysis is free for any City of Asheville Water Customer.
• The testing will help Water Resources identify any areas where lead could be present in the service lines and prepare for the Lead and Copper Rule Revisions that are effective October 16, 2024.
• Testing information collected will provide documentation to aid in applying for State grants or low interest loans to help replace service lines in affected areas, especially underserved communities.

Vendor Outreach Efforts:

• The City utilized standard outreach methods, including posting on the State’s Interactive Purchasing System.
• There were no commercial laboratories certified by the NC State Laboratory of Public Health to analyze lead in drinking water in the City’s database.
• An informal bid request was performed.
• Seven laboratories provided bids.
• None were Minority/Women-Owned Business Enterprises.
• Environmental Testing Solutions was awarded the contract.
• The vendor met all bid request requirements, were the lowest bidder, and are a locally owned small business. Committee(s):
• N/A Pro(s):
• The testing program will inform water customers about potential lead in their homes.
• The testing information will help Water Resources gain a better understanding of potential areas of concern. Con(s):

None Fiscal Impact:

• Water Resources will enter into a three year contract with Environmental Testing Solutions for $125,000.00.

Background:

• The City will enter into an interlocal agreement with Buncombe County to give the authority to retain professional services for various feasibility studies (cost/benefit, utility infrastructure, environmental impact, service impact, etc.) of installing a floating solar energy system on the North Fork Reservoir.
• Buncombe County will manage vendor outreach, procurement, agreements for all professional services required and all fees associated with such services.
• The City will coordinate with Buncombe County staff and associated vendors to schedule access to the site and provide relevant information.
• The City will have a role in determining feasibility studies to be conducted.
• Feasibility of a floating solar system will also be considered concurrently for Lake Julian.
• The City does not own this site. Pro(s):
• Supports Resolution 18-279 Establishing a 100% Renewable Energy Goal
• Supports Resolution 20-25 Declaration of a Climate Emergency
• Action prioritized in Moving to 100% Renewable Energy Roadmap Con(s):
• This is a complex site for a variety of reasons, it is of the utmost importance that Council and the community understand that this effort may not result in solar being installed on the North Fork Reservoir.
• Feasibility may be deemed impractical due to:
• A possible change in Water Supply I (WS1) designation (which is the most pristine designation available). North Fork Reservoir is the largest and most important source of water for the City of Asheville and is recognized as one of the best water sources within the state of North Carolina.
• Any change in quality negatively impacts our ability to provide the best drinking water possible.
• Lack of compliance with existing view shed agreement with the Blue Ridge Parkway
• Ability to maintain security of our source of water at the reservoir which is currently highly restricted.
• Impacts on endangered wildlife. Resident Bald Eagles use this reservoir, which may be impacted by a project of this nature.
• Restrictions or potential requirement coming from the easement with the Conservation Trust of North Carolina
• Lack of available utility infrastructure to connect to the utility grid
• Ability to withstand water fluctuation in extreme weather conditions (most recently Tropical Storm Fred)
• The cost of the project may outweigh the benefits and funding has not been currently identified

Fiscal Impact:

• No City funds will be utilized to complete this study.
• Buncombe County has budgeted $150,000 in total for studies at both North Fork Reservoir and Lake Julian. Buncombe County will provide 100% of the funding required for the feasibility studies and the only cost to the City will be through dedicated staff time.

Background:

• The City of Asheville Public Works Streets Division administers the Street Cut Utility Program.
• This program is an enterprise fund that is supported by the participation and work generated by partner agencies (Duke Energy, Dominion Energy, City of Asheville Water Resources, and City of Asheville Stormwater Division).
• As part of this program, both internal and external utilities partner with the Streets Division to make repairs to City-owned infrastructure that results from utility improvements and repairs.
• At times these activities cut concrete infrastructure such as curbs and sidewalks.
• When this occurs the Utility Cut Program must have a method to address these areas.
• This contract serves as an instrument to address the unpredictable nature of these cuts in the City infrastructure, and eliminates the possibility of City employees being removed from the more routine scheduled maintenance of existing infrastructure.
• The quantity and location of the concrete repairs performed under this contract is dictated by development and repair work performed by the partner utilities.
• This is the tenth year that a private contractor has performed this service.
• The contract was advertised on July 29, 2022 and bids were scheduled to be opened on August 18, 2022.
• Only one bid was received.
• On the first scheduled bid opening the City is required to receive at least three bids to open.
• The contract was readvertised on August 19 th and the opening was scheduled for September 1 st .
• The following bid was received: Appalachian Paving and Concrete, Inc. of Swannanoa, NC: $266,125.00
• The contract work is expected to begin during the middle of October and to take approximately one calendar year to complete.

Vendor Outreach Efforts:

• Staff performed outreach to minority- and women-owned businesses through solicitation processes which include posting on the State’s Interactive Purchasing System and requiring prime contractors to reach out to Minority & Women-Owned Business Enterprise (MWBE) service providers for subcontracted services.
• Staff also checked the City of Asheville list of certified MWBE business, the NC Historically Underutilized Business database, and the NCDOT MWBE database for potential contractors.
• Only two companies from an identified disparity group were found in the ten-county area and staff directly contacted those companies.
• The companies did not bid for this contract. Committee(s):
• None Pro(s):
• Provides for the timely repair of concrete infrastructure that has been damaged by the installation of utilities. Con(s):

None Fiscal Impact:

• The Street Cut Utility Program is an enterprise fund that is funded by fees paid by the four partners participating in the program.
• The partners will be billed 100% of the repair cost, meaning that the City realizes full cost recovery.
• Funding for this contract is available in the Street Cut Utility Fund operating budget.

Background:

• The City applied for a transportation planning grant from the French Broad River Metropolitan Planning Organization (FBRMPO) in January 2022 for the purpose of conducting a multimodal transportation planning study for the East Patton Corridor, roughly between the Jeff Bowen Bridge and Pritchard Park.
• The purpose of the study is to evaluate the NCDOT design for the corridor that is part of the larger I-26 project and identify opportunities for multimodal transportation and placemaking improvements, such as sidewalks, bike lanes, greenways, public spaces and transit, as well as enhance connectivity to existing residential neighborhoods and mixed-use centers, and manage or possibly reduce regional vehicular traffic on Patton Avenue east of the Jeff Bowen Bridge.
• The City Council approved Resolution 22-1 at their meeting held on January 11, 2022, authorizing staff to submit an application requesting $350,000 in grant funds with a 20% match ($70,000), however, the FBRMPO awarded only $220,000, therefore the City’s match is $44,000.
• The total appropriated amount is $264,000.
• The Council resolution also authorized the City Manager to execute the necessary agreements with the FBRMPO if funds were awarded.
• This action is to authorize a budget amendment to accept the grant funds and allocate the required matching funds.
• Approval of the budget amendment will allow the City to execute the grant agreement with the FBRMPO and begin work on the study.
• The Planning and Urban Design Department is the lead department and the Transportation Department will provide support. Committee(s):
• None Pro(s):
• This is an opportunity to design optimal safety and aesthetically pleasing multimodal transportation connections between the I-26 Connector project and Patton Avenue as it enters downtown after crossing the Jeff Bowen Bridge.
• This is an opportunity to create a welcoming gateway on the west side of downtown Asheville.
• The study area, particularly at the intersections of Patton Avenue and Clingman and Hilliard and Clingman are areas where multiple greenways converge.
• This project will allow safer crossings and connections for the greenways.
• There will be grant opportunities to assist with the funding once it is added to the City of Asheville’s Capital Improvement Project (CIP) list. Con(s):
• This study will create a design that will need to be implemented by the City of Asheville.

Fiscal Impact:

• Funding for the required $44,000 City match has been identified within the current General Fund operating budget.

Background:

• The Asheville Police Department (APD) entered into a new, consolidated, five year contract with Axon on December 15, 2020 for our existing Body Worn Camera/Taser program, Fleet vehicle in-car camera program, and our Interview Room platform.
• APD had previously been managing three separate five year Axon contracts for these programs.
• Each contract had a different start and end date as well as different invoicing dates.
• The intent of creating the new five year contract was to not only simplify the management of these different contracts into one document with one annual invoice, but also afforded APD the additional benefit of locking in the 2020 price points for the five year life of the new consolidated contract.
• When Axon generated the consolidated quote for the new contract, the original five year term for licensing (Unlimited Annual Payment) from each original contract was retained instead of extending them through the end of the new five year contract’s term.
• These Unlimited Annual Payments include unlimited storage on Evidence.com, product warranties and licensing of equipment.
• This contract amendment will add these required missing fees for our Fleet vehicle cameras for the last three years of the contract as well the missing fees for our Interview Room platform for the last year of the contract at the price points they would have been originally included at back in 2020.
• These fees should have been included in the new five year contract in December of 2020 and we are asking to add them in now at the same price point they were quoted when the contract was initiated.
• The total increase in cost over the final three year period of the contract to correct this oversight is $345,990.68.
• City Council approval is required.

Vendor Outreach Efforts:

• Axon is the current vendor for the body camera/taser program and utilizes pricing per the OMNIA Cooperative Contract.
• Due to pricing from a cooperative contract, no outreach to minority and women owned businesses was conducted. Committee(s):
• Public Safety Committee
• 9/27/22 Pro(s):
• Increase safety by continuing to provide equipment beneficial to officers and the public
• Strengthen agency accountability and transparency to the public
• Reduce complaints and resolve officer involved incidents
• Identify and correct potential internal agency problems
• Benefit public safety by accurately documenting officer interactions and evidence collection
• Used in policy compliance checks such as consent search interactions and documentation
• Compliance with National best practices of using a BWC platform to document officer interactions
• Simplify the management of different contracts into one document with one annual invoice and locking in the 2020 price points for the five year life of the new consolidated contract Con(s):
• Increase in cost from the original 5 year agreement

Fiscal Impact:

• An additional $104,792.00 will be required in FY23 and FY24, and $136,406.68 in FY25. The additional funds needed for the current fiscal year will be allocated from within the existing APD budget.

Background:

• A disparity study determines whether a governmental entity is awarding public contracts in a manner that disportionately excludes or limits participation by minority, women‐owned, and disadvantaged business enterprises (M/WBEs).
• Such a study compares the utilization of M/WBEs with the availability of M/WBEs in the relevant market area.
• A disparity study is legally required for the City to continue its race and gender conscious Business Inclusion (M/WBE) program.
• Asheville’s most recent disparity study was conducted in 2018 covering fiscal years 2012 through 2017, reviewing the City’s contractual awards in construction, goods, services, architectural, and engineering services.
• In April 2019, the study was presented to the Asheville City Council and indicated that both women-owned businesses and minority-owned businesses (African American, Hispanic, Asian, and Native American owned businesses) showed substantial disparities on contracts that the City awarded during the study period.
• The 2018 Disparity Study established a strong basis in evidence that supports the use of narrowly tailored race- and gender-conscious procedures to more adequately address the ongoing effects of marketplace discrimination on City contracts.
• The study recommended race- and gender-conscious measures to address identified disparities.
• This Disparity Study provided the strong evidentiary basis needed for the City of Asheville to create a new Business Inclusion Policy which prescribes additional methods by which the City may achieve parity.
• The Asheville City Council adopted the policy on October 27, 2020, with an effective date of January 1, 2021.
• Pursuant to law, a new disparity study must be conducted at least every (5) five years in order to continue any race- and gender-conscious contracting program.
• The sunset provision within the Business Inclusion policy is November 1, 2023, so a new disparity study is needed to evaluate the effectiveness of the City’s Business Inclusion Policy and provide the legal justification for continuing the program, if warranted.
• Given this upcoming expiration, the City issued a Request for Proposals on July 14, 2022 for qualified vendors to complete a disparity study in keeping with current case law and appropriate statistical research methodology, utilizing the time frame of July 1, 2017 through June 30, 2022.
• The study will determine the utilization of M/WBEs by the City for the appropriate time frame through a review of all or a statistically significant portion of the City’s respective contracts for General Services, Professional Services, Construction and Repair, and procurement of goods.
• The results of the disparity study will provide recommendations for updates of the City’s goals, market area and recommendations for changes in the current Business Inclusion Program.
• The RFP review team consisted of representatives from the following departments: Community and Economic Development, Capital Projects, Equity & Inclusion, and IT Services
• Office of Data & Performance.
• The selection criteria included: Experience and qualifications of the firm and proposed staff, relevant experience & references, proposed project plan, proposed cost, overall proposal & completeness.
• Interviews with the firms were also conducted by the review team.
• After a thorough review of the submitted proposals, Miller 3 Consulting, Inc. was the top ranked firm of the selection team.

Vendor Outreach Efforts:

• The City utilized standard outreach methods, including posting on the State’s Interactive Purchasing System.
• The City received four proposals, three being Minority Business Enterprises.
• The selected firm is a minority-owned business. Committee(s):
• Planning and Economic Development Committee -- Sept. 12, 2022, information only, no vote was taken. Pro(s):
• Completion of a disparity study is required to maintain compliance with Federal law to continue any race- and gender-conscious contracting program.
• The results and recommendations of the FY23 Disparity Study will inform updates to the Business Inclusion Program to ensure it is compliant with all current legal requirements and best practices. Con(s):
• None identified

Fiscal Impact:

• Funding for this contract is available in the Community and Economic Development Department operating budget.

Background:

• The City of Asheville owns real property at PIN #9655-43-8306 on Mills Gap Road.
• A water tank is located on this site along with associated water distribution lines.
• NCDOT is requesting this easement in order to complete a road widening project that includes turning lanes at selected intersections.
• A six (6) foot sidewalk will be installed on the east side of the road.
• The project will also include corrections to ongoing drainage issues.
• NCDOT approached both the Water Resources Department and the Real Estate Office to process the easement.
• Water Resources has reviewed documents and plans to insure that there will be no damage to their infrastructure as a result of the project.
• The Real Estate Office reviewed the appraisal that has been certified by the state appraisal office and it was appropriately conducted.
• NCDOT is compensating the City $45,200 for the following:
• .189 acres of Right of Way
• .037 acres of Temporary Construction Easement
• .020 acres of Permanent Drainage Easement
• .226 acres of Permanent Utility Easement Committee(s):
• None Pro(s):
• The road in front of the City’s water tank will be improved along with its drainage system. Con(s):
• The land is unavailable for City use and NCDOT will be able to control what occurs within a portion of the City’s right of way.

Fiscal Impact:

• The City will receive approximately $45,200 for a road and drainage easement and right of way for the granting of this easement, which will benefit the Water Enterprise Fund.

Principal Planner Will Palmquist said that this is the consideration of an ordinance to conditionally zone 650 Caribou Road (Laurel Woods II) from RM-8 Residential Multi-Family Medium Density District to Residential Expansion/Conditional Zone for the purpose of constructing a 54-residential unit, multi-family building. This public hearing was advertised on September 16 and 23, 2022. Project Location and Contacts:

• The project site totals 14.73 acres located at 650 Caribou Rd (PIN 9657-10-3768).
• Owner: Asheville VOA Elderly Housing Inc. Summary of Petition: Project Site
• The project site consists of one property totalling 14.73 acres located at 650 and 652 Caribou Rd.
• The site is currently zoned Residential Multi-Family Medium Density (RM-8).
• Given the size of the project (over 50 residential dwelling units) a conditional zoning to the Residential Expansion (RES EXP) district is required.
• An existing two-story affordable senior-living multi-family development is located on the site with 51 dwelling units.
• The site is designated “Traditional Neighborhood” on the city’s Future Land Use (FLU) Map.
• A change in the FLU designation will not be required. Overall Project Proposal
• New building construction includes 54 senior-living dwelling units located in a new, three-story building.
• The project has been redesigned to site the proposed new building within the interior of the property and further away from neighboring properties.
• Other site improvements include expanded off-street parking and new sidewalks.
• All 54 units (100%) will be designated affordable for a minimum of 30 years.
• 32 units will be affordable at 80% Area Median Income (AMI).
• 17 units will be affordable at 60% Area Median Income (AMI).
• 5 units will be affordable at 40% Area Median Income (AMI).
• 12 of these affordable units will be set aside for project based vouchers. Site Layout and Design
• Maximum building height for multifamily buildings in the RES EXP district is 60 feet.
• The maximum building height of the proposed project is approximately 28 feet.
• Maximum density in the RES EXP district is 50 units/acre for this project, since at least 20% of the dwelling units are affordable at 80% AMI.
• The proposed project’s density is 7.1 units/acre, which includes the proposed and existing dwelling units.
• Front yard, rear yard and side yard setbacks of 15 feet are proposed as is required in the RES EXP district.
• Maximum impervious surface in the RES EXP district for multifamily uses is 80%.
• The proposed project would result in a total impervious area of 20%. Landscaping and Open Space
• Landscape requirements apply, including street tree, parking lot, building impact, and property line buffers.
• The RES EXP district requires a 20 foot-wide “Type A” landscape buffer where the subject property is adjacent to any other residentially zoned property, which will be required along the southern and northern property boundaries.
• The project is proposing an alternative compliance for the required landscape buffer of 40-feet in width along the northern property boundary and a portion of the southern property boundary.
• This alternative compliance option is allowed when an undisturbed area is greater than twice the required buffer width, the number of required plant material in a buffer may be reduced by 50 percent.
• The project is classified as “urban” under the Tree Canopy Preservation standards and has a classification of “Class B”.
• The existing tree canopy is 63.8%.
• The project is required to preserve 10% of the existing tree canopy and is proposing to preserve 57.7% of the existing tree canopy.
• Open space is required at a rate of 15% of the site, resulting in 2.2 acres of open space, with at least one 10,500 square foot area that provides park or plaza-type features.
• The project is providing 11.8 acres of open space. Access, Sidewalks and Parking
• Access to the site will be provided by an existing driveway located on Caribou Rd.
• A total of 105 parking spaces are proposed for the new and existing dwelling units.
• Based on the total number of dwelling units at the existing and proposed buildings, as well as the type of units which are a combination of 1-bedroom and 2-bedroom units, the minimum/maximum number of required parking spaces is 105/210 for the RES EXP district.
• The RES EXP district requires new 10 foot-wide sidewalks be constructed, both along the primary access corridor and internally throughout the site.
• The project is proposing a new five foot-wide sidewalk with a five foot-wide planting strip along the site’s frontage on Caribou Rd.
• The project is proposing five foot-wide sidewalks internal to the site. Technical Modifications
• The project is seeking technical modifications to development standards through the conditional zoning process including:
• Five foot-wide sidewalks along Caribou Rd and internal to the site instead of the required 10 foot-wide standard.
• No bike lanes into the development. Consistency with the Comprehensive Plan and Other Plans: Living Asheville Comprehensive Plan (2018)
• The proposed development supports a number of goals in the Living Asheville Comprehensive Plan, including:
• Encourage Responsible Growth
• by prioritizing greater densities of development overall, throughout the city as appropriate.
• Increase and Diversify the Housing Supply
• by increasing the supply of housing, including affordable housing in proximity to schools, transit and parks.
• Make Streets More Walkable, Comfortable and Connected
• by eliminating gaps in the city-wide sidewalk network.
• The proposed development is compatible with the Future Land Use designation of “Traditional Neighborhood” which is proposed, in part, as “a mix of housing types such as single family with accessory dwelling units, duplexes, townhomes and multifamily apartments usually located seamlessly together”. Shiloh Community Plan 2025
• The Shiloh Community Plan (adopted in 2010) provides goals and strategies for the neighborhood to achieve its long-term vision.
• The proposed development supports a number of goals and strategies in the plan, including:
• Quality of Life Goal #3: Work to improve the livability of our neighborhood – particularly housing and safety.
• Strategy 2. Improve pedestrian accessibility throughout the neighborhood, by supporting the development of sidewalks along Caribou Rd.
• Land Use Goal #2: Provide assistance for affordable housing and home improvement.
• Strategy 2. Explore opportunities for the construction of affordable housing in the Shiloh community.

Compatibility Analysis:

• The proposed multi-family residential project is compatible with the surrounding land uses, including:
• The existing, 51-unit affordable, senior-living multi-family development on the site.
• The Dawnwood Condominiums development, located directly across the site on the west side of Caribou Rd, which consists of 12 two-story, multi-family buildings.
• Suburban commercial uses located along Hendersonville Rd further to the west.
• The surrounding single-family houses throughout the Shiloh neighborhood. Committee(s):
• Technical Review Committee (TRC)
• July 18, 2022
• approved with conditions.
• Planning & Zoning Commission (PZC)
• August 3, 2022
• continued to 9/7 PZC meeting.
• Planning & Zoning Commission (PZC)
• September 21, 2022
• approved, 4:0.

Staff Recommendation:

• Staff recommends approval of this rezoning request based on the reasons stated above. Mr. Palmquist reviewed the existing and proposed zoning maps, along with the aerial imagery and future land use map. Regarding the overall site plan is (1) existing 2-story, 51-unit senior-living, multi-family housing; (2) new, 3-story, senior-living; (3) 54 new dwelling units (100% affordable); (4) existing driveway access; (5) 105 total parking spaces total; (6) sidewalks: 5’-wide with 5’-wide planting strop on Caribou Road, 5’-wide internal sidewalks; (7) landscaping and open space standards; and (8) tree canopy preservation standards met on-site. He showed some building elevations along with a street view rendering. Regarding conditions, (1) all 54 units (100%) will be designated affordable for a minimum of 30 years (a) 32 units will be affordable at 80% Area Median Income (AMI); (b) 17 units will be affordable at 60% AMI; (c) 5 units will be affordable at 40% AMI; and (d) 12 of these affordable units will accept housing choice vouchers; and (2) technical modifications include (a) 5’-wide sidewalk with 5’-wide planting strip along Caribou Road and 5’-wide sidewalk internally instead of the required 10’-wide standard; and (b) no bike lanes into the development. He outlined the review process and how the project complies with the Living Asheville Comprehensive Plan and the Shiloh Community Plan 2025. Staff concurs with the Planning & Zoning Commission and recommends approval of the proposed conditional zoning. Councilwoman Roney said that during future technical reviews, she hoped that staff would consider that if there are no bike lanes into the development, that means no bike lanes outside of the development
• which might eliminate easy access to parks, grocery stores, etc. on bikes or even electric bikes. In response to Councilwoman Roney regarding any plans for solar, Ms. Riveira said they have no plans for solar as it is a cost issue. They are, however; working with Duke Energy Design Assistance and will partner with them to do anything they can within their budget. She noted that they will be installing new windows in the existing units and are also maintaining many trees. Mayor Manheimer opened the combined public hearing at 6:25 p.m. Ms. Sophie Dixon and Ms. Norma Baynes expressed concerns of wanting their residential single-family neighborhood to remain single-family residential; assurances that the development will remain for seniors; traffic congestion from 167 new units in their area; whether infrastructure in the area will be sufficient for all the new development; and need to keep the rate it is for seniors which is according to their income. Mayor Manheimer closed the combined public hearing at 6:30 p.m. Mr. Palmquist explained that multi-family means multiple units in the same building. Ms. Riviera explained about who can live and visit in the units, noting that the site will always be for seniors as it is deed restricted. Mayor Manheimer said that members of Council have previously received a copy of the resolution and ordinance and they would not be read.

Affordable Housing Specialist Kevin Lynn said this is the consideration of adopting a resolution approving the Volunteers of America’s (VOA) request for a $1.5 million Housing Trust Fund (HTF) loan with 2% interest and deferred for a period of 30 years and secured with a deed of trust, for the purpose of developing affordable housing. Background:

• VOA Asheville is pursuing a Low Income Housing Tax Credit development project for the rehabilitation and expansion of the existing Laurel Wood Apartments, located at 650 Caribou Road in the Shiloh neighborhood.
• As part of the facility’s rehabilitation and expansion, VOA is requesting a $1.5 million loan from the Housing Trust Fund with 2% interest, deferred for a period of 30 years to help finance the project.
• Total repayment to the Housing Trust Fund at maturity is estimated at $2,717,042.
• VOA provides affordable housing to seniors at the Laurel Wood Apartments and will continue to serve this population with the expanded facility.
• Laurel Wood Apartments currently provides affordable rental housing to individuals aged 62 and above.
• Following the facility expansion, housing will be made available to individuals aged 55 and above.
• Upon completion, the project will comprise 104 total units.
• The rehabilitation and expansion project will result in the rehabilitation of 50 existing one bedroom units and the construction of 54 new units that will be a mixture of one bedroom and two bedroom units. Proposal
• The rents will range in affordability from 40% of (Area Median Income) AMI to 80% of AMI, the average rent will be 60% of AMI
• VOA’s $1.5 million Housing Trust Fund request represents 6.6% of proposed total development costs.
• The timeline for the project includes starting construction late fall 2022 and completing construction in spring 2024.
• 12 of the new units will be set aside for project-based vouchers. Unit Mix/Affordability/Accessibility Matrix Count Bedrooms Bathrooms SF % of AMI 15 1BDR 1BATH 560 40% 35 1BDR 1BATH 560 50% 8* 1BDR 1BATH 660 60% 27* 1BDR 1BATH 660 80% 7** 1BDR 1BATH 660 60% 5** 2BDR 2BATH 900 40% 5* 2BDR 2BATH 900 80% 2* 2BDR 2BATH 900 60% New Construction **New Construction and set aside for Housing Choice Voucher holder Permanent Financing Source Amount Terms Percentage of Total Development Costs 1st Permanent Mortgage Boston Capital $8,370,000 16 year, 5% 36.87% 2nd Mortgage Asheville HTF 1,500,000 30 year, 2%, deferred 6.61 3rd Mortgage Buncombe County Loan 800,000 20 year, 2%, deferred 3.52 LIHTC Syndication Proceeds Boston Capital 8,857,282 In perpetuity, low income affordability compliance 39.01 Seller Note 2,610,000 In perpetuity
• Concurrent with LIHTC low income affordability compliance 11.5 Deferred Developer Fee 563,159 To be paid according to NCHFA guidelines 2.49 Total $22,700,441 100% Housing Trust Fund Policy Compliance Generally, the application falls within the Housing Trust Fund Policy. The developer is requesting special terms, and the average income of the project is at 60% AMI. The one exception to the policy is that the amount requested is above the current $1 million cap in the policy. 1. Maximum Loan Amount: The maximum loan amount available to each developer from the Housing Trust Fund is $20,000 per affordable unit, and the maximum loan per project is $1,000,000, unless otherwise approved by City Council due to unique features in the project that warrant terms outside of this policy (i.e. permanent affordability, location efficiency, etc.).
• The per unit subsidy is $14,300 if the loan is spread to cover the construction total of 104 units. Committee(s):
• Housing & Community Development
• 9-20-22
• 3-0 to move to City Council Pro(s):
• This funding will support the development of affordable housing units in the City.
• Affordability period will be in perpetuity
• This project aligns with the City of Asheville’s Consolidated Plan goals of prioritizing rental housing affordable to 60% AMI and below. Con(s):
• The project exceeds the current $1 million cap in the Housing Trust Fund Policy.

Fiscal Impact:

• Staff estimates that the current available balance in the Housing Trust Fund is approximately $2.15 million.
• If City Council approves this $1.5 million appropriation there will be an estimated available balance of approximately $650,000.
• Staff expects the previous Restaurant Court/Beaucatcher Vistas project funding to be rescinded, which would add $1 million to the total available funds, for a total of $1.65 million. Staff Recommendation: Staff recommends approval based on the following:
• Refurbishment of an existing 50 unit, affordable senior housing facility (will serve households aged 55 and over after the rehabilitation and expansion project is complete) that has operated successfully for three decades
• Construction of 54 new affordable units
• Set-aside of twelve new construction units for project based vouchers.
• Asheville HTF loan will represent 6.6% of total development costs.
• VOA is a longstanding affordable housing owner/operator in our community with a proven track record nationwide. Mr. Lynn said the key takeaways from this presentation are (1) Volunteers of America (VOA) is requesting $1,500,000 for a Low Income Housing Tax Credit (LIHTC) project at 650 Caribou Road; (2) VOA is requesting a loan with 2% interest and deferred for a period of 30 years, secured with a Deed of Trust; (3) Project is 100% affordable with 54 new units and 51 existing units (total of 104 units plus a property manager unit), with a mix of incomes at 80% Area Median Income (AMI) and below; (4) The developer has engaged the Shiloh neighborhood and made adjustments to their site plan in response to the feedback received; and (5) Staff recommends approval by City Council. Regarding the background, (1) The Laurel Wood Apartment Project will build 54 new affordable rental apartments and renovate 51 existing units in the Shiloh neighborhood (one existing unit is for the property manager); (2) The site comprises 14.73 acres; (3) The units will be a mix of 1 and 2 bedroom; and (4) The project is 100% affordable, with an affordability mix ranging from 40% AMI to 80% AMI. Regarding the request for funding, (1) Laurel Wood Apartments provides housing for seniors and will continue to serve this population following the rehabilitation and expansion project
• Upon project completion, the population served will be households aged 55+; (2) Volunteers of America is requesting a loan of $1.5 million with 2% interest and deferred for a period of 30 years, secured with a Deed of Trust
• $2,717,042 in principal and interest would be due at maturity; and (3) The affordability period will be in perpetuity. Using a chart, he showed the proposed units and income mix; along with proposed sources of funding. Analysis of the Housing Trust Fund policy is (1) Project is renovating 50 existing units and constructing an additional 54 units, resulting in 104 total units that are 100% affordable serving households aged 55+
• The project also includes one existing manager unit, which will also be rehabilitated; (2) Affordability period will be in perpetuity; (3) Under the current proposal for $1.5 million, the subsidy is $27,777 per unit if only counting the new construction units. The subsidy is $14,400 if counting 104 units; (4) The City’s portion of the total development costs represents 6.6%, which is good leverage of City dollars; (5) At loan maturity date, repayment of funds will total $2,717,042; and (6) Under the Housing Trust Fund Policy, special terms are available to projects where 100% of the units are for households at or below 60% AMI (a) This project has 30% of the units for those at 80% AMI; and (b) The average income of residents is 60% AMI, complying with North Carolina Housing Finance Agency guidelines. The exception is the updated request is over the $1 million Housing Trust Fund Policy cap. He said the Housing and Community Development Committee reviewed the request on Tuesday, September 20, and voted 3-0 in favor of the Housing Trust Fund request. Staff recommends approval based on the following: (1) Refurbishment of an existing 51 unit, senior affordable housing facility (will serve households aged 55+ after construction) that has operated successfully for three decades; (2) Construction of 54 new affordable units; (3) Set-aside of six new construction units for Housing Choice Voucher holders; (4) The requested City of Asheville HTF loan will comprise 6.6% of total development costs; and (5) VOA is a longstanding affordable housing owner/operator in our community with a proven track record. When Councilwoman Roney acknowledged that VOA is meeting the minimum requirements for providing vouchers, she asked if VOA would be willing to provide 100% vouchers for 60% AMI and below, Ms. Noemi B. Riveira, representing VOA, said that they have a commitment under their financing for vouchers for 12 units. Councilwoman Turner said that the Housing & Community Development Committee will be amending the Housing Trust Fund Policy, and the number of vouchers and the cap for funds will be topics during those discussions. PUBLIC HEARING TO CONDITIONALLY ZONE 650 CARIBOU ROAD (LAUREL WOODS II) FROM RM-8 RESIDENTIAL MULTI-FAMILY MEDIUM DENSITY DISTRICT TO RESIDENTIAL EXPANSION/CONDITION ZONE

Background:

• The U.S. Department of Housing and Urban Development (HUD) Continuum of Care program provides federal resources to local communities for homeless and housing programs.
• Communities access funding by applying together through a designated lead agency, called the Collaborative Applicant.
• The City of Asheville is the Collaborative Applicant for the NC-501 Asheville-Buncombe Continuum of Care, and is responsible for submitting the Consolidated Application to HUD, which consists of individual project applications submitted by local agencies and a narrative application describing the community’s collective efforts to end homelessness.
• Each Continuum of Care has a designated Governance Board responsible for reviewing and ranking local project applications and making funding recommendations to HUD.
• The Homeless Initiative Advisory Committee (HIAC) serves as the Governance Board for the NC-501 Asheville-Buncombe Continuum of Care.
• The notice of funding opportunity was posted on the City’s website August 8, 2022 and distributed widely.
• Project applications were received from Homeward Bound, Helpmate, and the City of Asheville.
• Project applications were reviewed, scored, and ranked by the Finance Workgroup of HIAC.
• At its September 13, 2022 meeting, HIAC unanimously approved the Finance Workgroup’s recommendation to submit project applications totalling $1,977,474 to HUD.
• The recommendation includes renewal funding of existing grants awarded to the City of Asheville to operate the Homeless Management Information System on behalf of the community ($63,744) and a non-competitive Planning Grant to fulfill its duties as Collaborative Applicant ($55,034).

Vendor Outreach Efforts:

• N/A Committee(s):
• Homeless Initiative Advisory Committee
• unanimously voted to approve the Consolidated Application, including recommending specific funding amounts for each applicant, at its September 13, 2022 called meeting. Pro(s):
• Renews federal resources for housing programs that help people exit homelessness
• Supports Council priority on Houselessness Strategies Con(s):
• None noted

Fiscal Impact:

• If awarded, the City will receive $55,034 in Planning costs to fulfill its role as CoC Lead and $63,744 to operate the Homeless Management Information System (HMIS).
• Both grants are renewals of existing funding.
• These grants are budgeted as part of the annual budget process.

Background:

• Battery Park (TC2) Senior Housing Limited Partnership (the “Borrower”) has requested that the Asheville Housing Authority (the “Issuer”) issue up to $20,000,000 in multifamily housing revenue bonds for the acquisition and rehabilitation of Battery Park Apartments.
• Battery Park is a 100% subsidized senior housing community for residents aged 62 and older, located at 1 Battle Square in downtown Asheville, consisting of one, 14-story building with 122 affordable apartments (113 one-bedrooms and 9 two-bedrooms).
• The building was originally constructed in the early 1920s as the Battery Park Hotel and underwent an extensive adaptive reuse in the 1980s to allow for affordable housing.
• The property has been listed on the National Register of Historic Places since 1977.
• The property has been well maintained and managed by National Church Residences, but has not undergone a substantial renovation since 2005.
• The rehabilitation will address critical capital needs of the building to improve safety, accessibility and extend its useful life.
• All 122 units at Battery Park are currently, and will continue to be, covered by a long-term Section 8 Housing Assistance Payment project-based subsidy making them affordable to households at and below 60% AMI.
• Construction is scheduled to commence in September 2022 and will have a duration of approximately 16 months.
• The Internal Revenue Service requires that any bonds issued by the Housing Authority for developments such as this have the financing plan approved by the City Council, following a public hearing with respect to such plan.
• Staff notes that approval does not obligate the City in any way to issue or pay for the bonds, or for any debt taken on by the developer.

Council Goals:

• Quality Affordable Housing Pro(s):
• 122 units of affordable senior housing will be preserved and renovated. Con(s):
• None.

Fiscal Impact:

• This action requires no City resources and has no fiscal impact.

City Attorney Branham said that this is the consideration of adoption of a resolution authorizing the City Manager to enter into an interlocal agreement with Asheville City Board of Education regarding the maintenance of donated playground equipment at Jones Park. Background:

• The Asheville City Board of Education approved an interlocal agreement on September, 19, 2022 to establish the responsibilities of each party related to the ownership, installation, & maintenance of donated playground equipment at Jones Park.
• The Asheville CIty Board of Education owns property located at 544 Kimberly Avenue, Asheville North Carolina, 28804 commonly known as "Jones Park,"
• Community members have offered to make a financial donation to the School Board to be used exclusively for construction of the playground equipment at Jones Park in its entirety.
• The School Board agreed to appoint Buncombe County ("County") as its agent for construction activities including all necessary bidding and construction activities for the renovation of the playground.
• Upon completion of the installation of the playground the City agrees to oversee maintenance and repair of the playground equipment for a period of 20 years.
• The School Board will continue to maintain the grounds inside and outside of Jones Park (i.e., mowing, trash)
• The City shall maintain adequate property & casualty insurances for any playground equipment installed at Jones

Park Vendor Outreach Efforts:

• Not applicable Committee(s):
• None Pro(s):
• Establishes the expectations for the responsibility of the City as they relate to the ownership, installation, & maintenance of donated playground equipment at Jones Park.
• Supports City Council’s FY 2022-23 Neighborhood Resilience and Improve and Expand Core Services priorities through partnership with the Asheville City Board of Education. Con(s):
• Funding was not planned in the FY23 budget for maintenance of Jones Playground.
• Places liability on the City for playground equipment

Fiscal Impact:

• Any maintenance required for this playground equipment will be funded from within the existing Parks & Recreation operating budget. City Attorney Branham said the key takeaways from this presentation will be (1) Proposed Interlocal Agreement between the City of Asheville and the Asheville City Board of Education (“ACS”) will allow for the construction and ongoing maintenance of the playground; (2) Construction of the new playground will be managed by Buncombe County, and the land will continue to be owned by ACS; (3) The cost of construction will be funded fully by private donations; and (4) The City’s responsibility will be limited to maintenance of the playground equipment until the end of the useful life of the equipment and removal thereafter. The background is that (1) The Jones Park playground previously was located on property owned by Asheville City Schools (ACS) near the Ira B. Jones School; (2) The playground was removed due to safety and maintenance concerns in 2021; (3) Thereafter, community members offered to make a financial donation to ACS to fully fund the construction of a new playground at this site: (4) The Asheville City Board of Education voted unanimously last week to enter into an interlocal agreement with the City of Asheville to construct a new playground and ensure its maintenance for the useful life of the equipment; and (5) City staff, including representatives from Parks and Recreation as well as the City Attorney’s Office have reviewed the terms of the agreement and support it. Regarding the interlocal agreement terms (1) ACS will accept the private donation to fund the playground construction; (2) Selection of the construction firm and oversight of the work will be managed by Buncombe County pursuant to existing agreements with ACS; (3) ACS will continue to own the property including land and the playground equipment; (4) Upon completion of construction, the City of Asheville will assume responsibilities for maintenance of the playground equipment consistent with Parks’ policies and procedures; (5) The City of Asheville will be responsible for removal of the equipment at the end of its useful life (estimated to be 20 years), unless agreement is determined by ACS; (6) ACS will continue to be responsible for mowing, trash removal, and mulch replacement; (7) City’s liability will be limited to any damages resulting from use of the playground equipment; (8) NOTE: City also maintains the authority to jointly approve the playground design; (9) Either party may terminate the agreement with 180 days notice, but will incur responsibility for equipment removal; and (10) At the end of the useful life of the equipment, and removal, the City will have no further responsibility for Jones Park or the playground. Regarding the City of Asheville’s financial considerations, (1) City of Asheville will maintain adequate property & casualty insurances for any playground equipment installed; (2) Playground equipment maintenance will be funded from the existing Parks & Recreation operating budget; (3) Removal costs are unknown at this time, but the recent playground removal costs were approximately $10,000; and (4) City incurs no costs for construction or site maintenance beyond the equipment itself. Councilwoman Mosley reiterated the horrific story of Candice Pickens (23 years old) and her 3-year old son Zachaeus who were shot at Jones Park on May 11, 2016. Unfortunately Ms. Pickens died, but her son lived after being shot in the face. When she thinks of Jones Park, she remembers Candice and her son. She suggested some type of memorial for her at the site. She was surprised at the pushback at this request, especially since we pride ourselves as being a community of being open, inclusive and since we talk alot about the need for equity. When this issue about maintaining Jones Park was approved by the School Board, two members wanted to start a discussion about naming the park. Therefore, she moved to authorize the City Manager to enter into an interlocal agreement with Asheville City Board of Education regarding the construction and maintenance of a playground at Jones Park and that the Park be renamed after Candice Pickens. This motion was seconded by Vice-Mayor Smith. Mayor Manheimer wanted to make it clear that Jones Park remains school property and that the Asheville City Board of Education will have to make the ultimate decision on the naming after it moves through their naming process. Three individuals spoke in support, and one in opposition, of the City maintaining the donated playground equipment at Jones Park. Ms. Keesha Martinez, mother of Candice Pickens and grandmother to Zachaeus, spoke about Candice’s fine qualities and how she made a positive impact on others. She would be honored to have Jones Park named after her daughter. Councilwoman Roney thanked Councilwoman Mosley for leadership with the renaming amendment. For anyone questioning this action, this is an example of cross-jurisdiction leadership to advance partnerships with our neighborhoods, which is an example of what our community expects us to do. Next, a path to do the same might be plainly outlined for Walton Street, Ravenscroft Reserve, and community gardens. This is an example of important work well done. Mayor Manheimer said that members of Council have been previously furnished with a copy of the resolution and it would not be read. The motion made by Councilwoman Mosley and seconded by Vice-Mayor Smith carried unanimously.

Department’s 10-year Capital Improvement forecast. This motion was seconded by Councilwoman Mosley and carried unanimously.