Asheville City Council recorded 19 votes at its regular meeting on May 12, 2026; 2 drew at least one no vote and 1 failed. Most items concerned Zoning & Land Use, Transportation and Housing.
Voting: Bo Hess, Esther E. Manheimer, S. Antanette Mosley, Kim Roney, Sheneika Smith, Sage Turner, Maggie Ullman.
19recorded votes
2split votes
1failed
0members absent
Split votes
Item VI-B-1 · RES 26-97 / RES 26-98 / ORD 5222 · Housing · Resolution
Combined motion: declare/reaffirm protection of civil liberties; authorize application for the Community Project Funding Award (Byrne Justice Grants); and adopt budget amendment of $1,141,255.56
Passed6–1 · Moved by Bo Hess, seconded by Maggie Ullman
- Resolution of the Asheville City Council to declare and reaffirm the protection of civil liberties of all residents and visitors in the collection and use of data obtained through the utilization of public facing cameras, license plate readers, and the operation of a real-time intelligence center
The resolution reads in part that “The City’s use of public safety tools shall be solely for lawful purposes, which are intended to enhance or provide for public safety, and shall not offend any constitutional or other legal right. These public safety tools shall not be used, or permitted to be accessed by any third party, in any manner that fosters discrimination, bias, or unwarranted invasions of privacy. The City shall take all reasonable steps, through policy and action, to prevent unauthorized sharing of data, general surveillance of the public outside of a criminal investigation or other legally authorized activity, or unnecessary storage of data obtained through the use of these tools. The City shall not apply these public safety tools in a manner which utilizes facial recognition, nor to target any individual or group based upon race, skin color, national or ethnic origin, gender, sexual orientation, mental or physical disability, religious or political opinion or activity, immigration status, whether they are currently experiencing homelessness, or any other unauthorized reason. The City shall further remain accountable and transparent in its actions to the extent permitted by law with respect to the use of these systems, the data collected, and the sharing of information with third parties. The access, and specific accessor, of any public facing camera or license plate reading system shall be documented and maintained to allow for subsequent audit and oversight. The storage of data collected by the City while utilizing these tools shall have a duration no longer than specified by State law, and shall not be kept beyond the expiration of the legal purpose for the data’s original collection. In the absence of state, interstate, or international criminal or national security investigations, the City shall not utilize these public safety tools to participate in enforcement of federal immigration law. This resolution is intended to encourage community trust in the City’s commitment to the utilization of its public safety tools and systems only when reasonably balanced with its duty to protect and preserve the civil liberties of the individuals who make up this community. The City Manager shall take all reasonable and prudent measures to implement these policies and ensure compliance therewith, and a report shall be provided to the City Council, at least annually, on the use of these public safety technologies and any actions taken to ensure alignment with the Council direction outlined in this resolution.” B.2. Resolution Number 26-98
Resolution authorizing the City Manager to apply for, accept, and sign all of the appropriate application and acceptance documents for the Community Project Funding Award allocated to the City of Asheville as secured through Congressman Chuck Edward’s Office and managed through the Department of Justice Office of Justice Programs, Byrne Justice Grants- Ordinance Number 5222
Budget Amendment in the City’s Special Revenue Fund for the Community Project Funding Award Allocation
Staff Report: Consideration of a resolution authorizing the City Manager to apply for, accept, and sign all of the appropriate application and acceptance documents for the Community Project Funding Award allocated to the City of Asheville as secured through Congressman Chuck Edward’s Office and managed through the Department of Justice Office of Justice Programs, Byrne Justice Grants; and adopt a budget amendment in the City’s Special Revenue Fund in the amount of $1,141,255.56.
APD was contacted in April 2024 by a representative from Congressman Chuck Edwards’ office regarding potential funding for Fiscal Year 2025 appropriations.
APD completed a questionnaire from Congressman Edwards’ office requesting funding to help implement a Real-Time Intelligence Center (RTIC). This funding would be to procure equipment, software, and hardware to establish a RTIC.
Authorization from the City Manager’s office to request funding was submitted on May 22, 2024.
The Fiscal Year (FY) 2025 Appropriations request was not signed into law due to a year-long continuing resolution and had to be resubmitted by Congressman Edwards for FY 2026.
APD was notified in February 2026 that $1,141,256.00 in funding had been secured in the FY 2026 Appropriations Bill.
The award conditions, allowable uses, compliance requirements, and onboarding steps will be set at the Federal level.
Once received, City staff will review the terms and determine the City’s ability and willingness to comply. This review will take into account any direction provided by the City Council
Even though the CPF is part of an appropriations law and not a typical competitive grant, most agencies require a formal application and acceptance process before funds are obligated. Once formal guidance on this is released, the procedural steps for recipients will begin, and APD will follow DOJ processes to receive funding.
A city-owned RTIC will serve as a centralized hub, bringing all existing and private camera feeds into a single location, prioritizing the safety of officers, residents, and the broader community.
The RTIC will strengthen the operational effectiveness of the APD by improving coordination, increasing efficiency, and enhancing overall public safety. B.3. Resolution Number 26-99
Resolution authorizing the City Manager to execute on behalf of the City of Asheville a contract with Axon Enterprises, Inc to bundle all existing agreements for Asheville Police Department’s current inventory of Body-Worn Cameras, Tasers, Drones, Lightpost, and Interview Room equipment, warranties, licensing, and cloud storage for all, and add FUSUS software, utilizing the pricing offered through Sourcewell cooperative contract
Staff Report: Consideration of a resolution authorizing the City Manager to execute on behalf of the City of Asheville a contract with Axon Enterprises, Inc to bundle all existing agreements for Asheville Police Department’s current inventory of Body-Worn Cameras, Tasers, Drones, Lightpost and Interview Room equipment, warranties, licensing, and cloud storage for all, and add FUSUS software, utilizing the pricing offered through Sourcewell cooperative contract.
APD has five separate agreements with Axon to provide Body-Worn Cameras, Tasers, Drones, Lightpost, and Interview Room, including equipment, warranties, licensing, and cloud storage for all.
APD reached out to Axon in response to the City’s request for cost-saving ideas for the FY27 budget.
Axon proposed a seven-and-a-half-year combined contract that offered the City of Asheville considerable savings for the first two years, while locking in current pricing for licensing, warranties, and cloud storage for an additional five and a half years through FY34.
APD’s current agreements will begin to expire in FY29 if left unbundled. Locking in pricing now will guarantee there is no significant increase in future costs for continued licensing, warranties, and cloud storage for our existing equipment and software.
By bundling Fusus into this contract with the other Axon products currently in use by APD, there are additional cost savings for Fusus of $46,948.25 over the life of the contract.
The FY27 cost of the existing agreements as they currently stand is $837,155.82. Bundling them into this new contract reduces the cost to $740,000.00 for FY27.
Additional cost savings for FY28 would be realized in a reduction from $856,418.41 to $777,500.00 under the new bundled contract.
The FY27 addition of FUSUS to the bundle is $467,602.15, which will be funded by the Community Project Funding (CPF) Award if approved by Council.
Council will review a budget amendment at this Council meeting to add $1,141,256 for the Community Project Funding Award.
No local match is required for this grant. Interim Chief Stepp took a few minutes to talk about the environment we’re operating in today. We are working in a setting of increasing demand and limited capacity. At the same time, we are operating without fully integrated real-time capability, meaning critical information is often fragmented, delayed, or spread across multiple systems and partners. We also continue to face staffing constraints that impact response times, investigative capacity, and proactive policing efforts. Officers and investigators are working harder than ever, often without the benefit of immediate, shared situational awareness. This is the reality of our current operations. And it’s why this discussion matters. This is not about buying technology. This is about improving emergency response, investigative efficiency, transparency, and officer accountability. Before discussing what this system can do, it’s important to understand what it will not do: No facial recognition; No general monitoring; No unrestricted access to private cameras; Defined retention schedules; and Full audit logs. This system is governed under CALEA-aligned standards through the Commission on Accreditation for Law Enforcement Agencies framework. In practical terms, that means it operates in accordance with nationally recognized best practices for law enforcement accountability, oversight, and professionalism. To be clear, we are aligned with the Council’s concerns around privacy, oversight, and preventing overreach. Public safety shouldn’t come at the expense of community values, and they won’t. The two can exist together. They are foundational to how this system is structured, how it is governed, and how it will be used. She hoped that we’ve demonstrated that through the proposed civil liberties resolution and the name change. However, sorry to report we cannot change the name because it has been signed into law, but once funding is received, my understanding is that there may be an opportunity to do that, and if so, she will follow through to change intelligence to information. With that context in mind, it’s important to step back from the technical discussion. We have spent a lot of time talking about systems, platforms, dashboards, and software, features, integrations, and specifications. But somewhere along the way, we’ve lost sight of what this is actually about. This funding supports accountable technology upgrades for emergency response and transparency. And more importantly, it supports outcomes. So with that in mind, let’s focus on what this is really about
it’s about community and officer safety; it’s about faster emergency response; it’s about accountability and transparency; it’s about stronger investigations; it’s about finding missing persons; it’s about handling evidence efficiently and responsibly; and it’s about governance and safeguards that ensure this is done the right way. This is not about software. It’s about victims. It’s about the mother waiting for answers after her child is taken. It’s about the officer trying to stop a violent offender before they strike again. It’s about the difference between acting in seconds and showing up minutes too late. A real-time intelligence center is not a technology project. It is a public safety function. It exists for one reason: to close the gap between what is happening and what we know about it—so we can act faster, smarter, and more effectively. Because crime does not wait for reports to be written. It does not pause for information to be entered into a system. It unfolds in real time. And when our response is delayed, incomplete, or disconnected, people get hurt. She then gave an example back in 2018 of an incident where a child was shot and no one came forward. Sadly, to this day, his case remains unsolved. Think about that for a moment. Not in terms of technology, but in terms of reality. That is the gap. Not effort. Not commitment. Information. This isn’t about adding another piece of equipment. It’s about making sure that when something like this happens, and unfortunately, it will, we are not standing in the dark, hoping someone speaks up. It’s about ensuring that silence is not the end of the investigation. Because in so many of our cases involving acts of violence, video surveillance provides critical evidence, helps identify offenders, and changes the trajectory of an investigation. And when we talk about modernization, this is what we mean. Not technology for technology’s sake, but the ability to see, to know, and to act when it matters most. Because when we strip everything else away, the technology, the terminology, the process, that is what this comes down to. Time.... Time to identify a suspect. Time to locate a victim. Time to intervene before violence escalates. And in policing, time is often the difference between life and death. So as she reviewed her presentation, she asked that we keep that perspective. Not what the system looks like. Not how it operates on a screen. But what it enables in the field. Faster decisions. Better coordination. Lives protected. Interim Chief Stepp then provided Council with the request of funding for software, hardware, and equipment to implement a Real Time Intelligence Center (RTIC). She noted that we applied for this grant to build an existing tool, Fusus, that the City of Asheville has funded since 2022. Additionally, a Justice Assistance Grant (JAG) was approved in March 2025 in the amount of approximately $60,000, to support the development of the RTIC. She then reviewed the funding timeline and said that funding was secured in February, 2026. She then reviewed the funding breakdown, along with the ongoing cost breakdown. She explained the RTIC (physical space) vs. Fusus (software platform. Fusus isn’t about watching people
it’s about helping first responders get to emergencies faster, better informed, solve crimes more efficiently, and keep the community safer with less intrusion, not more. She explained the Fusus definition of registry vs. integration, noting both are voluntary and can be revoked at any time. Axon Fusus neither has access to or retains data from an agency’s Fusus system. Axon Fusus will pull in the video stream, if connected through a FUSUS Core device. Fusus will not pull in the artificial intelligence (AI) technologies layered onto that device. Axon Fusus utilizes AI to rapidly search video provided to the system by users in order to mitigate criminal activity. AL may be utilized to automatically recognize weapons, vehicles of interest, etc. RTIC benefits include faster response; stronger investigations; enhanced safety; strategic focus; force multiplier; oversight and accountability; meeting Jury expectations; support for vulnerable areas; and promoting equity and accuracy. RTIC’s are not a standalone solution but agencies that have implemented them consistently show improved outcomes in response, case clearance, and targeted crime reduction efforts. She then read a letter from District Attorney Todd Williams dated April 30, 2026, who expressed his “support for receipt of federal funding to create a Real-Time Intelligence Center (RTIC). As our community addresses public safety challenges, we must adopt tools that preserve objective evidence, effectively utilize emerging technologies, and enhance both public safety and ensure civil rights. … By focusing on objective evidence and the preservation of facts, it is my hope that we can reduce cycles of violence and ensure that public safety means safety for all..” She also read a letter from Russ Ferguson, United States Attorney in the Western District of North Carolina dated May 12, 2026, in that it was his “belief that the City of Asheville and the Asheville Police Department would benefit from the establishment of a Real-Time Intelligence Center (RTIC). … I believe that every community deserves safety, and safety is a shared responsibility that includes law enforcement, clergy, community leaders, public health, non-profit organizations and others. Utilizing RTIC to its fullest capacity is value added to the Asheville Police, strengthens accountability and transparency to the community, and improves our response to victims of crime.” Interim Chief Stepp then explained the Axon contract consolidation. She said if this funding is not approved, we will continue operating under the current fragmented model. Today, that model consists of five separate agreements, each with different renewal cycles, amended add-ons, varying service agreements, and misaligned hardware refresh schedules. Maintaining that structure creates ongoing administrative complexity and exposes the department to financial instability. More importantly, it creates a predictable problem
Our current financial modeling shows technology costs rising to approximately $1.24 million annually by Fiscal Year (FY) 2027, followed by a significant coverage gap in FY 2029, when major agreements expire. By combining this year, we save approximately 180k over the next two years. At that point, we will be forced into consolidation—but under less favorable conditions, with fewer options and higher costs. The “do nothing” approach is not neutral. Renewing these systems individually at future market rates is expected to increase costs by 20 to 30 percent due to ongoing sector inflation—without adding new capability, without improving response, and without addressing current operational gaps. In other words, we will pay more to maintain the same capabilities. She said, by contrast, the approval allows us to move forward with a comprehensive, structured solution: (1) Consolidating five separate agreements into one unified agreement; (2) Transitioning to a 7.5-year Officer Safety Plan; (3) Locking in pricing to protect against future inflation; (4) Eliminating unpredictable capital expenditure spikes for hardware replacement; and (5) And immediately improving operational capability. This approach is projected to deliver more than $4 million in total contract value savings over time, while providing a stable, sustainable, and modernized foundation for public safety operations. Moving forward, our focus is on how we implement this, deliberately, transparently, and with clear accountability. As we talk about the Education Campaign, this is what that looks like: (1) Community engagement through town hall-type meetings and listening sessions will occur prior to finalizing policies; (2) Continued transparency through regular neighborhood meetings and RTIC tours; (3) Policy development grounded in privacy, oversight, and best practices; and (4) Ongoing demonstration of effectiveness through measurable outcomes and case-based results. Trust will not be assumed; it will be demonstrated. Mayor Manheimer read the following letter from Attorney General Jeff Jackson “There is a long tradition of skepticism about government surveillance, and that skepticism has produced important guardrails over the years. The question is which guardrails are in place for this proposal by APD. This technology can be deployed in narrower or broader ways, and several of the most consequential choices are matters of policy rather than capability. Based on what APD has described, the proposal here makes the narrower choice on the following concerns: Use for federal immigration enforcement, which is excluded. Facial recognition software, which is excluded. Footage retention, which is limited to the period set by city policy. Ownership of footage, which remains with the department rather than a private vendor. Winston-Salem, High Point, and the Buncombe County Sheriff's Office have operated facilities of this kind for several years. Their experience has been that, when these centers are run with clear policy limits and public oversight, they help reduce response times and assist in solving crimes without becoming the broader surveillance tool that critics reasonably worry about. Public safety and civil liberties are not opposing values, and the framework APD has put forward is a serious attempt to hold both at once.” In response to Mayor Manheimer, City Attorney Branham said that all City contracts include clauses that allow City Council to pull funding from the contract, and thus terminate it. We also build in additional terms which empower the City to terminate the contract unilaterally under certain circumstances. His office has been reviewing the terms with the software provider and asking if they were willing to approve additional provisions and they have expressed their willingness to do so. The City will be able to terminate the contract if the system is not used correctly. In response to Mayor Manheimer, Interim Chief Stepp explained the records retention policy governed by the State. She noted that physical evidence is different from data collection. City Attorney Branham also noted that these programs are software based, and a digital log is automatically generated and retained showing each person has accessed and utilized the program.
- Resolution authorizing the City Manager to execute on behalf of the City of Asheville a contract with Axon Enterprises, Inc to bundle all existing agreements for Asheville Police Department’s current inventory of Body-Worn Cameras, Tasers, Drones, Lightpost, and Interview Room equipment, warranties, licensing, and cloud storage for all, and add FUSUS software, utilizing the pricing offered through Sourcewell cooperative contract
Staff Report: Consideration of a resolution authorizing the City Manager to execute on behalf of the City of Asheville a contract with Axon Enterprises, Inc to bundle all existing agreements for Asheville Police Department’s current inventory of Body-Worn Cameras, Tasers, Drones, Lightpost and Interview Room equipment, warranties, licensing, and cloud storage for all, and add FUSUS software, utilizing the pricing offered through Sourcewell cooperative contract.
APD has five separate agreements with Axon to provide Body-Worn Cameras, Tasers, Drones, Lightpost, and Interview Room, including equipment, warranties, licensing, and cloud storage for all.
APD reached out to Axon in response to the City’s request for cost-saving ideas for the FY27 budget.
Axon proposed a seven-and-a-half-year combined contract that offered the City of Asheville considerable savings for the first two years, while locking in current pricing for licensing, warranties, and cloud storage for an additional five and a half years through FY34.
APD’s current agreements will begin to expire in FY29 if left unbundled. Locking in pricing now will guarantee there is no significant increase in future costs for continued licensing, warranties, and cloud storage for our existing equipment and software.
By bundling Fusus into this contract with the other Axon products currently in use by APD, there are additional cost savings for Fusus of $46,948.25 over the life of the contract.
The FY27 cost of the existing agreements as they currently stand is $837,155.82. Bundling them into this new contract reduces the cost to $740,000.00 for FY27.
Additional cost savings for FY28 would be realized in a reduction from $856,418.41 to $777,500.00 under the new bundled contract.
The FY27 addition of FUSUS to the bundle is $467,602.15, which will be funded by the Community Project Funding (CPF) Award if approved by Council.
Council will review a budget amendment at this Council meeting to add $1,141,256 for the Community Project Funding Award.
No local match is required for this grant. Interim Chief Stepp took a few minutes to talk about the environment we’re operating in today. We are working in a setting of increasing demand and limited capacity. At the same time, we are operating without fully integrated real-time capability, meaning critical information is often fragmented, delayed, or spread across multiple systems and partners. We also continue to face staffing constraints that impact response times, investigative capacity, and proactive policing efforts. Officers and investigators are working harder than ever, often without the benefit of immediate, shared situational awareness. This is the reality of our current operations. And it’s why this discussion matters. This is not about buying technology. This is about improving emergency response, investigative efficiency, transparency, and officer accountability. Before discussing what this system can do, it’s important to understand what it will not do: No facial recognition; No general monitoring; No unrestricted access to private cameras; Defined retention schedules; and Full audit logs. This system is governed under CALEA-aligned standards through the Commission on Accreditation for Law Enforcement Agencies framework. In practical terms, that means it operates in accordance with nationally recognized best practices for law enforcement accountability, oversight, and professionalism. To be clear, we are aligned with the Council’s concerns around privacy, oversight, and preventing overreach. Public safety shouldn’t come at the expense of community values, and they won’t. The two can exist together. They are foundational to how this system is structured, how it is governed, and how it will be used. She hoped that we’ve demonstrated that through the proposed civil liberties resolution and the name change. However, sorry to report we cannot change the name because it has been signed into law, but once funding is received, my understanding is that there may be an opportunity to do that, and if so, she will follow through to change intelligence to information. With that context in mind, it’s important to step back from the technical discussion. We have spent a lot of time talking about systems, platforms, dashboards, and software, features, integrations, and specifications. But somewhere along the way, we’ve lost sight of what this is actually about. This funding supports accountable technology upgrades for emergency response and transparency. And more importantly, it supports outcomes. So with that in mind, let’s focus on what this is really about
it’s about community and officer safety; it’s about faster emergency response; it’s about accountability and transparency; it’s about stronger investigations; it’s about finding missing persons; it’s about handling evidence efficiently and responsibly; and it’s about governance and safeguards that ensure this is done the right way. This is not about software. It’s about victims. It’s about the mother waiting for answers after her child is taken. It’s about the officer trying to stop a violent offender before they strike again. It’s about the difference between acting in seconds and showing up minutes too late. A real-time intelligence center is not a technology project. It is a public safety function. It exists for one reason: to close the gap between what is happening and what we know about it—so we can act faster, smarter, and more effectively. Because crime does not wait for reports to be written. It does not pause for information to be entered into a system. It unfolds in real time. And when our response is delayed, incomplete, or disconnected, people get hurt. She then gave an example back in 2018 of an incident where a child was shot and no one came forward. Sadly, to this day, his case remains unsolved. Think about that for a moment. Not in terms of technology, but in terms of reality. That is the gap. Not effort. Not commitment. Information. This isn’t about adding another piece of equipment. It’s about making sure that when something like this happens, and unfortunately, it will, we are not standing in the dark, hoping someone speaks up. It’s about ensuring that silence is not the end of the investigation. Because in so many of our cases involving acts of violence, video surveillance provides critical evidence, helps identify offenders, and changes the trajectory of an investigation. And when we talk about modernization, this is what we mean. Not technology for technology’s sake, but the ability to see, to know, and to act when it matters most. Because when we strip everything else away, the technology, the terminology, the process, that is what this comes down to. Time.... Time to identify a suspect. Time to locate a victim. Time to intervene before violence escalates. And in policing, time is often the difference between life and death. So as she reviewed her presentation, she asked that we keep that perspective. Not what the system looks like. Not how it operates on a screen. But what it enables in the field. Faster decisions. Better coordination. Lives protected. Interim Chief Stepp then provided Council with the request of funding for software, hardware, and equipment to implement a Real Time Intelligence Center (RTIC). She noted that we applied for this grant to build an existing tool, Fusus, that the City of Asheville has funded since 2022. Additionally, a Justice Assistance Grant (JAG) was approved in March 2025 in the amount of approximately $60,000, to support the development of the RTIC. She then reviewed the funding timeline and said that funding was secured in February, 2026. She then reviewed the funding breakdown, along with the ongoing cost breakdown. She explained the RTIC (physical space) vs. Fusus (software platform. Fusus isn’t about watching people
it’s about helping first responders get to emergencies faster, better informed, solve crimes more efficiently, and keep the community safer with less intrusion, not more. She explained the Fusus definition of registry vs. integration, noting both are voluntary and can be revoked at any time. Axon Fusus neither has access to or retains data from an agency’s Fusus system. Axon Fusus will pull in the video stream, if connected through a FUSUS Core device. Fusus will not pull in the artificial intelligence (AI) technologies layered onto that device. Axon Fusus utilizes AI to rapidly search video provided to the system by users in order to mitigate criminal activity. AL may be utilized to automatically recognize weapons, vehicles of interest, etc. RTIC benefits include faster response; stronger investigations; enhanced safety; strategic focus; force multiplier; oversight and accountability; meeting Jury expectations; support for vulnerable areas; and promoting equity and accuracy. RTIC’s are not a standalone solution but agencies that have implemented them consistently show improved outcomes in response, case clearance, and targeted crime reduction efforts. She then read a letter from District Attorney Todd Williams dated April 30, 2026, who expressed his “support for receipt of federal funding to create a Real-Time Intelligence Center (RTIC). As our community addresses public safety challenges, we must adopt tools that preserve objective evidence, effectively utilize emerging technologies, and enhance both public safety and ensure civil rights. … By focusing on objective evidence and the preservation of facts, it is my hope that we can reduce cycles of violence and ensure that public safety means safety for all..” She also read a letter from Russ Ferguson, United States Attorney in the Western District of North Carolina dated May 12, 2026, in that it was his “belief that the City of Asheville and the Asheville Police Department would benefit from the establishment of a Real-Time Intelligence Center (RTIC). … I believe that every community deserves safety, and safety is a shared responsibility that includes law enforcement, clergy, community leaders, public health, non-profit organizations and others. Utilizing RTIC to its fullest capacity is value added to the Asheville Police, strengthens accountability and transparency to the community, and improves our response to victims of crime.” Interim Chief Stepp then explained the Axon contract consolidation. She said if this funding is not approved, we will continue operating under the current fragmented model. Today, that model consists of five separate agreements, each with different renewal cycles, amended add-ons, varying service agreements, and misaligned hardware refresh schedules. Maintaining that structure creates ongoing administrative complexity and exposes the department to financial instability. More importantly, it creates a predictable problem
Our current financial modeling shows technology costs rising to approximately $1.24 million annually by Fiscal Year (FY) 2027, followed by a significant coverage gap in FY 2029, when major agreements expire. By combining this year, we save approximately 180k over the next two years. At that point, we will be forced into consolidation—but under less favorable conditions, with fewer options and higher costs. The “do nothing” approach is not neutral. Renewing these systems individually at future market rates is expected to increase costs by 20 to 30 percent due to ongoing sector inflation—without adding new capability, without improving response, and without addressing current operational gaps. In other words, we will pay more to maintain the same capabilities. She said, by contrast, the approval allows us to move forward with a comprehensive, structured solution: (1) Consolidating five separate agreements into one unified agreement; (2) Transitioning to a 7.5-year Officer Safety Plan; (3) Locking in pricing to protect against future inflation; (4) Eliminating unpredictable capital expenditure spikes for hardware replacement; and (5) And immediately improving operational capability. This approach is projected to deliver more than $4 million in total contract value savings over time, while providing a stable, sustainable, and modernized foundation for public safety operations. Moving forward, our focus is on how we implement this, deliberately, transparently, and with clear accountability. As we talk about the Education Campaign, this is what that looks like: (1) Community engagement through town hall-type meetings and listening sessions will occur prior to finalizing policies; (2) Continued transparency through regular neighborhood meetings and RTIC tours; (3) Policy development grounded in privacy, oversight, and best practices; and (4) Ongoing demonstration of effectiveness through measurable outcomes and case-based results. Trust will not be assumed; it will be demonstrated. Mayor Manheimer read the following letter from Attorney General Jeff Jackson “There is a long tradition of skepticism about government surveillance, and that skepticism has produced important guardrails over the years. The question is which guardrails are in place for this proposal by APD. This technology can be deployed in narrower or broader ways, and several of the most consequential choices are matters of policy rather than capability. Based on what APD has described, the proposal here makes the narrower choice on the following concerns: Use for federal immigration enforcement, which is excluded. Facial recognition software, which is excluded. Footage retention, which is limited to the period set by city policy. Ownership of footage, which remains with the department rather than a private vendor. Winston-Salem, High Point, and the Buncombe County Sheriff's Office have operated facilities of this kind for several years. Their experience has been that, when these centers are run with clear policy limits and public oversight, they help reduce response times and assist in solving crimes without becoming the broader surveillance tool that critics reasonably worry about. Public safety and civil liberties are not opposing values, and the framework APD has put forward is a serious attempt to hold both at once.” In response to Mayor Manheimer, City Attorney Branham said that all City contracts include clauses that allow City Council to pull funding from the contract, and thus terminate it. We also build in additional terms which empower the City to terminate the contract unilaterally under certain circumstances. His office has been reviewing the terms with the software provider and asking if they were willing to approve additional provisions and they have expressed their willingness to do so. The City will be able to terminate the contract if the system is not used correctly. In response to Mayor Manheimer, Interim Chief Stepp explained the records retention policy governed by the State. She noted that physical evidence is different from data collection. City Attorney Branham also noted that these programs are software based, and a digital log is automatically generated and retained showing each person has accessed and utilized the program.
Approval of the combined minutes of the worksession held on April 23, 2026, and the formal meeting held on April 28, 2026
Passed7–0 · unanimous · Moved by Maggie Ullman, seconded by Kim Roney
All members present voted yes.
Staff report summary
agenda briefing worksession held on April 23, 2026, and the formal meeting held on April 28, 2026 B. Resolution Number 26-85
Resolution to amend a contract with Diakin Applied Americas Inc. for building automation at Harrah’s Cherokee Center
Asheville
- HCCA has been upgrading the HVAC Building Automation System (BAS) for nearly three years (Software, service, computer and communications equipment)
To date, approximately 85% of the Building Automation system has been upgraded.
The current contract includes warranty coverage of parts related to controlled equipment failures, but does not include labor coverage.
This amendment will adjust the contract to include both parts and labor when addressing warranty coverage of the controls equipment of the HVAC system at the facility.
Control parts are replaced frequently at the HCCA, inclusion of labor within the BAS Service contract will ensure timely repairs and replacement when control equipment fails, reducing down time within the system.
This will ensure seamless and continuous uninterrupted operations of the HVAC system controls during events.
The additions allow better temperature control by HCCA staff and increased energy efficiency.
Motion to adopt a resolution authorizing the City Manager to amend a Building Automation System warranty contract with Daikin Applied Americas Inc. to extend the current contract by 10 years and increase the total contract amount by $307,100 for a total contract not to exceed amount of $420,200 with a total term of 15 years.
Item B · RES 26-85 · Contracts & Procurement · Resolution · consent agenda
Resolution to amend a contract with Daikin Applied Americas Inc. for building automation at Harrah's Cherokee Center - Asheville
Passed7–0 · unanimous · Moved by Maggie Ullman, seconded by Kim Roney
All members present voted yes.
Staff report summary
- Resolution to amend a contract with Diakin Applied Americas Inc. for building automation at Harrah’s Cherokee Center
Asheville
- HCCA has been upgrading the HVAC Building Automation System (BAS) for nearly three years (Software, service, computer and communications equipment)
To date, approximately 85% of the Building Automation system has been upgraded.
The current contract includes warranty coverage of parts related to controlled equipment failures, but does not include labor coverage.
This amendment will adjust the contract to include both parts and labor when addressing warranty coverage of the controls equipment of the HVAC system at the facility.
Control parts are replaced frequently at the HCCA, inclusion of labor within the BAS Service contract will ensure timely repairs and replacement when control equipment fails, reducing down time within the system.
This will ensure seamless and continuous uninterrupted operations of the HVAC system controls during events.
The additions allow better temperature control by HCCA staff and increased energy efficiency.
Motion to adopt a resolution authorizing the City Manager to amend a Building Automation System warranty contract with Daikin Applied Americas Inc. to extend the current contract by 10 years and increase the total contract amount by $307,100 for a total contract not to exceed amount of $420,200 with a total term of 15 years.
Item C · ORD 5219 · Transportation · Ordinance · consent agenda
Budget amendment of $1,400,000 to the Harrah's Cherokee Center - Asheville operating fund
Passed7–0 · unanimous · Moved by Maggie Ullman, seconded by Kim Roney
All members present voted yes.
Staff report summary
- Budget amendment, in the amount of $1,400,000, to the Harrah’s Cherokee Center
Asheville operating fund to reflect updated Fiscal Year 2025-26 revenue and expenditure projections )-
HCCA revenues are expected to total $1,400,000 more than initially budgeted.
HCCA operating expenses are expected to potentially total $800,000 more than initial budgeted.
Capital repair and maintenance backlog continues at HCCA, transfer of $600,000 to capital fund will allow staff to continue effort to maintain and repair the facility.
Concessions, ticketing and other show related revenues will cover all additional expenses; therefore, no additional transfer from the General Fund is required at this time.
HCCA has 48 event dates booked in the final two months of the fiscal year.
Motion to adopt a budget amendment in the amount of $1,400,000 to the HCCA operating fund to reflect updated fiscal year 2025-26 (FY26) revenue and expenditure projections. D. Resolution Number 26-86
Resolution authorizing the City Manager to amend a contract with Creditron for a maintenance agreement for a mail scanner for the Water Resources Department
- ## The original contract was issued in 2023 for a 12 month term with three renewals.
## During the fourth year, the contract reached an amount of $92,510.18 which exceeded the $90,000.00 threshold.
Creditron provides electronic remittance and lockbox processing for financial institutions, businesses, and government entities.
Its platform utilizes advanced imaging, data recognition, and cloud-based technology for check and invoice processing.
Payments received via US mail are processed and deposited electronically.
Creditron is integrated with Tyler Munis to provide immediate payment posting on receipt for customers.
Motion authorizing the City Manager to amend a contract with Creditron for maintenance agreement for a mail scanner for the Water Resources Department. E. Resolution Number 26-87
Resolution authorizing the City Manager to execute a multi-year Agreement with the Mills River Partnership, Inc., for the Mills River Watershed Best Management Practices project over three fiscal years contingent upon funding each year
- ## In 2023, City Council authorized a three year agreement between the City of Asheville Water Resources Department and the Mills River Partnership (MRP) for a not-to-exceed amount of $180,000 to provide financial support of projects intended to protect and/or improve water quality in the Mills River Watershed.
## The department desires to continue to partner with the MRP to help fund water quality projects in the Mills River Watershed.
## The Water Resources Department is willing to provide cost-share funding for projects that are directly related to water quality protection and/or improvement.
## These activities include selection and installation of Best Management Practices to control contamination of the river from storm runoff, and educational materials and activities.
## The City of Asheville has an ongoing interest in watershed management. Water quality in the upper watershed continues to be excellent and overall water quality indices have improved during the past 10 years.
## The strategy now is to focus on efforts to protect and improve water quality.
## Funding initiatives are to be considered with an understanding of their long-term impact on water quality.
## The level of participation recommended is an amount up to $60,000.00 per fiscal year with the understanding that funding is project-specific and subject to the appropriation of funds.
Motion to adopt a resolution authorizing the City Manager to execute a multi-year Agreement with the Mills River Partnership, Inc., for the Mills River Watershed Best Management Practices project for a not-to-exceed amount of $180,000.00 over three (3) fiscal years contingent upon funding each year. The level of participation recommended is an amount up to $60,000.00 per fiscal year for a maximum of three fiscal years with the understanding that funding is project-specific and subject to the appropriation of funds. F. Resolution Number 26-88
Resolution adopting Bond Order authorizing the issuance of Water System Revenue Bonds of the City of Asheville, North Carolina, in an aggregate principal amount not to exceed $51,000,000
Resolution Number 26-89
Resolution of the City Of Asheville, North Carolina, authorizing the approval, execution and delivery of various documents in connection with the issuance of City of Asheville, North Carolina, Water System Revenue Bonds; providing for the sale of the bonds; setting forth the terms and conditions upon which the bonds are to be issued; and providing for certain other matters in connection with the issuance, sale and delivery of the bonds
- In May 2024, City Council adopted a resolution providing staff with authorization to enter into a contract with Wharton-Smith, Inc, including contingency, totaling $26,888,196 for the construction of the Mills River Water Treatment Plant Improvements Phase 2.
In January 2026, City Council adopted a resolution providing staff with authorization to enter into a contract with TP Howard Plumbing, Inc, including contingency, totaling $8,948,500 for the Neighborhood Enhancement Project (NEP) Area 8
Water Distribution.
It was noted at the time for both projects that the City intended to fund the contracts through the issuance of long-term debt.
Mills River Water Treatment Plant Improvements Phase 2 was also awarded a $5 million State Revolving Fund (SRF)/ARPA grant.
With expenses to-date in the Miller River project now totaling approximately $11 million and significant additional spending expected to occur in both projects in the upcoming months, staff intends to move forward with applying to the LGC for issuance of the Water Revenue Bonds associated with the Mills River and NEP 8 projects and issue the Bonds in June of this year.
In addition, based on advice from the City’s external financial advisors and bond counsel, staff is recommending refinancing the outstanding 2015 Water System Revenue Bonds, which will result in net present value debt service savings of approximately $398,000.
To cover the expenses from the both projects, debt issuance costs, and provide funding for the refunding of the 2015 Water Revenue Bonds, staff plans, in consultation with our financial advisors and bond counsel, to issue debt in an amount not to exceed $51 million.
City Council approved the initial resolution directing application to the Local Government Commission (LGC) for the 2026 Water Revenue Bonds at its April 14, 2026 meeting, and the LGC approved the bonds at their May 5, 2026 meeting.
Motion to adopt a resolution adopting Bond Order authorizing the issuance of Water System Revenue Bonds of the City of Asheville, North Carolina, in an aggregate principal amount not to exceed $51,000,000; and
Motion to adopt a resolution of the City of Asheville, North Carolina, authorizing the approval, execution and delivery of various documents in connection with the issuance of City of Asheville, North Carolina, Water System Revenue Bonds; providing for the sale of the bonds; setting forth the terms and conditions upon which the bonds are to be issued; and providing for certain other matters in connection with the issuance, sale and delivery of the bonds.
Sale of the Bonds is planned for June 3, 2026 of this year. G. Resolution Number 26-90
Resolution authorizing the City Manager to execute a contract amendment to the Plante Moran internal audit services contract.; and granting authority to execute subsequent amendments up to a maximum not-to-exceed amount for supplementary internal audit program services
- The mission of the City’s Internal Audit division is to promote efficient, effective, and accountable city government by conducting financial, operational, and compliance audits of all City departments, divisions, and programs.
The City utilizes a co-sourced model for Internal Audit Services in which audits are contracted out.
City Council has previously approved the internal audit services contract with Plante Moran on June 24, 2025 for $115,000.
The increased contract amount will allow Plante Moran to complete audit engagements that are underway in the current fiscal year.
Motion to adopt a resolution authorizing the City Manager to execute a contract amendment to the Plante Moran internal audit services contract, increasing the contract amount by $13,120 and granting authority to execute subsequent amendments up to a maximum not-to-exceed amount of $165,000 for supplementary internal audit program services. H. Resolution Number 26-91
Resolution authorizing the City Manager to execute a Utility Relocation Agreement with Duke Energy for utility relocations for the Johnston Boulevard Sidewalk Utility Relocations Project; and to execute any change orders that may arise during the project up to the contingency amount
- ## Johnston Boulevard Sidewalk is part of the 2016 Transportation Bond funded sidewalk improvements.
## This project will construct around 1 mile of sidewalk along Johnston Boulevard (S.R. 1319) between Patton Avenue (U.S. 19) and Iona Circle, near the Johnston Elementary School in Buncombe County.
## The purpose of this project is to improve mobility and safety on City streets and provide pedestrian connections to local schools.
## The project is in the construction phase (Council Resolution 25-220 dated, October 14, 2025) and requires the relocation of Duke electrical utilities.
Motion to authorize the City Manager to execute a Utility Relocation Agreement with Duke Energy, and further, to award funding in the amount of $348,394.83, and further, to execute any change order that may arise during the project up to the Contingency amount of $34,839.48 (10%) for a Total Not to Exceed amount of $383,234.31 for Johnston Boulevard Sidewalk utility relocations. One individual urged Council to present the public for options and input for all projects.
Item D · RES 26-86 · Transportation · Resolution · consent agenda
Resolution authorizing an amendment to a contract with Creditron for a mail scanner maintenance agreement for the Water Resources Department
Passed7–0 · unanimous · Moved by Maggie Ullman, seconded by Kim Roney
All members present voted yes.
Staff report summary
- Resolution authorizing the City Manager to amend a contract with Creditron for a maintenance agreement for a mail scanner for the Water Resources Department
- ## The original contract was issued in 2023 for a 12 month term with three renewals.
## During the fourth year, the contract reached an amount of $92,510.18 which exceeded the $90,000.00 threshold.
Creditron provides electronic remittance and lockbox processing for financial institutions, businesses, and government entities.
Its platform utilizes advanced imaging, data recognition, and cloud-based technology for check and invoice processing.
Payments received via US mail are processed and deposited electronically.
Creditron is integrated with Tyler Munis to provide immediate payment posting on receipt for customers.
Motion authorizing the City Manager to amend a contract with Creditron for maintenance agreement for a mail scanner for the Water Resources Department. E. Resolution Number 26-87
Resolution authorizing the City Manager to execute a multi-year Agreement with the Mills River Partnership, Inc., for the Mills River Watershed Best Management Practices project over three fiscal years contingent upon funding each year
- ## In 2023, City Council authorized a three year agreement between the City of Asheville Water Resources Department and the Mills River Partnership (MRP) for a not-to-exceed amount of $180,000 to provide financial support of projects intended to protect and/or improve water quality in the Mills River Watershed.
## The department desires to continue to partner with the MRP to help fund water quality projects in the Mills River Watershed.
## The Water Resources Department is willing to provide cost-share funding for projects that are directly related to water quality protection and/or improvement.
## These activities include selection and installation of Best Management Practices to control contamination of the river from storm runoff, and educational materials and activities.
## The City of Asheville has an ongoing interest in watershed management. Water quality in the upper watershed continues to be excellent and overall water quality indices have improved during the past 10 years.
## The strategy now is to focus on efforts to protect and improve water quality.
## Funding initiatives are to be considered with an understanding of their long-term impact on water quality.
## The level of participation recommended is an amount up to $60,000.00 per fiscal year with the understanding that funding is project-specific and subject to the appropriation of funds.
Motion to adopt a resolution authorizing the City Manager to execute a multi-year Agreement with the Mills River Partnership, Inc., for the Mills River Watershed Best Management Practices project for a not-to-exceed amount of $180,000.00 over three (3) fiscal years contingent upon funding each year. The level of participation recommended is an amount up to $60,000.00 per fiscal year for a maximum of three fiscal years with the understanding that funding is project-specific and subject to the appropriation of funds. F. Resolution Number 26-88
Resolution adopting Bond Order authorizing the issuance of Water System Revenue Bonds of the City of Asheville, North Carolina, in an aggregate principal amount not to exceed $51,000,000
Resolution Number 26-89
Resolution of the City Of Asheville, North Carolina, authorizing the approval, execution and delivery of various documents in connection with the issuance of City of Asheville, North Carolina, Water System Revenue Bonds; providing for the sale of the bonds; setting forth the terms and conditions upon which the bonds are to be issued; and providing for certain other matters in connection with the issuance, sale and delivery of the bonds
- In May 2024, City Council adopted a resolution providing staff with authorization to enter into a contract with Wharton-Smith, Inc, including contingency, totaling $26,888,196 for the construction of the Mills River Water Treatment Plant Improvements Phase 2.
In January 2026, City Council adopted a resolution providing staff with authorization to enter into a contract with TP Howard Plumbing, Inc, including contingency, totaling $8,948,500 for the Neighborhood Enhancement Project (NEP) Area 8
Water Distribution.
It was noted at the time for both projects that the City intended to fund the contracts through the issuance of long-term debt.
Mills River Water Treatment Plant Improvements Phase 2 was also awarded a $5 million State Revolving Fund (SRF)/ARPA grant.
With expenses to-date in the Miller River project now totaling approximately $11 million and significant additional spending expected to occur in both projects in the upcoming months, staff intends to move forward with applying to the LGC for issuance of the Water Revenue Bonds associated with the Mills River and NEP 8 projects and issue the Bonds in June of this year.
In addition, based on advice from the City’s external financial advisors and bond counsel, staff is recommending refinancing the outstanding 2015 Water System Revenue Bonds, which will result in net present value debt service savings of approximately $398,000.
To cover the expenses from the both projects, debt issuance costs, and provide funding for the refunding of the 2015 Water Revenue Bonds, staff plans, in consultation with our financial advisors and bond counsel, to issue debt in an amount not to exceed $51 million.
City Council approved the initial resolution directing application to the Local Government Commission (LGC) for the 2026 Water Revenue Bonds at its April 14, 2026 meeting, and the LGC approved the bonds at their May 5, 2026 meeting.
Motion to adopt a resolution adopting Bond Order authorizing the issuance of Water System Revenue Bonds of the City of Asheville, North Carolina, in an aggregate principal amount not to exceed $51,000,000; and
Motion to adopt a resolution of the City of Asheville, North Carolina, authorizing the approval, execution and delivery of various documents in connection with the issuance of City of Asheville, North Carolina, Water System Revenue Bonds; providing for the sale of the bonds; setting forth the terms and conditions upon which the bonds are to be issued; and providing for certain other matters in connection with the issuance, sale and delivery of the bonds.
Sale of the Bonds is planned for June 3, 2026 of this year. G. Resolution Number 26-90
Resolution authorizing the City Manager to execute a contract amendment to the Plante Moran internal audit services contract.; and granting authority to execute subsequent amendments up to a maximum not-to-exceed amount for supplementary internal audit program services
- The mission of the City’s Internal Audit division is to promote efficient, effective, and accountable city government by conducting financial, operational, and compliance audits of all City departments, divisions, and programs.
The City utilizes a co-sourced model for Internal Audit Services in which audits are contracted out.
City Council has previously approved the internal audit services contract with Plante Moran on June 24, 2025 for $115,000.
The increased contract amount will allow Plante Moran to complete audit engagements that are underway in the current fiscal year.
Motion to adopt a resolution authorizing the City Manager to execute a contract amendment to the Plante Moran internal audit services contract, increasing the contract amount by $13,120 and granting authority to execute subsequent amendments up to a maximum not-to-exceed amount of $165,000 for supplementary internal audit program services. H. Resolution Number 26-91
Resolution authorizing the City Manager to execute a Utility Relocation Agreement with Duke Energy for utility relocations for the Johnston Boulevard Sidewalk Utility Relocations Project; and to execute any change orders that may arise during the project up to the contingency amount
- ## Johnston Boulevard Sidewalk is part of the 2016 Transportation Bond funded sidewalk improvements.
## This project will construct around 1 mile of sidewalk along Johnston Boulevard (S.R. 1319) between Patton Avenue (U.S. 19) and Iona Circle, near the Johnston Elementary School in Buncombe County.
## The purpose of this project is to improve mobility and safety on City streets and provide pedestrian connections to local schools.
## The project is in the construction phase (Council Resolution 25-220 dated, October 14, 2025) and requires the relocation of Duke electrical utilities.
Motion to authorize the City Manager to execute a Utility Relocation Agreement with Duke Energy, and further, to award funding in the amount of $348,394.83, and further, to execute any change order that may arise during the project up to the Contingency amount of $34,839.48 (10%) for a Total Not to Exceed amount of $383,234.31 for Johnston Boulevard Sidewalk utility relocations. One individual urged Council to present the public for options and input for all projects.
Item E · RES 26-87 · Transportation · Resolution · consent agenda
Resolution authorizing a multi-year Agreement with the Mills River Partnership, Inc. for the Mills River Watershed Best Management Practices project
Passed7–0 · unanimous · Moved by Maggie Ullman, seconded by Kim Roney
All members present voted yes.
Staff report summary
- Resolution authorizing the City Manager to execute a multi-year Agreement with the Mills River Partnership, Inc., for the Mills River Watershed Best Management Practices project over three fiscal years contingent upon funding each year
- ## In 2023, City Council authorized a three year agreement between the City of Asheville Water Resources Department and the Mills River Partnership (MRP) for a not-to-exceed amount of $180,000 to provide financial support of projects intended to protect and/or improve water quality in the Mills River Watershed.
## The department desires to continue to partner with the MRP to help fund water quality projects in the Mills River Watershed.
## The Water Resources Department is willing to provide cost-share funding for projects that are directly related to water quality protection and/or improvement.
## These activities include selection and installation of Best Management Practices to control contamination of the river from storm runoff, and educational materials and activities.
## The City of Asheville has an ongoing interest in watershed management. Water quality in the upper watershed continues to be excellent and overall water quality indices have improved during the past 10 years.
## The strategy now is to focus on efforts to protect and improve water quality.
## Funding initiatives are to be considered with an understanding of their long-term impact on water quality.
## The level of participation recommended is an amount up to $60,000.00 per fiscal year with the understanding that funding is project-specific and subject to the appropriation of funds.
Motion to adopt a resolution authorizing the City Manager to execute a multi-year Agreement with the Mills River Partnership, Inc., for the Mills River Watershed Best Management Practices project for a not-to-exceed amount of $180,000.00 over three (3) fiscal years contingent upon funding each year. The level of participation recommended is an amount up to $60,000.00 per fiscal year for a maximum of three fiscal years with the understanding that funding is project-specific and subject to the appropriation of funds. F. Resolution Number 26-88
Resolution adopting Bond Order authorizing the issuance of Water System Revenue Bonds of the City of Asheville, North Carolina, in an aggregate principal amount not to exceed $51,000,000
Resolution Number 26-89
Resolution of the City Of Asheville, North Carolina, authorizing the approval, execution and delivery of various documents in connection with the issuance of City of Asheville, North Carolina, Water System Revenue Bonds; providing for the sale of the bonds; setting forth the terms and conditions upon which the bonds are to be issued; and providing for certain other matters in connection with the issuance, sale and delivery of the bonds
- In May 2024, City Council adopted a resolution providing staff with authorization to enter into a contract with Wharton-Smith, Inc, including contingency, totaling $26,888,196 for the construction of the Mills River Water Treatment Plant Improvements Phase 2.
In January 2026, City Council adopted a resolution providing staff with authorization to enter into a contract with TP Howard Plumbing, Inc, including contingency, totaling $8,948,500 for the Neighborhood Enhancement Project (NEP) Area 8
Water Distribution.
It was noted at the time for both projects that the City intended to fund the contracts through the issuance of long-term debt.
Mills River Water Treatment Plant Improvements Phase 2 was also awarded a $5 million State Revolving Fund (SRF)/ARPA grant.
With expenses to-date in the Miller River project now totaling approximately $11 million and significant additional spending expected to occur in both projects in the upcoming months, staff intends to move forward with applying to the LGC for issuance of the Water Revenue Bonds associated with the Mills River and NEP 8 projects and issue the Bonds in June of this year.
In addition, based on advice from the City’s external financial advisors and bond counsel, staff is recommending refinancing the outstanding 2015 Water System Revenue Bonds, which will result in net present value debt service savings of approximately $398,000.
To cover the expenses from the both projects, debt issuance costs, and provide funding for the refunding of the 2015 Water Revenue Bonds, staff plans, in consultation with our financial advisors and bond counsel, to issue debt in an amount not to exceed $51 million.
City Council approved the initial resolution directing application to the Local Government Commission (LGC) for the 2026 Water Revenue Bonds at its April 14, 2026 meeting, and the LGC approved the bonds at their May 5, 2026 meeting.
Motion to adopt a resolution adopting Bond Order authorizing the issuance of Water System Revenue Bonds of the City of Asheville, North Carolina, in an aggregate principal amount not to exceed $51,000,000; and
Motion to adopt a resolution of the City of Asheville, North Carolina, authorizing the approval, execution and delivery of various documents in connection with the issuance of City of Asheville, North Carolina, Water System Revenue Bonds; providing for the sale of the bonds; setting forth the terms and conditions upon which the bonds are to be issued; and providing for certain other matters in connection with the issuance, sale and delivery of the bonds.
Sale of the Bonds is planned for June 3, 2026 of this year. G. Resolution Number 26-90
Resolution authorizing the City Manager to execute a contract amendment to the Plante Moran internal audit services contract.; and granting authority to execute subsequent amendments up to a maximum not-to-exceed amount for supplementary internal audit program services
- The mission of the City’s Internal Audit division is to promote efficient, effective, and accountable city government by conducting financial, operational, and compliance audits of all City departments, divisions, and programs.
The City utilizes a co-sourced model for Internal Audit Services in which audits are contracted out.
City Council has previously approved the internal audit services contract with Plante Moran on June 24, 2025 for $115,000.
The increased contract amount will allow Plante Moran to complete audit engagements that are underway in the current fiscal year.
Motion to adopt a resolution authorizing the City Manager to execute a contract amendment to the Plante Moran internal audit services contract, increasing the contract amount by $13,120 and granting authority to execute subsequent amendments up to a maximum not-to-exceed amount of $165,000 for supplementary internal audit program services. H. Resolution Number 26-91
Resolution authorizing the City Manager to execute a Utility Relocation Agreement with Duke Energy for utility relocations for the Johnston Boulevard Sidewalk Utility Relocations Project; and to execute any change orders that may arise during the project up to the contingency amount
- ## Johnston Boulevard Sidewalk is part of the 2016 Transportation Bond funded sidewalk improvements.
## This project will construct around 1 mile of sidewalk along Johnston Boulevard (S.R. 1319) between Patton Avenue (U.S. 19) and Iona Circle, near the Johnston Elementary School in Buncombe County.
## The purpose of this project is to improve mobility and safety on City streets and provide pedestrian connections to local schools.
## The project is in the construction phase (Council Resolution 25-220 dated, October 14, 2025) and requires the relocation of Duke electrical utilities.
Motion to authorize the City Manager to execute a Utility Relocation Agreement with Duke Energy, and further, to award funding in the amount of $348,394.83, and further, to execute any change order that may arise during the project up to the Contingency amount of $34,839.48 (10%) for a Total Not to Exceed amount of $383,234.31 for Johnston Boulevard Sidewalk utility relocations. One individual urged Council to present the public for options and input for all projects.
Item F · RES 26-88 / RES 26-89 · Transportation · Resolution · consent agenda
Resolution adopting Bond Order authorizing Water System Revenue Bonds (not to exceed $51,000,000) and resolution authorizing related documents and sale of the bonds
Passed7–0 · unanimous · Moved by Maggie Ullman, seconded by Kim Roney
All members present voted yes.
Staff report summary
- Resolution adopting Bond Order authorizing the issuance of Water System Revenue Bonds of the City of Asheville, North Carolina, in an aggregate principal amount not to exceed $51,000,000
Resolution Number 26-89
Resolution of the City Of Asheville, North Carolina, authorizing the approval, execution and delivery of various documents in connection with the issuance of City of Asheville, North Carolina, Water System Revenue Bonds; providing for the sale of the bonds; setting forth the terms and conditions upon which the bonds are to be issued; and providing for certain other matters in connection with the issuance, sale and delivery of the bonds
- In May 2024, City Council adopted a resolution providing staff with authorization to enter into a contract with Wharton-Smith, Inc, including contingency, totaling $26,888,196 for the construction of the Mills River Water Treatment Plant Improvements Phase 2.
In January 2026, City Council adopted a resolution providing staff with authorization to enter into a contract with TP Howard Plumbing, Inc, including contingency, totaling $8,948,500 for the Neighborhood Enhancement Project (NEP) Area 8
Water Distribution.
It was noted at the time for both projects that the City intended to fund the contracts through the issuance of long-term debt.
Mills River Water Treatment Plant Improvements Phase 2 was also awarded a $5 million State Revolving Fund (SRF)/ARPA grant.
With expenses to-date in the Miller River project now totaling approximately $11 million and significant additional spending expected to occur in both projects in the upcoming months, staff intends to move forward with applying to the LGC for issuance of the Water Revenue Bonds associated with the Mills River and NEP 8 projects and issue the Bonds in June of this year.
In addition, based on advice from the City’s external financial advisors and bond counsel, staff is recommending refinancing the outstanding 2015 Water System Revenue Bonds, which will result in net present value debt service savings of approximately $398,000.
To cover the expenses from the both projects, debt issuance costs, and provide funding for the refunding of the 2015 Water Revenue Bonds, staff plans, in consultation with our financial advisors and bond counsel, to issue debt in an amount not to exceed $51 million.
City Council approved the initial resolution directing application to the Local Government Commission (LGC) for the 2026 Water Revenue Bonds at its April 14, 2026 meeting, and the LGC approved the bonds at their May 5, 2026 meeting.
Motion to adopt a resolution adopting Bond Order authorizing the issuance of Water System Revenue Bonds of the City of Asheville, North Carolina, in an aggregate principal amount not to exceed $51,000,000; and
Motion to adopt a resolution of the City of Asheville, North Carolina, authorizing the approval, execution and delivery of various documents in connection with the issuance of City of Asheville, North Carolina, Water System Revenue Bonds; providing for the sale of the bonds; setting forth the terms and conditions upon which the bonds are to be issued; and providing for certain other matters in connection with the issuance, sale and delivery of the bonds.
Sale of the Bonds is planned for June 3, 2026 of this year. G. Resolution Number 26-90
Resolution authorizing the City Manager to execute a contract amendment to the Plante Moran internal audit services contract.; and granting authority to execute subsequent amendments up to a maximum not-to-exceed amount for supplementary internal audit program services
- The mission of the City’s Internal Audit division is to promote efficient, effective, and accountable city government by conducting financial, operational, and compliance audits of all City departments, divisions, and programs.
The City utilizes a co-sourced model for Internal Audit Services in which audits are contracted out.
City Council has previously approved the internal audit services contract with Plante Moran on June 24, 2025 for $115,000.
The increased contract amount will allow Plante Moran to complete audit engagements that are underway in the current fiscal year.
Motion to adopt a resolution authorizing the City Manager to execute a contract amendment to the Plante Moran internal audit services contract, increasing the contract amount by $13,120 and granting authority to execute subsequent amendments up to a maximum not-to-exceed amount of $165,000 for supplementary internal audit program services. H. Resolution Number 26-91
Resolution authorizing the City Manager to execute a Utility Relocation Agreement with Duke Energy for utility relocations for the Johnston Boulevard Sidewalk Utility Relocations Project; and to execute any change orders that may arise during the project up to the contingency amount
- ## Johnston Boulevard Sidewalk is part of the 2016 Transportation Bond funded sidewalk improvements.
## This project will construct around 1 mile of sidewalk along Johnston Boulevard (S.R. 1319) between Patton Avenue (U.S. 19) and Iona Circle, near the Johnston Elementary School in Buncombe County.
## The purpose of this project is to improve mobility and safety on City streets and provide pedestrian connections to local schools.
## The project is in the construction phase (Council Resolution 25-220 dated, October 14, 2025) and requires the relocation of Duke electrical utilities.
Motion to authorize the City Manager to execute a Utility Relocation Agreement with Duke Energy, and further, to award funding in the amount of $348,394.83, and further, to execute any change order that may arise during the project up to the Contingency amount of $34,839.48 (10%) for a Total Not to Exceed amount of $383,234.31 for Johnston Boulevard Sidewalk utility relocations. One individual urged Council to present the public for options and input for all projects.
Item G · RES 26-90 · Transportation · Resolution · consent agenda
Resolution authorizing a contract amendment to the Plante Moran internal audit services contract
Passed7–0 · unanimous · Moved by Maggie Ullman, seconded by Kim Roney
All members present voted yes.
Staff report summary
- Resolution authorizing the City Manager to execute a contract amendment to the Plante Moran internal audit services contract.; and granting authority to execute subsequent amendments up to a maximum not-to-exceed amount for supplementary internal audit program services
- The mission of the City’s Internal Audit division is to promote efficient, effective, and accountable city government by conducting financial, operational, and compliance audits of all City departments, divisions, and programs.
The City utilizes a co-sourced model for Internal Audit Services in which audits are contracted out.
City Council has previously approved the internal audit services contract with Plante Moran on June 24, 2025 for $115,000.
The increased contract amount will allow Plante Moran to complete audit engagements that are underway in the current fiscal year.
Motion to adopt a resolution authorizing the City Manager to execute a contract amendment to the Plante Moran internal audit services contract, increasing the contract amount by $13,120 and granting authority to execute subsequent amendments up to a maximum not-to-exceed amount of $165,000 for supplementary internal audit program services. H. Resolution Number 26-91
Resolution authorizing the City Manager to execute a Utility Relocation Agreement with Duke Energy for utility relocations for the Johnston Boulevard Sidewalk Utility Relocations Project; and to execute any change orders that may arise during the project up to the contingency amount
- ## Johnston Boulevard Sidewalk is part of the 2016 Transportation Bond funded sidewalk improvements.
## This project will construct around 1 mile of sidewalk along Johnston Boulevard (S.R. 1319) between Patton Avenue (U.S. 19) and Iona Circle, near the Johnston Elementary School in Buncombe County.
## The purpose of this project is to improve mobility and safety on City streets and provide pedestrian connections to local schools.
## The project is in the construction phase (Council Resolution 25-220 dated, October 14, 2025) and requires the relocation of Duke electrical utilities.
Motion to authorize the City Manager to execute a Utility Relocation Agreement with Duke Energy, and further, to award funding in the amount of $348,394.83, and further, to execute any change order that may arise during the project up to the Contingency amount of $34,839.48 (10%) for a Total Not to Exceed amount of $383,234.31 for Johnston Boulevard Sidewalk utility relocations. One individual urged Council to present the public for options and input for all projects.
Item H · RES 26-91 · Transportation · Resolution · consent agenda
Resolution authorizing a Utility Relocation Agreement with Duke Energy for the Johnston Boulevard Sidewalk Utility Relocations Project
Passed7–0 · unanimous · Moved by Maggie Ullman, seconded by Kim Roney
All members present voted yes.
Staff report summary
- Resolution authorizing the City Manager to execute a Utility Relocation Agreement with Duke Energy for utility relocations for the Johnston Boulevard Sidewalk Utility Relocations Project; and to execute any change orders that may arise during the project up to the contingency amount
- ## Johnston Boulevard Sidewalk is part of the 2016 Transportation Bond funded sidewalk improvements.
## This project will construct around 1 mile of sidewalk along Johnston Boulevard (S.R. 1319) between Patton Avenue (U.S. 19) and Iona Circle, near the Johnston Elementary School in Buncombe County.
## The purpose of this project is to improve mobility and safety on City streets and provide pedestrian connections to local schools.
## The project is in the construction phase (Council Resolution 25-220 dated, October 14, 2025) and requires the relocation of Duke electrical utilities.
Motion to authorize the City Manager to execute a Utility Relocation Agreement with Duke Energy, and further, to award funding in the amount of $348,394.83, and further, to execute any change order that may arise during the project up to the Contingency amount of $34,839.48 (10%) for a Total Not to Exceed amount of $383,234.31 for Johnston Boulevard Sidewalk utility relocations. One individual urged Council to present the public for options and input for all projects.
Item I · RES 26-92 / ORD 5220 · Transportation · Resolution · consent agenda
Resolution authorizing a contract with VHB Engineering NC PC for the Helene Recovery Project - Citywide Road Structures Repairs and Replacements; budget amendment
Passed7–0 · unanimous · Moved by Maggie Ullman, seconded by Kim Roney
All members present voted yes.
Staff report summary
- Resolution authorizing the City Manager to enter into a contract with VHB Engineering NC PC for design and engineering services for Helene Recovery Project
Citywide Road Structures Repairs and Replacements to repair and replace damaged bridges and large culverts; and further authorizing the City Manager to execute any change orders that may arise during the project
Ordinance Number 5220
Budget amendment to add federal and state funds to the General Capital Projects Fund for the Helene Recovery Project
Citywide Road Structures Repairs and Replacements Project
- The City of Asheville has a need to hire qualified engineering professionals to help the City rebuild its roadway infrastructure after catastrophic damage from Tropical Storm Helene.
There are twenty-one (21) locations in the Helene Recovery Project
Citywide Roadway Structures Repairs and Replacements where standalone roadway conveyances were damaged from the storm, including bridges and box culverts.
On November 20, 2025, staff posted a Request for Qualifications (298-FY26-PW-RFQ-RoadwayStructures
Helene Recovery Project) for professional services to design repairs or replacements to the damaged roadway structures.
The statement of qualifications by interested firms were due December 15, 2026. Sixteen (16) statements of qualifications were received and evaluated by a five-member selection committee from the Public Works and Capital Management departments.
The scope of design and engineering services encompasses:
Permanent restoration design services of the damaged infrastructure including FEMA PA restoration and cost-effective hazard mitigation projects to protect the infrastructure from future damage.
Structural inspections with formal inspection reports to include structure foundation review.
Structural and geotechnical design including professional services needed for any integral components to the structure.
Stream/flood/watershed modeling or stormwater calculations needed.
Applications for any necessary Federal, State, or Local permits.
Preparation of beneficial cost analysis and FEMA cost reasonableness for all designs to ensure the more cost-effective option.
Preparation of construction drawings and specifications, cost estimates, and bid documents.
Costs tracking associated with the multiple Federal and State programs for reimbursement and/or funding.
Construction administration during construction of repairs or replacements.
General structure maintenance recommendations or repairs as part of the regular inspections performed by NCDOT.
Motion to adopt a resolution authorizing the City Manager to enter into a contract with VHB Engineering NC PC in the amount of $6,246,094 for design and engineering services for Helene Recovery Project
Citywide Road Structures Repairs and Replacements to repair and replace damaged bridges and culverts; and further authorizing the City Manager to execute any change orders that may arise during the project up to the 15% contingency amount of $936,914; and approval of a budget amendment of $7,183,008 to add federal and state funds to the General Capital Projects Fund. J. Monthly municipal property tax refunds or releases per n.c. gen. stat. sec. 105-381
Buncombe County currently bills and collects City property taxes
At the August 22, 2023, meeting, City Council approved an addendum to the existing tax collection agreement with Buncombe County to ensure that it fully conforms to the provisions of Chapter 105 of the North Carolina General Statutes, entitled The Revenue Act.
As part of that compliance, the City Council must, on a monthly basis, approve all property tax releases and refunds that have been approved by the Buncombe County Board of Commissioners.
City of Asheville refunds and releases for March 2026 are included in the document.
Motion to adopt City of Asheville property tax refunds and releases for the month of March 2026. Mayor Manheimer said that members of Council have been previously furnished with a copy of the resolutions and ordinances on the Consent Agenda and they would not be read.
Item IV-A-1 · RES 26-93 · Transportation · Public hearing
Resolution authorizing the negotiation of an Installment Financing Contract and providing for certain other related matters
Passed7–0 · unanimous · Moved by Maggie Ullman, seconded by Sage Turner
All members present voted yes.
Staff report summary
- Resolution authorizing the negotiation of an Installment Financing Contract and providing for certain other related matters thereto
Resolution Number 26-94
Resolution Requesting the Release of Property from a Deed of Trust related to Limited Obligation Bonds
Director of Finance and Management Services Tony McDowell said that this is the public hearing to consider adoption of a resolution authorizing the negotiation of an Installment Financing Contract and providing for certain other related matters thereto; and a resolution requesting the release of property from a Deed of Trust related to Limited Obligation Bonds This public hearing was advertised on May 1, 2026.
The City has been utilizing a multi-year Capital Improvement Program (CIP) and Debt Model since fiscal year 2013-14.
As a part of that multi-year financial model, the City routinely enters into short-term draw programs with financial institutions through the issuance of interim Limited Obligation Bonds (LOBs).
The short term draw programs provide cash to reimburse the City for capital expenses prior to the issuance of long term fixed rate financing.
Staff is seeking Council approval of the initial resolution authorizing the installment financing and related issuance of 2026 Interim Limited Obligation Bonds (LOBs) in an amount not to exceed $40,000,000. The projects covered under this debt issuance include a wide range of strategic capital goals the City wishes to meet in public safety, multi-modal transportation, parks & recreation, and facility maintenance.
Specific projects of note covered under this debt issuance include repairs to the Municipal Building and as well other city facilities, maintenance to various parking garage structures, various street improvements/resurfacing, fire apparatuses and Transit buses.
Staff is also seeking Council approval requesting the release of property from a Deed of Trust.
Approval of the final resolution is scheduled for Council’s May 26, 2026 meeting.
A public hearing is required prior to Council’s approval of the final resolution. Mayor Manheimer opened the public hearing at 6:18 p.m., and when no one spoke, she closed the public hearing at 6:18 p.m.
Item IV-A-2 · RES 26-94 · Transportation · Public hearing
Resolution requesting the release of property from a Deed of Trust related to Limited Obligation Bonds
Passed7–0 · unanimous · Moved by Maggie Ullman, seconded by Sage Turner
All members present voted yes.
Staff report summary
- Resolution Requesting the Release of Property from a Deed of Trust related to Limited Obligation Bonds
Director of Finance and Management Services Tony McDowell said that this is the public hearing to consider adoption of a resolution authorizing the negotiation of an Installment Financing Contract and providing for certain other related matters thereto; and a resolution requesting the release of property from a Deed of Trust related to Limited Obligation Bonds This public hearing was advertised on May 1, 2026.
The City has been utilizing a multi-year Capital Improvement Program (CIP) and Debt Model since fiscal year 2013-14.
As a part of that multi-year financial model, the City routinely enters into short-term draw programs with financial institutions through the issuance of interim Limited Obligation Bonds (LOBs).
The short term draw programs provide cash to reimburse the City for capital expenses prior to the issuance of long term fixed rate financing.
Staff is seeking Council approval of the initial resolution authorizing the installment financing and related issuance of 2026 Interim Limited Obligation Bonds (LOBs) in an amount not to exceed $40,000,000. The projects covered under this debt issuance include a wide range of strategic capital goals the City wishes to meet in public safety, multi-modal transportation, parks & recreation, and facility maintenance.
Specific projects of note covered under this debt issuance include repairs to the Municipal Building and as well other city facilities, maintenance to various parking garage structures, various street improvements/resurfacing, fire apparatuses and Transit buses.
Staff is also seeking Council approval requesting the release of property from a Deed of Trust.
Approval of the final resolution is scheduled for Council’s May 26, 2026 meeting.
A public hearing is required prior to Council’s approval of the final resolution. Mayor Manheimer opened the public hearing at 6:18 p.m., and when no one spoke, she closed the public hearing at 6:18 p.m.
Item IV-B · RES 26-95 · Zoning & Land Use · Public hearing
Resolution to permanently close a portion of unopened right-of-way on the western edge of Saint Dunstan's Road between 159 and 183 Saint Dunstan's Road
Passed7–0 · unanimous · Moved by Sage Turner, seconded by Maggie Ullman
All members present voted yes.
Staff report summary
- Resolution To Permanently Close A Portion Of Unopened Right-Of-Way On The Western Edge Of Saint Dunstan’s Road Between 159 Saint Dunstan’s Road and 183 Saint Dustan’s Road
City Traffic Engineer Chris Carines said that this is the consideration of a public hearing and adoption of a resolution to permanently close a portion of unopened right-of-way on the western edge of Saint Dunstans Road between 159 Saint Dunstans Road and 183 Saint Dunstans Road. This public hearing was advertised on April 17, 24, and May 1 and 82026.
North Carolina General Statute § 160A-299 grants cities the authority to permanently close streets and alleys. The statute requires City Council to consider whether the closure of the right-of-way has a negative impact to the public interest, the property rights of any individuals, and whether the closure would impede access to parcels, utilities, and other public infrastructure.
Susanne Godsey petitioned for this closure on behalf of herself and the property owners adjacent to the area requested to be closed on Saint Dunstan’s.
When Saint Dunstan’s Road was originally platted in 1922, the roadway included a widened area in the northwest corner and a small triangular-shaped island referred to on the plat as a “parkway”.
The “parkway” island was constructed and a portion of it remains today; however, the roadway area shown in the original plat on the west side of the island does not appear to have ever been constructed and has never been maintained by the City as part of Saint Dunstan’s Road.
Instead, this excess unopened portion of the right-of-way area has served as driveway access to the parcels/homes there, and until recently the property owners were unaware that their properties did not access Saint Dunstan's Road.
Therefore, this action is seeking to close the excess unopened right-of-way to enable the division of the area among the parcels seeking the closure, which will allow them to construct driveways to access Saint Dunstan’s.
Two utility easements are required to be retained within the area to be closed, including a 10-foot drainage easement for stormwater for a future swale on Saint Dunstan’s and a 20-foot easement for water infrastructure. Mr. Cairnes said the request is to close a portion of unopened right-of-way on the western edge of Saint Dunstan’s Road, between 159 and 183 Saint Dunstan’s Road. Susanne and Lane Godsey petitioned for the closure on behalf of themselves and the property owners adjacent to the right-of-way. The closure will allow these homes to construct driveways that will connect to the legal public right-of-way of Saint Dunstan’s Road. When Saint Dunstan’s Road was originally platted in 1922, the roadway included a widened area in the northwest corner and a small triangular-shaped island referred to on the plat as a “parkway.” The “parkway” island was constructed and a portion of it remains today. However, the roadway area shown in the original plat on the west side of the island does not appear to have ever been constructed and has never been maintained by the City as part of Saint Dunstan’s Road. This excess unopened portion of the right-of-way has served as driveway access to the parcels/homes. Until recently, the property owners were unaware that their properties did not legally access Saint Dunstan's Road. The closure will allow the homeowners to construct driveways to access Saint Dunstan’s. Regarding Committee and Commission recommendations, (1) Historic Resources Commission
May 14, 2025
approved certificate of appropriateness for proposed right-of-way closure (as it related to St. Dunstan’s Historic District); and (2) Technical Review Committee
March 16, 2026, recommendation was to approve the closure; The Multimodal Commission is not currently meeting, but they are not legally required to review closure requests. Staff recommends City Council adopt a resolution to permanently close a portion of unopened right-of-way on the western edge of Saint Dunstan’s Road, between 159 Saint Dunstan’s Road and 183 Saint Dunstan’s Road. Mayor Manheimer opened the public hearing at 6:22 p.m., and when no one spoke, she closed the public hearing at 6:22 p.m.
Motion to deny the conditional zoning request for 99999 Caribou Rd from RS-4 to Residential Expansion - Conditional Zone
Passed7–0 · unanimous · Moved by Sheneika Smith, seconded by S. Antanette Mosley
All members present voted yes.
Staff report summary
request for the property located at 99999 Caribou Rd from Residential Single-Family Medium Density (RS-4) to Residential Expansion
Conditional Zone (RES EXP-CZ) and find that the request is not reasonable, is not in the public interest, is not consistent with the city’s comprehensive plan and does not meet the development needs of the community. This motion was seconded by Vice-Mayor Mosley and carried unanimously. D. Public hearing to consider a conditional zoning 1116 Sweeten Creek Road from RM-16 Residential Multi-Family High Density and CI Commercial Industrial District to Residential Expansion
Conditional Zone for the purposes of constructing a 126-unit multi-family development Ordinance Number 5221
Ordinance to conditionally rezone 1116 Sweeten Creek Road from RM-16 Residential Multi-Family High Density and CI Commercial Industrial District to Residential Expansion
Conditional Zone for the purposes of constructing a 126-unit multi-family development
Urban Planner Clay Mitchell said that this is the consideration of an ordinance to conditionally zone 1116 Sweeten Creek Road from RM-16 Residential Multi-Family High Density and CI Commercial Industrial District to Residential Expansion
Conditional Zone for the purposes of constructing a 126-unit multi-family development. This public hearing was advertised on May 1 and 8, 2026. Project Location and
Contacts:
The project site totals 5.15 acres located at 1116 Sweeten Creek Rd (PIN 9657-30-1178).
Owner: Heidi & Steve Kim.
Developer: Penrose LLC. Summary of Petition: Project Site
The project area consists of one property totalling 5.15 acres located at 1116 Sweeten Creek Rd in the Shiloh Neighborhood, and identified in the Buncombe County land records as PIN 9657-30-1178.
The site is currently zoned Commercial Industrial (CI) on its western portion and Residential Mulit-Family High Density (RM-16) on its eastern portion.
The site has two residential structures. One existing single-family house on the property appears to be abandoned and the other occupied and was built in 1935 according to the county tax card.
Given the size of the project (over 50 residential dwelling units) a conditional zoning to the Residential Expansion
Conditional Zone (RES EXP
CZ) district is required.
Based on the Living Asheville Comprehensive Plan Future Land Use Map (FLUM) the property is currently designated “Urban Corridor” for the western portion and “Residential Neighborhood” for the eastern portion. These areas are delineated along the same boundary as the existing zoning districts for the parcel. Both designations recommend high density multi-family uses and Residential Expansion districts, especially where adjacent to transportation corridors. A change in the Future Land Use Map is not required. Overall Project Proposal
New building construction includes one 4-story multi-family building, one 3-story multi-family building, totalling 126 affordable housing units, as well as an outdoor pavilion.
The pavilion is proposed in the central section of the site with additional outdoor amenities.
The two multi-family buildings are proposed as a larger L-shaped 4-story structure with 96 units along the north and western sides of the developed area and a rectangular 3 story building along the southern side with 30 units.
Other site improvements include surface parking, new sidewalks, and a playground. Technical Modifications
The project is seeking technical modifications to development standards through the conditional zoning process including:
Sidewalk widths of 5’ on Sweeten Creek and internally, instead of the 10’-wide standard. 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 43’ as measured to the ceiling of the highest floor.
Maximum density in the RES EXP district is 50 units/acre for projects proposing affordable units.The proposed project’s density is 24.6 units/acre.
Front yard, rear yard, and side yard setbacks of 15 feet are required in the RES EXP district. The project is compliant with the minimum required setbacks.
Maximum impervious surface in the RES EXP district for multifamily uses is 80%. The proposed project would result in a total impervious area of 50%. Access, Sidewalks and Parking
Access to the site is from a driveway on Sweeten Creek Rd
a NCDOT maintained road.
A significant NCDOT project to widen Sweeten Creek is in the engineering & design phase. This project has a northern terminus to the south of the project site just north of Rock Hill Road. The project site is not included in the project and the construction for this project is currently TBD and not funded in the state transportation plan.
Sidewalks are proposed at 5’ in width along the project’s frontage on Sweeten Creek and internal to the site. An 8’ wide grass strip is shown along the frontage between the new sidewalk and the roadway.
The project is seeking a technical modification for sidewalks width less than the minimum required 10’.
A total of 157 parking spaces are proposed for the project. Based on the number of bedrooms and dwelling units, the minimum/maximum number of required parking spaces is 156/282 for the RES EXP district.
Bicycle parking is required at a rate of 10% of the total number of residential units, which equates to 13 required bicycle parking spaces, which the project is proposing with the final location to be determined. Landscaping / Open Space / Tree Canopy
Landscape requirements apply, including street trees, property buffers, building impact, and parking lot landscaping.
Street trees are required as being one small maturing tree for every 30 linear feet of property abutting Sweeten Creek Rd where overhead utilities are present, resulting in 5 trees.
A 20’-wide “Type A” landscape buffer is required where the site is adjacent to a single-family zoning district, which includes the boundaries to the project’s north, east, and south and shows the preservation of existing mature canopy.
Parking lot landscaping requirements equate to 39 trees and 156 shrubs required which are proposed and but not fully detailed on the Landscape Plan.
The applicant will include detailed landscaping plans for Final TRC review and approval.
Building impact landscaping is required as being one tree and two shrubs for every 1,000 square feet of building footprint, equalling 41 trees and 82 shrubs.
Open Space is required at a rate of 50% of the site, or a rate of 20% of the site if the project meets the incentive requirements for either enhanced stormwater or affordable housing. Open space can be further reduced to 15% if the proposed open space meets certain design and operational standards. The project proposes 20% open space as required based on their stormwater plan, which equals 1.03 acres.
A pathway connects the areas of open space and meanders through the edges of the site from the north to the central amenity location in the center of the site.
The project proposes to meet Tree Canopy Preservation requirements through the preservation of 7% of existing tree canopy and planting an additional 10.5% area on site to achieve a total of 17.5% (0.85 acres). The project site is classified as both “Suburban” and "Urban" under the Tree Canopy Preservation standards, with a classification of Class B & C due to the dual requirements. The site has an existing tree canopy of 70%. 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.
The proposed development is compatible with the Future Land Use designation of “Residential Neighborhood", which is proposed, in part, that “the types of housing in residential neighborhoods generally offer little variation of building types throughout the neighborhood, such as townhomes, duplexes or an apartment complex,” and that, “over time, residential neighborhoods can benefit from having more housing diversity”, as well as the Future Land Use designation of “Urban Corridor”, which is proposed, in part, as “redevelopment in the form of mixed-use residential, commercial and office uses that place emphasis on pedestrian-friendly amenities and infrastructure”.
Compatibility Analysis:
The proposed multi-family project is compatible with the surrounding land uses, including:
Supports a transition from the single-family residential neighborhoods further to the east of the project site toward the corridor of Sweeten Creek Rd.
Provides similar housing densities to the Pine Valley Manufactured Housing Park immediately north west of the project site. Staff Recommendation: Staff recommends approval of this rezoning request based on the reasons stated above. Mr. Michell reviewed the existing and proposed zoning, the aerial imagery and the future land use map. He reviewed the site plan, and elevation drawings. Regarding project conditions, affordable housing is included in the Project: all units (100%) will be designated affordable for a minimum of 20 years; all units (100%) will be designated affordable to those earning 80% or less of Area Median Income (AMI) as established by HUD; and all units will accept, but not be restricted to HUD (Housing Choice) vouchers. The Project includes technical modifications: (1) Sidewalk width of 5’ along Sweeten Creek instead of 10’ standard; and (2) No sidewalk along 30’ of frontage along Rock Hill Rd, where an easement will be provided instead. He said the Technical Review Committee approved the project with conditions. The Planning & Zoning Commission voted unanimously to approve the project. He then explained how the project was consistent with the Living Asheville Comprehensive Plan. He said that staff concurs with the Planning & Zoning Commission and recommends approval of the proposed conditional zoning. In response to Councilwoman Roney, Mr. Mitchell said that his recommendation to the developer is to always prepare for the future installation of solar options and these roofs face to the south which is optimal for maximum solar gain. Mayor Manheimer opened the public hearing at 8:36 p.m., and when no one spoke, she closed the public hearing at 8:36 p.m.
Item IV-D · ORD 5221 · Zoning & Land Use · Public hearing
Ordinance to conditionally rezone 1116 Sweeten Creek Road from RM-16/CI to Residential Expansion - Conditional Zone
Passed7–0 · unanimous · Moved by Maggie Ullman, seconded by Sage Turner
All members present voted yes.
Staff report summary
- Ordinance to conditionally rezone 1116 Sweeten Creek Road from RM-16 Residential Multi-Family High Density and CI Commercial Industrial District to Residential Expansion
Conditional Zone for the purposes of constructing a 126-unit multi-family development
Urban Planner Clay Mitchell said that this is the consideration of an ordinance to conditionally zone 1116 Sweeten Creek Road from RM-16 Residential Multi-Family High Density and CI Commercial Industrial District to Residential Expansion
Conditional Zone for the purposes of constructing a 126-unit multi-family development. This public hearing was advertised on May 1 and 8, 2026. Project Location and
Contacts:
The project site totals 5.15 acres located at 1116 Sweeten Creek Rd (PIN 9657-30-1178).
Owner: Heidi & Steve Kim.
Developer: Penrose LLC. Summary of Petition: Project Site
The project area consists of one property totalling 5.15 acres located at 1116 Sweeten Creek Rd in the Shiloh Neighborhood, and identified in the Buncombe County land records as PIN 9657-30-1178.
The site is currently zoned Commercial Industrial (CI) on its western portion and Residential Mulit-Family High Density (RM-16) on its eastern portion.
The site has two residential structures. One existing single-family house on the property appears to be abandoned and the other occupied and was built in 1935 according to the county tax card.
Given the size of the project (over 50 residential dwelling units) a conditional zoning to the Residential Expansion
Conditional Zone (RES EXP
CZ) district is required.
Based on the Living Asheville Comprehensive Plan Future Land Use Map (FLUM) the property is currently designated “Urban Corridor” for the western portion and “Residential Neighborhood” for the eastern portion. These areas are delineated along the same boundary as the existing zoning districts for the parcel. Both designations recommend high density multi-family uses and Residential Expansion districts, especially where adjacent to transportation corridors. A change in the Future Land Use Map is not required. Overall Project Proposal
New building construction includes one 4-story multi-family building, one 3-story multi-family building, totalling 126 affordable housing units, as well as an outdoor pavilion.
The pavilion is proposed in the central section of the site with additional outdoor amenities.
The two multi-family buildings are proposed as a larger L-shaped 4-story structure with 96 units along the north and western sides of the developed area and a rectangular 3 story building along the southern side with 30 units.
Other site improvements include surface parking, new sidewalks, and a playground. Technical Modifications
The project is seeking technical modifications to development standards through the conditional zoning process including:
Sidewalk widths of 5’ on Sweeten Creek and internally, instead of the 10’-wide standard. 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 43’ as measured to the ceiling of the highest floor.
Maximum density in the RES EXP district is 50 units/acre for projects proposing affordable units.The proposed project’s density is 24.6 units/acre.
Front yard, rear yard, and side yard setbacks of 15 feet are required in the RES EXP district. The project is compliant with the minimum required setbacks.
Maximum impervious surface in the RES EXP district for multifamily uses is 80%. The proposed project would result in a total impervious area of 50%. Access, Sidewalks and Parking
Access to the site is from a driveway on Sweeten Creek Rd
a NCDOT maintained road.
A significant NCDOT project to widen Sweeten Creek is in the engineering & design phase. This project has a northern terminus to the south of the project site just north of Rock Hill Road. The project site is not included in the project and the construction for this project is currently TBD and not funded in the state transportation plan.
Sidewalks are proposed at 5’ in width along the project’s frontage on Sweeten Creek and internal to the site. An 8’ wide grass strip is shown along the frontage between the new sidewalk and the roadway.
The project is seeking a technical modification for sidewalks width less than the minimum required 10’.
A total of 157 parking spaces are proposed for the project. Based on the number of bedrooms and dwelling units, the minimum/maximum number of required parking spaces is 156/282 for the RES EXP district.
Bicycle parking is required at a rate of 10% of the total number of residential units, which equates to 13 required bicycle parking spaces, which the project is proposing with the final location to be determined. Landscaping / Open Space / Tree Canopy
Landscape requirements apply, including street trees, property buffers, building impact, and parking lot landscaping.
Street trees are required as being one small maturing tree for every 30 linear feet of property abutting Sweeten Creek Rd where overhead utilities are present, resulting in 5 trees.
A 20’-wide “Type A” landscape buffer is required where the site is adjacent to a single-family zoning district, which includes the boundaries to the project’s north, east, and south and shows the preservation of existing mature canopy.
Parking lot landscaping requirements equate to 39 trees and 156 shrubs required which are proposed and but not fully detailed on the Landscape Plan.
The applicant will include detailed landscaping plans for Final TRC review and approval.
Building impact landscaping is required as being one tree and two shrubs for every 1,000 square feet of building footprint, equalling 41 trees and 82 shrubs.
Open Space is required at a rate of 50% of the site, or a rate of 20% of the site if the project meets the incentive requirements for either enhanced stormwater or affordable housing. Open space can be further reduced to 15% if the proposed open space meets certain design and operational standards. The project proposes 20% open space as required based on their stormwater plan, which equals 1.03 acres.
A pathway connects the areas of open space and meanders through the edges of the site from the north to the central amenity location in the center of the site.
The project proposes to meet Tree Canopy Preservation requirements through the preservation of 7% of existing tree canopy and planting an additional 10.5% area on site to achieve a total of 17.5% (0.85 acres). The project site is classified as both “Suburban” and "Urban" under the Tree Canopy Preservation standards, with a classification of Class B & C due to the dual requirements. The site has an existing tree canopy of 70%. 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.
The proposed development is compatible with the Future Land Use designation of “Residential Neighborhood", which is proposed, in part, that “the types of housing in residential neighborhoods generally offer little variation of building types throughout the neighborhood, such as townhomes, duplexes or an apartment complex,” and that, “over time, residential neighborhoods can benefit from having more housing diversity”, as well as the Future Land Use designation of “Urban Corridor”, which is proposed, in part, as “redevelopment in the form of mixed-use residential, commercial and office uses that place emphasis on pedestrian-friendly amenities and infrastructure”.
Compatibility Analysis:
The proposed multi-family project is compatible with the surrounding land uses, including:
Supports a transition from the single-family residential neighborhoods further to the east of the project site toward the corridor of Sweeten Creek Rd.
Provides similar housing densities to the Pine Valley Manufactured Housing Park immediately north west of the project site. Staff Recommendation: Staff recommends approval of this rezoning request based on the reasons stated above. Mr. Michell reviewed the existing and proposed zoning, the aerial imagery and the future land use map. He reviewed the site plan, and elevation drawings. Regarding project conditions, affordable housing is included in the Project: all units (100%) will be designated affordable for a minimum of 20 years; all units (100%) will be designated affordable to those earning 80% or less of Area Median Income (AMI) as established by HUD; and all units will accept, but not be restricted to HUD (Housing Choice) vouchers. The Project includes technical modifications: (1) Sidewalk width of 5’ along Sweeten Creek instead of 10’ standard; and (2) No sidewalk along 30’ of frontage along Rock Hill Rd, where an easement will be provided instead. He said the Technical Review Committee approved the project with conditions. The Planning & Zoning Commission voted unanimously to approve the project. He then explained how the project was consistent with the Living Asheville Comprehensive Plan. He said that staff concurs with the Planning & Zoning Commission and recommends approval of the proposed conditional zoning. In response to Councilwoman Roney, Mr. Mitchell said that his recommendation to the developer is to always prepare for the future installation of solar options and these roofs face to the south which is optimal for maximum solar gain. Mayor Manheimer opened the public hearing at 8:36 p.m., and when no one spoke, she closed the public hearing at 8:36 p.m.
Monthly municipal property tax refunds or releases per N.C. Gen. Stat. sec. 105-381
Passed7–0 · unanimous · Moved by Maggie Ullman, seconded by Kim Roney
All members present voted yes.
Staff report summary
r releases per n.c. gen. stat. sec. 105-381
Buncombe County currently bills and collects City property taxes
At the August 22, 2023, meeting, City Council approved an addendum to the existing tax collection agreement with Buncombe County to ensure that it fully conforms to the provisions of Chapter 105 of the North Carolina General Statutes, entitled The Revenue Act.
As part of that compliance, the City Council must, on a monthly basis, approve all property tax releases and refunds that have been approved by the Buncombe County Board of Commissioners.
City of Asheville refunds and releases for March 2026 are included in the document.
Motion to adopt City of Asheville property tax refunds and releases for the month of March 2026. Mayor Manheimer said that members of Council have been previously furnished with a copy of the resolutions and ordinances on the Consent Agenda and they would not be read.
Resolution authorizing the award of CDBG-DR Multi-Family Housing Program funds to Commonwealth Development Corporation (District East Commons) and Laurel Street (319B Biltmore)
Passed7–0 · unanimous · Moved by S. Antanette Mosley, seconded by Sage Turner
All members present voted yes.
Staff report summary
- Resolution authorizing the award of Community Development Block Grant
Disaster Recovery multi-family housing funds to Mountain Housing Opportunities/South Creek Development (Terrace at River Hills), Commonwealth Development Corporation (District East Commons), and Laurel Street (319B Biltmore).- Community Development Block Grant
Disaster Recovery Project Manager Elma King said that this is the consideration of a resolution authorizing the award of Community Development Block Grant
Disaster Recovery (CDBG-DR) multi-family housing funds to Mountain Housing Opportunities/South Creek Development (Terrace at River Hills), Commonwealth Development Corporation (District East Commons), and Laurel Street (319B Biltmore).
The Department of Housing and Urban Development (HUD) allocated $225,010,000 in funds to the City of Asheville on January 16, 2025.
The City’s CDBG-DR Action Plan allocated $31,000,000 to Housing Programs, inclusive of $3,000,000 to the CDBG-DR Single Family Rehabilitation & Reconstruction Program and $28,000,000 to the CDBG-DR Affordable Multi-Family Housing Construction Program.
Eligible projects under the Affordable Multi-Family Housing Construction Program must be located entirely within Asheville city limits, secure Low Income Housing Tax Credit allocations in compliance with the North Carolina Housing Finance Agency Qualified Allocation Plan, pass the City’s financial underwriting, and meet other eligibility requirements.
The application for the CDBG-DR Affordable Multi-Family Housing Construction funding opportunity closed on February 25, with the volume of submissions signaling significant demand for multifamily housing construction. The funding opportunity advertised $10,000,000 in available funding, and additional funding within the multi-family program can be awarded in this process as appropriate.
13 applications were received, and 12 were deemed eligible, totaling 1,481 units proposed, $483,797,251 in total development cost, and $70,411,000 in City of Asheville CDBG-DR funds requested.
Staff recommends awarding $17.89 million to support 331 housing units across three projects. These include the top-ranked Terrace at River Hills ($9.5 million, to construct 126 units), followed by District East Commons ($1.39 million, to construct 93 units) and 319-B Biltmore ($7 million, to construct 112 units). The 319-B Biltmore project is recommended as a supplemental project in line with city priorities.
All three funding commitments will be contingent on a successful application and award of Low-Income Housing Tax Credits via the North Carolina Housing Finance Agency.
Terrace at River Hills and 319-B Biltmore both will apply as 4% tax credit projects and have no additional funding contingencies.
District East Commons will apply as a 9% tax credit and also needs State of NC CDBG-DR funding. The City’s funding will be contingent on District East securing State funding.
To proceed, the City Council must authorize agreements between the City and developers and award CDBG-DR funds for the construction of Affordable Multi-Family Housing within the City of Asheville.
Low-Income Housing Tax Credit applications are due May 15, 2026, and the CDBG-DR funding commitment is critical to those applications.
The projects are also time-sensitive to meet the community's recovery needs, quickly initiate much-needed affordable multifamily housing construction, and activate CDBG-DR funds. Ms. King provided a brief overview of the substantial amendment to the Single-Family Program; along with recommendations for CDBG-DR Multi-Family Housing awards. Housing and Community Development Director Nikki Reid said that regarding the proposed reallocation to Single-Family, (1) The final cost of serving all Asheville applicants to Renew NC is yet unknown, but estimated to be between $30-$40 million; (2) Staff propose pursuing a Substantial Amendment to the CDBG-DR Action Plan to reallocate $19.2 million to the Renew NC Program – comprised of $9.2 million from the Affordable Multi-Family Housing Construction Program, and $10 million from the CDBG-DR Infrastructure Program. The City identified $10M in estimated design costs for the North Fork Project as funds likely be reimbursed first through HMGP, and therefore believe this funding amount can be reallocated to Single Family Home Repair; and (3) The Single-Family Home Repair & Reconstruction Program would be allocated $22.2 million which the State estimates will serve 55-65 Asheville households. Next steps are: (1) Home repair demand and costs exceed expectations; total need estimated at $30–$40M
Proposed CDBG-DR amendment reallocates $19.2M to Renew NC, bringing the program total to $22.2M (Council to vote June 23); (2) 2024 Affordable Housing Bonds will provide additional home repair funding via ARCHER to address unmet needs
A home repair policy and bond allocation will also come before Council on June 23; and (3) Strategy combines multifamily development (for displaced renters) with homeowner repair programs (Renew NC + ARCHR) to stabilize residents, preserve generational wealth, and prevent further displacement. She then reviewed the deal structuring in affordable housing; CDBG-DR Multi-Family Program priorities; Notice of Funding opportunity (NOFO); evaluation criteria; evaluation and recommendation process; and rationale for recommendations
Recommendations align with the results of the NOFO evaluation process: $10.89 million. (1) The top Ranked Proposal: Terrace at River Hills ($9.5 million), 126 Units (4% LIHTC); (2) The second Ranked Proposal: District East Commons ($1.385 million), 93 Units (9% LIHTC) Terrace at River Hills is the most shovel ready, with no state-CDBG funding contingencies. District East requires a State funding investment, and was the second highest scoring application; and (3) Supplemental Project Recommendation: $7 million
319 Biltmore ($7 million), 112 Units (4% LIHTC). 319-B Biltmore is shovel ready, with no additional funding contingencies. This award funds the second phase of a project on a City-owned property, with the first phase (109 workforce + affordable units) already fully funded with City support. The recommendations are (1) To advance Council’s Quality Affordable Housing vision and provide gap funding for the construction of affordable multi-family projects after Tropical Storm Helene, Staff recommend a commitment of $17.89 million to support 3 projects totaling 331 units (1) The City’s NOFO process identified Terrace at River Hills and District East Commons as the top-scoring projects based on the evaluation criteria; and (2) Supplemental Opportunity: 319-B Biltmore applied for tax credits in the Fall 2025 cycle and is positioned to start construction in 2026. Deploying additional CDBG-DR funds and awarding this project is recommended. On May 5, HCD voted 2-1 to recommend the award of $17.89 million in Affordable Multi-Family Housing Construction Program funds to advance three projects totaling 331 units. Ms. Reid responded to various questions/comments from Council, some being, but are not limited to: how much has the City contributed to 319 Biltmore already; and what other sources of funding are available for these projects and are they applying to those sources, and if not, why. When Councilwoman Turner wanted to move more money out of multi-family development into single-family home repairs, discussion occurred regarding the need for funds to repair homes, noting that the substantial amendment to reallocate funds to the Single-Family Rehab and Reconstruction Program will be coming back to City Council via a public hearing on June 9. Councilwoman Roney felt we should expedite home repair/rebuild but pull from planning. We do need more funding, but she was concerned about pulling it from infrastructure. Naming concern about flood mitigation recommendations outstanding from Flood Damage Reduction Task Force after the floods in 2004: (1) auditory alarm systems for evacuation; (2) drawdown schedule for the North Fork Reservoir in response to rainfall predictions and (3) early alert systems. Several Council members felt that the per unit subsidy on the Terrace at River Hills development was too high.
Motion to authorize the award of CDBG-DR funds to Mountain Housing Opportunities/South Creek Development (Terrace at River Hills)
Failed7–0 · Moved by Maggie Ullman
All members present voted yes.
Staff report summary
- Resolution authorizing the award of Community Development Block Grant
Disaster Recovery multi-family housing funds to Mountain Housing Opportunities/South Creek Development (Terrace at River Hills), Commonwealth Development Corporation (District East Commons), and Laurel Street (319B Biltmore).- Community Development Block Grant
Disaster Recovery Project Manager Elma King said that this is the consideration of a resolution authorizing the award of Community Development Block Grant
Disaster Recovery (CDBG-DR) multi-family housing funds to Mountain Housing Opportunities/South Creek Development (Terrace at River Hills), Commonwealth Development Corporation (District East Commons), and Laurel Street (319B Biltmore).
The Department of Housing and Urban Development (HUD) allocated $225,010,000 in funds to the City of Asheville on January 16, 2025.
The City’s CDBG-DR Action Plan allocated $31,000,000 to Housing Programs, inclusive of $3,000,000 to the CDBG-DR Single Family Rehabilitation & Reconstruction Program and $28,000,000 to the CDBG-DR Affordable Multi-Family Housing Construction Program.
Eligible projects under the Affordable Multi-Family Housing Construction Program must be located entirely within Asheville city limits, secure Low Income Housing Tax Credit allocations in compliance with the North Carolina Housing Finance Agency Qualified Allocation Plan, pass the City’s financial underwriting, and meet other eligibility requirements.
The application for the CDBG-DR Affordable Multi-Family Housing Construction funding opportunity closed on February 25, with the volume of submissions signaling significant demand for multifamily housing construction. The funding opportunity advertised $10,000,000 in available funding, and additional funding within the multi-family program can be awarded in this process as appropriate.
13 applications were received, and 12 were deemed eligible, totaling 1,481 units proposed, $483,797,251 in total development cost, and $70,411,000 in City of Asheville CDBG-DR funds requested.
Staff recommends awarding $17.89 million to support 331 housing units across three projects. These include the top-ranked Terrace at River Hills ($9.5 million, to construct 126 units), followed by District East Commons ($1.39 million, to construct 93 units) and 319-B Biltmore ($7 million, to construct 112 units). The 319-B Biltmore project is recommended as a supplemental project in line with city priorities.
All three funding commitments will be contingent on a successful application and award of Low-Income Housing Tax Credits via the North Carolina Housing Finance Agency.
Terrace at River Hills and 319-B Biltmore both will apply as 4% tax credit projects and have no additional funding contingencies.
District East Commons will apply as a 9% tax credit and also needs State of NC CDBG-DR funding. The City’s funding will be contingent on District East securing State funding.
To proceed, the City Council must authorize agreements between the City and developers and award CDBG-DR funds for the construction of Affordable Multi-Family Housing within the City of Asheville.
Low-Income Housing Tax Credit applications are due May 15, 2026, and the CDBG-DR funding commitment is critical to those applications.
The projects are also time-sensitive to meet the community's recovery needs, quickly initiate much-needed affordable multifamily housing construction, and activate CDBG-DR funds. Ms. King provided a brief overview of the substantial amendment to the Single-Family Program; along with recommendations for CDBG-DR Multi-Family Housing awards. Housing and Community Development Director Nikki Reid said that regarding the proposed reallocation to Single-Family, (1) The final cost of serving all Asheville applicants to Renew NC is yet unknown, but estimated to be between $30-$40 million; (2) Staff propose pursuing a Substantial Amendment to the CDBG-DR Action Plan to reallocate $19.2 million to the Renew NC Program – comprised of $9.2 million from the Affordable Multi-Family Housing Construction Program, and $10 million from the CDBG-DR Infrastructure Program. The City identified $10M in estimated design costs for the North Fork Project as funds likely be reimbursed first through HMGP, and therefore believe this funding amount can be reallocated to Single Family Home Repair; and (3) The Single-Family Home Repair & Reconstruction Program would be allocated $22.2 million which the State estimates will serve 55-65 Asheville households. Next steps are: (1) Home repair demand and costs exceed expectations; total need estimated at $30–$40M
Proposed CDBG-DR amendment reallocates $19.2M to Renew NC, bringing the program total to $22.2M (Council to vote June 23); (2) 2024 Affordable Housing Bonds will provide additional home repair funding via ARCHER to address unmet needs
A home repair policy and bond allocation will also come before Council on June 23; and (3) Strategy combines multifamily development (for displaced renters) with homeowner repair programs (Renew NC + ARCHR) to stabilize residents, preserve generational wealth, and prevent further displacement. She then reviewed the deal structuring in affordable housing; CDBG-DR Multi-Family Program priorities; Notice of Funding opportunity (NOFO); evaluation criteria; evaluation and recommendation process; and rationale for recommendations
Recommendations align with the results of the NOFO evaluation process: $10.89 million. (1) The top Ranked Proposal: Terrace at River Hills ($9.5 million), 126 Units (4% LIHTC); (2) The second Ranked Proposal: District East Commons ($1.385 million), 93 Units (9% LIHTC) Terrace at River Hills is the most shovel ready, with no state-CDBG funding contingencies. District East requires a State funding investment, and was the second highest scoring application; and (3) Supplemental Project Recommendation: $7 million
319 Biltmore ($7 million), 112 Units (4% LIHTC). 319-B Biltmore is shovel ready, with no additional funding contingencies. This award funds the second phase of a project on a City-owned property, with the first phase (109 workforce + affordable units) already fully funded with City support. The recommendations are (1) To advance Council’s Quality Affordable Housing vision and provide gap funding for the construction of affordable multi-family projects after Tropical Storm Helene, Staff recommend a commitment of $17.89 million to support 3 projects totaling 331 units (1) The City’s NOFO process identified Terrace at River Hills and District East Commons as the top-scoring projects based on the evaluation criteria; and (2) Supplemental Opportunity: 319-B Biltmore applied for tax credits in the Fall 2025 cycle and is positioned to start construction in 2026. Deploying additional CDBG-DR funds and awarding this project is recommended. On May 5, HCD voted 2-1 to recommend the award of $17.89 million in Affordable Multi-Family Housing Construction Program funds to advance three projects totaling 331 units. Ms. Reid responded to various questions/comments from Council, some being, but are not limited to: how much has the City contributed to 319 Biltmore already; and what other sources of funding are available for these projects and are they applying to those sources, and if not, why. When Councilwoman Turner wanted to move more money out of multi-family development into single-family home repairs, discussion occurred regarding the need for funds to repair homes, noting that the substantial amendment to reallocate funds to the Single-Family Rehab and Reconstruction Program will be coming back to City Council via a public hearing on June 9. Councilwoman Roney felt we should expedite home repair/rebuild but pull from planning. We do need more funding, but she was concerned about pulling it from infrastructure. Naming concern about flood mitigation recommendations outstanding from Flood Damage Reduction Task Force after the floods in 2004: (1) auditory alarm systems for evacuation; (2) drawdown schedule for the North Fork Reservoir in response to rainfall predictions and (3) early alert systems. Several Council members felt that the per unit subsidy on the Terrace at River Hills development was too high.