319 Biltmore Ave: City Council approves purchase agreement for 215-unit development

ASHEVILLE - After a purchase and sale agreement clinched unanimous approval from City Council Aug. 23, 215 apartments could be coming to 319 Biltmore Ave. south of downtown, a long-awaited, mixed-income housing project that marks the first time the city has partnered with a Black developer on a city-owned land development initiative.

Nikki Reid, the city's community and economic development director, confirmed this was a first for the city, and said she is "thrilled" for the partnership with Charlotte-based developer Laurel Street Residential to be officially moving forward. 

Asheville City Council voted to authorize a purchase and sales agreement with Laurel Street to purchase the 319 Biltmore Ave. property from the city for $1. 

The city initially acquired the property in January 2020 for $5.3 million. 

The city-owned parcel sits at the intersection of Biltmore Avenue and White Fawn Drive, adjacent to the recently rebuilt development of Lee Walker Heights, the city's oldest public housing complex, renamed Maple Crest Apartments. 

Previous coverage: 

• Vote on 215 apartments coming to 319 Biltmore Ave. set for Asheville City Council
• Council members: $13 million property near downtown Asheville could go to reparations program

Of the development's proposed 215 units, 65 will be deeded affordable at 60% and 80% area median income. 

Laurel Street is among very few Black and woman-owned, for-profit development companies in the state, according to the city staff report, and intends for the new development to complement the neighboring apartments of Maple Crest, both of which are a gateway into Asheville's South Slope and downtown. 

Council member Antanette Mosley was eager to point out not only the significance of this partnership, but the development's proximity to the historically Black neighborhoods of South Slope and East End/Valley Street. 

“I want to broaden the contextual analysis to show that we are making great strides in our racial equity work in particular,” Mosley said. 

"This is a big deal and I’m proud to be able to vote to this." 

The project carries a price tag of $51.9 million, and construction could be completed by the end of 2025.

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Ronn Stewart, senior vice president and co-leader of development with Laurel Street, said the land purchase will act as the only city subsidy for the affordable units. He does not anticipate making any further asks of the city, such as a Land Use Incentive Grant or Housing Trust Fund. 

With the city’s initial land purchase price, the proposed per unit subsidy is currently estimated to be approximately $81,500 per affordable unit.

With a mix of one-, two- and three-bedroom apartments, affordability is spread across all three unit sizes. 

Affordable Housing Officer Sasha Vrtunski stressed that affordable housing able to accommodate families, not just studio/one bedroom options, has been identified as a priority from both council and the community. 

Of the 215 units, 20% or 43 units would be available at 60% AMI or below, with half accepting housing choice vouchers. Another 10%, or 22 units, would be available at 80% AMI or below, and 150 units will be rented at market price. 

All affordable units will be deed restricted for 30 years. 

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The total number of bedrooms in the proposed development is approximately 321, according to the city staff report. The project proposes 131 one-bedroom and studio apartments, 62 two-bedrooms and 22 three-bedrooms. 

Laurel Street also intends for 1,000 square feet of commercial space in the development to be leased at below-market rents to nonprofit and community group. 

What's next?

The land adjacent to Maple Crest Apartments and near downtown's South Slope and the Oakhurst neighborhood was once a car dealership and later was owned by Duke Energy, which considered it for a power substation.

In a 2020 arrangement with the power company, the city bought the property for $5.3 million, using voter-approved affordable housing bonds that will be paid back at a low interest rate. 

In February 2020, the city issued a request for proposals for a mixed-use development for the parcel, in the hopes the project would complement the Maple Crest Apartments at Lee Walker next door. 

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The city put $400,000 into demolition of the existing building, environmental site remediation and infrastructure investments. 

Future city investments include a traffic signal at the intersection of White Fawn Drive, John Walker and Biltmore avenues. The price tag for the traffic signal is estimated to be an additional $400,000. 

Once the purchase and sales agreement is final, Laurel Street will begin its site planning process, which will ultimately require a conditional zoning approval and a return to City Council. 

According to the staff report, this will include community input into the design of the project. 

After the conditional zoning is approved, the city and Laurel Street will enter into a development agreement based on the terms approved by City Council.

The actual sale of the land will occur after all approvals have been obtained and construction is ready to begin.

In other news

Also at its Aug. 16 meeting, City Council unanimously approved an $850,000 Housing Trust Fund ask from Mountain Housing Opportunities, which proposes a 100% affordable 50-60 unit development off Tunnel Road in East Asheville. 

The low-income housing tax credit would be used to purchase the property. 

The 1.31-acre site is located at 16 Restaurant Court, just behind the Mountaineer Inn, with units proposed for a range of affordability, from 30%-60% AMI, in a mix of one and two bedrooms. 

The project will also reserve 20% of its units, or 10-12 units, for young adults aging out of foster care, said Vrtunski. 

After purchasing the property, Mountain Housing Opportunities intends to pursue funding from other sources for the development, including Buncombe County and Dogwood Health Trust. 

Sarah Honosky is the city government reporter for the Asheville Citizen Times, part of the USA TODAY Network. News Tips? Email shonosky@citizentimes.com or message on Twitter at @slhonosky.