Three developers and a vision for a $500 million mixed use development in south Charlotte, NC. Early 2023 saw the filing of the rezoning plans for the mixed use development project. The three developers: Horizon Development Properties, Levine Properties, and Northwood Ravin, patched up their pieces together for the project.
The three developers for the mixed use development
Levine Properties has the largest portion of the 113-acre south Charlotte mixed use redevelopment property located at the intersections of Providence Road, Sardis Lane, and Old Providence Road in south Charlotte.
Horizon Development Properties will use its 8-acre to setup 305 multifamily units and 75 affordable housing units. Northwood Ravin will have 650 multifamily units and 95 rental town-homes on its 20-acres. Levine will have its 85-acres develop 879 multifamily units, 125 rental town-homes, recreation spaces, stores, and office spaces.
Rezoning application for the $500m mixed use development
The “umbrella project” saw the three developers file separate rezoning applications to revamp the Providence Road area in south Charlotte. The applications were set for a public hearing before the Charlotte city council in late 2023. A rezoning decision for the project is by the city council is expected soon.
The President of Levine Properties, Daniel Levine, termed the project’s inspiration as of the, “long-term goals of Charlotte’s 2040 Plan efforts”. He also mentioned that the project will, “energize” the place, and bring the concept of “10-minute neighborhood to life”. The comments highlighted in a press release last year will soon enough come to fruition with the progress being made on the project.
Latest updates on the project finances
At its inception, the south Charlotte project cost was projected at $500 million; the bulk of this came through as private investment.
Along with this came tax grant incentives. The incentives totaled to $19 million with the Charlotte City Council having a say on $6.9 million, and Mecklenburg county overseeing the remaining $12.1 million.
December 2nd saw the economic development committee for Charlotte city pass the incentive grant on their side. The Charlotte City Council also recently approved the $6.9 million in tax increment grants for the $500 mixed use development. This officially secures the city’s portion of the $19 million of the tax incentive grant for the $500 million south Charlotte mixed used development.
The city council vote will also be supplemented by the county of Mecklenburg’s vote. The economic development committee for the county of Mecklenburg will have their cast out soon after the city council’s. This will set room for the 9-member table that will vote on the incentive grant early next year.
The tax incentive grant – supposedly only affecting Northwood and Levine – will be of the tax revenue generated by the private investment. The 45% of the incremental tax revenue will generate the incentive grants only after they have culminated tax gains. This revenue will then be channeled back to public use.
Diverse points of view on the tax incentive grant for the mixed use development have also been made. Some sectors of the (city’s) committee were vouching for improvements before the full vote takes place. The motion however passed unanimously.
With less than a decade to the completion of the project, the incentives will be repaid through the course of 15 years. The project’s completion date is slated for 2033.
The city’s resolution on the tax increment grant (TIG)
The City of Charlotte’s resolution was to approve the interlocal agreement with Mecklenburg County for the tax increment reimbursement for Providence Square. The Board of County Commissioners will also approve (or not) of the 15-year, 45% tax increment grant for the $19M to support the infrastructural development in the area.
The $19 million in reimbursement will include improvement to the following:
- Traffic signaling
- Lane modification
- Pedestrian crossings
- Providence road corridor improvements, among others.
The project developer will undertake these improvements and then get reimbursed over a period of 15 years through 45% of the property taxes in the city and county.
To ascertain this arrangement, the city and the county are to execute an “interlocal agreement”. The agreement will obligate the county to pay 45% of the increment property taxes from the designated area to the city during the term of agreement. The city as stated, has already approved of this.
Giving back to the people of south Charlotte
The incentive grants will give back to the community through:
- supporting sustainability and environmental goals
- improving infrastructure in the south Charlotte area
- affordable housing
- helping small businesses
- a fire station. Prospects have it that the 50-year-old existing station will get a revamp.
Details about the proposed fire station by Levine have also been made clear. The developer was to build the fire station and lease it to the city. This has however been revised and the developer will now offer a 5-year period for the city to buy the site for nearly 80% of the market value.
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