Charlotte

Taxpayer subsidy for new uptown apartments? Mecklenburg County Commissioners blast proposal

A Charlotte developer’s request for public money to help convert the old Duke Energy headquarters in uptown into apartments received a cold reception from Mecklenburg County Commissioners last week, leaving the future of the project uncertain.

The building on Church Street exemplifies a growing problem uptown: Older, outdated office buildings that find it harder than ever to attract tenants as companies downsize their office space post-COVID. At the end of 2022, Charlotte-based Asana Partners and Washington, D.C., developer MRP Realty bought the former Duke Energy headquarters in uptown for $35 million. They announced plans to convert the boxy, beige building into 448 apartments and retail.

However, the developers have struggled to get financing. They’ve asked local governments to give them $19 million in property tax breaks that would be paid out over 15 years. Asana said the city and the county would still see an increase in $10.6 million in new property tax revenue, even after the rebate.

City Council Support

The proposal has gotten two very different receptions from the city and the county. Many Charlotte City Council members loved the idea when they discussed it in February. They are concerned about empty office towers post-COVID and saw the conversion as a win-win.

Council member Ed Driggs said, “It’s very appealing, right? I like the idea of creating the residential units. And I like the activation at that location.” Council member James Mitchell supported the idea as well, emphasizing the need for retail in center city.

County Commissioners’ Criticism

Last week, Welch Liles, managing partner at Asana Partners, asked Mecklenburg County to consider the property tax rebate to make the project work. The county’s support is crucial as Mecklenburg’s share makes up about two-thirds of property tax bills.

However, Mecklenburg Commissioners were skeptical of the proposal. Commissioner Leigh Altman questioned why a for-profit company should receive government help and expressed her doubts about the justification for the subsidy.

Commissioner Arthur Griffin criticized the project for not addressing the needs of low-income residents and potentially widening disparities. Commissioner Elaine Powell raised concerns about using taxpayer dollars to further enrich developers.

Uncertain Future

If the apartment conversion doesn’t move forward, it’s unclear what Asana would do with the old office building. The debate over the taxpayer subsidy continues, with city officials supporting the project while county commissioners remain critical of the proposal.

Source: HERE News Network

Author: HERE News