Ballantyne Scoop » Republic Development Group

Republic Development Group Kills The Ballantyne Public Housing project

ssherron — Wed, 24 Feb 2010 13:36:40 +0000

Ballantyne, NC – The developer planning to build subsidized apartments in Ballantyne said he is no longer pursuing the project, ending a quest to bring the first subsidized housing to the affluent area.

Republic Development Group said late Tuesday it’s withdrawing a rezoning request because it can’t get money from the city’s Housing Trust Fund.

Republic planned to partner with the Charlotte Housing Authority to build 86 apartments for low-income residents, but the authority pulled out Monday.

The authority said the project no longer made economic sense, but its decision came more than a week after two executives left under pressure for how they arranged the deal, the Observer has learned.

One of the employees who left CHA is a business partner of the private developers who proposed the project.

An internal investigation at CHA, as well as intense public opposition, helped cripple the project at Johnston Road and Providence Road West.

“It’s a disappointing end, we wanted to see this through.”

- Stuart Proffitt, Republic Development Group

Earlier this month, as Republic moved forward with the controversial project, the housing authority was investigating how two staff members put the deal together, according to three sources familiar with the deal.

The principals of Republic, John Schwaller and Proffitt, are vice presidents of SPQR Real Estate Co., according to the N.C. Secretary of State’s office. The president of SPQR is Ben Collins, who was a senior development officer with the authority.

Collins helped the authority and Republic create a partnership for the Ballantyne apartments, known as Ballancroft, the sources said.

The CHA agreed to pay Republic $20,000 for its work to rezone the seven acres for the apartments and $50,000 if the effort is successful.

Collins and his boss, Kathleen Foster, vice president for real estate, left the authority on Feb. 11, said CHA spokeswoman Jennifer Gallman. Their departure came after the authority conducted an investigation about how the business relationship between Republic and Collins was handled, according to sources.

Joel Ford is the chairman of the volunteer board of commissioners that oversees the authority.

“If (Collins) had a previous business working relationship, that doesn’t look healthy,” Ford said.

Gallman said she couldn’t discuss details about how Foster and Collins left the authority.

Collins and Foster couldn’t be reached for comment Tuesday.

The authority had said days earlier that bringing low-income housing to Ballantyne is critical. That would help disperse public housing throughout the city. In addition, it would allow some low-income employees in Ballantyne to live near their jobs.

The original plan was for 110 apartments, but that was scaled back to 86 units. Twenty-six of those apartments would have been for people making 30 percent of the area’s median income. That would have been just under $20,000 for a family of four.

The authority said Monday afternoon the reduction in units made the project too expensive.

About 300 residents blasted the project at a meeting Monday night with Republic. Some said they didn’t want public housing in the area, while others said the project would worsen traffic and school crowding.

Some Ballantyne residents asked Schwaller and Proffitt about SPQR at the meeting. Schwaller said the venture was formed to pursue a real estate deal in Cornelius, but that project fell through. He said SPQR is no longer functioning, though the state Web site lists it as active.

Proffitt said Tuesday said he’s surprised by the fallout from SPQR and the authority. He said his relationship with Collins was known inside CHA and that there was nothing improper about Republic’s relationship with Collins.

“There was absolutely nothing wrong with our relationship,” Proffitt said. “Everything we did was 100 percent above board.”

He declined to comment further.

He said Republic’s decision Tuesday to abandon the project was due to the inability to get money from the city’s Housing Trust Fund.

The application for that money was done by the CHA, and Proffitt said the city told him the authority couldn’t transfer the application to a new developer.

The authority is a nonprofit whose commissioners are appointed by the Charlotte City Council and the mayor. It uses money from the city’s Housing Trust Fund but mostly relies on funding from the federal government.

Proffitt worked for Pappas Properties until 2008 and had worked as a developer in California.

Schwaller worked for Grubb Properties, where he worked with the housing authority on a project called Seigle Point near uptown. Collins also worked for nearly two years at Grubb, where he was a project manager.

“What I have heard did raise an eyebrow,” said Charlotte City Council member Patrick Cannon, who lives in the area and who attended Monday night’s meeting. “I have other questions and would like to find out more.”

Republic still has an option on the seven acres. That option expires in 260 days, Proffitt said.

Steve Harrison, Reporter
Maria David, Staff Researcher
Charlotte Observer | Scoop Network News Partner

2010 BallantyneScoop The Scoop Network

No Cameras Allowed At Ballantyne Rezoning Meeting on Monday Night

Caroline Adams — Fri, 19 Feb 2010 23:29:17 +0000

Ballantyne, NC – As of this posting, Harrison United Methodist Church will not allow cameras inside the scheduled meeting Monday night. Reporters will be allowed entrance to the meeting, however they will have to leave all camera equipment outside. Ballantyne Scoop had planned to live internet video stream the meeting, but when we made the request to the church, we were told the it violates the sanctity of the space. While we respect the church’s stance on this matter we are disappointed that the community will not have the ability to get the facts first hand through video.

The Ballantyne Scoop strives to provide an accurate account of the news for its readers, especially on matters as complex as this one. We do plan on attending the meeting to keep the community up to date on all developments through our written reports.

Press Release from Harrison UMC – “For two hundred twenty-five years Harrison United Methodist Church has been a center of this community. As a purposeful outreach to the community in the name of Jesus Christ, and in keeping with the beliefs and purpose of the United Methodist Church, we provide a gathering place for our neighbors. In providing a gathering space, Harrison United Methodist Church does not endorse any party in this rezoning process. We offer our facility so that factual information might be disseminated. We only ask that those gathering here in this sacred space might honor its sanctity by your language and behavior. In the name of Jesus Christ, welcome.”

This meeting is the one that that Republic Development is required to have to inform the community of its rezoning request. These meetings are to be open public forums and both Republic Development and the city planning group have been made aware of the “no camera” policy.

According to a source in the planning office when asked if this was legal, the Scoop Network was told that they have never run into this issue before but that they would look into the issue. As of the time of this writing, we have not heard back from them. Relocating the meeting is not likely due to the notification guidelines that are in place.

District 7 City Councilman Warren Cooksey said this morning he plans to skip the regularly scheduled City Council meeting on Monday night in order to attend the public forum.

The public forum is scheduled to be held in the gym at Harrison United Methodist Church on Old Lancaster Highway. A large crowd is expected. Ballantyne Scoop plans to tweet during the meeting so you can follow us at @ballantynescoop on Twitter.

caroline@ballantynescoop.com

Ballantyne Residents Meet To Discuss Rezoning Request For Affordable Housing | Video

Caroline Adams — Wed, 17 Feb 2010 02:29:42 +0000

Update

Republic Development Group has filed a new site plan reducing the Ballantyne Affordable Housing site to 86 units.

Click here to download and print the revised plan.

Ballantyne, NC – The rezoning issue in the news for the Ballantyne area has gained a lot of community attention. Many are saying that Ballantyne residents simply do not want low income in their backyard. That really does not tell the whole story. The Ballantyne Scoop has been present at many of the community and government meetings regarding this issue and this is what we have learned.

Residents of the Ballantyne area met Monday night to discuss the rezoning request for a piece of land situated at the corner of Johnston Road and Providence Road West. The rezoning request has caused quite a stir in the Ballantyne area with residents clamoring for more information. The meeting was pulled together by a group called Johnston Road Community HOA. Their email contact is JohnstonRoadCommuntiyHOA@gmail.com. This group is made up of 11 surrounding neighborhood HOAs.

The meeting was called to help brief area residents on the rezoning process, what their rights are, and to share available details on what is proposed for the track. Republic Development has requested, on behalf of the property owner, that the property be rezoned from its current commercial designation to multi-family residential. If the rezoning is approved, this would clear the way for apartment style buildings to be erected.

Republic Development has also submitted an application to the Federal Housing Authority to qualify the site for affordable/low income tax credits for the property. If approved, the site would become Ballantyne’s first property of this type. The approval from the FHA is contingent on the rezoning request being approved.

Residents seemed most concerned about the impact this multi-family development would have on already overcrowded schools and roadways. Other issues on residents minds were the potential for increased crime and what affect it could have on already decreasing home values in the area.

According to a local realtor, as of last week there were at least 20 homes in the surrounding area that are currently in foreclosure. Many homes have gone through a short sale. There has been an increase in vacancy rates in the current apartment complexes that are located in the area. Property values have dropped dramatically in the Ballantyne area over the past year and residents seem sincerely concerned this will not help them rebound.

The track that is set for rezoning is located on one of the busiest intersections in Ballantyne. It has no immediate access to public transportation or sidewalks to accommodate pedestrian traffic. In an earlier meeting, the developer said they were hoping to provide a place to live for those in the service industry working in Ballantyne. According to the Charlotte Housing Authority this could not be considered in the application process for potential renters.

The only entities that can file a protest petition with the City Council are the adjacent landowners, of which there are 3. According to those present at the meeting, these landowners plan to file the protest petition which will force the City Council have 75% of members voting for the rezoning request for it to pass.

Not everyone in attendance at this meeting was opposed to locating such a development in the area. One resident spoke about how Charlotte had successfully implemented scattered site housing plans in the past, including in areas such as South Park.

If the rezoning request is approved and the Federal Housing money comes through, the CHA will purchase the land and contract out the management of this mixed income development.

City Councilman Warren Cooksey of District 7 (Ballantyne area) has said he will hold off taking a stance on the issue until all of the public meetings and comments have been made.

Dates of note:

February 22, 6:00pm – Community Meeting with CHA and property developer at Harrison United Methodist Church.
March 18, 6:00pm – City Council Public comment session. Call ahead if you are interested in addressing the council.
April 19, 6:00pm – City Council set to vote on the rezoning application.

**Reporters Note: Caroline Adams is a resident of the Ballantyne area.