RALEIGH – Mayor Mary-Ann Baldwin sees many benefits for the City of Raleigh as the mammoth $2 billion Downtown South project continues to move forward. But she is continuing to work on more involvement of minority-owned businesses and is looking for the inclusion of affordable housing. So the developers of the project and City staff continue to discuss a Tax Increment Grant.
“TIGs are provided on a reimbursement basis only, and the project must demonstrate its benefit to the general public,” reads the City of Charlotte’s Economic Development webpage. “Examples of reimbursable improvements through a TIG include, but are not limited to, new public infrastructure such as roads, streetscapes, and parking decks.”
According to Baldwin, the requested TIG would be the first issuance in the city’s history. Charlotte has issued more than a dozen, explained Baldwin, typically to build transit entities and corridors.
“Affordable housing has gaps in financing,” the mayor said. “People think that we can require affordable housing in a rezoning case, but we cannot, as it is illegal in the state of North Carolina.”
Land now in hand, Downtown South developers aim to break ground this year
But through funding provided through the implementation of a tax increment grant, Baldwin said the development group may be able to receive funding for this and other purposes, such as workforce development initiatives.
“We also want to ensure that there is minority business inclusion,” she added.
“Right now, developers don’t have to include minority businesses, and we want to make sure that this project brings forward minority businesses, and the developers have already demonstrated willingness to do this. This shows the commitment, but what the TIG will do is that it will put it in writing, and what will happen with the TIG is that as the development grows, some of that money is credited back to the developer to help pay for some of these amenities.”
The City of Raleigh’s planning staff is currently researching best practices and preparing further recommendations for the City, said Baldwin, and the expectation is that city staff will prepare a policy or set of policies for City Council review.
“I don’t see this as something that we do, I see this as a community conversation,” said Baldwin. “What we’ve also asked is that city staff set up a community engagement group that will help advise what the community is interested in and the types of amenities that they will want to see provided here.”
This group would consist of current Raleigh residents, who would be appointed by the Raleigh City Council after an applications and/or nominations process, which would occur in 2021.
“This could probably be the greatest redevelopment in the history of Raleigh, if done right,” said Baldwin. “It will take about 25 years to build out, it will not be something that will happen overnight, as evidenced by what we’ve seen at North Hills, which has been a 16 year process and is still ongoing.”
