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City Council Business Meeting§§§§§Meeting AgendaJuly 22, 2019Letter to the Community (Good Paying Jobs),Equitable Economic Development, and Economic Opportunity,Diversity of jobs on proposed project,Job retention through Corporate Expansion, andGrowth industry with significant job and contracting opportunities.Background§Lowes plans to create a ‘Tech Hub’ to use technological innovation to revolutionize operations andthe retail experience for their customers.§Lowe’s Companies Inc., established in 1946, is homegrown to North Carolina with headquarters inMooresville, North Carolina.§Lowe’s Companies Inc. is the 8th largest retailer in the US and employs 28,000 people in NorthCarolina.§Lowe’s Companies Inc. will invest a total of 228,000,000 in permanent space, temporary space,hangar and aircraft; city and county incentives are based on 153,885,325 in capital investment.Business Investment Grant§The general terms and conditions of this grant include:The company will be asked to coordinate job fairs and recruitment events for both temporaryand permanent jobs with the city and county. Community organizations and residents willreceive ample notice of these employment activities in addition to training opportunities withcity job training and placement partnerships.Actual grant payments are based on the value of the investment as appraised by theMecklenburg County Tax Office.Property taxes due from Lowe’s Companies Inc. must be paid before a grant payment ismade.If Lowe’s Companies Inc. removes the investment from Charlotte during the grant term, itshall pay back 100 percent of the investment grant paid to date.If Lowe’s Companies Inc. moves the investment from Charlotte within ten years of the end ofthe Business Investment Program (BIP) grant term, a portion of the grant must be repaid asfollows:§Within one year of the end of the BIP Term - 90 percent of grant payments§Within two years of the end of the BIP Term - 75 percent of grant payments§Within three years of the end of the BIP Term - 60 percent of grant payments§Within four years of the end of the BIP Term - 45 percent of grant payments§Within five years of the end of the BIP Term - 30 percent of grant payments§Within six years of the end of the BIP Term - 20 percent of grant payments§Within seven to ten years of the end of the BIP Term - 10 percent of grant paymentsFiscal NoteFunding: Business Investment GrantAttachment(s)Budget OrdinanceLowe's Budget OrdinanceCity of CharlottePage 10Printed on 7/19/2019

City Council Business MeetingMeeting AgendaJuly 22, 2019POLICY11.City Manager’s ReportCity of CharlottePage 11Printed on 7/19/2019

City Council Business MeetingMeeting AgendaJuly 22, 2019BUSINESSCity of CharlottePage 12Printed on 7/19/2019

City Council Business Meeting12.Meeting AgendaJuly 22, 2019Affordable Housing Development Support RequestsAction:A.Adopt resolutions approving land transactions of city-owned properties valued at 4,870,000 for the following multi-family affordable housing developments:Parcel Identification Number 080-104-02, valued at 1,320,000, for the developmentof 7th Street Apartments,Parcel Identification Numbers 149-012-47 and 149-012-51, valued at 2,570,000, for the development of South Village Apartments at ScaleybarkParcel Identification Number 143-051-01, valued at 980,000 for the development ofTyvola Road Apartments, andB.Approve 12,800,000 in Housing Trust Fund allocations for the following multi-familyaffordable housing developments:7th Street Apartments, 1,500,000Abbington On Mt. Holly, 2,000,000Evoke Living at Westerly Hills, 2,000,000Heritage Park Apartments, 600,000North Tryon Homes, 2,000,000South Village Apartments at Scaleybark, 3,000,000Wendover Walk Apartments, 1,700,000Staff Resource(s):Pamela Wideman, Housing and Neighborhood ServicesMike Davis, General ServicesTony Korolos, General ServicesExplanation§Local Initiatives Support Corporation (LISC) Partnership:In Fiscal Year 2019, City Council approved a partnership with LISC, a national non-profit witha grassroots focus.LISC is one of the largest national organizations that supports projects to revitalizecommunities and bring greater economic opportunity to residents.With the addition of the LISC partnership, that manages the private and philanthropiccontributions to the Charlotte Housing Opportunity Fund, the cost to the city of creatingfour percent Tax Credit Development affordable housing units is now less by approximatelyhalf of what the city previously contributed.§Housing Vouchers:Recently the city and LISC entered into partnership with the Charlotte Housing Authority(CHA) for project based vouchers.Through his partnership, CHA has pledged up to 75 project based vouchers per year to beused toward affordable housing developments, in areas of high opportunity.The use of the vouchers also contributes to leveraging funding sources.§On April 26, 2019, the city and LISC issued a joint Request for Proposals (RFP) to aid in theproduction of affordable housing units. In response to this joint RFP, 14 proposals were received, seeking various types ofgap-financing support including tax credits from the North Carolina Housing Finance Agency(NCHFA), HTF and city-owned land, allocations from the Charlotte Housing OpportunityInvestment Fund, interest-free debt, and project-based vouchers. This approach was the first dual review process conducted by the city and LISC. Thefollowing guiding principles were adhered to:§Ensuring affordable, multi-family housing developer experience,§Creating mixed-income developments in areas of high opportunity,§Achieving long-term affordability, and§Maximizing leverage of available resources.City of CharlottePage 13Printed on 7/19/2019

City Council Business MeetingMeeting AgendaJuly 22, 2019 §§Approval of the recommended developments will add 950 affordable and workforce housingunits to the city’s existing supply. The recommended developments meet all submission requirements, including land use andrezoning approvals. Each development received a score of 22 or more points based on the Housing LocationalScoring Guidelines.Additionally, the NCHFA will base final awards on: Market demand and local housing needs, Ability to serve qualified residents for the longest affordability period, Design and quality of construction, and Financial structure and long-term viability.Developments seeking four percent tax credit awards must submit their applications to the NCHFAbefore October 10, 2019.Background§On November 26, 2001, City Council established the Housing Trust Fund (HTF) to providegap-financing to assist with the development of affordable housing in Charlotte.§On August 27, 2018, City Council adopted the Housing Charlotte Framework, which recommendsexpanding the supply of high-quality rental housing by building new affordable housing, preservingexisting naturally occurring affordable housing and promoting family-self-sufficiency initiatives.Approval of Actions A and B support the Council’s commitment to both expanding and preserving thesupply of affordable housing.§On April 22, 2019, City Council adopted the U.S. Department of Housing and Urban Development’sAnnual Action Plan (Plan). The Plan: Identifies the need for affordable, safe and decent housing for low and moderate-incomefamilies, and Reaffirms three basic goals of the city’s Housing Policy:§Preserve the existing housing stock,§Expand the supply of affordable housing, and§Support family self-sufficiency initiatives.§Local HTF allocations demonstrate local alignment with state-supported affordable housingdevelopments and allow for the leveraging of local dollars with state tax-credit allocations.§Additionally, the use of city-owned land allows for additional leveraging of local HTF allocations. Thisstrategy is a best practice used across the country to assist in expanding the supply of affordablehousing and is consistent with the Council approved Housing Framework, City-Owned Real Estateand Facilities Policy, as well as the Guidelines for Evaluation and Disposition of City-Owned Land forAffordable Housing.City Council Discussion§Housing and Neighborhood Services provided a briefing of the affordable housing developmentsupport requests to City Council during the July 8, 2019, Action Review meeting.Charlotte Business INClusion§All HTF funded projects and their developers are subject to MWSBE goals determined based on theamount of the HTF allocations received.Fiscal NoteFunding: Capital Investment Plan (Housing Trust Fund)Attachment(s)July 8, 2019 Action Review PresentationLease Transfer DetailsResolutionsParcel MapsCity of CharlottePage 14Printed on 7/19/2019

City Council Business MeetingMeeting AgendaJuly 22, 2019HTF CHOIF Funding Requests - Action BriefingLease Transfer DetailsLocation Map - 7th StLocation Map - ScaleybarkLocation Map W Tyvola7th St. ResolutionScaleybark Resolution 7.10.19West Tyvola Lease Resolution 7.10.1913.Brookshire Boulevard Apartments Bond Issuance ApprovalAction:Adopt a resolution granting the Charlotte Housing Authority’s request to issue multi-familyhousing revenue bonds, in an amount not to exceed 11,500,000, to finance the development ofBrookshire Boulevard Apartments.Staff Resource(s):Pamela Wideman, Housing and Neighborhood ServicesZelleka Biermann, Housing and Neighborhood ServicesExplanation§This action will not obligate the city financially or impact the Capital Investment Plan. The adoptionof the resolution is required by the governmental unit with jurisdiction over the area where thedevelopment is located in order to satisfy Section 147(f) of the Internal Revenue Service Code of1986.§The Charlotte Housing Authority (CHA) is requesting that City Council adopt a resolution authorizingthe issuance of multi-family housing revenue bonds for Brookshire Boulevard Apartments, a 96-unitaffordable housing development.§Laurel Street Residential Development, Inc. is the developer of the community, which will be locatedat 7801 Old Plank Road, located in Council District 2.§The CHA bonds, which are

- Property taxes due from Cognizant Technology Solutions LLC US Corp. must be paid before a grant payment is made. - If Cognizant Technology Solutions LLC US Corp. removes the investment from Charlotte during the grant term, it shall pay back 100 percent of the investment grant paid to date.