City councilman 'throws city staff under the bus' over change to RAD Lofts apartments
ASHEVILLE, N.C. (WLOS) — Asheville City Council held a public hearing for a proposal to change the affordability of the RAD Lofts planned for the River Arts District.
The complex was originally going to be 100 percent affordable with a mix of units designated as workforce housing or under the city's definition of affordable.
Developer Harry Pilos said Tuesday he now wants to rent 90 percent of his apartments at market value.
"The project before you is a mediocre project at best," one woman said during public comments.
Despite backlash, Pilos said he can only make 10 percent affordable.
"Restricting 95 percent of the income strain from the apartments makes it where it cannot be financed, period," Pilos said.
By requesting the change, Pilos will be foregoing any city incentive money or what the city calls tools.
With this in mind, city staff recommended the change to council.
"I'm not going to throw staff under the bus just because this proposal doesn't use one of the tools, because I was clear it didn't use one of the tools," Asheville Mayor Esther Manheimer said.
To which Councilman Keith Young replied, "No, I'm throwing them under the bus."
Young spoke against the proposal, saying the complex falls in a predominantly African-American community.
"I'm not going to vote to gentrify my own community," Young said.
Councilman Vijay Kapoor supported the change.
"So, it's obviously disappointing that that's occurring, but the reality is in order for that project to occur that financing had to change," Kapoor said.
Kapoor said council met with an affordable housing expert a couple months ago about how much it costs a private developer to build affordable housing.
"She told us effectively 10 percent is something that you'd hope to get," Kapoor said.
Some on council said they shouldn't be so quick to chase private developers away.
"The city cannot do this alone. We cannot meet our affordable housing needs by ourselves. We do not have enough money," Councilwoman Julie Mayfield said.
Pilos said he wanted to keep it the way it was.
"I've spent six years of my life and I've spent$5 million trying to make this work," Pilos said.
He said the project is now going to cost more than $70 million.
It's been in the works for more than six years.
At the end of the hearing, Pilos requested the vote be continued to next month so he can go back to city staff.
The project is a proposed mixed-use development in Asheville's River Arts District. It will offer retail spaces, office space, an hourly-rate parking garage and 243 high-end apartments.
The site is situated at the intersection of Roberts Street, Depot Street and Clingman Extension.
