Valdese Weavers Mill to become affordable housing, but most local workers may not qualify

The new development calls for 43, one-bedroom units renting for $879 a month and 17, two-bedroom apartments for $1,054. Water, sewer, power, trash, and parking are included. Each bedroom has a two-person maximum, except for children.

The minimum salary requirements are as follows: $32,820 for an individual; $37,500 for a two-person household; and $42,180 for a three-person household. With individual income averaging less than $31,000 in Burke County, according to the U.S. Census Bureau statistics, many would not meet the minimum salary. According to the developer, seniors on a fixed income, a single-parent household, and part-time workers are possible tenants. The workforce housing project is headed by Northwestern Housing Enterprises, a nonprofit development company whose mission is to create low/moderate-income housing in northwestern North Carolina.

After the presentation, Councilman Glenn Harvey asked if the units would be limited to Valdese residents and where the people would be coming from.

“I would have to say that they are already here,” replied Northwestern President Luke Fowler. “Folks that work at these factories, the hospital, all the restaurants, and all the grocery stores.”

Turning to Interim Town Manager Bo Weichel, Councilwoman Rexanna Lowman asked whether the new development would have the same requirements as Pine Crossing apartments. Weichel said that it is an income-based complex. A one-bedroom apartment at Pine Crossing is $375-$585; a two-bedroom apartment is $440-$650; and a three-bedroom apartment is $610-$740.

Fowler clarified that the low-income housing tax credits are spelled out by the IRS and the federal government. All units are low-income housing, not market rates.

FUNDING THE DEVELOPMENT

The project is funded through a $2 million grant by Dogwood Health Trust with the remaining costs covered by low-income tax credit and state/federal historic/mill tax credit equity funding. The project is forecasted to cost $18 million.

Northwestern’s previous projects include renovating historic buildings, like the mill, highlighted on the National Registry of Historic Places. The mill is located on the corner of Praley and Main streets.

Fowler and Kristen Kirby, finance partner at McGuireWoods LLP, asked the council at its Nov. 18 meeting to schedule a public hearing regarding the town becoming a bond issuer for the project. The hearing will allow residents to voice support or concern for this change.

The bonds are not the town’s financial responsibility and will not impact its debt ratio. Typically, the housing authority would be over the bonds, but since the Valdese Housing Authority has “changed hands” to the Western Piedmont Council of Governments and other authorities, it now falls on the town. Fowler said that in addition to the town keeping the 1.5% bond fee (around $165,000), Valdese will also gain revenue from the complex’s new utility accounts.

“Most importantly, the need for housing especially after this storm is more prevalent than ever,” Fowler said.

The following topics will be discussed at the regular monthly meeting agenda for Monday, Dec. 2. With the absence of Councilwoman Heather Ward, there was no quorum, leaving the Nov. 18 meeting to be discussion-only with no recorded votes.

PUBLIC SAFETY FACILITY UPDATES

The town has been considering two options for the public safety dilemma: Renovating the town-purchased 215 Main St. E building to create a new public safety facility or combining police and fire services on the Massel Avenue lot.

Weichel developed the Request for Qualifications and project criteria. Once the council approves, he will advertise the project, though response times from applicants may be affected by the holidays.

He explained that Phase One would include 30% of the schematic design/budgetary numbers for both options. The council will review the numbers and decide on the project’s direction.

Weichel presented an anticipated timeline:

• Jan. 27: Electronic RFQ due
• Jan. 31: Hard copies due
• Feb. 3-11: Town review of RFQs
• Feb. 24-28: Final interview selections
• March 3-14: Selected firm notified, and Phase One contract delivered to town staff
• March 17-21: Contract reviewed by legal counsel
• April 7: Phase One adopted by town council

Weichel also noted that Phase One would take three to four months to complete. Phase Two would be up to the contractor to estimate.

Harvey suggested evaluating two additional options in Phase One: renovating the former public safety building at 121 Faet St. SW and adding onto Town Hall where the police department is temporarily located. The departments can stay in the renovated building for the next two years until the new building is ready or the police department can permanently go into Town Hall.

“That’s my suggestion to the council members that we expand Phase One to include two more things. Let’s just find out what it would cost to shore up that existing building, and let’s find out what it would cost to modify this so the police department could be on the west end of this building,” Harvey said.

The council is expected to vote during its Dec. 2 meeting on whether to add the two suggestions to the Phase One contract. If so, Weichel will rewrite the RFQ to include the change.

OTHER NEWS

It is time for the end-of-year reports from three town committees: Facilities Review Committee, Drug and Homeless Task Force, and the Merchants Advisory Committee. These reports can either be written or presented to the council on Monday, Dec. 2.

Three town groups (board, committee, and commissions) have appointed members with expiring terms:

• Planning Board/Board of Adjustments — Three board seats and one alternate seat (residency in the Town of Valdese required)
• Parks & Recreation Commission — Two seats (residency in the Town of Valdese required)
• Facilities Review Committee — One seat
• Efficiency Task Force — Five seats

The Ward Two council position remains vacant, and the town has not yet received an application. The application process will close on Jan. 6.

The applications can be found online on the town’s website.