AGENDA ITEM EXECUTIVE SUMMARY
ITEM TITLE
title
Seek an Affordable Housing Partner for the potential Fire Station #4 Property Redevelopment and Begin Negotiating an Agreement under which the Parties would prepare a proposed development project.
presenter
RESPONSIBLE STAFF, TITLE, DEPARTMENT
Sarah Osmer Viñas, Director, Affordable Housing and Community Connections (AHCC) Department
Emily Holt, Affordable Housing Manager, AHCC Department
Maggie Simon, Affordable Housing Development Coordinator, AHCC Department
STAFF RECOMMENDATION
Staff recommends that the Council authorize the Town Manager to seek an affordable housing partner for the Fire Station #4 Property and begin negotiating an agreement under which the parties would prepare a proposed development project.
body
ACTION/DECISION POINTS*
Council must approve or reject the authorization to seek an affordable housing partner for the Fire Station #4 Property.
LEGISLATIVE CONTEXT*
On March 10, 2014, Council adopted the Affordable Rental Housing Strategy, which recommended the Town facilitate the production of affordable rental units and pursue low-income housing tax credit projects on Town-owned land.
On June 26, 2017, Council accepted the Town Properties Task Force’s report, which established affordable housing as a priority use of several Town-owned properties to further Town goals and recommended private/public partnership opportunities for the Fire Station #4 Property, including the possibility of repurposing the property.
On September 13, 2023, Council approved the Affordable Housing Plan and Investment Strategy, which identifies Town-initiated affordable housing development on public land as a primary tool for increasing affordable housing production.
BACKGROUND AND CONTEXT*
The current Fire Station #4, located at the corner of Weaver Dairy Road Extension and Martin Luther King Jr. Boulevard (PIN 9880250693), has reached the end of its useful life and needs replacement. A cross departmental staff team has been working together over the last several months to re-imagine the Fire Station #4 site to include a new fire station and affordable housing through an innovative design that aligns with Council’s values and the Town’s plans for the area of Town. The team is proposing that the fire station be redeveloped on the portion of the site where the existing training center is located, and staff are exploring alternate locations for the training center currently located on the property. The relocation of the fire station frees up Town-owned land at a key gateway intersection along the proposed Bus-Rapid Transit corridor. Given the Town’s high demand for affordable housing, the redevelopment of Fire Station #4 presents a unique opportunity to address multiple community needs within the same Town-owned property.
Consistent with the Town’s Affordable Housing Funding Program (AHFP), staff have established the following proposed priorities for the development of affordable housing on Town-owned land:
• Projects offering rental housing affordable to low- and moderate-income households
• High impact projects, such as projects with more than 50 units and/or projects primarily serving populations with high housing barriers or historically marginalized populations
• Shovel-ready projects that can get units on the ground quickly once funding is allocated
• Projects accessible to frequent public transit, particularly along the future Bus-Rapid-Transit (BRT) corridor
• Projects with high leverage from other funding sources, including Low-Income Housing Tax Credits
• Projects that incorporate environmentally friendly and sustainable building and site design
As a next step, Town staff are ready to solicit interest from potential development partners according to the processes required by state law, and to select a partner to lead the Town through the planning process to develop affordable housing on the site.
TRADEOFFS, ALTERNATIVES, IMPACTS
If Council decides to authorize this action, staff will issue a request for proposals and qualifications. Staff will then work with an evaluation team and the Town Manager to select a potential partner with whom the Town will begin negotiating an agreement to prepare a proposed development project.
If Council decides to not authorize staff to seek a development partner, staff will take no action.
FINANCIAL IMPACT
There is no fiscal impact anticipated with authorizing the Manager to seek an affordable housing partner or to begin negotiations beyond staff time for work on this project.
COMPLETE COMMUNITY CONNECTION
The goal of a potential affordable housing development is to be consistent with the Complete Community framework, including but not limited to supporting housing diversity, adding density, and promoting access to transit and active transportation opportunities.
ATTACHMENTS
Consent Resolution
A RESOLUTION AUTHORIZING THE TOWN MANAGER TO SEEK AN AFFORDABLE HOUSING PARTNER FOR TOWN-OWNED LAND ON THE FIRE STATION #4 PROPERTY AND BEGIN NEGOTIATING AN AGREEMENT UNDER WHICH THE PARTIES WOULD PREPARE A PROPOSED DEVELOPMENT PROJECT (2025-09-10/R-1)
WHEREAS, one of the Town Council’s Strategic Focus Areas and Goals for FY2023-25 is to increase access to housing for individuals across a range of incomes; and
WHEREAS, on March 10, 2014, the Town Council adopted the Affordable Rental Housing Strategy; and
WHEREAS, on June 26, 2017, Town Council accepted the report of the Council Task Force on Strategic Uses of Town Properties; and
WHEREAS, on September 13, 2023, Town Council adopted a resolution approving the Affordable Housing Plan and Investment Strategy.
NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council authorizes the Town Manager to seek an affordable housing development partner for a portion of the Fire Station #4 Property.
BE IT FURTHER RESOLVED that the Town Manager is authorized to begin negotiating an agreement with a selected affordable housing developer to prepare a proposed development project.
BE IT FURTHER RESOLVED that staff will return to the Council with a recommendation to approve a proposed development contract, ground lease, and/or other associated agreements with the selected affordable housing partner.
This the 10th day of September, 2025.
end