![\"\"](\"http:\/\/www.raleighpublicrecord.org\/wp-content\/uploads\/2012\/11\/CSC_0909.jpg\")
<\/a>Lauren Ramsdell<\/p>
Stone’s Warehouse on Davie Street. Photo by Jennifer Wig.<\/p><\/div>\n
Developers Vann Joines and Landmark Asset Services plan to turn the decaying building into an affordable housing community geared toward artists.<\/p>\n
The city will lease the property for an initial payment of $121,154 with an annual rent of $25,308 for the life of the lease with a 2 percent interest rate. In total, the city will receive more than $2.6 million for the property.<\/p>\n
Because the project will be built using affordable housing credits, developers have to meet strict leasing guidelines.<\/p>\n
By law, developers can\u2019t require that the residents of the community be artists, but the apartments will be built to encourage those kinds of tenants.<\/p>\n
Joines said he will work with various groups to make sure residents of the immediate community know about the project and have an opportunity to apply for housing.<\/p>\n
During the public hearing, resident Sig Hutchinson spoke in favor of the project. He said he\u2019s been involved with it since the summer.<\/p>\n
\u201cI love this project,\u201d he said.<\/p>\n
Hutchinson called it a win because it adds affordable housing in downtown Raleigh, focuses on the artists and entrepreneurs, and will foster community.<\/p>\n
The project didn\u2019t win all rave reviews. Southeast Raleigh resident Danny Coleman said there are no guarantees the building will continue to serve low-income residents after the affordable housing tax credits run out in 30 years.<\/p>\n
\u201cThe development doesn\u2019t agree with any of the community plans,\u201d he said.<\/p>\n
Coleman likened it to the two failed Kroger grocery stores in the area that he said were built against community plans.<\/p>\n
Councilors questioned the length of the lease and the expiration of the tax credits.<\/p>\n
Joines said in order to receive appropriate financing, the lease must look like an ownership . A 99-year lease gives the impression of ownership for investors.<\/p>\n
Community Development Director Michele Grant confirmed that the tax credits, and the affordable housing component, would only be required to last 30 years.<\/p>\n
Rex Todd of the Landmark Asset Services told the Council Landmark has no intention of flipping the property to market rate.<\/p>\n
\u201cWe don\u2019t do that,\u201d he said. \u201cWe have no intention as operating it other than as bona fide affordable housing.\u201d<\/p>\n
Because the city will continue to serve as landlord, the city ultimately decides what can be done with it.<\/p>\n
Grant said her office can work on strengthening the language in the lease that to require a continuation of affordable housing.<\/p>\n