Stimulating Infill and Brownfield Development
in the Land-of-Sky Region
Project Summary - Final Report
August, 2007
Prepared by Linda Giltz, AICP, Regional Planner
Land-of-Sky Regional Council
Asheville, North Carolina
www.landofsky.org
Land-of-Sky Regional Council
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Stimulating Infill and Brownfield Development in the Land-of-Sky Region
Acknowledgments
Land-of-Sky Regional Council is grateful to the U.S. Environmental Protection Agency's Office
of Policy, Economics and Innovation for providing grant funding and assistance for this project.
The funds and assistance were provided under Cooperative Agreement PI-83231401-0. We
appreciate the guidance and technical assistance provided by EPA staff member, Matthew
Dalbey, Ph.D., AICP for the duration of the project. We also appreciate all the people who gave
their time and provided information and participated in focus groups.
About Land-of-Sky Regional Council
Land-of-Sky Regional Council is a multi-county, local government planning and development
organization in North Carolina. It is one of 17 such organizations in the state and serves
Region B, which includes the counties of Buncombe, Henderson, Madison and Transylvania.
Land-of-Sky Regional Council is made up of chief elected officials - mayors and county
commission chairpersons and alternates - from member governments, one private
representative of economic development interests in each county and two at-large members.
Members meet monthly to plan programs and set policies and goals to benefit the entire region.
Land-of-Sky Regional Council's mission is to work with local governments, the Region's
leadership and state and federal agencies to foster desirable social, economic, cultural and
ecological conditions in Buncombe, Henderson, Madison and Transylvania Counties. More
information about the Council and its programs can be found at www.landofsky.org.
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Table of Contents
Regional Context 1
Project Background and Purpose 4
Key Findings 4
Details of Barriers and Possible Solutions 6
1. The Need for Leadership 6
2. Current Zoning Regulations 11
3. Land Assemblage and Acquisition 13
4. Obtaining Financing and Financial Incentives 14
5. Neighborhood Opposition 17
6. Approval and Permitting Processes 19
Conclusions/ Summary/ Next Steps 21
References and Selected Resources 23
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Regional Context
Region B, North Carolina
"
The Land-of-Sky Region, a four-county area in western North Carolina, is a mountainous region
known for its beauty and wealth of outdoor recreational opportunities. The region is
experiencing a high rate of growth (Figure 1). The current population of this region is
approximately 370,000 and is expected to grow to about 435,000 by 2020. Almost all the
growth (96%) is from people moving here from outside the region and many of those people are
retirees. The region is also experiencing a larger number of part-time residents and a booming
second home market.
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Land-of-Sky Region Population Growth, 1940 to 2020
1940
1950
2010
2020
Figure 1. Regional Population Growth. Sources: U.S. Census Bureau, N.C. State Data Center
Our region, with its mountainous terrain, has a limited amount of land suitable for industrial
development. We need mechanisms to preserve prime undeveloped industrial properties and
also to encourage the redevelopment of vacant, underutilized infill and brownfield sites. We are
also losing prime farmland in our rural areas primarily to residential development that is
occurring in a very dispersed pattern. Our air and water quality are threatened due to rapid
development and dispersed, low density development patterns. We need a system of
incentives, policies and regulations that makes it more attractive to build residential, industrial
and other uses on brownfield and infill parcels and near town centers and existing growth
nodes. In turn, these will lessen the amount of scattered development in suburban and rural
areas, help improve our air and water quality and preserve our natural and cultural resources.
This project brings together what we have learned and accomplished in our many water quality,
farmland protection, land conservation, land use, transportation and economic development
projects and pairs these learnings with new learnings from this project to develop a set of tools
that will work in our region and in similar regions across the country. Our work and other
studies show that citizens here want to preserve the rural character and working lands, our
natural resources and our cultural and historical assets, and they want to have market-based
tools for accomplishing this preservation. We need to develop creative and innovative ways that
will be effective in preserving these "sense of place" assets while encouraging more compact
development in our cities and towns. This project enables us to develop such tools.
Urban Versus Rural Areas and Approaches
Most of the brownfield sites in our region are in urban areas and these areas offer most of the
infill development opportunities. Asheville is the largest city in the region, with close to 75,000
people. Our larger cities and towns have land use plans and zoning regulations; a few of them
have incorporated smart growth principles and practices. The development pattern in most
areas, though, is primarily medium to low density residential development and strip commercial
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development radiating out from the center of town. Some towns have neighborhood centers
and mixed-use buildings and development. Numerous infill and brownfield opportunities exist in
these urban areas.
The historic Cotton Mill in the Asheville River District in its current, ready-to-redevelop condition (left)
next to a vision for the site's redevelopment from the Wilma Dykeman Riverway Plan (right).
Many of our smaller towns and rural communities do not have land use or long range growth
plans or land development regulations. These areas are feeling a lot of growth pressure,
especially from residential development, largely because of their attractive rural character, lower
land costs and their lack of regulations and "red tape." A goal of this project is to help these
rural communities understand the value of planning and smart growth policies as a way to
preserve their "sense of place" and community as they grow. Another goal is to lessen the
growth pressure on our rural areas and their "greenfield" sites by making brownfield and urban
infill properties more attractive for development.
Our region's unincorporated areas are also largely un-planned and un-regulated in terms of land
development. Buncombe, our largest county in terms of population, recently adopted its first
zoning ordinance in May, 2007. Prior to zoning, it had subdivision and mobile home park
regulations and required environmental (sedimentation, erosion control, stormwater, etc.)
regulations. Henderson County, our fastest growing county, is currently considering adoption of
a Unified Development Ordinance. Even with county-wide zoning becoming a reality in much of
the region, the zoning is typically not that prescriptive about where and what type of
development occurs and lacks incentives and controls to preserve farmland and open spaces.
We hope this project will help more closely tie development in urban areas and town centers to
the preservation of farmland, open space and other rural areas.
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Project Background and Purpose
This project was funded through a grant from the Office of Policy, Economics and Innovation of
the U.S. EPA to Land-of-Sky Regional Council. The first phase of this project involved working
with local governments and the development community in the Land-of-Sky region to: (1)
understand current policies, regulations and barriers related to infill and brownfield
development; and (2) demonstrate how market, policy and regulatory changes along with
appropriate outreach can overcome the barriers and improve the market and policy climate for
infill and brownfield development. A follow-on phase will develop a set of tools that will work in
our region and in similar regions across the country. It is hoped that these tools will help
preserve the region's natural and cultural assets while encouraging more compact development
in our cities and towns.
The research for this project began in late spring, 2005, and consisted of gathering studies and
reports from around the country and interviewing individuals who have experience with
brownfield and/or infill development projects. Staff members of our region's local governments
and NC Department of Environment and Natural Resources (DENR) Brownfields Program,
property owners and developers were consulted to develop an initial understanding of the
barriers to brownfield and infill development as well as possible solutions to overcome the
barriers. The advisory committee for Land-of-Sky Regional Council's Regional Brownfields
Initiative also provided input.
Three focus groups met in March, 2006: one with Asheville staff and Planning Board; one with
Buncombe County and small towns' staff; and one with developers and realtors. The purpose of
holding these focus groups was to validate and provide more details on the barriers, and to get
a sense of which barriers are the most important ones to try and overcome. The results from
the focus groups were then compiled and sent out to all participants, with top-ranked barriers
identified. A combined group of representatives from each focus group met in April, 2006, to
discuss and agree on the top barriers and to begin developing a plan to address them. The
following findings are a result of these meetings and summarize all the input received.
Key Findings
The barriers deemed by project participants to be most important to overcome are as follows (in
order of importance):
1. The need for leadership to proactively plan and zone areas for redevelopment and
to make strategic investments in infrastructure and public services. We have a
number of good plans and need to focus on implementation of the plans.
2. Current zoning is typically not appropriate for the type or intensity of development to
make development feasible.
Some of our municipalities have recognized and have been addressing this issue.
3. Land assemblage and acquisition and the current development pattern.
4. Lack of financial incentives to encourage infill development.
It is easier and cheaper to develop in unincorporated areas, due to cheaper land,
lower taxes and less regulations.
5. Obtaining financing for mixed use projects and brownfield redevelopment projects
is difficult.
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Bankers need a better understanding of brownfields and mixed use projects.
6. Neighborhood opposition to higher density and infill development.
This is an issue everywhere in the region - in small towns, county areas and in
Asheville.
7. Approval and permitting processes are inconsistent, inefficient and lengthy.
This barrier is mainly in Asheville, and they have improved and simplified the review
and permitting processes a great deal in the past year.
Pictured above are two sites in Asheville's River District and part of the Regional Brownfields
Initiative. The Asheville Ice and Storage plant (left) lies between the French Broad River and
the railroad in the heart of the River District. The former EDACO vehicle salvage business
(right) sits between two parks on the river and when it is cleaned up, will provide a missing
link in the City's parks and greenway system.
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Details of Barriers and Possible Solutions
1. The Need for Leadership
The need for leadership to proactively plan and zone areas for redevelopment and to
make strategic investments in infrastructure and public services.
Need to move from Planning to Actions
The focus of this barrier is on the gap between creating a plan and following through and
strategically investing in its implementation. Project participants seemed to agree that we, in
this region, are pretty good at planning and developing plans, but not so good at taking
actions to implement them. Local government investment in infrastructure in specific
geographic areas can encourage growth in those areas and give developers a sense of
security for their investment. Infrastructure and public services include: parking; sidewalks;
parks; streetlights; water; sewer; utilities; etc.
Black Mountain and Asheville have completed Comprehensive Plans in the past couple
years that promote smart growth principles. Asheville is currently working on redevelopment
plans for individual communities (West End/Clingman, River District, Shiloh). The City's and
RiverLink's plans for the River District are grand and comprehensive. Aside from the
development of the French Broad River Park, which is a very nice set of parks and
greenways, the City has not shown strong commitment to developing and/or investing in
other ways in the river area.
This barrier was rated as the top priority by a group representing both local government staff
and developers. It is an opportune time to address this in Asheville, because of new
leadership elected to City Council in November, 2005. City planning staff commented that
they would like to do more planning and more to improve the Unified Development
Ordinance (UDO), but they are limited due to their staffing levels. The development review
workload has doubled over the past year to two years, but the number of staff has not
increased which presents a challenge for overcoming this and other related barriers.
The City of Asheville is addressing this barrier with some actions. Asheville completed a
Redevelopment Plan for the river area (August 2005), to address flood mitigation and
economic development needs along the French Broad River, Swannanoa River and in
Biltmore Village. It is currently implementing some of the recommendations, including
buying properties in the floodplain, flood-proofing historic buildings in Biltmore Village, and
performing a feasibility study for a Tax Increment Financing (TIF) district for the river area.
The Town of Woodfin is also pursuing a TIF district to finance improvements that would
create a town center adjacent to an old landfill property. Tax Increment Financing (TIF) is a
new tool for North Carolina; it was approved by voters in November 2004 and is just
beginning to be implemented.
Asheville has also begun to take a proactive approach with the development and sale of
City-owned land. It recently (June, 2006) released an RFQ for development proposals on
an assemblage of City-owned property in a central location. The RFQ includes
requirements for building "workforce housing" and a section of greenway that is in the City's
Master Plan as part of the development plan. The City plans to take this approach on other
pieces of land that it wishes to sell.
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There are some concerns about proactively zoning areas to accommodate higher density
and mixed-use developments, because this practice can drive up property values/prices and
speculation. The next step is to determine ways to minimize this effect. On the other hand,
if local governments are not proactive and instead wait for developers to request rezoning,
speculators are rewarded for holding onto properties without improving them because there
is no cost for holding onto land and doing nothing with it. The challenge is figuring out how
to put value in the hands of people who are willing to redevelop the land as opposed to
those who hold it and do nothing with it.
redevelopment ready
communities Redevelopment Ready CommunitiessM
Other organizations have recognized various barriers to quality development and have
developed programs to address the barriers. Michigan Suburbs Alliance is one of these
organizations and they have developed the Redevelopment Ready Communities
program to help promote investment and redevelopment in older suburban communities
in southeast Michigan. The Redevelopment Ready Communities program challenges
and motivates older communities to modify municipal processes and streamline how
and where redevelopment occurs.
"....By Uniting Local Government and Business
Through a set of best practices and a certification system developed via a partnership
between public and private sector development interests, the RRC program encourages
mature suburbs to bolster their competitive attractiveness by making the development
process more efficient and less complicated. The program helps cities acquire the skills,
knowledge, and methods that enable them to compete for, recruit, and capitalize on
redevelopment opportunities."
See www.redevelopmentready.com for more details on this program.
Water and Sewer Infrastructure Issues - Repair, Extension and Funding
In many parts of the City and County the water and sewer infrastructure is old,
insufficient and in need of repair. For example, in the West End/Clingman or "Chicken
Hill" neighborhood the sewer infrastructure dates to the early 1900s and many of the sewer
lines were never taken into public ownership. Property development in this area requires
engineering, construction and easement dedication that should have been done or should
be provided by the Metropolitan Sewerage District (MSD), as the public sewer provider. It is
cost-prohibitive for a private developer to pay for these infrastructure improvements.
Utilities need to be strategically extended (especially water) into Buncombe County in
order to get higher density. The County is getting a tremendous amount of residential
development. Most of this is higher quality development, due to market forces and the price
of land. Utilities are an issue, because many areas in Buncombe County do not have water
and sewer service; this results in larger lot sizes due to septic requirements, which consume
a greater amount of rural/suburban land.
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Smaller towns also have utility and infrastructure issues. For example, Weaverville has
enough water but not enough sewer for anticipated growth. Other towns are challenged to
improve and expand water and/or sewer service to keep up with population growth.
Sidewalk Issues
In urbanized areas, sidewalks and related pedestrian facilities are necessary. With urban
infill projects, pedestrian facilities and access are critical to the project's success. More
sidewalks also may help to resolve some parking and traffic issues. If people can walk to
multiple destinations, they will not need to use their cars as much. Sidewalks and
greenways are issues that require a position from the leadership of a community. If leaders
believe that sidewalks and greenways are critical pieces of infrastructure, then plans,
policies and funding for this infrastructure
need to defined and identified to ensure this
infrastructure is constructed throughout the
jurisdiction.
Who should pay for infrastructure
improvements that serve the
community/public?
A local government's plans should
define what its philosophy and vision
are for funding and building the various
components of public infrastructure.
There should be a balance between the
local government's investment and
private investment in this infrastructure.
Local developers interviewed for this
project felt that the City of Asheville is
relying too much on the private sector
to fund infrastructure and public
services.
Utility Lines
Many of our region's communities are
interested in burying utility lines. This
needs a long-term community-wide phasing
plan - something that is comprehensive and
negotiated with utility companies. The up-
front cost to bury utilities in a downtown area
is extremely expensive, but it could make a
huge difference in sustainability, aesthetics,
etc. if the local government tackled the issue
community-wide with a phased approach
over time.
Parking Needs and Costs
The relationship between the cost of urban land and parking is a barrier to urban infill
development - it is costly to acquire the space needed for parking. Infill sites are smaller
and more expensive, thus need structured parking (as opposed to surface parking) which is
more expensive. Some infill sites are not large enough to accommodate both the building
and needed parking.
The lack of parking spaces/places is a bigger issue for downtowns than for other areas.
Developers participating in this project expressed concern that if this problem is not
solved, retail and other businesses will move out of downtown. It was felt that some
City and County leaders do not understand the need to develop parking and other
downtown buildings/amenities/infrastructure. Some project participants speculated that
County leaders do not appreciate the benefits the County receives from development in
downtown Asheville and having a strong downtown and thus are not as willing to invest in
these things.
Parking facilities help support and retain businesses and residents, encourage infill
development and renovation/redevelopment and provide convenient access to businesses
and other land uses. Parking lots and garages can be strategically placed to ease traffic
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congestion and improve the pedestrian environment, encourage more pedestrian travel.
Thus, parking should be thought of as a public utility, and the amount and locations where
parking is provided should be strategically planned.
POSSIBLE SOLUTIONS
• Strategic extension of water and sewer into parts of Buncombe County and in cities
and towns experiencing growth pressure.
• A local government could develop an installment plan and charge the new
development(s) over time in order to recoup costs it incurs up-front (for parking,
water lines, street improvements, other).
• Explore a variety of ways to finance public facilities and infrastructure.
The Urban Land Institute has been examining the infrastructure financing
issue and produced a few reports and articles addressing the issue.
Their report entitled Financing Urban Infrastructure1, recommends
regional visioning and cooperation, creative financing through public-
private partnerships, and balancing urban and suburban investments as
some of the key strategies. It ends with a quotation from Bruce Katz,
Vice President and Senior Fellow at The Brookings Institute: "This
concept should not be approached as another domestic spending
program. To work, it must be approached as an investment opportunity
that will ultimately result in improved global competitiveness."
• Develop comprehensive master plans (including public and private infrastructure and
services needed) for specific areas that include action plans for implementation.
• Create an infill development trust fund or land bank.
• Seek private developers interested in developing on infill/brownfield sites and in
public/private/non-profit partnerships.
• Provide an incentive to developers to use the charrette process and to involve the
neighborhood and/or community early in the development process. The local
government needs to be involved and maybe coordinate this process. (Note - this is
a leadership issue, to address the neighborhood opposition barrier). One example is
the Town of Davidson, NC, which requires developers to hold a public meeting or
charrette at the beginning of the approval process.
• Outreach needs - Asheville needs to do a better job of showing/explaining the
prioritization process for public improvements (such as sidewalks, traffic calming).
• The public sector could take the lead and provide a large amount of parking that
would serve multiple projects in downtown and possibly other areas.
The City of Asheville has no parking requirements (for land
owners/developers) in the Central Business District, therefore it needs to
provide some amount of parking to support the businesses and other
development downtown. Market forces drive some types of development
to provide parking as part of the development (e.g. residential, hotels), but
the parking could be at an adjacent or nearby public facility and
City/County could collect fees for its use.
1 Urban Land Institute, Financing Urban Infrastructure, ULI Policy Forum Report, April 2005.
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• Local governments should develop long term, phased plans and partnerships with
utility companies to plan for burying utility lines throughout the community, or in key
areas and corridors, over time.
• Presentations, lectures, workshop ideas:
Leaders need information in order to lead. It is also important to raise the level of
both knowledge and discussion on the issues of infill and brownfield development,
higher density and smart growth. Land-of-Sky Regional Council could help local
elected officials and management teams see the "big picture" and understand the
benefits of infill development, higher density and smart growth. This could be done
through workshops, presentations and supplying information.
Suggested formats/ideas:
Hold a local education session(s) for elected officials on brownfields and infill
development - pros and cons of different types of development, what other
places have done, etc. Structure the session like a "Mayors Institute" that
brings elected officials from various jurisdictions together to learn from
experts and from each other. Utilize Institute of Government staff as experts
and for assistance with organization and administration.
Conduct a series of presentations/lectures from invited speakers covering the
main barrier issues. The presentations would be open to the public with an
earlier workshop for key stakeholders (e.g., a speaker addressing "financing
mixed use and brownfields redevelopment projects" for local bankers/lenders
to attend).
Hold a workshop for leaders to learn about and consider various ways to fund
public investments. The focus could be "creative ways to finance and fund
public facilities and infrastructure." It could highlight what other places have
done and illustrate the pros and cons of different tools. It could also address
how to be strategic with investments and partnerships.
Incorporate the above ideas into the next Regional Brownfields Initiative
workshop (held in April, 2007).
The 80-year old
Asheville Mica plant
(left) has been
transformed into Mica
Village condominiums.
This project was
featured at our recent
regional brownfields
conference, Pathways
to Redevelopment.
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2. Current Zoning Regulations
Current zoning is typically not appropriate for the type or intensity of development to
make development feasible.
Improvements have been made to zoning regulations in Asheville and the smaller towns in
Buncombe County, to allow for higher density and to encourage more walkable designs.
Asheville's zoning regulations have also gotten more flexible over the past couple years:
density bonuses are available in many districts; new zoning districts are available which
promote smart growth (Urban Village, Urban Place, Urban Residential, Urban Corridor); and
duplexes are allowed in any residential district. However, the allowable density even with
the density bonus is often too low to make a project financially feasible. Another related
issue is that multifamily development is prohibited in many zoning districts; single family
residential is preferred in most areas of the City.
Even with the improvements that have been made, Asheville's Unified Development
Ordinance (UDO) is complicated and lengthy. The code tends to state what cannot be done
rather than what can be done. It is easy to make mistakes interpreting what is required.
Some City officials and staff are interested in developing a more "form-based" code which
would provide more visual examples and focus more on building size, placement and design
than on land use.
A problem with Asheville's and many other municipalities' zoning codes is that much of it is
still very "standard" and out of date. It is a common practice for municipalities and counties
to share zoning regulations and copy them, as is or with changes. Many of the jurisdictions
in this region developed their zoning codes in the 1970s and have not made significant
changes to them since. Some have revised their codes in recent years or are in the process
of revising them. Asheville went through a public process about ten years ago to update
their code and create their UDO, but a local developer commented in one of our meetings
that "Asheville's zoning code looks very standard and doesn't seem to fit or be customized
for Asheville." The City has created a number of "overlay zoning districts" to customize
zoning for certain areas, but this approach is piece-meal and ends up being more
complicated; the underlying zoning should be revised instead, with the support of the
community and elected officials.
Current zoning is a barrier to all kinds of infill development. Larger brownfield and infill sites
may be rezoned to a zoning district more suitable for redevelopment. However, there are
no zoning tools to specifically deal with brownfields. Often brownfields are in industrial
zoning districts while the best and most feasible redevelopment plans would include a
combination of uses that are not typically allowed in industrial zones.
POSSIBLE SOLUTIONS
• Education and outreach on current zoning regulations so people understand the
newer districts and the areas of flexibility. One way Asheville is doing this is through
quarterly public informational meetings it calls "Development Forums."
• Simplify the zoning regulations, incorporating the overlay zoning districts into the
base code and developing a more form-based approach. Asheville is planning to
incorporate more visual examples and form-based regulations.
• Develop incentives to encourage higher density development where this is desired
and can be accommodated.
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• As much as possible equalize the development requirements for multi-family and
single family residences.
• Local governments and economic developers should look at expanding the
possibilities for redevelopment and reuse of previous industrial properties.
• Inventory and analyze the current economic incentives (from the state and local
governments) and lobby to make them more useful and effective for our region.
Some of them do not apply to or help redevelopment in our area. For example, there
are incentives for businesses with 50+ employees, yet many local businesses are
smaller than this.
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3. Land Assemblage and Acquisition
It is difficult to assemble and/or acquire sufficient land for cost-effective infill
development.
Land assemblage and acquisition and the current development pattern are county-wide
barriers to developing large infill projects. It is difficult to assemble and acquire enough land
to do cost-effective infill development. Local developers contend that large mixed-use
projects are the economic and community development model that works in today's market
and provides the majority of the increase in our local tax base. This means that larger
developers and larger amounts of money are needed to do infill development.
Related to this, the current pattern of development is hard to change. The existing
pattern of development (and old zoning) has driven the current zoning and is causing
barriers to changing the development pattern. Many of our main corridors are lined with
small, narrow lots. Merrimon Avenue is a good example, with many small, shallow lots
fronting on Merrimon with residential lots immediately behind these. Ownership and zoning
need to be assembled/combined to create a new pattern of development.
Parcels in Asheville, just north of downtown. Note the number of
narrow lots that line Merrimon Avenue, the main north-south
commercial corridor in the middle of the map, and the other main
Assemblage can be difficult due to: (1) the number of properties that need to be combined;
and/or (2) one or two property owners who are unwilling to sell at a cost-effective price.
Sometimes, property owners have high expectations of property values and are pricing
themselves out of the market. These properties, along with those around them, often
remain idle for a long time.
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POSSIBLE SOLUTIONS
• Create a Community Development Fund that can be used as a revolving fund for
buying sites to assemble into areas for development.
• Local governments in partnership with the private sector should identify specific
delineated areas where opportunities for combination exist (e.g., abandoned or
underutilized clusters of properties, areas along roadways that are planned for
widening, etc.), then develop incentives and partnerships to facilitate redevelopment.
4. Obtaining Financing and Financial Incentives
Obtaining Financing
Obtaining financing is difficult because banks in this region are not very familiar with
brownfields or mixed-use projects. Banks do not look at mixed-use projects the same way
as single use projects. It takes longer for them to evaluate the projects because their
models to evaluate risk are not set up for mixed-use. Some projects are turned down
because they are too difficult to evaluate.
Another obstacle is that most banks are no longer "community-based" and the central
offices typically control policies and some review processes. This distances them from the
local community and situation. Also, bank staff turnover is high and people are moved
around frequently, which results in lack of knowledge about the local community.
Financing is more of a barrier for small developers and projects than for larger
developers. Costs and financing are the biggest barriers for the small town of Woodfin,
especially along the river where the Town would like to encourage greenway and park
development. Smaller developers do not know what to do, so they are just holding onto
properties and waiting for now.
Zoning can be an obstacle to financing when a zoning change is requested for the project.
At a bank's request, the local government provides a letter to the bank that verifies the
zoning of the property. Banks associate a higher level of risk when a zoning change has
been requested for a property, because the request could be denied.
HOME funding2 has some barriers tied to financing. For starters, the assumed requirement
of meeting the national objective for affordable housing and finding eligible low-income
buyers can be difficult to fulfill and keep the project feasible, especially for developers not
experienced with HUD funding. Additionally, the requirement for environmental review can
cause delays and barriers to redevelopment. Brownfield contamination aside, many of the
Land-of-Sky brownfields are in a Flood Hazard Area, near railways, near flammable and
explosive containment centers, etc., which places other potential snags/barriers on a
project.
The U.S. Department of Housing and Urban Development (HUD) HOME program provides grants to states and
units of general local government to implement local housing strategies designed to increase homeownership and
affordable housing opportunities for low- and very
low-income Americans.
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Financial Incentives
There are not many financial incentives to do infill development in our region's cities and
towns. In fact there are disincentives, when compared to developing projects in the
unincorporated areas of Buncombe County. For example:
• The water and sewer fee structures of our regional water and sewer authorities do
not take into account where a property is located, even though it costs more to serve
properties that are further from the source of the service (this is due to the Sullivan
Acts I, II and III)3.
• Land is cheaper in the County than in the cities and towns.
• Taxes are less for properties outside city/town limits.
• The development review process is simpler in Buncombe County because the
county has no zoning regulations in most of its jurisdiction.
Parking requirements, density, green building and affordable housing all provide
opportunities for developing incentives. Economic development staff in Asheville are
working on developing more incentives. Incentives currently exist for providing affordable
housing and for higher density development.
Tax Increment Financing (TIF) is a new tool for North Carolina; it was approved by voters in
November 2004 and is just beginning to be implemented. Woodfin has applied for tax
increment financing for them to improve an area that will become their downtown. Asheville
is currently studying how they might use this tool, specifically in the River District. It will be
very helpful to have a local example of this new tool.
The Housing and Community Development (HCD) Committee is an Asheville City Council
sub-committee that allocates all CDBG funds in Asheville and holds one seat/vote on the
Asheville Regional Housing Consortium, which allocates HOME funds. During this year's
CDBG allocation process, this local committee strongly suggested that developers wishing
to use HUD funds in the future to propose more dense, multi-family housing developments.
This may become a heavily-weighted evaluation tool for future allocations.
POSSIBLE SOLUTIONS
• Provide education for bankers and lenders focused on creative ways to finance
mixed-use and brownfield redevelopment projects. Bring in banking/lending
professionals and developers who have experience doing these types of projects.
Utilize examples from around the country.
• Provide education for bankers on brownfields and the brownfield assessment and
redevelopment process.
3 The City of Asheville filed a Motion for Summary Judgment in N.C. Superior Court on July 17, 2006 in the suit
filed against the State of North Carolina challenging the constitutionality of Sullivan Acts I, II and III. City officials
contend that Sullivan Acts I, II and III unfairly restrict the city's operational and financial management of its water
system and impose limits on Asheville not found in any other city in the state. Sullivan Act I has been in place since
1933, and the North Carolina General Assembly adopted Sullivan Acts II and III on June 29, 2005. These laws are
known as local laws because they apply only to Asheville or within Buncombe County. The laws are filed as Senate
Laws (S.L.) 1933-399, 2005-139 and 2005-140.
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• Develop a informational sheet on the community and environmental benefits of infill
and brownfield development.
• Incentives should be designed and targeted to specific areas where higher density
development is desired or can be accommodated easily. For example, downtown
Asheville and the River District have infrastructure to accommodate fairly dense
development (in most areas). Developers would be more willing to develop in these
areas if there were some incentives, like reduced fees for utility hook-ups or shared
funding of needed infrastructure improvements.
• Local governments often need to take the lead and invest in areas where they want
development to occur. Private sector developers are more willing to invest in an
area after the public sector has invested in infrastructure (water, sewer, roads,
sidewalks, etc.) and/or amenities (parks, streetscape improvements, transit shelters,
etc.)
• Financial incentives for larger infill projects, e.g., trust funds, educating and hand-
holding through New Market Tax Credits, TIF, etc. This would also help overcome
the assemblage and acquisition barrier.
• Buncombe County's fee rebate program for affordable housing should be evaluated
to determine why it is not being used. The County has tried many forms of outreach
but has not gotten any response from developers.
• Waive or significantly reduce fees for high-density, mixed-use and brownfield
redevelopment projects. For example, Asheville waives half of the building plan
review fee for brownfield redevelopment projects (one of the smaller fees, but it was
the easiest place for the City to provide an incentive).
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5. Neighborhood Opposition
Neighborhood opposition to higher density and infill.
Neighborhood opposition to higher density and infill is widespread throughout our region. It
is most prevalent in Asheville, but also present in urbanized areas of Buncombe County and
Weaverville. People in this region are not afraid to speak out on this issue and
neighborhood and other local organizations are effective mobilizing groups of people to
affect development decisions.
In Weaverville, neighborhood opposition is a big issue; the newer residents (less than five
years) tend to oppose new and higher density development, while the longer-term residents
tend to be more welcoming. In Montreat, the new people who have no connection to the
college or conference center are more
willing to tear down old homes and rebuild;
this causes some friction with the old-timers towns summed up his frustration like this:
who are resistant to change and attached to
the historical features of Montreat. "People say they want smart growth, but
The general public seems to support
traditional neighborhood development and and not next door they want good
related zoning regulations in general,
however neighborhood groups often oppose
higher density in or near their
neighborhoods. Many of our local
governments have incorporated traditional
neighborhood development districts into
their zoning ordinances, mostly for use on a
voluntary basis.
The Town Administrator of one of our small
they want things to stay the same; they
want higher density, but not more traffic
shopping opportunities, but not an 80-acre
shopping center."
We need to find ways to change these
attitudes and help people understand what
smart growth means and the benefits of
smart growth.
The "urban village" concept is becoming popular with the market and with developers.
Asheville has a number of zoning districts that incorporate smart growth principles - Urban
Village, Urban Place, Urban Residential, Urban Corridor and Neighborhood Corridor.
Woodfin has a new Mountain Village zoning district. Weaverville has a Traditional
Neighborhood Development district - developers have come with plans for TNDs, but
residents have not been supportive of this type of development. Black Mountain has a TND
district and has incorporated smart growth principles into their other zoning districts. Black
Mountain also has a TND project (Cheshire) that has been developing for the past five to six
hears and is more than halfway built-out.
The process for development review/approval opens the door for public input and
neighborhood opposition, in a reactive rather than proactive way. The quasi-judicial process
(e.g., for Conditional Uses/Zoning, variances) prohibits decision makers from getting
involved early in the process. For example:
If a developer proposes a project that meets city criteria, then the public hearing
issues are limited to whether the project complies or not. If a developer seeks a
variance, then the public hearing is open to that request. It's a pretty strong
incentive to the developer for the city to say, "if you comply, you do not have to
run the gauntlet of wide open public debate."
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POSSIBLE SOLUTIONS
The region is growing and growth needs to be accommodated somewhere. There are
economic, environmental, and community benefits to accommodating a portion of the
growth in existing places. We need to facilitate and encourage honest conversations about
growth management and the costs and benefits of accommodating growth in different
places and at different densities.
• Develop community and regional visions that bring everyone together and continue
to seek a high level of community involvement during the development of regulations
and guidelines.
• More communication and coordination is needed with neighborhood leaders about
the details of the proposed project. Many times opposition is related to fear from not
knowing the details or the effects of new development, or simply fear of change.
Public meetings and charettes to discuss development proposals at the beginning
of the development process appear to help lessen neighborhood opposition and
provide opportunities for neighbors to have input and an affect on the project. Some
towns are requiring developers to hold public meetings and/or charettes as part of
the development process.4
• Community education that explains the community and environmental benefits of
infill and compact development is needed. The materials need to explain the
connections between infill/urban development and farmland preservation and
ridge and steep slope protection. It is often the same people/groups who oppose
higher density infill development and oppose steep slope development.
• We need to gather good, local examples of higher density infill development to use
for discussion and education. We have numerous historical examples of high
quality, high density residential buildings in residential areas and are getting many
new examples of high density and mixed-use projects around the region.
Two examples of recent higher density infill projects in downtown Asheville - Lexington Station
(commercial and residential) on the left and Merritt Park (residential and office) on the right.
• A form-based development code could help lessen neighborhood opposition
because design and scale issues would be specified in the regulations and thus,
4 The Town of Davidson, North Carolina requires the applicant to facilitate a public workshop or charrette, with
varying requirements depending on the scope of the project, before a development proposal can be recommended by
planning staff and approved by the appropriate governing board. (Planning Ordinance, July 2001)
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known up front, before a specific project was proposed. This would still require
support from citizens at the time the code was developed and adopted.
The "form-based" approach can be very effective. It gets everyone focused on the
physical product instead of debating uses. Also, by default, many of the "typically"
unpopular uses will not be able or willing to fit within form-based requirements.
Thus, the local government does not repeatedly debate the "need" to make
exceptions because of a particular user. It also goes farther toward assuring the city
and public that new development will "fit" with the collective vision.
A City Ombudsman for smart growth would be helpful, to promote higher density,
walkability, and other smart growth principles. There has been a lot of talk, but not
enough policies or regulations, to create/realize smart growth.
6. Approval and Permitting Processes
Approval and permitting processes are inconsistent, inefficient and lengthy.
When we started this research in spring and summer of 2005, this barrier was articulated by
some developers. It was reiterated in the focus group of developers in early 2006. The
barrier has been lessened over time, due to improvements made by the City of Asheville
over last 18 months or so. The barrier regarding a lack of consistency (and possibly a lack
of communication) between top-level planning staff, the checklist of requirements that
middle-level planning staff use and independent judgment calls made by staff approving
permits and Certificates of Occupancy has been or is being addressed and corrected. The
process is much easier to follow and consistent and staff are acting more proactively, which
helps everyone.
One developer mentioned a specific improvement as an example, in the permitting
process for his project on Lexington Avenue in Asheville. Rather than filling out a
separate permit for each individual unit, he met with City staff and created a Master
Building Application. He now just fills in the unit number with the same building
information in each permit.
The changes the City of Asheville is and has been making to improve these processes
include:
• In May 2006, the City created a coordinating position in each department - Planning,
Engineering and Building Safety - for projects that go through the Technical Review
Committee (TRC) process. Each coordinator is responsible for coordinating what
needs to be done and tracking the progress.
• The Planning Department has been streamlining the site plan review process.
• The Building Safety department has been making many improvements over the past
year:
o allowing a waiver for Building Safety plan review on single family dwellings if a
licensed engineer, architect or contractor signs a waiver that the building is
conforms to the code;
o educating permit facilitators to ensure all documents are submitted prior to
assigning application/permit number and accepting application;
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o providing education to contractors and inspectors on state and local codes and
updates;
o holding pre- and post-construction meetings;
o installed online tracking software that shows the progress of a project and can be
accessed via the internet;
o developed a single application for commercial and residential projects.
The reason this is a barrier for some is a lack of familiarity with the process and
standards. The City has different standards than the County and the process has been
changing as the City has made improvements. The City of Asheville also has more
regulations and more involved review, approval and inspection processes compared to
Buncombe County. The International Building Code has helped lessen this barrier.
The smaller towns are more nimble and their processes are more interactive. They
also have not been experiencing as much volume or intensity of development as Asheville.
The Town of Woodfin is recognized by developers as a small local government that is friendly to
work with, providing assistance and flexibility while working through development review and
approval processes. After we began this project, Land-of-Sky Regional Council staff initiated a
discussion between the Town and Cherokee Investment Partners. Cherokee was interested in this
property and in working in the Asheville area. They also prefer to work with local developers on
projects. After more discussion, a partnership between Reynolds Mountain Realty Group, Inc.,
Cherokee Investment Partners and the Town of Woodfin was formed. The partnership has
designed a new town center (the Town did not have a town center) between two large new
residential neighborhoods, one of which is on an old landfill brownfield property (the portion left of
the roadway and village below). See www.revnoldsmountain.com for details on the entire
development. Benefits of the entire project to the Town and Buncombe County include:
o Increases real estate tax base from $5.3 million to $300 million;
o Adds $5 million in annual sales tax revenue;
o Creates 1,950 temporary and 1,360 permanent jobs over a 10-year period;
o Converts landfill property to productive use;
o Preserves green space and adds recreational amenities; and
o Adds public parking spaces.
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POSSIBLE SOLUTIONS
• Make the permitting process for brownfield and downtown areas in the City easier
and more consistent (underway).
• The City should provide education and outreach on the process, what is required,
expected turn around time, etc. Perception is a big part of this barrier/issue.
• Simplify and streamline the review and permitting processes so expectations are
clear at the beginning and throughout the processes.
• Develop incentives based on a set of best practices, using the Michigan Suburbs
Alliance Redevelopment Ready Communities program as a guide. See
www.redevelopmentready.com for details.
Conclusions / Summary / Next Steps
The barriers we have discovered here in western North Carolina in general match barriers found
in other parts of the United States as evidenced in recent national studies.5 Many places are
experiencing similar barriers, but how each place addresses the barriers is based on local and
regional conditions, regulations and attitudes. In our region, we need to focus on:
• educating local officials and business and neighborhood groups on the
benefits of infill, mixed use and brownfield development and ways to overcome
the barriers and opposition to these types of development;
• raising the awareness of local officials about the need for them to identify and
invest in areas of their communities where they want to see redevelopment and
more intense development, to demonstrate leadership and commitment which will
encourage more private investment and development in these areas; and
• encouraging local governments to share their improvements to zoning and the
approval and permitting processes with other local governments and the community
at large.
Land-of-Sky Regional Council will continue to work with stakeholders in our region to overcome
the barriers and develop creative solutions and strategies, through presentations, conversations
and educational workshops. Through the Council's Regional Brownfields Initiative, we perform
a wide variety of outreach activities and hold workshops on brownfields-related topics. In 2005
we held a regional conference which introduced brownfields terminology and the assessment
and clean-up processes to local officials and developers. It also featured successful projects
and processes in other communities. This, with other outreach activities, helped build a base of
knowledge about brownfields in the region. We were asked by our Brownfields Advisory Group
to plan a second conference and they expressed the need for a more advanced conference. In
April, 2007, we held a large regional brownfields conference, "Paths to Redevelopment." The
conference focused on the barriers and solutions discussed in this project report, providing
5 The Urban Land Institute published "Barriers and Solutions to Land Assembly for Infill Development" in February
2004 which also addressed other related barriers. The U.S. Conference of Mayors published "Recycling America's
Land: A National Report on Brownfields Redevelopment" which presents the results from a nationwide survey of
cities and towns on their experiences with brownfield redevelopment.
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information and suggestions on how to overcome the barriers in our region. It also featured our
regional brownfields redevelopment projects. The conference was well attended and received
excellent evaluations (see following inset). We will continue our educational efforts as we assist
the region in the area of brownfields redevelopment.
Paths to Redevelopment Conference Highlights
Asheville, North Carolina
April 24 & 25, 2007
Session Topics:
o Brownfields Overview
o Success Stories and Strategies (Charlie Bartsch, Keynote Speaker)
o Redevelopment Challenges
o Creating a Winning Redevelopment Team
o Property Acquisition and Assemblage
o The Importance of Community Involvement
o Brownfields and Smart Growth
o Public/Private Partnerships
o Guided River Tour and Reception at Mica Village (local brownfield site)
o Expert Panel Q & A
Attendance: 170 total attendees; 9 sponsors; 11 exhibitors
Evaluation Comments:
o "World class in all respects"
o "Clearly well planned, organized and comprehensive"
o "Exceeded my hopes and expectations"
o "One of the most informative conferences I have ever attended"
o "Great range of topics and the speakers were also great"
Budget:
o The event cost approximately $22,000; it was within a few hundred
dollars of breaking even.
For more information and conference presentations:
http://www.landofsky.Org/planning/p brownfields Convention.htm
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References and Selected Resources
Atlanta Regional Commission, Infill Development Strategies, part of Community Choices:
Quality Growth Toolkit, 2002. Atlanta, GA (www.atlantaregional.com)
Bartsch, Charles and Barbara Wells, Financing Brownfield Redevelopment in Small Towns and
Rural Areas: Helpful Hints and Examples, 2006, Northeast-Midwest Institute (www.nemw.org)
Michigan Suburbs Alliance, Redevelopment Ready Communities: 2006 Best Practices and
Scoring System (www.redevelopmentready.org)
Urban Land Institute, Barriers and Solutions to Land Assembly for Infill Development, 2004, ULI
-the Urban Land Institute, Washington, D.C. (www.uli.org)
U.S. Conference of Mayors, Recycling America's Land: A National Report on Brownfields
Redevelopment, 2006, Washington, D.C. (www.usmayors.org)
U.S. EPA, Development, Community and Environment Division, Parking Places/Community
Spaces, 2006, Washington, D.C., EPA 231-K-06-001 (www.epa.gov)
U.S. EPA, Smart Growth web site (www.epa.gov/smartgrowth)
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