The lead developer of Brooklyn Village uptown, The Peebles Corporation, has withdrawn its application for Housing Trust Fund dollars from the city of Charlotte.
Not having city funds will make it harder for Miami Beach-based Peebles to build a 250-unit apartment building for low-income residents on Brooklyn Village Avenue near the Mecklenburg Aquatic Center. It also represents a new setback for the developer, who hasn’t built anything since being selected by Mecklenburg County in 2016.
Brooklyn Village is envisioned to be a massive project of apartments, office and retail space. By redeveloping the land in Second Ward, the county is trying to make amends for the demolition of Brooklyn, which was uptown’s Black neighborhood. The area was cleared in the 1960s as part of a wave of urban renewal projects nationwide.
Earlier this year, Peebles asked the city of Charlotte for $13.5 million to subsidize the apartment building, which would be built on Brooklyn Village Avenue.
The city denied the request in April, saying it had concerns about the project’s financial viability.
After that, the city and Peebles were negotiating over a way to make the deal work, with less money. But Charlotte housing director Rebecca Hefner said Thursday that Peebles has withdrawn its application.
She said it’s possible Peebles could apply again for city money in a year.
Meanwhile, Peebles and its main partner, Mecklenburg County, are in a dispute over whether Peebles should get an extra year to demolish the old Board of Education building nearby. The developer said in an April 28th letter that it needs the time to clean up asbestos in the building, and claimed the existence of the hazardous material is a “force majeure” — an unforeseen event that requires the county to grant it an extension.
Peebles has until July 28 to knock the building down, according to the development agreement signed in 2018. If Mecklenburg County sticks to that deadline, it could lead to litigation that might dissolve the entire nine-year partnership.
Mecklenburg Commissioners discussed Peebles’ letter in a closed session meeting in May. Many Commissioners and county staff were frustrated with the latest request for a delay and didn’t want to grant an extension. They said in the meeting that the asbestos wasn’t a secret and does not constitute a force majeure.
