Let’s turn now to an update on part of Charlotte’s Unified Development Ordinance, which took effect in 2023. The overhaul of the city’s development rules allowed denser housing in more places, including accessory dwelling units or ADUs. But despite high interest and demand for ADUs, so far, few have been built.
For more, Tony Mecia of the Charlotte Ledger Business Newsletter joined Marshall Terry for our segment BizWorthy.
Marshall Terry: First, just what are ADUs exactly and why are they in demand?
Tony Mecia: ADUs, or accessory dwelling units, are essentially tiny houses that can be built in the backyards of many parcels in Charlotte. The original thinking was we can build houses where an aging relative can stay, or a young adult, maybe who's related to the people in the main house, and this could be a way to provide more housing in Charlotte. Which we all know is in high demand. They also tend to be less controversial than triplexes. You and I have talked about that, where you put a triplex in a neighborhood, a lot of neighbors don't like that. But you put a small house in your backyard, fewer objections.
Terry: So not as controversial as the triplexes. They’re also in demand. So why have few been built?
Mecia: Despite the city changing the rules to make them a little bit easier to build, they actually still cost a fair amount of money. It's essentially like building a small house. You need plumbing, you need to furnish it, you need to have a design and a builder. The cost kind of can add up.
According to city statistics, only 188 have been approved citywide since 2023, which is far short of what the city was hoping. They're looking at doing a few things to try to encourage more construction of ADUs. They recently adopted a program to encourage that, provide some financial incentives that can be used under certain circumstances, and a few other things to try to see if they can accelerate the construction of these small backyard houses.
Terry: We’re in the busiest travel time of the year. And it appears the CEO of United Airlines has taken a shot at Charlotte’s largest carrier, American Airlines. What did he say and how did he damn Charlotte Douglas with faint praise?
Mecia: Scott Kirby, who is the CEO of United Airlines, was asked on a podcast last week what he viewed as the future of the airline industry. And he said he envisioned a future in which there were two main air carriers. That doesn't sound very controversial until you understand that there are now basically three main air carriers, and that third one is American Airlines. Kirby was referring to United and Delta as the two that he thought would survive. And so he kind of thought that American is going to shrink, essentially, and not be a main carrier.
He also said that doesn't mean American's going to go away. He said that American will still be dominant in places like Charlotte, which I think is good news for Charlotte that he thinks that. But if you're speaking to a national audience, and the great thing you can say about a competitor is that they'll be dominant in Charlotte, that's not exactly a big vote of confidence.
Terry: Let’s go to uptown now, where you report a major site is under contract to be sold and could be setting the stage for a big redevelopment. What can you tell us?
Mecia: The 32-story building, Two Wells Fargo on South Tryon Street, from what we understand, is under contract to be sold. Developers and people in the real estate industry think that it could be a candidate for a conversion to a different use.
We've seen in uptown some plans for offices to be turned into apartments. Another common use it's thought of maybe as a hotel. You're seeing some new hotels being converted from other uses. With Wells Fargo having moved out of that building, the thinking is the time might be ripe to convert it into something else.
Terry: Finally, there’s speculation about a beloved Charlotte restaurant possibly coming back 30 years after it closed. Which one?
Mecia: Charlotte old-timers might remember a restaurant called The Drum on East Boulevard in Dilworth. It closed in 1995 after nearly 50 years in business. There've been signs, some people have noticed, at the old JJ's Red Hots, saying the "Drum Dilworth." That sort of sparked speculation that maybe The Drum is making a comeback, although actually, from what we understand, it sounds like it's going to be an event space.
