ASHEVILLE, N.C. (828newsNOW) — Asheville City Council tackled a wide range of issues Tuesday night, from Tropical Storm Helene recovery and affordable housing to data center development and long-overdue repairs at the city’s downtown Municipal Building.
Among the most significant actions, council approved a $19.2 million reallocation of federal disaster recovery funds to speed repairs for homeowners affected by Tropical Storm Helene, unanimously adopted a one-year moratorium on new data center development and authorized a major renovation project at the nearly century-old Municipal Building that houses the Asheville Police Department and Fire Station 1.
Millions shifted to accelerate home repairs
In a 6-1 vote, council approved a substantial amendment to the city’s Community Development Block Grant-Disaster Recovery (CDBG-DR) Action Plan, redirecting $19.2 million to support the state’s Renew NC Single-Family Housing Program.
The amendment moves $9.2 million from affordable multifamily housing construction and $10 million from infrastructure projects into the homeowner repair and reconstruction program.
City officials estimate the funding increase will support repairs or rebuilding of approximately 55 to 65 homes damaged by Helene.
“Behind every home repair project is a family working to regain stability after Tropical Storm Helene,” Recovery Coordinator Bridget Herring told council. “Expanding this program means more Asheville residents will have the opportunity to rebuild and return home.”
The action follows months of public feedback, with many residents urging city leaders to prioritize homeowners still struggling to recover from storm damage.
While some members of the city’s Recovery Board expressed concerns about reducing funding available for affordable housing projects, staff said the city has already leveraged nearly $18 million in affordable housing investments expected to create more than 300 units.
The amendment now heads to the U.S. Department of Housing and Urban Development for final approval.
Data center moratorium approved
Council unanimously approved a one-year moratorium on data center development applications while the city develops regulations governing the facilities.
City staff said Asheville lacks zoning definitions and standards for data centers, including rules related to electricity demand, water consumption, noise, lighting and heat generation.
Mayor Esther Manheimer said the issue has become increasingly important as communities across North Carolina grapple with the impacts of large-scale data centers and artificial intelligence infrastructure.
Councilmember Kim Roney said Asheville should carefully consider whether such facilities align with the city’s long-term vision.
“We didn’t spend decades building an arts, culture and outdoor recreation economy so we could become a warehouse district for AI,” Roney said.
The moratorium also applies to cryptocurrency mining facilities.
Several residents spoke in favor of the temporary pause, citing concerns about energy use, environmental impacts and rising utility costs.
Major repairs coming to Municipal Building
Council also approved a series of contracts allowing construction to begin this summer on a major restoration project at Asheville’s Municipal Building at 100 Court Plaza.
The project centers on replacing the elevated slab floor in the Fire Station 1 apparatus bay, which engineers determined can no longer safely support the weight of modern fire trucks.
Built in 1925, the Municipal Building serves as headquarters for the Asheville Police Department and houses Fire Station 1.
Construction is expected to last about one year.
Capital Management Director Walter Ear described the work as a critical investment in public safety infrastructure.
“By reinforcing the structural integrity of the Municipal Building, we are ensuring that our first responders have a safe, modern facility to operate from as they continue to protect and serve the Asheville community,” Ear said.
Emergency services will remain operational throughout construction. One fire company will continue operating from Fire Station 1 while other apparatus will be temporarily relocated to nearby stations.
Council also approved the temporary activation of city-owned property at 179 South Charlotte St. as a fitness and wellness center for first responders during construction.
Affordable housing project moves forward
Council approved the sale of city-owned land at 29 Oakhill Drive for the construction of 42 affordable townhomes.
The project will include three-bedroom units targeted to households earning between 80 percent and 110 percent of area median income. The city will provide a $1.6 million Housing Trust Fund loan and down-payment assistance for qualifying buyers.
Community and Economic Development Director Nikki Reid said the project represents an opportunity to expand affordable homeownership opportunities in Asheville.
Residents living near the site voiced concerns about traffic, speeding and safety issues on Oakhill Drive and surrounding roads.
City staff said the development will return to council later through the conditional zoning process, where transportation and site design issues can receive additional review.
Other actions
Council unanimously approved rezoning property on Deaverview Road from medium-density multifamily zoning to high-density multifamily zoning, a move officials said supports the city’s housing goals.
The city also approved more than $9.5 million in engineering and design contracts tied to landslide recovery projects resulting from Tropical Storm Helene, as well as roadway and sidewalk repair planning projects.
Additional approvals included a contract to prepare a temporary skating rink site at 50 Asheland Ave. to replace recreational opportunities lost when Carrier Park’s rink was damaged during the storm.
Council also authorized design and engineering work for improvements along Eagle and South Market streets as part of the Boosting the Block initiative, which aims to strengthen connections between Pack Square and Asheville’s historic Black business district.
Bicycle safety resolution adopted
Council approved a resolution supporting the proposed Leonard Antonelli, Jacob Hill and Alex Rosas Bicycle Safety Zone Act, known as “Lenny’s Law.”
The proposal would create designated bicycle safety zones and increase penalties for speeding in those areas.
The legislation is named for cyclists Leonard “Lenny” Antonelli, Jacob Hill and Alex Rosas, who were killed in separate crashes in Western North Carolina.
Family members and cycling advocates urged council to support the measure, saying stronger protections are needed for cyclists on popular riding routes.
Parks department celebrates 70 years
The meeting opened with a proclamation declaring July as Asheville Parks and Recreation Month as the department celebrates its 70th anniversary.
Several longtime employees were recognized for decades of service, including one staff member with 40 years of employment with the department.
Council also heard from representatives of the Asheville Pickleball Association, who thanked city leaders for supporting plans for dedicated pickleball courts at Roger Farmer Park while acknowledging ongoing neighborhood concerns about noise and late-night activity at Malvern Hills Park.