Ingles Sues Asheville: Battle Over Rezoning & Building Limits
TL/DR –
Ingles and other co-plaintiffs are suing the city of Asheville, claiming they are being unfairly targeted by a zoning change that requires large landowners to build mixed-use projects that include housing. The zoning ordinance would limit the size of commercial spaces to 20,000 square feet unless they include a housing component. The lawsuit argues that the city is overstepping its legal rights by dictating to commercial property owners that they must include housing in any future commercial builds.
Ingles and Co-plaintiffs Suing the City of Asheville
Ingles, along with other plaintiffs such as vacant lot holding companies, are taking legal action against the city of Asheville. The lawsuit claims that Asheville is targeting Ingles and another commercial real estate firm, American Finance Trust. This trust owns the East Asheville commercial strip mall off Swannanoa River Road.
Brad Branham, the city’s attorney, confirmed the lawsuit’s filing. Branham stated that six large city parcels have been rezoned to encourage housing development, with five of these owned by Ingles and its affiliated real estate firms.
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An unresolved mediation session with all parties was held last week. The lawsuit’s crux is a zoning change enacted by the Asheville City Council in 2021. The law obliges landowners of large parcels, like Ingles, to develop mixed-use projects that include housing. If a project doesn’t incorporate housing, the building’s commercial space is capped at 20,000 square feet.
Branham explained that a potential new Ingles store larger than 20,000 square feet would not be permitted on a rezoned lot. However, newer Ingles stores are typically closer to 50,000 square feet.
According to Branham, the zoning modification is part of city leaders’ plan to incentivize housing development, particularly affordable housing.
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Tom Terrell, plaintiff’s attorney representing American Finance Trust and ARC, stated that the litigation revolves around the requirement to include housing. It aims to incentivize Ingles’ real estate firms to venture into the housing business, deviating from their commercial development model.
Terrell mentions that this could force these companies to incorporate housing where it’s not feasible. He said he could not comment on specific Ingles lots affected by the rezoning mandate, although he did write the brief for the entire plaintiff group.
Terrell criticized the ordinance which requires commercial developers to include affordable housing in their projects. The lawsuit alleges Asheville leaders specifically targeted parcels for rezoning under the Urban Place Zoning provision. The aim is to encourage more housing construction in the city’s key regions.
While Branham insists the City Council is within its rights to rezone properties, Terrell disputes this, stating the city has exceeded its legal boundaries. He argues that it is not within their power to enforce housing inclusion on future commercial builds.
Last week’s seven-hour mediation session between the City’s attorneys and the plaintiffs ended without resolution. Terrell is hopeful that the City’s representatives will ultimately acknowledge the potential legal pitfalls of dictating to targeted commercial lot owners.
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