City approves $547,000 in ARP funds to build three small homes

Lots located at 203 and 207 Jones St. at the corner of Walt Bellamy Drive in New Bern, NC. Photo by Wendy Card.
Lots located at 203 and 207 Jones St. at the corner of Walt Bellamy Drive in New Bern, NC. Photo by Wendy Card.

The City of New Bern Redevelopment Commission announced a second plan to use $547,000 of American Rescue Plan funds to build three small, two-bedroom homes for low to moderate income families during the Board of Aldermen meeting on April 25.

The BOA voted to divide $6,704,351 in ARP funding among the six wards on June 28, 2022. The ARP funding for this project will come out of Ward 3’s portion. The ward is represented by Alderman Bobby Aster.

The RDC purchased parcels located at 203 and 207 Jones St. in 2021 for $38,000. Local business owner Pete Frey bid to purchase the properties twice, but the RDC decided to build rental units until they were advised by Assistant City Attorney Jaimee Bullock-Mosley that they didn’t have the authority to own rental property.

RDC Co-Chair Kip Peregoy said they planned to take both properties and recombine them as one, then subdivide into three parcels.

New Bern Now reviewed the property tax records on Craven GIS and it appears, if combined, the parcels would equal 0.36 acres. If subdivided into three equal parts, the approximate acreage per lot would be 0.12 acres.

Alderman Hazel Royal asked, “Do you have an estimate for a potential sale price for each of the homes?”

Peregoy responded, “No, we will after we build the homes.” Peregoy said they would know after they were appraised to determine the market value. He continued, “There’s a possibility that we will lose money when selling those homes but that’s part of the mission of a redevelopment commission, is to do things that private industry, private businesses, will not do to provide the proper assets for the people in the community.”

Alderman Bob Brinson asked if the RDC had developed a process to screen applicants. He also asked if city staff would take over since the RDC executive director, Catrecia McCoy-Bowman, is leaving.

City Manager Foster Hughes replied, “We had not had any discussions on that yet.” He also said the executive director would be leaving on April 28.”

Alderman Bobby Aster said, “The assistant city manager will be the person in charge in this project for the city until someone is hired.”

There was no mention of McCoy-Bowman, who was hired as the executive director of the RDC in September 2022.

Aster made a motion to use ARP funds of $540,000, not to exceed $547,000, to build three homes on the Jones St. properties. The motion passed 5-1. Alderman Johnnie Ray Kinsey voted no. Alderman Rick Prill was absent.

By Wendy Card, co-editor. Send an email with comments or questions.