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JACKSON – By a narrow majority vote, Northampton County’s Board of Commissioners approved providing $275,000 for the “Jackson Grove” workforce housing project.

The request for the additional funding was first made during their April 21 meeting, presented by Economic Development Director Derrick Bennett. At that meeting, however, the commissioners chose to table the decision until their May 5 meeting instead.

Bennett gave an overview of the project again during Monday’s meeting, including a timeline of the project since its inception.

In August 2020, Bennett said the county hired Oakley Collier Architects to design the housing project. Originally, the plan was to construct 12 townhome units.

In October 2020, the commissioners approved purchasing a 10-acre parcel of land located on Highway 305, next to Central Elementary School in Jackson. The parcel was acquired for a total of $33,500.

As previously reported by the News Herald, the county bought the property from the Northampton County Board of Education. The land purchase was approved by the commissioners following a public hearing, during which no citizens submitted comments for or against the workforce housing proposal.

In November 2021, while giving an overview of county projects, former Board Chair Charles Tyner stated that they hoped to receive federal funds for the workforce housing construction.

The county did later receive a $3 million federal grant. In June 2022, the commissioners approved a capital project ordinance to use those funds for the proposed workforce housing project. The estimated total cost for the project at the time was $3.1 million. The resolution stated that funds may be reimbursed to the General Fund for prior project expenses.

Bennett said that the grant agreement with USDA was officially awarded in March 2023. By July 2024, the engineering plans for the project were finalized, and they began seeking construction bids the following month.

“All the bids received were considerably above the projected amount of $3 million. As such, we re-advertised the bids for a second time,” Bennett continued.

From the second round of bids, they did receive one for $2.74 million from Group III, a company based in Kinston, to construct six townhome units. But when adding in the cost of the architecture services ($520,000, according to Bennett), the full project total came out to $3,274,970.

That meant that the county would need to provide just under $275,000 to cover the deficit.

Bennett also noted that Group III had agreed to extend their bid until May 6.

Commissioner Keith Edwards asked which fund the $275,000 would come from.

County Manager Julian Phillips stated it would be from the Capital Outlay Fund (Nondepartmental Expenses). Those funds, he explained, are used for covering the costs associated with capital projects, such as engineering fees, site surveys, land purchases, and more. He also noted that the 2022 ordinance included language that would allow the county to recoup project costs incurred prior to receiving the grant.

Commissioner Melvetta Broadnax Taylor expressed concern that they would be using taxpayer money to cover the $275,000 deficit. She said she didn’t think they were being transparent enough.

“I don’t know if our citizens are understanding that,” she said. “That’s my only concern with this. I think it’s wonderful we’re going to have houses.”

Board Chair Ed Martin asked Phillips to confirm that they had enough money in the capital outlay fund to cover the cost, to which Phillips answered yes.

Bennett said that since the original estimated cost was $3.1 million, they were always expecting the county to have to contribute some funds to the project. They just didn’t know the exact amount until the engineering was completed and the final bids were submitted. The only surprise was that the rising costs thanks to the pandemic inflation meant they had to downsize the project from 12 homes to six.

“Just to be clear, Northampton County would own six brand new townhome units that cost you $275,000. I don’t know anywhere in the world you can receive a deal of that type,” Bennett said, speaking about one of the benefits of the project.

He also emphasized again, as he did at the previous meeting, that having more housing in the county can help bring in more people who want to work in the county.

“Housing is needed in Northampton County,” agreed Commissioner Kelvin Edwards.

As the only commissioner who was on the board when the project started in 2020, Kelvin Edwards noted that costs have only continued to rise since the pandemic. He pointed out that the new high school also faced the same issue of construction costs being higher than first estimated.

Keith Edwards asked how they would decide who gets the houses once constructed.

Bennett said it’s up to the county to decide when they get to that point. And he also emphasized again that the county can rent or sell the properties, so the $275,000 is not an investment without any return.

With the discussion concluded, Kelvin Edwards motioned to approve the $275,000 and Commissioner Keedra Whitaker seconded.

The motion passed 3-2, with Broadnax Taylor and Keith Edwards casting the two opposing votes.

The News Herald reached out to Phillips for more information about the county potentially recouping the funds for the project.

“We will have additional future revenues from rental of the units (price has not been set yet) and possible sales,” he explained. “I believe the county will recoup all $275,000 in a few years. We will provide more definitive projections when numbers are agreed upon by the commissioners.”