Council opts to not reconsider zoning for apartments

8:50 p.m. Oct. 20, 2025

DUANE CROSS
MCO Publisher•Editor

A representative from The Gateway Companies, an Alabama-based affordable housing developer, appeared before the Metro Council on Monday, Oct. 20, to ask that the county allow a previously planned 42-unit multifamily project to move forward under its former zoning classification.

Troy Woodis, a development manager with Gateway, told council members that his company, which owns about 9,000 apartment units across the Southeast, had secured a state housing tax credit to build workforce housing on 5.1 acres behind the Moore County Co-op. The property was zoned for multifamily use when Gateway began the process earlier this year. Still, that designation was later changed by the county before the project was awarded funding in late July.

“We’ve done everything we were supposed to do,” Woodis said. “We went through planning and zoning, got utility letters, and followed the THDA [Tennessee Housing Development Agency] process. Twenty days after that meeting, the zoning was pulled out from under us.”

Woodis said the company is now asking the council to allow the project – a roughly $8-9 million investment – to proceed under the old R-1 multifamily zoning rules. The project would include 42 rental units ranging from one- to three-bedroom apartments, with rents expected to range from about $590 to $815 per month.

Tax Credits – Not Section 8

The development would be funded through federal low-income housing tax credits. This program helps developers lower rents in exchange for long-term affordability commitments. In response to a comment by District 4 council member Peggy Sue Blackburn, Woodis emphasized that Gateway’s proposal is not a Section 8 or project-based housing development, which directly subsidizes tenant rents.

“We are not a Section 8 developer,” he said. “These are tax credit properties – we agree to keep the units affordable for 30 years. Tenants still have to pass financial and criminal background checks just like anywhere else.”

Council Concerns Over Water, Growth

Several council members questioned whether Moore County has the infrastructure to support new housing of that size. Councilman Dexter Golden said the county’s water capacity is already operating at about 80%, prompting the zoning change earlier this year.

“With all due respect, there’s a chance y’all might not have gotten the award,” Golden said. “We looked at being proactive – we’re close to capacity, and we’re trying to plan ahead.”

Glen Thomas, a MUD board member in attendance, however, said the system could currently handle the proposed development. “That plant will produce 34 million gallons a month, and we’re averaging 24 million.

“This [development] will not cost us anything, but it will gain us revenue.”

Council members also raised questions about Gateway’s management reputation and the long-term impact on schools, emergency services, and infrastructure. Woodis said the company maintains a strong record of managing more than 17,000 units and that the development would create minimal strain on local resources. Property taxes on the site, he contended, would increase from about $458 to roughly $75,000 annually once completed.

Zoning and Next Steps

Woodis said Gateway cannot alter the scope of the project – including the number of units or the parcel size – without jeopardizing its tax credit award. THDA approved the project based on 42 units on 5.1 acres. The county’s current commercial zoning for that parcel allows only 25 units, creating a regulatory conflict.

“I think we’ve heard what Mr. Woodis had to say,” Council Chair Amy Cashion said. “Now we need to determine what our options are – if there are any – and how to move forward.” She noted the earliest any zoning changes could be made would be two months from now, as Moore County requires two readings for any amendment.

A motion by Blackburn to send the matter back to the Planning and Zoning Commission for reconsideration failed to get a second.