Ingles Files Lawsuit Against City of Asheville Over Rezoning and Building Restrictions

Ingles Files Lawsuit Against City of Asheville Over Rezoning and Building Restrictions

Ingles and co-plaintiffs, including holding companies for vacant Ingles-owned lots, have filed a lawsuit against the city of Asheville, alleging the city is targeting Ingles and another commercial real estate holding company, American Finance Trust. This lawsuit revolves around a recent rezoning change enacted by Asheville City Council that has significant implications for the development of large city parcels owned by Ingles and its affiliated real estate companies.

According to Brad Branham, attorney for the city of Asheville, there are six large city parcels that have been re-zoned to incentivize developers to build housing. Five of these parcels are owned by Ingles and its affiliated real estate companies, making them subject to the new zoning regulations.

The zoning change enacted by Asheville City Council in 2021 requires owners of large parcels of land, such as Ingles, to develop mixed-use projects that include housing. Failure to include housing in their projects would limit Ingles to building stores with commercial space restricted to 20,000 square feet. This poses a significant challenge for Ingles, as their newer stores are closer to 50,000 square feet in size.

Tom Terrell, the plaintiff’s attorney representing American Finance Trust and its subsidiary ARC, argues that the city’s zoning provision change is an attempt to force commercial property owners to include housing in their developments, rather than focusing solely on commercial projects. This requirement could hinder the business model of companies like Ingles and limit their ability to expand their operations.

The City Council justifies the re-zoning of properties under the Urban Place Zoning provision as a strategy to promote the development of housing in key areas of the city. While the City Council has the authority to re-zone properties, Terrell argues that the city has overstepped its legal boundaries by dictating to commercial property owners that they must include housing in their future developments.

A seven-hour mediation session between the City and the plaintiffs took place recently but failed to reach a resolution. The lawsuit alleges that Asheville leaders specifically targeted a small number of properties for re-zoning under a new classification, rather than implementing broad community-wide solutions to housing issues.

The legal dispute between Ingles and the city of Asheville highlights the complex challenges associated with rezoning and building restrictions. As the case unfolds, both parties will need to navigate the legal intricacies of property rights and zoning regulations to reach a resolution that balances the interests of all stakeholders involved.