SALISBURY — At one point in Salisbury’s history, Kesler Mill was at the center of a thriving community along Martin Luther King Jr. Avenue. History is close to repeating itself in that aspect, as the city is close to releasing a request for developer partners for the Kesler Mill redevelopment project.

Community Planning Director Hannah Jacobson presented an update on the project at the Tuesday city council meeting. She said that the city has issued a request for proposal for development partners, specifically developers that are interested in and have history with the Low-Income Housing Tax Credit program.

Councilman David Post asked if there was any present “appetite” from developers for projects similar to this one, to which Jacobson said that the LIHTC would likely be necessary to make the project “financially feasible.”

“There are two types of low-income housing tax credits known as the four percent and the nine percent. Our proposal, based on the financial feasibility modeling, we are only really recommending going forward with the nine percent, which is the more competitive tax credit and is one of the factors (for) why we need to do it in phases. It’s unlikely that you’ll get two awarded two nine-percent tax credits for the same project in the same area in the same year, so it would likely need to be spaced out,” said Jacobson.

“This has taken a while and I appreciate the feedback and support from council. As Hannah said, we’re excited about getting this RFP out on the street and seeing what type of proposals we receive. We’re early in this project, so still a lot of work to do,” said City Manager Jim Greene Jr.

If the development is completed with the plans as they stand currently, the project would construct 147 low- or moderate-income housing units for seniors, families along with providing a “small amount” of homeownership opportunities. The development would also include a new greenway or trail and new streets connecting Martin Luther King Jr. Avenue to North Arlington Street and Park Avenue to East Franklin Street.

The construction would be completed in phases, with Jacobson saying that the senior housing would be considered the first priority of the project, so phase one would be approximately 60 senior housing units on North Arlington Street. Phase two would consist of single-family homes that would be built on Park Avenue and East Franklin Street. The third and final phase would consist of duplexes and townhomes.

Jacobson also provided a preview of the expected timeline for the upcoming stages of the project, with proposals for development partners due by April 11, the city and a chosen developer should have a development agreement executed by the third quarter of 2026.

“By Q3 of 2026, we should have our development agreements in place and that’s in time for the developer to submit for the 2026 round of the Low-Income Housing Tax Credit. So, a lot of work has been done. We have a lot more to do,” said Jacobson.

The Kesler Mill site has been vacant since owner Pillowtex shut down their textile mills in 2003, with approximately 4,000 people in the area losing their jobs. The mill had been in operation since 1895. The city acquired the site in 2019 and the old Kesler Mill property has been subjected to a large-scale brownfield clean-up project, which aimed to remove debris and pollution that had been present on the property since the buildings were demolished in 2009.

The city council approved the design plans for the project in May of 2024. The project will include 60 senior rental units, 83 family rentals that are a mix of duplexes and townhouses, and five single-family detached homes.

At the time, the estimated public and private investment cost totaled $43 million.

The rental amounts will range from $550-$1,150; sale values will go from $230,000-$250,000; and mortgage payments will cost $940-$1,325. Units will only be available for those earning 80 percent of the area median income.