Council approves $258,000 loan forgiveness to assist sprinkler installation at James Walker Apartments

Wilmington City Council approved a resolution authorizing $258,000 in debt forgiveness to Landmark Asset Services to help fund installation of a fire sprinkler system at James Walker Apartments, a 37‑unit senior affordable housing complex that was originally part of a 1920s nurse’s quarters.

Housing Director Rachel Schuler outlined the rehabilitation request and said the sprinkler work pushed the project’s costs higher than expected after the developer completed a formal bid process. "This is a resolution to consider a request by Landmark Asset Services for $258,000 in debt forgiveness to help support the cost of installing a fire sprinkler system as part of the rehabilitation of James Walker Apartments," Schuler told council; staff recommended approval.

Sam Sarai, vice president of Landmark Asset Services, answered council questions about tenant impact and rent changes. He said rents will increase modestly after renovations — roughly $65 to $105, depending on unit size — and described a relocation plan: "The residents will temporarily have to move out at our expense ... we expect our unit turns to take no more than 30 days," Sarai said, adding the developer will provide hotel accommodations, moving and meal assistance during the work.

Council members pressed the applicant on resident notification and rent impacts; the applicant said residents were informed in advance and that the modest rent increases are intended to keep the building financially viable going forward given the scale of rehabilitation investment. Council voted unanimously to approve the resolution authorizing the manager to execute the agreement for loan forgiveness.