Land for group homes withdrawn in Durham

Neighbors' objections persuade the Durham Council to cancel a deal with two nonprofits

DURHAM -- In split votes, the City Council rescinded land transfers to two nonprofits, expressing ambivalence as council members bowed to loud protests from the surrounding neighborhood.

The parcels will be put on the open market Sept. 7. If no legitimate bids are received, the two charities would get first dibs on the properties. If the properties are sold, the money the city gets will be used to support affordable housing.

Housing for New Hope wanted to build residences for homeless people with disabilities. Dominion Ministries wanted to build a lock-down facility for youth with severe behavioral problems.

Each thought they had found homes for their projects when Durham offered to sell properties in the Cleveland-Holloway neighborhood in downtown to approved nonprofits for $1.

The land transfers were made earlier this year, unbeknownst to neighbors of the proposed projects.

When they caught wind of it, the outcry was immediate. Residents said there were too many group homes for needy people in their midst.

Adding more would hurt their efforts to revitalize, they said.

The issue came to a head Monday night. Council members said they felt uncomfortable reneging on a commitment to the nonprofits. But they said they couldn't ignore the concerns of residents.

Council members chastised City Manager Patrick Baker and his staff for failing to notify them that people other than the nonprofits had expressed interest in the properties. This, neighbors said, could have affected the council's initial decision to transfer the parcels.

"I feel we've been blindsided... by this whole process," councilman Howard Clement III said. "Frankly, I don't appreciate that, Mr. Manager."

Terry Allebaugh, executive director of Housing for New Hope, said nonprofits have a narrow window to make projects happen because affordable land is scarce.

"Tonight my fear ... is that window's gonna come shut," he said. "I'm disheartened that we are at this place. I know that you have a heart [to help homeless people.]"

Both council members and Cleveland-Holloway residents went out of their way to stress that they do care about poor people.

Natalie Spring, a Cleveland-Holloway resident who assumed a leadership role in trying to block the nonprofits, said the median home sale price in their neighborhood is about $80,000.

"We model affordable housing every day," she said.

Council member Diane Catotti, though, said she couldn't deny the nonprofits when there is so much need.

"I want to see the work move forward now," she said.

In an odd twist, Catotti was joined in dissent by Councilman Thomas Stith III, who made the initial motions to rescind the transfers.

He objected to the condition tacked onto his motion by Councilman Mike Woodard that said the nonprofits would have first priority on the properties if no suitable buyers are found.

Woodard noted that follows the city's current policy on transferring property to affordable housing agencies. Stith countered that the mess in Cleveland-Holloway showed the policy needed to change.

The vote on rescinding the transfer to Dominion was 5-2, with Stith and Catotti dissenting.

The vote on Housing for New Hope was 4-3, with Clement joining his two colleagues because he said the city has a long-standing relationship with the agency.