Raleigh approves rezoning for 40-story tower, with affordable housing, in downtown
The Raleigh City Council approved a rezoning, with strings attached, for a new 40-story-tower in downtown Raleigh on Tuesday.
City leaders unanimously approved the rezoning for the project at Peace Street and Capital Boulevard after the developers agreed to put affordable-housing units in the building. A traffic study must also be completed.
“To be sustainable, our city needs to grow up and not out,” said Bonner Gaylord, a former City Council member who represented Kane Realty in the rezoning request. “We are excited to bring forward a mixed-income community that will deliver greater housing equity for our city.”
Construction could begin in two to three years, depending on “design and other factors,” he said.
The developers had offered to give $1 million toward the city’s affordable-housing efforts, but after some City Council members objected, they agreed to include affordable units in the project instead.
Without the rezoning — which was requested by Kane Realty and Williams Realty — the building would have been limited to 12 stories. And the proposed tower may not take advantage of the full 40 stories it was awarded.
Smoky Hollow
The tower is part of the third phase of the Smoky Hollow project. The first phase is under construction and includes a 40,000-square-foot Publix grocery store. Hundreds of apartments and hundreds of thousands of square feet for office and retail will be added throughout the three phases.
The proposed tower “would facilitate a mixed-use development that serves as a defining feature for the northern gateway into downtown Raleigh,” according to the rezoning application.
“Our philosophy is that if we can change a whole area, then we want to do that,” Kane said during a 2018 interview with The N&O. “We want to recycle property, where you have got real estate that needs to be turned into something different than it is today. (The properties) were just outdated. They were single-tenant users, like a dry cleaners and a car wash ... and the whole area needed to be reinvented.
“Capital Boulevard has always been an eyesore,” he added. “Now we are going to have an entrance that we hope we can be proud of.”
Affordable housing
Raleigh, like many other cities, needs affordable housing. Nearly one in four households are cost burdened — meaning they pay more than 30% of their income on rent and utilities — according to the North Carolina Housing Coalition.
The number of affordable units for this project hasn’t be released, but the breakdown will fit into one of three categories:
- 15% of the units as affordable for households earning 80% area median income ($74,150 for a family of four) for at least 15 years.
- 10% of the units are affordable for households earning 60% area median income ($55,620 for a family of four) for at least 10 years.
- 5% of the units are affordable for households earning 50% area median income ($46,350 for a family of four) for at least five years.
Traffic was also a concern of many residents who spoke at a public hearing earlier this summer and of some council members. Rezoning in downtown Raleigh don’t normally require a traffic study, but the developers will do one during the development of the tower. That could result in the tower being smaller.
“My concern is also with traffic,” said Mayor Nancy McFarlane. “But on the other hand, you know, we have talked about wanting higher-density, mixed-use, walkable developments, close to downtown. There will be a new grocery store across the street. It is fulfilling the direction the council is asking for.”
This story was originally published September 3, 2019 at 2:08 PM.
