Raleigh Country Club files another lawsuit over planned townhouse development
Raleigh Country Club has filed a second lawsuit against the city and local businessman Mark Thompson in its bid to reverse approval of a 16-unit townhouse project adjacent to its property.
In a petition filed in Wake County Superior Court on May 8, the club directly challenges the city’s 2021 “missing middle” housing reforms and its push to build higher density in traditionally single-family neighborhoods like Raleigh’s King Charles.
It’s the latest of a number of lawsuits property owners have filed against the city and developers over the laws.
Specifically, RCC is asking the court to declare the city’s Frequent Transit Ordinance invalid, the club’s lawyer, Craig D. Justus of Asheville, said in the filing.
Adopted in 2022, the ordinance allows for denser development near future rapid transit.
The club argues that the city has failed to comply with “statutory procedures or authority” and ignores “decades of zoning protections.” That includes the neighborhood’s conservation overlay district, which was established in 2005 to preserve the neighborhood’s history and architecture by enforcing lot sizes and heights.
The property is zoned R-4, which typically permits only up to four units per acre.
“This is a blatant bait-and-switch,” said Christian Anastasiadis, chief operating officer of McConnell Golf and Raleigh Country Club, in a release. “We were told this policy would gently introduce more housing diversity. Instead, it’s being used to shove oversized, high-density developments into neighborhoods with zero regard for traffic, safety, or infrastructure. The people were not warned, were not heard, and now we’re forced to take legal action.”
The developer and the city of Raleigh have declined to comment.
In January, RCC filed its initial petition against the city and developer, arguing the city incorrectly denied its right to appeal based “on standing” last November. It’s separately working to have the case remanded to the city’s Board of Adjustments.
A hearing is scheduled for June 2.
How did we get here?
Starting in 2021, Raleigh began loosening zoning rules to encourage developers to build what it calls “missing middle” housing — like duplexes, townhouses and accessory dwelling units — in single-family neighborhoods. Until then, these housing types were prohibited in many Raleigh neighborhoods.
Proponents say it’s a more efficient use of land and boosts housing supply. But it’s also sparked backlash and lawsuits.
In May 2024, Thompson received administrative approval to tear down a 1938 colonial home at 2501 Poole Road and replace it with 16 two-story townhouses. The 2.14-acre lot backs up to the southwest edge of the club’s golf course.
Called Chailyn’s Cottages, it would span eight buildings and include three-bedroom units — ranging from 1,695 to 1,730 square feet, according to approved plans. Parking would be in surface lots with 36 spaces.
In December, the city’s Board of Adjustments, by a 4-0 vote, granted Thompson’s motion to dismiss RCC’s appeal. It concluded that RCC didn’t “meet its burden of demonstrating that it would suffer special damages as a result of the decision being appealed.”
In addition to RCC’s case, Hayes Barton residents sued the city and a developer in 2023 over plans to build 17 townhouses in one of the city’s most historic neighborhoods. RCC’s attorney, Justus, is also representing the Hayes Barton homeowners in that case.
In 2024, a judge found the city erred and ordered the Board of Adjustments approval be reversed. The developer filed revised plans in March, which the city approved in April, Triangle Business Journal reported.
But the residents’ challenge over broader “missing middle” ordinances is still ongoing. Last November, the city asked the N.C. Court of Appeals to have the case dismissed. The appeal is pending.
Developers in both the Hayes Barton and RCC cases are not likely to break ground anytime soon given pending litigation, said Eric Braun, founder of RaleighForward and a retired land-use and litigation attorney.
“The net effect of all of this is a continued chilling effect on potential small-scale townhouse developments, which will continue stifling Raleigh’s housing supply and exacerbate the housing crisis,” he said.
This story was originally published May 13, 2025 at 12:21 PM.
