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Still no recommendation from Raleigh Planning Commission on Downtown South rezoning

The Raleigh Planning Commission has again delayed making a decision on a rezoning request for Downtown South, one of the largest proposed developments in the city’s history, and will continue the debate into December.

The developers have said they need a decision by January if they are to move forward with land purchases for the project.

Discussions for the roughly 140-acre mixed-use development have largely surrounded the project’s financing. The developers have asked the city to offer public funds through a tax increment grant, a public-private partnership financing method never before used in the city.

The grant would use public funds for the development of the project and creation of community benefits, such as workforce development programs and affordable housing.

Downtown South is proposed for the southern edge of downtown at South Saunders Street, South Wilmington Street and Interstate 40. Kane Realty Corp. is requesting rezoning to build the sprawling development with high-rise residential and commercial buildings anchored by a sports and entertainment stadium.

An aerial view of the proposed site of Downtown South, a roughly 140-acre project, slated to include a soccer stadium, on the southern edge of downtown at South Saunders Street, South Wilmington Street and Interstate 40.
An aerial view of the proposed site of Downtown South, a roughly 140-acre project, slated to include a soccer stadium, on the southern edge of downtown at South Saunders Street, South Wilmington Street and Interstate 40. Travis Long tlong@newsobserver.com

Developers and city staff spoke Thursday about financing as well as the project’s plans to deal with stormwater, flooding and effects on traffic during one of several special meetings held by the commission to review the project.

City staff revised several conditions for the rezoning since an Oct. 29 meeting: reducing building height along Wilmington Street from 40 to 20 stories and from 12 to stories to five stories on Gilbert Avenue off of South Saunders Street; restricting building in areas considered future flood hazard areas; reducing potential development area from 38 million square feet to 21.5 million; and dropping the number of future residential units to around 17,000 from roughly 33,000.

Building up to 40 stories is permitted only in designated areas of the development.

Bonner Gaylord, managing director of operations for Kane Realty, said the company has been listening to the concerns surrounding potential environmental impacts from community groups such as Partners for Environmental Justice in Raleigh and Organized Neighbors for Empowerment Wake, or ONE Wake.

“We have added a number of conditions in response to their requests to continue to discuss how Downtown South can be the absolute best for the community and how it can deliver on promises of equity when it comes to the environment and stormwater and housing and jobs,” Gaylord said.

A presentation from Partners for Environmental Justice called for negotiating a contract between the developers and the city or county to enforce community benefits once the project is approved by the city.

They criticized a lack of specific development plans for parcels on the project site and asked how the development will affect traffic safety to a nearby residential area. Videos of recent stormwater flooding in the nearby Rochester Heights neighborhood were shown to emphasize the peril if flooding is not addressed.

Behind on project timeline

The Planning Commission will hold another virtual meeting on Downtown South at 4 p.m. Dec. 8. People can watch the meeting or sign up to speak at www.raleighnc.gov/planning-commission.

Commissioner Nicole Bennett once again criticized the project as being rushed through by developers, who have set a Jan. 11, 2021, deadline for a recommendation to the City Council. The commission will be able to call more special meetings ahead of that date.

“A transformational project requires a transformational process, not business as usual,” she said. “I resent being rushed in this process. It is too large of a project.”

Discussions are behind on a recommended project timeline from city planning staff. It originally listed November as the month for the Planning Commission to develop an outline for the tax increment grant agreement and for the City Council to appoint a community engagement committee.

The City Council is slated to vote on the rezoning recommendation for Downtown South in December, according to the proposed timeline from city staff.

This story was originally published November 20, 2020 at 5:19 PM.

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Aaron Sánchez-Guerra
The News & Observer
Aaron Sánchez-Guerra is a breaking news reporter for The News & Observer and previously covered business and real estate for the paper. His background includes reporting for WLRN Public Media in Miami and as a freelance journalist in Raleigh and Charlotte covering Latino communities. He is a graduate of North Carolina State University, a native Spanish speaker and was born in Mexico. You can follow his work on Twitter at @aaronsguerra.
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