A developer pulled a request to rezone in Durham’s Hayti. Could it come back?
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- Sterling Bay withdrew its rezoning request for Durham’s Heritage Square site.
- The proposed life sciences campus met opposition from Hayti neighborhood residents.
- Sterling Bay warned no similar development offer would likely return to the site.
Now that the developer of a proposed life sciences project in Durham has paused the plan, many are asking what could happen next.
Late Monday evening, Jamie Schwedler, a representative for Sterling Bay, told the City Council that while they had hoped to bring more opportunities to the historically Black Hayti neighborhood, they wished to withdraw the rezoning request for the project. They had sought the rezoning for 401 E. Lakewood Ave., home of the former Heritage Square shopping center, to construct buildings taller than 175 feet.
Sterling Bay bought Heritage Square for $62 million in 2022, but its plan for the life sciences campus and apartments met opposition from residents in Durham and Hayti who feared the project threatened the vulnerable neighborhood.
Before requesting the withdrawal at the end of a 10-minute presentation listing over $2 million in community benefits, Schwedler said another developer would not come along with as good a plan for Heritage Square.
“The community is asking the wrong question,” she said. “It’s not whether the $2.3 million is enough on the one hand. It’s whether they’d rather have zero.”
Here’s what to know about the controversial plan.
Who is Sterling Bay?
The real estate developers led by CEO Andy Gloor have over 30 years of projects in their portfolio. Their projects range from life science labs to luxury apartments, and include headqaurters for McDonald’s, Dyson, and BCG.
What else have they built?
Their most notable projects include Lincoln Yards, a $6 billion, 53-acre development on the North Side of Chicago with residential units, office space, life sciences, and retail. There are several other developments in California, Colorado, Philadelphia, Massachusetts and Florida.
Heritage Square would be Sterling Bay’s second project in North Carolina, behind a planned apartment tower in the South End of Charlotte.
What is the history of Hayti?
The Hayti neighborhood was established by Black Americans moving into the area to work in tobacco factories following enslavement and the end of the Civil War. The neighborhood was named for the Caribbean island, Haiti, which was taken over by enslaved people who revolted against French colonization.
In the 1920s and ‘30s, the neighborhood was part of a thriving Black Wall Street area. But by the 1950s, it began to experience economic challenges and a push to fix traffic congestion downtown led to construction of the Durham Freeway through Hayti and the south side of Durham that destroyed thousands of Black owned homes and businesses.
What happened to Heritage Square?
City officials promised to restore what was lost, but those promises failed. The Heritage Square strip mall was constructed in 1985, supported by real estate companies, city loans and local churches and community groups.
The strip mall quickly ran into financial issues about five years after it was completed. By the time Sterling Bay bought the property in 2022, there were few businesses still there, including Food World and Pelican’s SnoBalls. Those businesses left over the last three years and now the property sits vacant behind a metal fence.
Why did Sterling Bay withdraw its request?
Specific details about the decision to withdraw the rezoning application are unknown. Schwedler told the Durham City Council that they “mourn the loss of what could have been” if the community had accepted the proposal. The value of benefits, including two scholarships, discounted retail space, a historical marker, and costs to cover any construction-related damage to neighboring St. Mark AME Zion Church was estimated at $2.3 million.
In a statement, Sterling Bay said it was “disappointed” the project will not happen and that “we acknowledge that this outcome means the community will not experience the many benefits the project was expected to deliver.”
Did the rezoning have support from the Durham City Council?
There seemed to be support from Mayor Leo Williams and Councilman Mark-Anthony Middleton. Once the developer asked to pull their application, Councilwoman Javiera Caballero agreed with them that the public hearing should be over, despite over 40 people waiting for a chance to speak.
On July 31, Hayti advocates had sent an open letter to Councilman Carl Rist, asking him to “use the voting power that you have now to be a force for good for the Hayti community, even as others might not.”
Monday night, Williams said on paper, the rezoning request was a “no brainer” and asked the audience, “if this isn’t what you want, then what do you what?”
“I have not gotten a clear answer but I still want that question answered,” he said and asked the community to have a planning meeting with the City Council to figure out other options for what to do in Heritage Square.
Middleton criticized the audience who verbally protested Sterling Bay’s withdrawal request, but he added, “if they want to leave that money on the table and withdraw, that is their right. They have the right to do that.”
“While we may lament and be upset about not being able to speak tonight, what is the ultimate victory we were looking for?” he asked. “What are we still shooting at now?”
Could Sterling Bay resubmit the rezoning request?
Sterling Bay still owns Heritage Square and might be able to resubmit the request in six months, according to the city’s Planning Department.
This is an election year for Durham, and four council seats are on the ballot, including the mayor and all three ward seats held by council members Chelsea Cook, DeDreana Freeman and Middleton.
Critics are already speculating that the timing of the withdrawal suggests Sterling Bay will resubmit the case after the election, perhaps to give its supporters a better chance at the polls, according to Henry McKoy, the president of Hayti Reborn.
“Once the election gets through, [candidates] may feel safer and the developer will come back,” he said. “I think for a lot of people there’s an obvious sense of relief Hayti didn’t get rezoned, but there’s also some skepticism as to whether this is a bigger play.”
Julien Pridgen, the pastor of St. Mark, agreed and said that the community “does not trust Sterling Bay.”
“Most of us think that this is some kind of trick. They still own the property; that’s the bottom line,” he said after the meeting.
This story was originally published August 7, 2025 at 10:41 AM.