Don’t rush on Raleigh’s Downtown South project

Raleigh will be looking into its future through a computer screen Tuesday night during a virtual public hearing on a proposed stadium and mixed-use development called Downtown South.

More than 200 people have signed up to speak. They include soccer fans who want the stadium, business people and property owners who think the project will revitalize Southeast Raleigh and opponents who see the project as too vaguely defined and potentially too costly for the city and the environment.

Count us among the third group.

The proposed $2.2 billion development would be on 145 acres adjacent to the Raleigh Beltline at South Saunders Street. It’s backed by John Kane of Kane Realty Corp. and Steve Malik, owner of two professional soccer teams, the North Carolina Courage and North Carolina Football Club. They are pressing the city to approve rezoning before the end of December, saying their purchase agreement for a key portion of the project’s property will expire at year’s end.

Kane and Malik appear likely to get their wish as soon as Tuesday night, or at a second council meeting set for Dec. 17. David Cox is the project’s only open opponent on the eight-member council and Mayor Mary-Ann Baldwin is a strong supporter.

Baldwin told the Editorial Board on Monday, “I believe this could be the greatest redevelopment project in the history of Raleigh if it’s done right.”

That “if” is the rub. Done wrong, the Downtown South project could squander a prime area for redevelopment, cost the city in lost tax revenue and extra expenses, raise traffic and environmental concerns and speed the gentrification of the area and the displacement of long-time residents.

Certainly confidence about doing it right would be increased by more information about what will actually be developed and how it will affect surrounding areas. The Raleigh Planning Commission, an advisory committee, said the project – which would include the soccer stadium and buildings up to 40 stories – needs to be better defined. Members of the panel voted unanimously against it.

Susan Maruyama, chair of Livable Raleigh, a citizens group that is opposed to approving the project without more clarity, said, “There’s lot they are asking for here without a lot of detail to back it up and people see that.”

Baldwin counters by saying uncertainty is inevitable with a project that is expected to build out over a quarter of century. “You have to have some flexibility to respond to the market and the community over 25 years,” she said.

Funny that the mayor should mention flexibility because the city isn’t getting any. A two-week deadline has imposed false urgency. Even if the Downtown South project falls through, the land in question will attract new developers.

Baldwin said there is nothing rushed about the consideration of the project. She noted that a major redevelopment of the area was envisioned by city planners as far back as 2008 and the current proposal has been considered at numerous planning commission meetings. “We’ve been talking about this for a year and a half now,” she said. “It’s not like this is a surprise.”

Though not a surprise, the project still has too many unknowns and at least one strong aspect that is known: It would be funded in part by city tax relief and credits.

The developers are already in line for a tax break because the area is designated an “opportunity zone,” a federal tax status that allows developers in an economically distressed community to realize savings on capital gains taxes.

Baldwin has good instincts about moving the city past NIMBYism and fear of big changes to instead welcome development and the amenities and economic improvements it can provide. In this case, though, she is not only the mayor of Raleigh, but also the mayor of a future Raleigh. It’s unwise to commit under a deadline of two weeks to a redevelopment that could shape the southern end of the city for decades to come.

To view the 7 p.m., Dec. 15 public hearing, go to: raleighnc.gov or youtube.com/cityofraleigh/live