Multiple Rezoning Requests on the Table

Dillon Supply Company in downtown Raleigh's Warehouse District

There’s a nice cluster of rezoning requests at the city right now that could bring new development to where there is currently none or very little existing activity. The RalCon commenters have been all over it recently so I wanted to bring it up top for more exposure.

Rezoning requests don’t sound exciting but it does fuel the rumor mill. While I enjoy speculation at a “for entertainment purposes only” approach I think we should lay out what’s on the table and what the comprehensive plan says about these areas.

To date, none of the requests discussed here have been approved or denied. They have only been submitted.

301 Hillsborough Street and 320 W. Morgan Street

Case number Z-038-14 has been discussed on the blog before. It’s the site of the parking lot used by Campbell Law school along Dawson Street between Morgan and Hillsborough Street. If you need a refesher, we talked about it back in October of 2014.

The request is for a DX-20-SH. In short, that means Downtown Mixed Use zoning with a 20 story max height and a shopfront frontage.

The latest update on this rezoning request is that there are some big projects being discussed behind closed doors. The N&O writes:

The city government has been entertaining at least two “substantial and serious offers” from private developers for the 1.2-acre property. Now the city has moved to apply a new set of development rules to the land, potentially clearing the way for a private construction project.

*Raleigh files to allow 20-story buildings at 301 Hillsborough St.

On the opposite side of the coin, there are a group of residents that are against the rezoning. The Central CAC has voted against this rezoning in a recent meeting. The article also states that The Dawson residents are against the rezoning and instead want the height to be capped at 7 stories instead of 20.

The last piece of this story that I’ll share is what the comprehensive plan says about this area. Here are quotes from it that seem relevant.

Reinforce the William Christmas Plan by encouraging prominent buildings and uses to be developed along axial streets (i.e. Hillsborough, Fayetteville, and New Bern) and the squares. (1, 3, 4, 6)

Highest density development should occur along the axial streets (Hillsborough Street, Fayetteville Street and New Bern Avenue), major streets (as identified by the Street plan), surrounding the squares, and within close proximity to planned transit stations.

327 & 309 Hillsborough Street and 324 & 328 W. Morgan Street

Case Z-39-14 is right next door and is for the same DX-20-SH zoning. This would be the western half of the same block that has 301 Hillsborough mainly along Harrington Street.

This seems like the same story as before. The same height concerns are mentioned by the residents at The Dawson. The same comprehensive plan applies to this lot as does 301 Hillsborough.

603 S. Wilmington Street and 112 & 114 E. Lenoir Street

Moving off Hillsborough Street, case Z-42-14, is a request for a DX-12-UG-CU zoning. If you’re following along, that’s downtown mixed-use at 12 story maximum with an urban general frontage, conditional use. An urban general frontage means that while the building is up against the sidewalk, ground floor retail space may or may not be there. It allows for walk up townhomes, an office lobby, or something similar.

The property in question here is where the Baptist Headquarters Building is located next to the McDonald’s facing Wilmington Street. According to the TBJ article, plans for a hotel are in the works and the rezoning would allow it to be as tall as 12 stories.

A hotel developer has submitted plans with the city to rezone a piece of property within the Prince Hall Historic District in downtown Raleigh for a hotel and office building that could stretch as high as 12 stories tall.

*New 12-story hotel proposed for downtown Raleigh

Taking a look at the comprehensive plan, this area seems to have the same density and urban core concepts as the rest of downtown. Close by is the start of an identified transition area, one that steps down towards the nearby neighborhoods.

The image below shows a piece of the map whereby the areas in blue have been identified as transitional. The map is just a guide however and with it being in a historic district I bet this topic gets heated.

401, 403 & 406 W. Hargett Street, 223 S. West Street, 410 W. Martin Street, & 126, 210 & 218 S. Harrington Street

Case Z-1-15 involves quite a few properties in the warehouse district near Union Station. This request is for DX-20-CU, downtown mixed use at 20 stories maximum, conditional use. The grandest building here is the Dillon Supply Warehouse, pictured at the top of this post, which is a real cornerstone of our warehouse district in terms of size and potential.

Just like the other areas mentioned in this post, this area again is identified as needing high-intensity development as it is in the downtown.

The developer here seems to be Kane Realty Corp, the group behind North Hills. If you take a look at the zoning request the “neighborhood” meeting was held up at the North Hills offices with only 4 Raleighites attending.

The writing is on the wall that the city wants this area to be hugely successful due to the upcoming Raleigh Union Station project. (set to break ground in less than 10 weeks) If you attended enough of the Union Station meetings, there is also another component that is seen as hugely needed adjacent to Union Station. Lots of new parking was seen as a huge need here and I wouldn’t be surprised if a big parking deck component is put in this area to accommodate that.

Pic of the Week

The Devon Apartments on Tucker Street

The Devon apartments on Tucker Street has finished construction and is now leasing out units. The building took almost three years to complete and when compared to similar projects, that is much slower. However, when watching it go up the big difference you notice is the use of concrete floors compared to wood. I imagine that makes a difference in quality as well as longevity of the building.

Stone’s Warehouse and Affordable Housing

Stone's Warehouse

Stone’s Warehouse, photo taken December 2014

Just outside of downtown Raleigh is a site that’s getting a lot of attention lately. The block containing what is called Stone’s Warehouse at 500 East Davie Street could see a major renovation and new development in the near future.

This city-owned property could be sold soon and transformed into a destination for a mix of uses. I wanted to introduce this project as well as dive into the current topic of affordable housing, a criteria the city has listed for potential developers of the site to comply with.

Stone’s Warehouse
An old bus repair shop, the warehouse has been around since about the mid-1920s. The Carolina Coach Garage and Shop outgrew the space and moved out in 1939. After a variety of uses, it was eventually acquired by the city in 2001 and has been empty since.

View on Google Maps

In addition to the empty warehouse, the site also includes the currently open Rex Senior Health Center. The parking lot and some open land rounds out the rest of the site.

The city has slowly acquired the majority of the block, not including a few houses on the southern end. They intend to use it for community development and have put the site up for sale to developers. A long list of criteria has been put together and today we have three developers in the running for the sale of the site based on their proposals.

According to an article in the N&O, here are some of the details of each plan:

  • Transfer Company LLC plans for a grocery store, cafe, and a community hall with space for small food producers. They would build a 13,000 square foot building for additional food/drink space and a row of 16 market-rate townhomes. The proposal states that it would assist with the moving of the Rex Senior Health Center.
  • AACRE plans for a five-story, 200-unit apartment building with 300-space parking deck. The renovated warehouse would have a grocery store in it and the health center would remain although in a smaller space. 10-20 apartments would qualify as affordable housing.
  • Empire Properties plans for an “Entrepreneurs’ Village.” This would consist of the Exploris Charter School (currently looking for a home for their elementary school), a medical office, a museum, and an “intimate acoustic music hall” called The Garage. 49 apartments would be added with 15 qualifying for affordable housing.

As of this writing, Raleigh city staff and the Budget and Economic Development (BED) Committee recommend that the proposal by Transfer Company LLC be selected for the site.

For more reading see these articles:

Affordable Housing and the Scattered Site Policy
The most controversial and discussed topic with Stone’s Warehouse, and sometimes with downtown Raleigh in general, seems to be the affordable housing topic. Take note that the BED committee recommended a plan that does not include affordable housing.

I think we first have to recognize that the term “affordable housing” means different things to various people. The first place I looked for a definition is our city’s adopted 2030 Comprehensive Plan which explains it nicely.

The terms “affordable housing” and “workforce housing” mean different things to different people, and a variety of definitions have been advanced by various groups. For the purposes of this plan, housing is “affordable” if the cost of occupying it does not consume more than 30 percent of household income—the definition promulgated by the U.S. Department of Housing and Urban Development (HUD). HUD defines housing costs as contract rent plus utilities for renters, and monthly payment (mortgage plus taxes and insurance) for owners. Affordable housing refers to housing affordable to households with incomes at or below 80 percent of the HUD-estimated Area Median Income (AMI) for owners, and 60 percent for renters. Workforce housing is generally thought of as housing affordable to essential public- and service-sector employees such as teachers, fire fighters and nurses. It is defined here as housing affordable to households with incomes up to 120 percent of AMI. As of February 2012, the HUD-determined AMI for a family of four in Raleigh is $79,900.

I hear a lot of commenters on this blog, people around town, in the media, all over say that affordable housing is important. But which one do they actually mean? We have:

  • Affordable Housing – Typically using government subsidies to reduce the price of the home below market rates so that individuals/familes earning 80% less of the AMI can own, 60% less can rent.
  • Housing that is affordable – Market rate homes that do “not consume more than 30 percent of household income” according to the 2030 comprehensive plan.

Both may or may not be related. The housing section of the 2030 Comprehensive Plan has a lot more on this and should be your next stop for more information.

Now that we’ve defined affordable housing, what about policies that help guide where affordable housing should be placed in the city? The City of Raleigh’s Scattered Site Policy was created to help guide this. It identifies high and low priority areas where affordable housing is needed. It is a guide in order to avoid clustering too much affordable housing in one area.

As recently as early 2014, the policy was under review. The Raleigh Public Record has a write up, including a map, about the conversations that took place.

Areas of the city are broken up into four priorities: Priority One being areas are those that lack affordable housing; Priority Four areas have heavy concentrations of low-income and minority residents.

*Council Wants More Data for Affordable Housing Policy

*NOTE: As of this writing, the page on the city’s website for the policy has been taken down and I can’t find the policy listed.

The Scattered Site Policy is mentioned several times in the 2030 Comprehensive Plan. Updates to it should certainly be looked at but following it is a strong recommendation of the plan.

How is Raleigh Doing?
We have some figures here in order to make some generalizations. Using the 2012 data point of $79,900 AMI for a Raleigh family of four, we have:

  • 120% AMI = $95,880
  • AMI = $79,900
  • 80% AMI = $63,920
  • 60% AMI = $47,940

I see this as kind of a range here in order to give us some context with the definition of what is and isn’t affordable. At the same time though, more detail is probably needed to account for taxes and of course everyone’s situation is different. 30% of the $79,900 figure is $23,970, or $1997.50 a month. Is the message that a $1900 a month mortgage payment is affordable to a family of four pulling in $79,900? More details are definitely needed. (for a follow up post perhaps)

When it comes to the locations of affordable housing in Raleigh, there is some data available showing the mapped locations. I’ve had a list of sites in Raleigh which include Raleigh Housing Authority developments, HUD subsidized projects, and NC Housing Finance Agency projects. I went ahead and mapped them which you can see below.

NOTE: Data is dated December 2013. City-owned rentals are not included in this map. Some projects may also be paid off and are no longer considered affordable.

Another map to show is this one below, showing subsidized affordable rentals on top of the scattered site policy. This map is dated December 2013 and shows the entire city. For finer viewing, I recommend downloading the pdf.

2013 Raleigh Scattered Site Policy map

Click for larger. Download the pdf for even larger.

So with all this presented, here is the controversy. The adopted Scattered Site Policy is not being followed. The maps show a higher concentration of affordable housing projects in the low priority areas and very few units in high priority areas.

For Raleigh to be a diverse city with as much equal access across a variety of socioeconomic lines, a quality of a true 21st-century city by the way, communities of mixed-income must exist.

Adding market rate housing to an area of low-income is not something that should be avoided especially when it isn’t displacing anyone. Adding affordable housing to an area where there is little or none (priority 1) should be the bigger priority and real controversy.

How can Raleigh find the discipline to push against the trend as the city council approves again and again more affordable housing in priority 3 and 4 areas of Raleigh?

Back to Stone’s Warehouse

Let’s swing back to Stone’s Warehouse.

There’s a strong argument for the need for more housing that is affordable in our city. The comprehensive plan proves the demand and how the amount of residents burdened by housing costs has been rising over the last few decades.

However, demanding that affordable housing be included with all projects at the expense of nearby incomes is short-sighted. To create truly mixed-use, mixed-income communities Raleigh should place higher priority on delivering services, amenities that don’t exist.

Stone's Warehouse on Davie Street

That’s not a blanket statement, sure, but let me paraphrase a woman I heard at a South Central CAC meeting that stood up and kindly commented about the Stone’s Warehouse presentation.

More housing? I feel like we’ve got plenty of housing. We need retail and economic development in our neighborhood.

Stone’s Warehouse is in the middle of a sea of affordable housing projects. It’s also in the middle of a food desert. With a potential grocery store at the site, it’s possible nearby residents would benefit from access to healthy food, a close location, and possibly a nearby job.

With the warehouse being saved, the project should draw huge respect from the neighborhood for the efforts to save the history. Economic development could bring an even more impactful benefit compared to affordable housing at Stone’s Warehouse. Let’s not let a hot, politically-charged topic sway the real need in this location.

Holiday 2014 Open Thread

There has been plenty of conversation about a variety of topics lately and I try and group them together to relevant posts on the blog. For this week, I’m throwing up an anything goes post as we wind down to the end of the year.

Recent interesting downtown Raleigh news:

You know the year is almost over in Raleigh when…..

A photo posted by Leo Suarez (@dtraleigh) on

Introducing DT Hoods, A Neighborhood Mapping Project

DT Hoods

I’ve been interested in building a mapping project using the lightweight javascript library Leaflet and today I wanted to post what I’ve got. Far from complete, it may never be, but over at Hoods.DTRaleigh.com I have posted a project called DT Hoods and am attempting to map neighborhoods and nearby points of interest near downtown Raleigh.

I sometimes stray the blog content on topics that are just outside downtown but for the majority of my time, I focus on just the downtown area. That doesn’t mean though we shouldn’t pay attention to what is happening in the ring around downtown Raleigh. The neighborhoods have their own story and influence downtown in subtle ways.

The issues are all different and vary from neighborhood to neighborhood. Topics like historic preservation, new economic development, transit, and affordable housing are some of things being discussed just outside of downtown.

This isn’t to say that this blog will start covering those things and I’ll always maintain a hyper-local focus. Rather, while downtown is enjoying the success of the revitalization efforts that took place in the early 2000s and is currently making plans to move to the next level, it’s the adjacent neighborhoods that are starting to get attention.

The neighborhoods, slowly, are firing up their own economic engines and where before people came into and out of downtown we have a situation where destinations lay inside and just outside downtown. The neighborhood bar, bakery, or shop is a next wave of trend that I think we’ll be seeing in the next 10 years, all while downtown continues to grow.

The mapping project also helps myself and readers with a page to point to when talking about new developments and neighborhood impacts/planning. Play around and enjoy!

DT Hoods

Hoods.DTRaleigh.com

As always, the project is open-source and I show my neighborhood data on GitHub. Contribute or use it for your tech project.

Flurry of Activity on East Peace Street

Corner of Peace and Person Streets

Corner of Peace and Person Streets

I recently took a walk around East Peace Street and there is just so much happening here these days. On this particular weekday morning, the sounds of construction dominate. The hum of machinery, the beeping of vehicles, the hammering of nails are just some of the things you hear if you wander around Peace, Person or Wilmington Street.

These two blocks are just mushrooming with new developments. It’s not surprising that the new construction is predominantly residential as that is the current trend.

Townhomes at Blount Street Commons

Townhomes at Blount Street Commons

Built up now are some new townhomes and carriage homes at Blount Street Commons. A lot of land has been cleared along Person Street for even more of these.

Holy Trinity Church on Peace Street

Holy Trinity Church on Peace Street

Holy Trinity Church on Peace Street

You can now get a sense of the space that the Holy Trinity Church on Peace Street will take as the building shell is pretty much wrapped up.

Peace Street Townes

Peace Street Townes

Peace Street Townes

More townhomes at Peace Street Townes are moving along nicely with the entire site out of the ground now. A lot of brickwork has taken place and the first units are close to being ready.

Elan City Center apartments

Elan City Center apartments

Elan City Center apartments

Elan City Center apartments

The largest presence here is the Elan City Center project, a five-story apartment building with about 213 units. There isn’t any ground-floor retail here but with Seaboard Station just across the street and the non-active government district nearby there may not be a big reason for it.

I’ll be interested to see more about Elan City Center as the project kind of just popped up and I’m not sure what kind of local presence there is here. There are no plans for this on the city’s website and their website showcases it as a ‘North Carolina project’ rather than a ‘Raleigh project,’ mistakenly using Charlotte’s skyline on their website.

In a hot rental market, complacency in management is common, as I’ve heard is the case in some of the newer buildings in or near downtown. Hopefully that’s just a few isolated incidents.