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.

Downtown Raleigh Hotel Scene Being Looked at in Upcoming Study

The Hampton Inn in Glenwood South

The Hampton Inn in Glenwood South

During this week’s Raleigh City Council meeting, money was approved to go towards a Downtown Hotel Market Feasibility Study. The city’s press release sums it up.

Downtown Raleigh has changed dramatically since the last hotel market study for the area was completed in 2003. The rebirth of the center city has included a return of vehicular traffic to Fayetteville Street; the openings of the Raleigh Convention Center, City Plaza and Red Hat Amphitheater; and new quality housing, office, retail and dining establishments.

The City of Raleigh considers that these new developments warrant an updated hotel market analysis for Downtown. The City Council voted unanimously today to partner with the Greater Raleigh Chamber of Commerce, Greater Raleigh Convention and Visitors Bureau, and Downtown Raleigh Alliance on funding a new Downtown hotel market feasibility study. The City will contribute $20,000 toward the $55,000 study; the remaining $35,000 will come from the three partnering agencies.

The hotel market feasibility study for the Downtown area will include site analysis, a review of rooms and public space needed, hotel type and quality recommendation, impact on the Convention Center complex, and analysis of public/private partnerships existing in the industry.

In addition to funding the hotel study, the City of Raleigh, Chamber of Commerce, Convention and Visitors Bureau, and Downtown Raleigh Alliance will design a request-for-proposals (RFP) to recruit a study consultant and analyze the results and recommendations of the study. The City plans to work with representatives of the partnering agencies in forming a steering committee to develop the RFP and work with the selected consultant to complete the study.

The Downtown hotel market feasibility study is expected to begin in March. It will take approximately four months to complete the project.

*City Council Approves Downtown Hotel Market Feasibility Study

Outside of the actual buildings that the hotels are in, there hasn’t been much discussion yet on this topic so I thought it would be good to kickstart that a bit.

Let’s start with what we have so far:

That is a total of 1,127 currently active rooms within the generally accepted downtown Raleigh borders. An upcoming project to add to that is:

  • Residence Inn at about 600 South Salisbury Street, bringing approximately 150 rooms.

The Residence Inn is the only hotel project that I know of that has any real traction. That brings our total to about 1270 rooms.

Small, but growing, is the amount of Airbnb spaces in and around downtown Raleigh. The online space-rental service is rapidly growing across the country and a quick search for Raleigh shows some options in downtown.

I bring this up as the city is currently wrestling with how to properly regulate this service. From an N&O article:

The city won’t be punishing people who offer their homes for rent on Airbnb just yet, but some members of its governing council have dug in against the Internet-powered room-rental service.

*Raleigh City Council draws debate lines on Airbnb rentals

A debate on Airbnb in Raleigh could be its own blog post but you could argue that there are mixed messages going on here. For years, city council has said that more hotel rooms are needed in downtown Raleigh. Along comes an innovative service (we’re an innovative city right?) to offer more staying options for visitors and we’re stumbling over how to handle it?

It could just be as simple as a liability discussion really but I’m not an expert on this topic. Currently Airbnb options in downtown Raleigh make up less than 2% of the available room inventory from browsing the website.

The last hotel tidbit I want to mention is the historic Sir Walter Raleigh building at the corner of Fayetteville and Davie Streets. Opened first as a hotel in 1923, it was the premier hotel for visitors in Raleigh for decades before being converted to apartments in the 1970s.

Talk of converting it back to a hotel is not new and there is a 2008 Triangle Business Journal article that describes a failed attempt at doing this:

Hopes of returning the historic Sir Walter Hotel in downtown Raleigh back to its original splendor as a showcase inn have fizzled out.

…..

Alas, the project was contingent on HUD agreeing to transfer the rent subsidy vouchers from the Sir Walter to Saint Aug’s. Despite a letter-writing and lobbying campaign by Raleigh leaders and several members of North Carolina congressional delegation, HUD never approved the swap.

*Sir Walter Hotel revival dies as feds block shift

I imagine the Sir Walter could be a very unique boutique hotel, something entirely new in downtown Raleigh at this point. The hotel market study could shed some light if downtown has enough pull to sustain a boutique hotel compared to a national brand.

Building a new hotel is probably much easier than renovating an existing one, like the Sir Walter Raleigh, but the end product could probably not be matched by any new construction for years to come if done right.

Updated Renderings, Plans For New Convention Center Hotel

Rendering of the proposed Residence Inn on Salisbury Street

Last week, the Raleigh Appearance Commission got a look at some new renderings for a hotel planned for the parcel of land near 500 Salisbury Street next to the convention center between Lenoir and South Streets. Long-time readers might remember this site being called “Site 4” and it looks like the renderings are getting more mature now.

Some of the specs for the hotel, planned to be a Residence Inn, have slightly changed also. Comparing to a January 2014 post, we have:

  • 6,455 square feet of retail/restaurant space compared to 7,085 sq. ft. previously.
  • 9 stories instead of 11

Most is the same including the second floor and rooftop terrace.

As mentioned in past posts, this project will not add any more parking as a deal has been made between the developer and the city to lease spaces out of the Performing Arts Deck.

Rendering of the proposed Residence Inn on Salisbury Street

The project has a good human scale to it and expands downtown’s hotel offerings. I think this project is an easy one to support. While not architecturally significant, it’s more a functional addition rather than an iconic one. Looking forward to groundbreaking.

Pic of the Week

Hillsborough Street

A sunny, winter day along Hillsborough Street.

The rotund building on Hillsborough Street that we all either love or hate has some news this week. The former Clarion hotel has now changed back to a Holiday Inn. This coincides with some renovations to the lobby, rooms, and front entrance including a new sidewalk plaza out front.