Plans to redevelop city-owned sites just east and south of Moore Square in downtown Raleigh took a step forward Tuesday.
Councilmembers unanimously approved staff recommendations for how projects should proceed, but not before announcing changes to the proposal.
Other WRAL Top Stories
A planned residential tower on the Moore Square East site, which city documents say was central to a mixed-use development proposal, no longer appears to be on the table.
Citing rising interest rates and declining asking rents, city staff say developer LODEN believes, "a residential tower cannot be financed on this site in the current market."
During a presentation to city council Tuesday, staff said a proposed, 160-unit affordable Harmony Housing project on the East Site remains unchanged and is set for construction early next year.
"As far as this project, it's not a showstopper," said District C councilmember Corey Branch. "The affordable housing component is still moving forward ... that's what's this council's focus."
The selling price of land planned for a hotel south of Moore Square has been a sticking point, staff said.
According to city documents, developer LODEN Hospitality said the site has a value of $4.5 million. The city says the land's appraised value is $6.6 million.
With state law requiring cities to recover market value for real estate, staff said the city has made an agreement with LODEN for the developer to pay $4.5 million by the start of construction and pay a long-term lease to make up the difference.
Plans to move historic Norwood House have been scrapped, and the city and LODEN are negotiating possible renovations to the Esso Station and Blake Street building. A possible new building for the Raleigh Rescue Mission is also part of the plan, according to staff.
Ultimately, councilmembers voted to continue working on an agreement for the South Site and end negotiations with LODEN for the East Site. Based on the results of a study, the city will make parts of the East Site property available again.
"Those who apply will have an opportunity to tell us what their idea is, and council will make a decision and council will make a decision," said Branch.
During their presentation, city staff said the proposal aims to "activate" Moore Square.
"Any time you put more people in the area, more eyes in the area, it always improves safety," said Branch.
Councilmembers noted the meeting represents a step forward for the redevelopment plan that's been in the works since 2022.