LAND NEAR NCSU REZONED FOR MIXED-USE PROJECT

The News & Observer
October 20, 2010
Ray Martin, Staff Writer


RALEIGH -- A developer's plan to transform an abandoned industrial area near N.C. State University's campus into a bustling mix of apartments, shops and townhouses cleared its last major hurdle Tuesday.

The project went through more than two years of planning and, recently, 10 hours of deliberations with city officials.

Raleigh's City Council voted 6-1 to approve a zoning change and special pedestrian district for the 6.67-acre site between NCSU and downtown Raleigh off Hillsborough Street. That will pave the way for one of the most ambitious development projects in Raleigh since the Great Recession struck.

"We are very thankful and excited about the outcome," said Jim Zanoni, an owner of the FMW Real Estate of Charlotte, which owns the land.

Zanoni said he is still acquiring the financing for the project, which he hopes will be under construction next spring. He said he is confident about the financing, primarily because of the stability of the market in Raleigh.

Only Councilman Thomas Crowder, whose West Raleigh district includes the FMW land, voted against the project. Crowder, an architect, said that parts of the plan were too ambiguous and that the developer should have submitted drawings and a site plan of what the area will look like once it's developed.

"The City Council had the opportunity to ensure great urban mixed use," he said. "And I hope that does take place, but given the current conditions, I couldn't support it."

The council's Comprehensive Planning Committee spent more than 10 hours, across three meetings, ironing out details of the plan and asking the plan's architects to agree to more conditions.

The $40 million first phase of the project would include a five-story, 240-unit apartment building; 32 town houses on Ashe Street; and 10,000 square feet of restaurant, retail and office space.

The vote on the project follows a $9.9 million renovation of Hillsborough Street that added roundabouts, street parking and possible permanent bike lanes. And the site is near a recommended stop for a future light-rail train, which Zanoni says makes the project more ideal.

Representatives of several surrounding neighborhoods asked for more details and drawings of the future site before granting their support. The developer and architect working on the project made several changes to their plan over the course of the council's review to ensure that parking doesn't spill over into existing neighborhoods and that buildings on the property are constructed with quality materials.

Beginning in 2007, FMW paid about $10.5 million for four parcels of land. FMW also owns property fronting Hillsborough Street, including the IHOP restaurant site, and is acquiring more land in the area.