After years of legal battles, developer to build 17 townhouses in Hayes Barton
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- Developer begins site work for 17 townhouses on 2.4-acre Hayes Barton lot.
- Court of Appeals denied injunction; lawsuit against city remains pending.
- Raleigh’s 2021 “missing middle” reforms drive townhouse approvals and lawsuits.
After three years of legal wrangling, and a series of injunctions and failed appeals, a developer is pushing ahead with plans to build 17 townhomes in one of Raleigh’s most historic neighborhoods.
Raleigh-based Chappell has already demolished the 1925 mansion that once sat on the 2.4-acre lot at 908 Williamson Dr. in Hayes Barton, northwest of downtown Raleigh. Grading and site work is now underway.
Construction is slated for early 2026.
“We’re moving full speed ahead on all phases,” owner Johnny Chappell told The News & Observer on Tuesday.
“We’ve already had strong interest from buyers,” he added. “We will begin marketing and sales efforts as well. We’re working hard to bring it to life.”
Since 2023, a group of nearby homeowners has tried to the block the project through a series of legal and administrative appeals, part of a larger bid to overturn Raleigh’s 2021 “missing middle” reforms.
The new rules allow for more diverse housing types — such as duplexes, townhouses and accessory dwelling units — in traditionally single-family neighborhoods, like Hayes Barton.
Proponents say it’s a more efficient use of land and boosts supply amid a growing housing shortage and affordability crisis.
But it’s also triggered backlash and a handful of lawsuits, pitting homeowners against the city and developers, and creating uncertainty, delays and increased legal costs.
In December, Hayes Barton neighbors hit another setback when the N.C. Court of Appeals ruled against their bid for an injunction to halt construction. The court found the request premature while their broader lawsuit against the city remains pending and unresolved in Wake County Superior Court.
“Convenience of litigation is not a substantial right,” Judge Jeff Carpenter wrote in the 11-page ruling. “Accordingly, we dismiss their appeal.”
RaleighForward first reported the decision.
“The practical impact is that the developer is not prohibited by law from building, while waiting on the outcome of the litigation [with the city],” wrote Eric Braun, a retired land-use attorney.
On the flip side, breaking ground carries “financial risk,” he said.
“If the courts ultimately invalidate the city’s reforms, the neighbors could seek to force the developer to remove whatever it built on the property pursuant to the invalidated ordinance.”
Until the courts render a final decision, “there will be persistent uncertainty for any developer,” he said.
Chappell doesn’t seem to agree. “We’ve been dealing with frivolous appeals from a small group of neighbors. We’re excited to be moving forward.”
Backlash and lawsuits: a growing trend
Several other “missing middle” lawsuits are still winding their way through the courts.
Among them: Raleigh Country Club is suing the city and local businessman Mark Thompson to reverse approval of a 16-unit townhouse project at 2501 Poole Road, directly adjacent to its property in East Raleigh.
Attorney Craig Justus of Asheville represents both groups: Hayes Barton property owners and the Raleigh Country Club.
The club argues that the city has failed to comply with “statutory procedures or authority” and ignores “decades of zoning protections.” That includes the neighborhood’s conservation overlay district, which was established in 2005 to preserve its history and architecture by enforcing lot sizes and heights.
Since July 2021, some 4,895 “missing middle” units have been processed in Raleigh, according to the city’s latest metrics.
Townhomes dominate the pipeline, making up the largest share of activity, though price points are not included.
Hashing out land-use policy in the courtroom has been seen across all levels of government, said Raleigh Mayor Janet Cowell.
“Well, this is America, and we like to sue,” she told The N&O on Dec. 16. “I think you see that at the federal level and the state level and now at the local level, that increasingly people are taking all this stuff to the courts.”
But it’s a very expensive strategy, she added, “and only the richest neighborhoods can pursue this. So it’s not equitable.”
Earlier this month, the residents of the Glenwood-Brooklyn neighborhood threatened to sue the city over a planned high-rise development near their neighborhood after a controversial rezoning case. A fundraiser for the legal efforts has already reached $31,000.
This story was originally published December 23, 2025 at 4:07 PM with the headline "After years of legal battles, developer to build 17 townhouses in Hayes Barton."
