5 things to know about the Downtown South development project in Raleigh
Construction on the first two buildings in the Downtown South development is set to begin next year.
It’s the kickoff of a years-long plan to build the massive, and controversial, 140-acre project south of downtown Raleigh.
Here are five things you need to know about Downtown South.
What’s the plan?
The $2.2 billion sports and entertainment district would have hotels, housing, office and retail space, all anchored by an open-air sports and entertainment stadium.
Buildings in some sections could rise up to 40 stories tall, with a maximum square footage across the project of nearly 21.5 million square feet. The developers have said it’s unlikely they’ll hit that maximum.
Developers plan 3 million square feet of office space, 240,000 square feet of retail space, 3,400 multi-family residential units and 750 hotel rooms.
Who is behind it?
The developers are John Kane, of Kane Realty Corp., and Steve Malik, owner of the North Carolina Courage and North Carolina FC soccer teams.
Kane is the developer behind some of Raleigh’s largest developments, including North Hills in North Raleigh and the The Dillon in downtown’s Warehouse District.
Malik bought the Carolina Railhawks men’s team in 2015 and the Western New York Flash women’s team to transform them into the North Carolina FC and North Carolina Courage.
Where is it?
Downtown South’s three tracts of land make up about 140 acres at the intersection of Interstate 40 and South Saunders Street. The land is less than two miles south of downtown and Dorothea Dix Park. It will be connected to the city’s greenway system and along a future bus rapid transit line.
Parts of the property are in floodplains or floodways and will not be developed. The site’s close proximity to Walnut Creek has some downstream neighborhoods, including the historically African American Rochester Heights, worried about potential harmful effects of the proposed development.
What’s the timeline?
The Raleigh City Council approved the controversial rezoning for the parcels in December 2020, leading to the developers’ purchase of the final piece of property.
The site plans for the first two buildings were submitted in November. Construction could begin in 2022 with tenants able to move in 2024. Site plans are approved by city staff and don’t require a public hearing.
It will take years, likely decades, for the development to be fully built-out.
Is there taxpayer cash on the line?
Not right now.
In October 2020, Kane Realty asked the city to consider a type of financing to pay for community benefits like affordable housing, workforce development programming, green stormwater infrastructure and the sports and entertainment venue.
This type of financing, called a tax increment grant, has been used in other cities but would be a first for Raleigh. In short, it gives developers part of their property tax back after the value of their development has grown to build community amenities.
The Raleigh City Council approved a general tax increment grant policy that outlines how it would provide its economic incentives in exchange for amenities and conditions.
The city doesn’t have any active grant applications and is not having any informal conversations that could lead to one, said Raleigh Assistant City Manager Jim Greene.
Bonner Gaylord, chief operating officer for Kane Realty, also confirmed Kane hasn’t submitted a grant application and doesn’t “anticipate doing so anytime soon.”
This story was originally published November 18, 2021 at 4:17 PM with the headline "5 things to know about the Downtown South development project in Raleigh."
