Yahoo Finance How the redevelopers of a dead Durham mall plan to (finally) win over its neighbors
The owners of the defunct Northgate Mall announced Wednesday night they will add affordable housing and a grocery store to their redevelopment plans, trying again to win over their neighbors in the working-class Walltown neighborhood.
It’s the second significant revision Northwood Retail has made since purchasing the 55-acre property, and it could be the key to the rezoning they will request from the Durham City Council this year.
The firm paid $34.5 million for the mall in 2018 after moving to foreclose on it earlier the same year. Northgate had been bleeding tenants for years and finally closed in May 2020.
The new plans would result in about half the mall being torn down. The remaining structure would be converted to about 300,000 square feet of labs and offices.
More than 220,000 square feet of commercial — most of it new construction — would be sprinkled throughout the site.
For the largest space, a new 150,000-square-foot building, company president Sandy Spurgin said they are in negotiations with “a large-scale general merchandise retailer whose stores include a grocery component and a pharmacy component.”
He added the company had “a presence in the market, but not in the north side of Durham.” Many national grocers already have sites in the area, with the exception of Target and Sam’s Club.
Planet Fitness and neighboring shops would remain, but be renovated. The former movie theater would be torn down.
Pressure to add affordable housing
The Walltown Community Association made clear it would not support a rezoning unless the redevelopment contained affordable housing and a grocery store. The organization continues to make other requests, such as a commitment to participate in the small area planning process, a planning department initiative to define a long-term vision for the neighborhood.
Questions poured in for nearly two hours in a virtual meeting Wednesday night in which Northwood presented the new plans.
Some residents wanted market-rate housing, but Spurgin said that was “not financeable.”
Northwood is partnering with Crosland Southeast, a developer with offices in Charlotte and Orlando, to craft the affordable housing component.
Crosland proposes constructing 72 apartments for seniors 55 and older, aiming to fill most of the units by early 2028.
The units would be restricted to those making between 30% and 60% of the area median income. To qualify for tax credits, Crosland must price the rents at 30% of each qualifying renter’s income for at least 30 years.
“We would propose they would last 50, 60 years or longer,” said Tim Sittema, a managing partner at Crosland Southeast. “It is our desire to partner with a local nonprofit.”
Durham’s comprehensive plan calls for multi-generational living instead of age-restricted communities. But the state’s tax credit framework allows fewer parking spaces per person if the units are for older adults. That increases the available land, according to Northwood.
“It’s a balancing act. Do you want twice as many units that are age-restricted? Or do you make them not age-restricted and do half as many?” Sittema said.
Northwood will need a rezoning, from the current “commercial center” designation to the “commercial general” category for the redevelopment, meaning the City Council decides whether the project proceeds.
Northwood intends to submit its application to the planning department in the next few weeks, Spurgin said. The process generally takes at least several months.
He said he hopes to schedule an in-person meeting this summer to gather additional feedback.
