That’s great news. I love their development plan and hope it comes to fruition. Thanks for sharing this updated information.
FWIW, this project is also within the same N.C. Opportunity Zone as the Kane/Malik assemblage. The economic incentives to complete the development might be too good to pass up for the developer.
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For anyone who may be unfamiliar with Opportunity Zones, the tax incentives for investing any recently realized capital gains (meaning that you sold a stock or whatnot for more than you paid for it) into property in these zones are massive: You can delay paying taxes on those capital gains until as late as Dec. 31, 2026, which is huge in itself, and if you leave the capital in the investment fund long enough, you can knock 10 percent, or potentially even 15 percent off of that tax bill.
But by far the biggest advantage of the Opportunity Zone tax credits is that any profits you make on a qualifying investment are totally tax-free.
So, yeah, the tax advantages attached to investing in these properties are huge, so I would imagine that you are going to see tons and tons of development within Raleigh’s opportunity zones in the coming years.
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I was causally familiar with the idea, and I certainly appreciate the details @daviddonovan !
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Why change zoning for property value though? That just raises your taxes! Would anyone really want a higher tax bill for no reason other than to make a point? The only (sane?) reason to get a higher property value is to sell to a developer as far as I see.
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I’d suggest leverage to borrow against. But correct, the taxes would be the problem. Of course some folks get so possessed by anger they will cut their noise off to spit their face.
Question…does rezoning kick in an automatic revaluation or does it wait until the next revaluation cycle? 2024 in Raleigh I think.
Maybe, but 9 tenants who don’t have the means of borrowing money all on the same block? “Hey guys let’s all get together and get a 40 story variance so we can all go into debt together borrowing against our new found property values!”
Honestly, whatever the reason, 9 different owners all agreeing on something like this is pretty impressive, which makes me think there is a big reason for them to do so.
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Sounds to me like a lot of pissed off people.
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I put my “conspiracy theory* of the day.”, spoiler alert – over on Amazon HQ2 Downtown? thread. 
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Got a notice in the mail today that this request for re-zoning will go before the planning commission Thursday August 22 @ 4pm. I am going to be unable to make it but I’m going to reach out to the staff contact in strong favor of the rezoning moving forward. This will be a transformative project for the southern end of downtown and a great neighbor to Dix. Hoping the planning commission and eventually the council see things in the same light.
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Thanks for the update. I was wondering if this project was dead. Merge Capital website appears unchanged since I last visited in May.
I just read all of these threads. Very interesting. Merge Capital has recently showed interest in wanting to purchase a parcel of land owned by my family at the corner of Old Garner Rd. And Hoke St. They have also showed interest in purchasing the 2 acres of property behind our corner parcel as well. It appears to be outside of the project area, but I’m curious what their plans are, and whether right now is a good time to sale.
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With the energy behind the Penmarc development, it might be a good time to take advantage though it’s currently more speculation than confirmed. If Malik/Kane move forward with the development down there, that area land value is going to look like a hockey stick over the next 10-15 years.
Did I just suggest sell now but wait? LOL
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I could see someone trying to assemble everything south of Hoke between Hammond and Garner and paring it with or trying to complement the Cargill site and the Kane/Malik site. I think I know which parcel is yours and it is south of Hoke. Seems like if any of those other sites starts turning dirt then your value would go up substantially. The south side has been growing and changing steadily but has yet to actually ‘pop’. Obviously ask a realtor for assistance. Looks like you have some environmental issues that need addressed too so making sure that liability is adequately conveyed is important too and may affect your bargaining position.
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That whole block could be a nice spot for a smaller version soccer stadium. Like Louisville’s.
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Welcome to the forum. Glad to hear there are signs of life from Merge Capital.
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Yeah it would be a good spot I think, especially if some of the older buildings can be kept and upfitted for retail. Louisville’s Butchertown is a 1000 times cooler than Southpark architecturally, but objectively the situation is similar.
This rezoning request for a planned development (PD) goes before the planning commission tomorrow at 4pm. The Cabarrus St. PD request is also on the agenda.
Agendas and associated docs are available here:
https://go.boarddocs.com/nc/raleigh/Board.nsf/Public
I’m no expert on these matters but my take from reviewing the staff report is that this rezoning request is not likely to be approved.
This is from the Conclusion of the Case Information report (page 44 of 88):
"The request is inconsistent with the 2030 Comprehensive Plan, as it seeks to modify a number of code requirements related to design and traffic level of service that would not provide a greater design benefit to the surrounding area. (Really?? Have you been to the surrounding area??) The request is inconsistent with the height guidance provided in Table LU-2 Height Recommendations, that suggests a maximum height of seven stories would be appropriate for this area. The request is also inconsistent with a number of policies set forth in the Southern Gateway Corridor Study; a small area plan focused on circulation and preservation of existing character in the area where the site is located. *(I thought the Southern Gateway Study was about improving the character of the southern gateway into downtown.)*The proposal can be brought into consistency by making the following amendments to the application:
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Reducing the requested height to a maximum of seven stories, as is suggested by the guidance in Table LU-2 for areas located further than 150 feet from low to moderate density residential, and further than one quarter of mile from a high frequency transit stop. (The request proposes up to 20 stories. Reducing that to 7 would be a non-starter if I was Merge Capital.)
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Codifying greater design elements in the PD document such as relief in the building façade, stepbacks after the seventh story, minimum building separation and wider internal sidewalks.
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Providing access easements to S. Dawson Street to help provide the opportunity for greater connectivity in the area, should the landscape of the roadway change in the future to accommodate a more pedestrian friendly environment. *(Does anyone believe that S. Dawson Street is ever going to be a pedestrian friendly environment?)
I have to hand it to these developers for sticking with it. I’d be pretty frustrated if I were them. Might just have to pick up my money and go home.
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