More affordable housing: Cary leaders weigh in on South Hills Mall redevelopment

Kristen Johnson
Kristen Johnson/The News & Observer

A nightclub, greenways, a research lab, a hotel and restaurants.

But the new owners of South Hills Mall may not get the rezoning they need to transform Cary’s oldest shopping center without something else the Town Council wants: more affordable housing.

Developers want to turn the 44.35 acres along Buck Jones Road from commercial space to a mixed-use development that could become a hub for concerts, sports events, and other community activities.

A 350-room hotel and over 1,700 rental-housing units are planned for buildings up to 23 stories, the town’s tallest.

As plans stand, however, only 5% of the units would be “workforce housing,” or priced for renters making 80% of the area median income, which is about $63,500 for one person and $90,650 for a family of four. The units would remain affordable for 10 years.

‘Revitalization and gentrification’

South Hills Mall opened in 1972 and is still home to tenants Grand Asia Market, Roses, North Carolina Tag and Title, a doughnut shop, and other small businesses. Much of the site is unused, with half the property filled by parking spaces.

“This is so wonderful for our area, and I love the collaborative process that has gone on,” Mayor Pro Tem Jennifer Robinson said Thursday night. “There’s nothing on this that I’ve seen that has given me pause for concern, but I’m open if other people have concerns.”

In recent years, Cary has put more money into housing programs.

The council recently approved Stable Homes Cary to help people like the tenants who might be displaced by a future sale of the Chatham Estates Mobile Home Park.

Thursday night, the council approved the Cary Housing and Community Development Block Grant Annual Action Draft Plan that dedicates $7.3 million for over 200 affordable homes, repairs for existing ones and support for local groups.

“I would love to see more commitment to affordable housing, if possible,” Councilwoman Lori Bush told the South Hills developers Thursday night. “I would also love to see a commitment to something below 80% AMI. I think of all the people who are going to be working in this amazing, amazing place. It’d be nice if they could afford to live and work in the same place.”

Councilwoman Carissa Johnson said the project looks solid but there is “a very easy tipping point between much needed and wonderful revitalization and gentrification.”

“If the applicant could really kind of think about what their commitment to decrease the amount of displacement for folks who are living there now on modest incomes and come back with something a little more robust, I would be delighted to see that,” she said.

Bush suggested the developers extend their affordable housing commitment from 10 to 30 years.

Town Council newcomers Sarika Bansal and Michelle Craig agreed.

“Ten years will go by very, very quickly and having 30 years, having some buffer, would be very, very nice,” Bansal said.

Craig praised the project’s transportation and walkability aspects but stressed how important housing is for people in town.

“Having grown up here, South Hills was always important,” Craig said. “I would love to see more units and some differing percentages of AMI considered and when we’re thinking about housing stability, if 10 years is really a good goal for Cary.”

Next Steps

Loden Properties bought the mall for $38.4 million two years ago and has worked with local developers on plans for:

  • 935,000 square feet of office space

  • 235,000 square feet of research lab space

  • 550,000 square feet of retail or commercial space

  • 328,000 square feet of civic use or The Center (the town’s plans for a sports complex)

  • 350 hotel rooms

Preliminary plans call for 29 development blocks, with the tallest buildings closest to U.S. 1 and Interstate 40.

The council will continue discussing the rezoning application at a later date.

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