Hayes Barton Neighbors Win a Battle, but Likely will Lose the War on Townhomes

Contrary to recent news reports and the crowing of a local activist group, the Hayes Barton townhome project is far from dead. Judge Bryan Collins ruled on July 8, 2024 that “I find that all of the requirements for a compact development pursuant to Section 2.3.1 of the UDO have been met with the exception of the requirement for a transitional protective yard  in section C of 3.2.1.” 

Anyone familiar with the Raleigh real estate development entitlement process knows that a preliminary subdivision is one of the earliest steps in gaining approval to start construction on a new project. Therefore, this decision is nothing more than a setback in the overall entitlement process. It’s by no means fatal. The decision is also unrelated to the other pending lawsuit that some of the same neighbors filed to invalidate the City’s Missing Middle ordinances. That litigation is still pending and until concluded, the Missing Middle ordinances are still in effect.

The Judge’s preliminary ruling clearly demonstrates that but for invalidating this single element of the subdivision plan, the proposed townhouse development can move forward. The judge ruled that the City’s interpretation of “lot width” in relation to a proposed perimeter open space lot that wrapped the proposed 18-unit townhomes was measured incorrectly. While the City and the Developer disagree with the judge’s interpretation of this single provision of the UDO, the developer could reconfigure the proposed open space lot to comply with the judge’s interpretation. 

Alternatively, the developer could use the alternative UDO options referenced in the judge’s Memorandum of Decision to bring the proposed 18-unit townhouse subdivision into compliance. In the unlikely event that the developer chooses to abandon the townhouse proposal, it still can build approximately 10 single-family detached homes, along with an additional 10 Accessory Dwelling Units. The developer is unlikely to walk away from the property considering it is 2.42 acres and was purchased for only $3,750,000.

A final order implementing the judge’s preliminary ruling will likely be issued in August or September.  Once issued, the developer still has the option to appeal the judge’s decision.

For further background on this litigation, click here.