Breaking: Raleigh Board of Adjustment Rejects Hayes Barton Neighbors’ Challenge to Townhouse Project

After more than 3 days of hearings, the Raleigh Board of Adjustment voted 3-2 that the Hayes Barton neighbors had standing to challenge the City’s approval of a preliminary subdivision for the redevelopment of a 2.3-acre single-family lot for 18 new townhomes.  The redevelopment was made possible by Raleigh City Council’s adoption over the last 2 years of a set of ordinances collectively called Missing Middle reforms.

After voting on the standing issue, the Board of Adjustment then voted 3-2 to deny the administrative appeal filed by several Hayes Barton neighbors seeking to overturn the City’s approval of the townhouse developers preliminary subdivision plan.  The homeowners are now likely to appeal this decision to Wake County Superior Court.  Having prevailed at the Board of Adjustment, the townhouse developer may decide to initiate the next steps in the entitlement process.

Meanwhile, as RaleighForward has written previously, the Hayes Barton homeowners also filed a lawsuit in Wake County Superior Court challenging Raleigh’s Missing Middle reforms.  There has not been recent activity related to the lawsuit. Unless there is a settlement by the parties, it may be another 3-6 months before the Superior Court considers the City’s motion to dismiss and the Developer’s motion to dismiss, as well as motions for summary judgment when they are eventually filed.

While there is still a long way to go, today’s Board of Adjustment decision brings the developer of the proposed 18 townhomes one step closer to obtaining the necessary approvals to start construction.  However, final decisions on these appeals and lawsuits are still months and possibly years away.  Assuming the developer ultimately prevails, it will require tens of thousands of additional dollars in litigation costs before any construction begins.  Those additional costs will only drive the prices of whatever is ultimately built even higher.