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No high-rise development at Hayti for now after developer withdraws rezoning request

The Durham City Council holds a meeting on Monday, Aug. 4, 2025 with a packed room of residents including a large crowd who planned to speak a proposed rezoning of Heritage Square on 401 E. Lakewood Avenue.
Aaron Sanchez-Guerra
/
WUNC
The Durham City Council held a meeting on Monday, Aug. 4, 2025 with a packed room of residents including a large crowd who planned to speak a proposed rezoning of Heritage Square on 401 E. Lakewood Avenue.

A controversial rezoning request that would have allowed the construction of a high-rise development at Heritage Square in the Hayti neighborhood was withdrawn by developers before the Durham City Council could vote on it.

But the rezoning application withdrawal from Chicago developer Sterling Bay drew more controversy still — the firm's representative waited until the end of a 15-minute presentation two hours into the meeting to reveal the request.

The Durham City Council voted five to two to accept the withdrawal and end its public hearing late Monday night.

Councilmembers Nate Baker and DeDreana Freeman voted to oppose the withdrawal request. Freeman and residents said it was "disrespectful" of their time for the developer not to tell the City Council of their decision before the meeting.

The withdrawal was a surprising twist at City Hall where large crowds had packed the inside and outside of the chambers to hear the decisive rezoning vote. About 40 people had signed up to speak in regards to the rezoning, but the City Council did not agree to hear from them after the rezoning's withdrawal.

"We mourn the loss of what could have been had this community been willing to accept millions of dollars for its young students and its Black entrepreneurs, and the opportunity it could have afforded on the (Fayetteville Street) corridor," said Jamie Schwedler, the firm's representative.

Since Schwedler's presentation appeared to indicate the rezoning request was still on the table, the sudden withdrawal at the presentation's conclusion drew visible shock and audible reactions.

The proposed rezoning

Sterling Bay bought the vacated Heritage Square lot for $62 million in 2022 and proposed building a mixed-use life sciences campus on its 10 acres at 401 E. Lakewood Avenue.

The rezoning sought approval for a building as high as 50 stories tall, though Sterling Bay proposed 25 stories. It touted bringing 1,500 jobs with salaries averaging at $80,000 and investment into the majority Black neighborhood.

The project drew controversy from the start as it proposed a dense office-centered development in the vein of Research Triangle Park in the middle of the historic neighborhood.

Residents opposed the proposal, saying it lacked affordable housing and that the costs of potential gentrification and displacement outweighed the benefits.

Sterling Bay stated it met with community stakeholders at least 50 times in the past three years.

The developer had said it would bring $2.3 million in community benefits over 10 years, including $55,000 in scholarships and donations for North Carolina Central, Durham Tech, and Hayti Promise.

Henry McKoy is president of Hayti Reborn, a nonprofit of Hayti leaders dedicated to preserving the history and culture of the community.

"I do feel like it's a victory in the sense that a lot of folks have put a lot of time, effort, and heart into this," said McKoy. "They showed up tonight without knowing what the outcome was going to be. It has gone in the way that the community was asking."

McKoy said the opposition was mis-categorized "as somehow anti-development" but says it was always about the rezoning request.

"The historic framing has been that somehow people that live in a community like Hayti can't possibly have ideas, and that it can only come from someplace else, from much smarter people than them," he said. "I think this may be an opportunity to to change that narrative."

Sterling Bay may still choose to build their project within the currently allowed zoning. They may also bring another rezoning request in six months.

Aaron Sánchez-Guerra covers issues of race, class, and communities for WUNC.
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