RALEIGH, N.C. — Glenwood South in Raleigh has transformed into a trendy collection of restaurants, retail and condos. Now, developers and city leaders face a delicate balancing act of figuring out what does and does not fit.

Glenwood South is growing and changing, but right in the middle of the development zone, Glenwood Towers stands on valuable real estate. The Raleigh Housing Authority high-rise is home to about 450 fixed-income residents, most elderly.

"They've overpriced the whole area for something like that to be down here. I feel for them," business owner Richard Battaglia.

Battaglia and his son, former Carolina Hurricanes star Bates Battaglia, are opening Cielo, a new Italian restaurant. He and others point out the Towers are now surrounded by high-priced condos and businesses.

"I'm not suggesting that they should be brought up and moved out. I'm just saying the property is in an area that is a restaurant district. It doesn't fit them," Battaglia said.

"They don't have access to a restaurants they can afford, perhaps a grocery store and other shopping needs," said business owner Tracey Kunz.

At the same time, private developers drool over the prime real estate.

"People are really beginning to look at that more seriously," said Raleigh city councilman Philip Isley.

Still, Isley said the first priority must be those who live there.

"The city really can't do anything that will adversely impact those folks, in my opinion. However, that being said, it does seem feasible that that should also be looked at in the long-term planning process," he said.