Raleigh to buy back site of failed downtown high-rise
Posted September 17, 2013
Raleigh, N.C. — The City Council on Tuesday approved spending up to $20.2 million to repurchase a downtown Raleigh site that had been slated for a high-rise project.
Charter Square LLC planned an 11-story office and retail tower on Lenoir Street between Fayetteville and Wilmington streets. The developer was unable to meet a Sept. 13 deadline to start construction, prompting the City Council to invoke its buy-back option.
The developer bought the site more than four years ago, and the city had already given a year extension to start construction.
The $20.2 million cost includes reimbursing Charter Square's $5.2 million purchase price, up to $5.5 million for site improvements and up to $9.5 million for other project costs. Officials said they expect the final tally to be less than the full amount.
The city plans to use reserves to pay for the buy-back, and officials said they expect to resell a portion of the site to Dominion Realty Partners LLC, which wants to build a downtown office building.