Durham approves funding for struggling development project
Posted May 3, 2010 11:12 p.m. EDT
Durham, N.C. — The Durham City Council voted Monday evening to move forward in authorizing subordinate funding to develop property in the Hayti community.
Durham officials two years ago spent $5.8 million to buy out 51 homeowners in the Rolling Hills neighborhood, which has gone into foreclosure twice in the past two decades.
Efforts now are under way for a St. Louis-based developer to revitalize the area with 119 mix-income units and 13 live-work units.
Council members on Tuesday authorized the city manager to go into an agreement with MBA Development Corporation for financing in the amount of $5,486,468 to move forward with the plan.
Located on 19 acres off Lakewood Avenue south of downtown, Rolling Hills was started in 1986 by a nonprofit development company formed by North Carolina Mutual Life Insurance Co. They company was to build 250 townhomes and patio homes, but it finished only 30 townhouses and 13 patio homes before going bankrupt.
In the late 1990s, Southeast Durham Development Corp. proposed building 90 single-family homes in Rolling Hills. It completed nine and had two more under construction when the city foreclosed in 2003.