Rumor mill: Greenfire downtown deal on Council's agenda next week

The downtown community's eyes have been on Greenfire for some time -- first as they acquired a broad chunk of properties downtown, and then as negotiations continued for an economic incentives package similar to those provided to Capitol Broadcasting (American Tobacco), Blue Devil Partners (West Village), and Scientific Properties (Golden Belt and Heritage Square.)

Back in December, the H-S reported (and we talked about here) that Greenfire's proposal with the City would include the proposed transfer of at least one of Durham's downtown parking decks to the developer, which would then refurbish or replace the deck instead of the City sinking its capital into the program.

From what we're hearing at BCR, a draft deal incentives deal with Greenfire will appear on the City Council's agenda for next week, and appears likely to include the parking decks proposal.

Look for this to be a hot button issue with Council and a healthy public debate to boot for a number of reasons:

• Does the provision of incentives to a large developer like Greenfire represent the continuation of a clear precedent established with Capitol Broadcasting? Or will there be a push to say the 'pump has been primed' and private development should stand on its on its own?
• What's the cost/benefit to the City look like on the parking decks?
• How will small, private developers -- some of whom continue to gaze on The Big Lemanski and his team with some wariness -- react to the proposal?
• Will a City overextended on capital projects see this as a way out of some obligations, or a slippery slope? If the incentives include transfer of public assets, will a firestorm like those over Cleveland-Holloway and the UDI/Old Five Points projects erupt?
• How much leverage will Greenfire's sweeping property acquisitions give the developer in this process?

More on this as it develops.

Update: We may not know if the deal points will be on the City Council agenda next week until Friday, but more confirmation this is moving forward -- Bill Kalkhof has added a discussion of the "proposed public-private partnership between Greenfire and the City" as a topic for Friday's Downtown Durham Inc. board meeting. Look for DDI to try to galvanize support and energy on this. This looks from here like more confirmation that an announcement on the deal points is imminent.

Early line from the rumor mill: At least a couple of Council members appear to be supportive of the plan, from what we're hearing, with others reportedly having some concerns about the proposal. No confirmed "no's" at this point. Expect a good deal of lobbying and discussion behind-the-scenes in the next few days on this one.

Comments

[Johnny]

I don't see the American Tobacco deal as a precedent for this situation. For American Tobacco, it was private property and a massive uplift to derelict buildings. The parking was necessary and the incentives were justified by the incremental economic value of the campus and new employment opportunities.

For this deal, the parking/decks are publicly owned and serving existing users within the downtown area. There is nothing preventing the City from contracting someone to develop the decks and retaining ownership. Parking is a public utility and IMHO is the responsibility of local government to ensure it is available to all businesses fairly. Putting this into private hands just smells of trouble to come and/or potential advantage to that party with other assets they may own. For example, could the tenants of the Kress Building or SunTrust Tower be given free parking while non-Greenfire tenants have to pay??

If the city is going to sell public assets like this, then can I purchase Main St? I would like to give my projects better access, others can drive around. Just kidding..

Seriously, why is this such a hush hush deal? If this is so good then it should hold up against any public scrutiny. I advocate public processes and would prefer to see a RFP. What was an RFP good for the Transit Site development but not good for this effort??

Maybe we will all be pleasantly surprised when the details are finally shared with the taxpayers who will ultimately contribute willingly or not to this project.

[Whatever...]

I couldn't agree more with Johnny! In fact, I'm trying to buy the Post Office.

[SB]

Incentives for the city center? Sounds great! How can we expect developers inside the loop to carry the burden when those to the south, east, and west have received help? With no incentives (for parking or infrastructure, or whatever the plan calls for), Greenfire will most certainly be forced to into a much smaller, much less appealing plan - we'd all be hurt by not supporting those visionary groups that see a much greater downtown.

And before any of you negative nannies start your developer bashing, why don't you wait until you hear what is in the plan? Oh my GOSH! Imagine that! A little patience? How dare we wait to find out the details instead of relying on rumor and speculation! Hasn't this developer demonstrated an unusual pitch towards the betterment of the city center vs. the usual money-grubbing, cheapest cost, highest return?

So, go forth city council and debate and share in this plan. Show your support for the city center!

[Johnny]

Dear SB - Thanks for the slow pitch... Incentives are interesting and possibly an important component for the city center. I'm not ruling them out wholesale. What I'm objecting to is that public incentives are put in play in back room deals. If the city needs funding to help improve the availability of public parking for the benefit of all, then it should be a public process. This deal is being rushed through. Even the DDI board is being told to support the deal before hearing the details. If this deal is so good, then test it with a public RFP. The public is better off in the long run as can be seen with the multiple proposals for the transit station.

Further, if you allow a single developer to control public utilities (i.e. Parking) it will have a chilling affect on other developer activities. Maybe you don't care? Do you work for Greenfire? Fact is, other developers have put more productive square footage back into a productive state. They are the visionaries, they took the early risks and we need the diversity within the development community to bring back the vibrancy that was once here (only this time without the racism..)

I certainly hope the plan is visionary and brings benefit to city center and doesn't disadvantage all those that have been work for years on rebuilding Durham. Of course, I am skeptical, would it be novel if we were taking about rumors and instead the information was released?

[SB]

I think it's an easy path to think others are the conspirator. Fact is, public parking isn't working in the city. It's not profitable and not well managed. I'm not saying private developers should control public utilities, just that sometimes there is room for competition to make the whole better.

And, no, I don't work for Greenfire. But I've seen other cities abandon development opportunities and watched the downtown implode for lack of investment. This process should not be rushed and it should be open to the public, I just think we should be patient and see what the actual terms are before determining the value of the proposal.

I agree that other developers are also visionaries - goodness knows there is enough room in this town for more than one (or two, or three).

[mike]

I personally just wish Greenfire would do something soon with some of their buildings. Their 'master plan' is already coming up on a 1 yr anniversary of when it was supposed to be announced, only be pushed back each time. Main st. from Toast on up is a collection of empty storefronts, many of which are theirs. As someone who lives in downtown it is scary to walk down main st. to go anywhere after about 7pm. Even their Rodgers Alley project is way behind schedule. Suntrust construction was supposed to start in the fall and we are getting close to spring with nothing.

[Yurlinda]

@mike...

Why, really, is it scary to walk about downtown post 7 PM? Y'know, folks thought that, too, back in the '80s when downtown was totally deserted. But, as a woman who worked in the Downtown Durham Development Office (or some such thing, pre-Kalkof) said back in '80, "Why would I be scared? There's no one here to bother me."

It's much scarier, IMO, to walk about where people actually exist and lurk and prey...say, around Lakewood Shopping Center or those gas stations all over town selling those to-go crack kits.

[mike]

Yurlinda, it actually can be a little uneasy anytime after dark. Maybe downright scary is not accurate, but I have walked around downtown at night now for two years and it is deserted and there certainly is an unease to it. Just go walk around the Brightleaf area at 10pm and then head east on Main until you get to the Magnum street and you feel a little different as you start to pass Bull McCabes. You will not feel completely at ease and you will just wish you were already where you were trying to go. This would not be the case had you not walked by 20 empty storefronts that will probably be empty for who knows how long.