Council halts negotiations with developer on 505 West Chapel Hill; staff told to explore parceling, preservation and smaller-scale affordable options

The Durham City Council directed staff on June 5 to stop negotiating the most recent master development deal with the People’s Corporation for the 505 West Chapel Hill Street site and to return with narrower options that could include carving out and preserving the Milton Small (Home Security Life) building, pursuing a smaller-scale affordable housing development and interim site activation.

Why it matters: The four‑acre, city‑owned 505 site sits adjacent to Downtown Durham and had been the focus of repeated master-planning efforts. Advocates, developers and preservation groups have urged the city for years to use the site to deliver a mix of affordable housing, commercial space, and to preserve the architecturally significant Milton Small building. Staff said the most recent Peoples proposal would have required an estimated city subsidy that had grown to roughly $75–78 million and would have pushed subsidy per affordable unit far beyond typical market ranges.

What staff said: General Services staff and consultants told council that negotiations with the People’s Corporation produced a ground-lease structure and proposed an increased number of affordable units, but overall the developer’s subsidy request rose to a level that staff judged to be…