Durham Council authorizes talks with Preservation North Carolina for Milton Small building; asks staff to test affordable‑housing options

Durham City Council on Tuesday moved to pursue a two‑track approach for the long‑vacant 505 West Chapel Hill Street site: negotiate with Preservation North Carolina to preserve and market the Milton Small (Home Security Life) building, and ask staff to quickly convene affordable‑housing experts to test whether housing can be built on part of the site without foreclosing denser development later.

City staff and consultants from HR&A Advisors told the council that full, large‑scale redevelopment of the entire four‑acre site is unlikely to be financially viable now without substantial city subsidy. HR&A Director Mark (HR&A) summarized the economics presented to the council: “Unless it’s low‑rise market‑rate housing, the city will need to participate in financial support of redevelopment of any of these individual uses.” The consultant estimated total costs to rehabilitate the Milton Small building at roughly $25–30 million (total project cost), noting that historic tax credits and other subsidies affect developer pro formas.

Preservation North Carolina offered a statutory route that would let a nonprofit acquire an option to purchase a historic, government‑owned property and then re‑sell it to a vetted…