Durham council shifts $6.755 million of ARPA funding to Haytai Promise CDC after months of scrutiny

Durham City Council on March 1 approved a set of amendments to an ARPA subrecipient grant that reassigns up to $6,755,000 to Haytai Promise Community Development Corporation and removes Saint Joseph Historic Foundation as the fiscal agent.

The vote on the primary amendment to change the fiscal agent and funding classification passed 5–2, with Council members Burris and Cook recorded as voting no. Council also unanimously authorized the city manager to negotiate subsequent modifications as long as the total grant funds do not exceed $6,755,000.

Why it matters: the Hayti/Fayetteville Street corridor is the focus of a long-running redevelopment and racial-equity effort. Councilors and residents debated whether the CDC has provided adequate documentation and met prior spending timelines. Supporters say the CDC represents a long-awaited step toward reinvestment; critics warned that revising the fiscal arrangement without fuller accountability risks repeating past failures.

Public comment: multiple residents, historians and Haytai-affiliated board members addressed the council. Angel Iset Dozer, who identified herself with Historic Pine Street, urged a pause and said the originating community coalition should be returned to the table: “If this revitalization is going to happen, it must be done transparently with the people it belongs to,” she said, and asked the council to vote no on item 12. Sheryl Brown, chair of Haytai Promise CDC, said the CDC’s work did not happen “by accident or overnight” and urged the council to let the organization continue.

Financial context and staff response: City Finance Director Tim Flores told council the cap for ARPA revenue-replacement funding is $10,000,000 and that only part of that amount remains available for replacement; some ARPA funds were already obligated to other projects. Council members pressed staff on previous flags from 2024 that suggested some recipients might not meet spending deadlines and asked for clearer reporting.

Council deliberations and oversight commitments: Several council members expressed concern about past oversight gaps and asked for specific deliverables from the CDC. Council member Baker requested that major work products (small-area plan, market study, metrics) be posted to the city project website and sent to council; Baker also asked for progress reports at six- or 12-month intervals. Council directed staff to provide ARPA program updates to the council in April and asked for continued transparency in documentation.

Outcome and next steps: Council approved the first amendment to authorize the fund reclassification and removal of Saint Joseph Historic Foundation as fiscal agent (5–2). The council also authorized the city manager to negotiate and execute subsequent modifications and related documents up to the $6,755,000 cap and requested regular reporting and public posting of major work products. Staff indicated an ARPA update will be provided to council in April to outline obligations, oversight standards and any additional requests for extensions.

The record: the public hearing portion of this agenda item included more than a dozen speakers both for and against the reclassification. Councilors emphasized that approving the amendments is not the end of oversight, and several asked staff and the CDC to return with enforceable metrics and transparent documentation moving forward.