It may not be a first-class mall, but officials predict the American Tobacco project will not only bring office space, but also restaurants, retailers, services like a health club and dry cleaners, and well over 1,000 jobs to Durham as it moves forward over the next few years.
"I expect it to have an impact similar to, but on a different level than, Southpoint mall," said mayor pro tem Lewis Cheek. "If the entire project is completed, it will have a value of over $160 million."
Construction on the abandoned tobacco warehouse began in February, when the owner of the project, Capitol Broadcasting Company, announced that it had reached a verbal agreement with a third anchor tenant in addition to Duke and Compuware software firm. But officials still have not revealed the tenant's identity, and the long-term details of the project remain undetermined.
"I think things are still in a state of flux," Cheek said. "We don't know specifically what the proposal is going to be until it's in its final form. We don't know what payments are going to be made by whom and when, and we don't know if there will be additional costs."
The renovation is currently in the environmental abatement process, which involves cleaning and removing hazardous substances like asbestos and lead paint. The rehabilitative construction of the 1.1 million-square-foot space should start next month.
"There's going to have to be a pretty rapid schedule, and that will put challenges on everybody," said Jason Gable of G. Edwin Belk Architecture. The firm estimates that the first phase of construction will take about a year and is unsure of the approximate time for the second.
"It depends what tenants go in and what their schedules are," Gable said.
Although some details must still be worked out, Peter Anlyan, Capitol's general manager of real estate development, said he does not anticipate any financial problems. "Everybody is working hard to make sure it will work," he said. "Because it's an historic tax credit project, the state and federal governments give you credit against income tax for five years after you start occupying the project. That break is substantial."
Historic preservation officials have already approved the project, said county commissioner Ellen Reckhow. She added that the public sector will be responsible for the cost of a $40 million parking deck, as agreed upon last spring by the city and county's governing bodies, who will split the cost.
"I think the city may be considering additional incentives, but the county cannot commit any more than what they're giving for parking," Reckhow said.
Cheek said it is too early to determine what further contributions the city may make. He added that Capitol hopes the city will take on other projects that will indirectly benefit American Tobacco. "They're concerned about the location of what will be a multi-modal station--facilities for buses, taxis and trains," he said. "I think they would also like the city to finalize the effort to bring a large theater here as part of the project."
Cheek and other officials expect plans to be finalized in the next few weeks and are optimistic about American Tobacco's progress. "There is nothing to indicate to us that the project isn't going to go forth as anticipated," Cheek said.
Get The Chronicle straight to your inbox
Signup for our weekly newsletter. Cancel at any time.