RFI: Former DMV Site Redevelopment

Request for
Information (RFI)
Former DMV Site
Redevelopment
raleighnc.gov
1

Purpose and Background
The City of Raleigh ("City") is issuing this Request for Information (RFI) to gather
information, ideas, and insights for the redevelopment of the City-owned former DMV site
site at 1100 New Bern Avenue and associated parcels at 205 and 207 South State Street.
This purpose of this RFI is to collect ideas and feedback which will inform a future Request
for Proposal (RFP) and does not constitute a solicitation for bids or proposals. The City
seeks to better understand development feasibility, appropriate uses, and community-
aligned design approaches for both the Main Site and nearby smaller parcels.
Parties responding to this RFI can address either the Main
Site, State Street Parcels, or both, and should aim to:
Contribute innovative Share information relevant Offer input to shape the
ideas for financially feasible to future redevelopment, redevelopment process
development approaches including risks, constraints,
and design concepts and opportunities
2

Site Overview and City Goals
In June 2024, the City acquired the former DMV headquarters site for $20 million from
the State of North Carolina. The property acquired and now under consideration in this
RFI consists of the "Main Site" and "State Street Parcels."
Main Site State Street Parcels
The Main Site spans 5.88 acres with OX- Previously used for overflow parking for
4-UL zoning and is currently occupied by the DMV headquarters, the two smaller
the former DMV building and associated parcels along State Street totaling 0.51
surface parking. A change in zoning to acres and zoned OX-3 are also under
NX or CX with a 5-story height limit has consideration. As of now the City plans
been contemplated but not yet initiated. to redevelop these parcels independently
Demolition and abatement of the site is of the Main Site. This is in part to
underway and will be completed by Fall provide a potential opportunity for local,
2026, leaving the site vacant and ready emerging developers to be more directly
for redevelopment. involved in shaping the area's future. City
and community goals for these parcels
City goals for the site include: (a)
are less defined since the Main Site has
accommodating both affordable
been the primary focus of studies and
and market-rate housing on the site
community engagement to-date.
to provide a diversity of housing
opportunities in the neighborhood; (b)
providing transit-supportive density to
complement the upcoming New Bern
Bus Rapid Transit line; (c) minimizing
additional City subsidy into the project
in a constrained budget environment;
and (d) delivering on the community
priorities established by the DMV Site
Project Working Group (see pg. 8). Ta
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Parcel Maps
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Points of Interest
4

Planning and Community Context
Corridor History The median household income of the area
around the site is $20,000 less than the
and Demographics
citywide median and has a significantly
higher share of renters (64%) than Raleigh
Communities surrounding New Bern
as a whole (48%). While these statistics
Avenue have been thriving since at least
reflect the neighborhood's history, they
the 1940s, and have seen significant
do not capture a significant shift in racial
change, including street cars, WWII, and
composition and income that is well
development of the WakeMed campus,
underway. New-build houses in the area
just to name a few. The New Bern Avenue
sell for prices ranging from $600,000 to
corridor was once a 'front door' to Raleigh
over $900,000. The incoming households
from Interstate 95 and the tobacco fields
tend to have higher incomes and differ
of Eastern North Carolina. Vehicle travel
racially from the community's
has largely been diverted to parallel
longstanding residents.
highways since the early 2000's, and some
of the surrounding land uses have been
slowly changing while others are relatively
Communities surrounding
unchanged.
New Bern Avenue have
The area around the DMV site1 is racially
diverse, containing more than double the been thriving since at
share of Black/African American residents
least the 1940s.
as the citywide average.
1 As defined by the "Western Stations" study area of the City's 2022 New Bern Station Area Planning Study.
5

Previous Plans, Studies,
and Implementation
The New Bern Avenue corridor, including
the DMV site, has been the focus of The Eastern BRT
plans and studies going back for more
than a decade. The City adopted the
is currently under
New Bern Avenue Corridor Study in 2012
to establish a long-term vision for the
construction with
area. In November of 2016, Wake County
voters approved a dedicated public
an estimated
transit investment which triggered the
implementation of the Wake County
completion at the
Transit Plan. That plan calls for the
construction of close to 20 miles of
end of 2027.
transit lanes along four (4) Bus Rapid
Transit (BRT) corridors within Wake
County, starting with the Eastern BRT
along New Bern Avenue. The Eastern
BRT corridor is approximately five miles
in length and connects two of the city's
largest employment hubs, Downtown
Raleigh and WakeMed, with frequent
and reliable transit. Station area
planning for the BRT stops along New
Bern was completed in 2022.
The New Bern BRT line will provide high-quality bus service that offers riders a viable
alternative to automobile independence. The selected route destinations will serve a
variety of daily and life-stage needs. The BRT will also feature dedicated travel lanes,
enhanced stations, off-board fare collections, frequent on-time service and enhanced
connections to Raleigh's existing transit network. The future Tarboro Road Station will be
directly adjacent to the DMV site. Construction is underway now and is anticipated to
complete by the end of 2027, with revenue service beginning in early- to mid-2028.
6

Community Over the past year, the
Engagement and the PWG focused on these
primary activities:
Project Working Group
This site has provided the City an Identifying
1
opportunity to show a commitment
opportunities to
to community restoration, intentional
highlight Raleigh's
engagement, and collaborative
community and
planning. From September 2023
cultural history within
to June 2025, the City of Raleigh
the project.
undertook community engagement
for the redevelopment of the former
DMV site. Determining which
2
community priorities
To ensure meaningful participation,
should be reflected
the City established a Project
in the future
Working Group (PWG) comprised
of 12 community members, to shape redevelopment.
engagement strategies and serve as
authentic ambassadors to the Actively participating
3
broader community.
in engagement efforts
with the community.
NEED PHOTO OF
PWG GROUP
(note: this current
photo is from the
DMV event)
7

PWG Priorities
Following all engagement activities, the PWG ranked their "must haves" (top priorities)
and "like to haves" (secondary priorities) for the future redevelopment of the DMV site.
Priority Key Goal Focus Area
Top Priorities
Affordable Housing Housing options for Various family sizes, incomes,
30%-60% AMI and employment types
Retail Space Space for local, small Provide access to
businesses that reflect essential goods
the historic New
Bern Avenue corridor
community
Community Space Multipurpose indoor Workforce development,
space with variety and educational classes,
flexibility in room size performances, etc.
and state-of-the-art
technology
Food Incubator and Space that provides Commissary Kitchen for
Co-op Space fresh, healthy, and food services to access a
affordable food access commercial kitchen
Cultural Recognition Cultural destination Art, wayfinding, historical
reflective of the historic markers, and sculpture
community recognition
Universal Site Design Design that's accessible Beyond Americans with
to all Disabilities Act (ADA)
minimum
Secondary Priorities
Sustainability and Varied architectural
Innovation style, project creativity,
and sustainability
Childcare Options Drop-in childcare
8

Market and Design Study
This RFI builds on a recently completed market and design study conducted on behalf of
the City by real estate consulting firm RCLCO in partnership with design firm LS3P. The
primary conclusions of that study indicated the following:
1. Challenging Market Dynamics
Current market conditions are extremely challenging for new mid-/high-rise multi-
family projects in Raleigh, due to falling rents, a glut of supply, increasing construction
and financing costs, and heightened global risk. These challenges are amplified on the
New Bern corridor by the risk resulting from a lack of comparable precedent projects.
2. I mpact on Goals
Under these conditions, it would be extremely difficult at present to fully achieve the
City's goals for the site (outlined above).
3. Strategic Alternatives
In light of these challenges, the City's options are to:
a. Wait to advance the project in the hope that market conditions will eventually
improve and make development more feasible;
b. Develop the site at a lower overall density that includes higher-priced housing
types that generate positive land value;
c. Move forward with a 4% Low-Income Housing Tax Credit (LIHTC) affordable
project on a portion of the site in the near term, leaving the market-rate
components for later phases;
d. Explore potential alternative financing options such as a mixed-income,
non-LIHTC model to deliver the project; and/or
e. Pursue short-term opportunities such as issuing an RFI and pursuing
redevelopment of the State St parcels.
The City has elected to pursue option (e) while exploring the pros and cons
of (c) and (d).
The goal of this RFI is not to question the findings of the market and design study, but
rather to ensure the City has conducted comprehensive due diligence and provided an
open opportunity for interested parties to contribute to the City's understanding of
and approach to the site. The findings resulting from the RFI will be used in combination
with the findings from the market and design study to inform the City's next steps in
redeveloping the site.
9

Key Questions for Respondents
The following questions and considerations Main Site:
are intended as prompts to guide Design and Land Use
responses. Responses can address any
1. What unit mix, density, and
single item from this list, any combination
building typology are most viable?
of items, and/or include additional items
2. What ground-floor uses would best
not featured here.
activate the site?
Main Site:
3. What is an ideal relationship of the
Program and Financial Feasibility
building to the surrounding streets?
1. Provide a conceptual development 4. What circulation patterns internal to the
program for multifamily housing. Any site should be considered?
proposed housing program should include
5. What open space strategies might
a substantial affordable component of
enhance the long-term experience of
at least 100 units. The affordable units
future residents and the surrounding
can be incorporated into one or more
community?
dedicated affordable buildings or within
one or more mixed-income buildings. State Street Parcels:
It can be assumed that the typical Concepts and Community Input
City tools (nominal ground lease, gap
1. Provide conceptual uses for the smaller
financing) would be available to support
parcels on State Street (e.g., missing
affordable housing on the site.
middle housing, retail, public space,
2. Include parking ratios and other live-work).
assumptions (e.g. surface or deck,
2. Describe how these parcels could
podium or wrapped).
complement the Main Site development.
3. Submit evidence of financial feasibility,
3. Identify community priorities and
including:
concerns specifically related to these
a. Preliminary pro forma parcels (e.g., scale, affordability, traffic,
public space).
b. Estimated development costs and
revenues
Process and Implementation
c. Financing assumptions (debt/equity
1. What RFQ/RFP structure would best
structures)
attract qualified developers?
d. Sensitivity to interest rates, rents,
2. What risks might prevent project
and construction costs
delivery and how might they be
e. Identify any public participation mitigated?
required to achieve feasibility that is
3. What terms and conditions are
legally allowable in the State of North
reasonable to attach to a development
Carolina.
agreement in order to ensure timely
4. Discuss phasing strategies, if applicable. performance from a development
partner?
10