Cary council approves South Hills redevelopment plan, service district possible

Cary’s oldest shopping center is moving toward a redevelopment fight that is as much about taxes as it is about towers, storefronts and apartments. The Town Council approved a developer request tied to South Hills, opening the door to a municipal service district that could add a special property tax inside the project area and steer that money back into services and facilities on the site.

The plan reaches across 11 properties and 44 acres at South Hills Mall and Plaza, a familiar retail center tucked right off Interstate 440 and anchored today by businesses such as Grand Asia Market, Baker’s Dozen Donuts and South Hills Barber Shop. Town plans describe the project as a vertically integrated, mixed-use development with residential, office and retail space, plus an option for a community center within the district.

That mix represents a major shift for a site that has carried decades of local memory. WRAL has noted the old South Hills shopping center once held Roses, Kerr Drugs, toy trains, pinewood derby events and even reindeer displays, making the redevelopment a transformation of one of Cary’s most recognizable retail landmarks. South Hills Barber Shop, which opened in 1968, is already preparing to relocate to Downtown Cary once the project starts to take shape.

The tax-district question now sits at the center of the debate. NP South Hills LLC has asked Cary to create the South Hills Municipal Service District, and the town’s executive summary says the goal is to foster revitalization of an area made up primarily of outdated and underutilized industrial, retail and general commercial buildings. Town Assistant Manager Scot Berry said there are more than 60 similar districts in North Carolina, framing the proposal as a standard tool for cities that want to pay for enhanced services in a defined area.

If the district wins final approval, residents could see public hearings and an added tax by July 2027. That timeline matters for nearby property owners and small businesses trying to measure what they might pay, what they might gain and whether the public improvements will be enough to justify the cost.

The project also overlaps with a separate public investment conversation. Cary says the development team and citizens worked on a concept plan for a new Sports and Recreation Community Center at the southeast corner of Buck Jones Road and Nottingham Drive, and funding for that facility was included in the proposed 2024 Parks and Recreation Bond. That makes South Hills more than a private redevelopment site; it is becoming a test of how Cary wants to subsidize growth at one of its oldest commercial crossroads.