Open issues before we buy

The broker markets the parcel as I-2 industrial, for warehouse, distribution and outdoor storage users. Mini golf, a bar and food trucks are commercial recreation and assembly uses. These may need a use permit, a special use approval or a rezoning, or may not be allowed at all. The Durham UDO use table has not been pulled yet.

• Get a zoning verification letter from Durham City-County Planning.
• Ask which district and approval path allows commercial recreation + bar here, and the timeline.
• Book a pre-submittal meeting before signing.
• Make the purchase contingent on zoning approval in the due diligence period.

Going from warehouse (storage) to a place where crowds gather and drink triggers assembly-occupancy rules: fire sprinklers, exits, restrooms, ADA. This is the largest capex unknown; the model carries $150,000 for the building upfit.

• Have an architect do a code review of the existing building.
• Price a sprinkler system with the city water service size.

NC requires 30% of receipts from food and non-alcoholic drinks to qualify as a restaurant. Food truck sales are the trucks' own, so we likely apply as a bar. Since 2022 bars no longer need membership lists. Fees: mixed beverages $1,000, on-premises malt $400, on-premises wine $400.

• Confirm the bar permit path with NC ABC.
• Get a liquor liability quote before closing.

Owner target is $1.8M; the broker brochure asks $2.2M. The extra $400,000 costs about $29,000/yr in interest if financed at 7.25%, or adds $400,000 of equity.

• Use the zoning risk and change-of-use cost to support a lower price.
• Anchor the offer with Ramseur corridor sale comps (see Property).

The to-scale plan fits about 27 spaces in the wedge beside the building against a peak need of ~35 cars, and each aisle needs its own curb cut. Zoning may also set a minimum.

• Check the parking requirement for the use.
• Look for shared-parking deals nearby or use of 810 E Ramseur.

The building is not air-conditioned. Summer afternoons are peak family time and the hottest part of the day.

• Budget HVLS fans and evaporative cooling (in model).
• Consider a small conditioned room for the bar.

Outdoor holes, props and furniture sit in the yard overnight. The site already has a fence, but it is industrial chain link.

• Replace or upgrade the perimeter fence (see Expenses).
• Add cameras and site lighting.

Late-night bar and outdoor play next to new mixed-use neighbors could draw complaints or permit conditions.

• Check the city noise ordinance hours.
• Orient the patio and speakers away from residences.

The parcel has had industrial and commercial uses since the mid-1900s.

• Order a Phase I environmental site assessment before closing (in model).

Trucks need county health permits and a commissary. A permanent truck court may need its own site approval.

• Confirm Durham rules for hosting trucks on private property.