Federal officials have turned down Durham's request for $31 million to support the Rolling Hills/Southside redevelopment project.

City Manager Tom Bonfield said he was informed of the denial this morning.

"I don't want to say as well much right now" he said. "We'll be preparing a statement."

That statement will probably be released Friday morning behind he has conferred with other town officials and McCormack Baron Salazar the proposed redevelopment company.

Durham has already spent about $5 million on land acquisition and planning for the project involving 125 acres at the failed Rolling Hills subdivision and adjoining Southside neighborhood just south of downtown.

City Councilman Eugene Brown said the rejection is "disheartening."

"Durham needs this project and now we're back at square one again" Brown said. "We're behind the 8-ball and we don't even have a cue any more."