After holding a public hearing, council members unanimously approved selling four lots on the northwest corner of Bloodworth and Lenoir streets to the university.

The area's redevelopment plan earmarked the property for residential development, but the community backed Shaw's proposal for the land. The university has offered $140,000 for the lots.

Martel Perry, Shaw's executive vice president, said the center will include facilities to test the speech, hearing and cognitive functions of young children. The center also will certify preschool teachers and be a research and teaching laboratory for Shaw faculty and students.

"Having been a recipient of the experience of being a teacher-in-training and getting to work in a child development center like that at a university, it is invaluable to the children in the community and to the future teachers that Shaw will be educating," said council member Jessie Taliaferro. "I think this is a win-win for everybody."

A dissenting voice was Murray Gould, who described his partnership with Shaw to renovate two historic houses across from the campus as "disappointing and frustrating."

Weaver Cooke Construction, the building contractor for the Rogers-Bagley-Daniels-Pegues House renovation, filed a lien against that property in September and a lawsuit for more than $485,000 against the partnership in November.

"It is our suggestion that Shaw focus their energies on resolving this project before they endeavor to take on another project one block away," Gould said.

Perry said the university's problems stemmed from decisions made before President Clarence Newsome began in early 2003 and that Shaw has offered to settle with Weaver Cooke and Gould for their expenses on the project.

The council postponed its vote on the sale of 29 city-owned lots on Cooke Street to explore complaints about houses built by R.D. Construction Co., which was set to receive 16 lots.

"When I look at R.D. Construction ... there's nothing but complaints after complaints after complaints after complaints," said Octavia Rainey, chairwoman of the North Central Citizens Advisory Council. "How in the world are you going to award them 16 houses without saying 'How are we going to deal will all the complaints that they constantly get?' "

Council members asked for a report about the performance of companies that buy city-owned lots in redevelopment areas, city oversight of such projects, dissatisfaction and complaints from homeowners and how the city ensures such homes blend with the community.

In recent weeks, some have said it would be unfair and unwise to follow a council committee recommendation to award four lots to a development firm associated with St. Augustine's College, which has no track record building houses. Of the remaining lots, four are suggested to be sold to Habitat for Humanity of Wake County and five lots to Evergreen Construction Co.

The council will consider the Cooke Street development and how to divvy its lots as a special item May 18.