New Development
Major Retail Project to go before Commissioners
Plans for Buckhorn Village, a 120-acre retail development at the Buckhorn Road flea market site, will be presented at a County Commissioners public hearing on February 25. This is likely to be the only public hearing for the project, which calls for around 1,000,000 square feet of retail development. If everything goes according to plan and the project is approved, this would be the largest project of its kind in Orange County. The estimated tax revenue from the project is $5 million and will create 5,000 new private sector jobs.
From The Herald Sun
Carolina North’s Innovation Center Unveiled Before Council
As plans for Carolina North continue, University leaders spoke before the Chapel Hill Town Council about the importance of the Innovation Center to ensuring UNC’s activity in the global economy. The Innovation Center would be the first building built on the Carolina North property and would serve as a place to turn research into commercial products. At a January Town Council public hearing, mayor Kevin Foy said no consideration is being made for what will go inside the building, located at the southwest corner of Martin Luther King Jr. Boulevard and Piney Mountain Road. Many citizens who spoke at the meeting emphasized the need to build the Innovation Center as soon as possible, in efforts to retain companies with the desire to remain in Chapel Hill. For the full story, click here.
Schools
UNC, Duke 2007 Endowment Growth Rank High
According to the National Association of College and University Business Officers, UNC-Chapel Hill grew its endowment by 32.1 percent in 2007, while Duke's endowment grew by 31.4 percent. UNC was second only to the University of Notre Dame among the 76 North American schools with billion-dollar endowments. The results reflect the total amount of money in the endowment—taking into account both donations and withdrawals from the fund as well as investment growth. For the full story, click here.
Orange County
Mebane Officials Consider Extending City Services in Favor of Potential Benefits
Continuing negotiations that began in 2003, the Orange County Board of Commissioners and the town of Mebane are examining the possible outcomes of extending water services to the proposed Buckhorn Village project. Mebane officials believe the cost of providing an estimated 3,000 to 5,000 gallons of water per month to Buckhorn are outweighed by the taxes and jobs created in the area. Mebane began a process of annexing land near the proposed Buckhorn project since 1996. For the full story, click here.
Tax Increases Considered in Orange County
Orange County Commissioners are considering a ballot measure on May 6, asking voters to approve a 0.4 percent transfer tax increase or a 0.25 percent sales tax increase. Voters can approve both taxes but the Commissioners can only choose to levy one. The Commissioners will hear from the public in a meeting on Tuesday, February 19 at 7:30 p.m. and decide whether to place any tax increase on the ballot. The meeting will be held in the Southern Human Services building at 2501 Homestead Road in Chapel Hill.
University Mall, Rams Plaza Sell for $53 Million
In December, Madison Marquette, a Washington D.C. based company, purchased University Mall and Rams Plaza in Chapel Hill for $40 million and $13 million, respectively. According to Madison, the company specializes in purchasing and renovating underperforming assets. At this point, a spokesperson for Madison was unable to comment on specific plans for the properties. For the full story, click here.
Parking a Key Concern in Carrboro Development
In a January 22 public hearing, the Carrboro Board of Aldermen considered a proposal for the development of a five-story project called Roberson Square. Roberson Square would include more than 91,000 square feet of residential and commercial property at 203 South Greensboro Street across from Open Eye Café. At the hearing, a number of residents and business owners expressed the need for more parking in the project and a comprehensive parking plan. For the full story, click here.
Ongoing Drought Key Issue in Chapel Hill Mayor’s Address
During his January 28 State of the Town Address, Chapel Hill mayor Kevin Foy urged residents to continue in their water conservation efforts. "We all know that the drought continues, and we all have to be concerned whether the drought is episodic or if it is an indication of a permanent change in our weather pattern," Foy said. Other key issues addressed included Carolina North development, a long-range transit plan and parking permits at The Courtyard shopping center on Franklin Street.
From The Herald Sun
Artist Unveils Idea for Lot 5 Sculpture
Massachusetts-based artist Mikyoung Kim unveiled concept sketches for “Exhale,” a sculpture proposed for the Lot 5 mixed-use development on the corner of Church Street between Franklin and Rosemary streets. At a meeting on Monday, January 28 at the Chapel Hill Public Library, Kim said, "There aren't many places on Franklin Street to gather outside and that's a really important component of an urban area." Kim hopes that the sculpture serves as a conversation piece in downtown.
From The Herald Sun
Hillsborough Gets Marketing Tips for Tourists
Representatives of Chapel Hill-based Jennings advertising and branding agency recently visited Hillsborough for its first tourism summit. The summit, hosted by Hillsborough’s tourism board, was designed to address the town’s desire to provide more comprehensive information to the 10,000 visitors that pass through the town each year. Ideas included improving signage, improving the Hillsborough’s online presence and designing a brand book, guiding tourists through their visit. For the full story, click here.
Nine New Businesses Slated to Open Downtown
Downtown Chapel Hill is set to welcome nine new businesses to downtown. Everything from a gourmet burger place called “Buns” to “Sugarland Bakery”, downtown Chapel Hill will have quite a menu for restaurant goers. Beyond eateries, “Glee Kids”, a children’s clothing boutique, and Jernigan-Wicker Fine Arts & Pearson Fine Arts will also open in February and give residents more places to shop in Chapel Hill. In all, these nine businesses join another twenty businesses that opened or re-opened in the downtown during 2007. For more information about these businesses and downtown, click here.
Tourism’s Economic Impact Increased in 2006
According to the Travel Industry Association of America, Orange County ranked 24th in travel impact among the state’s 100 counties. At $137.6 million in 2006, domestic tourism’s economic impact saw an 8.2 percent increase over 2005. More than 1,710 jobs in Orange County were in the travel industry and travel generated a $27.62 million payroll. State and local tax revenues from travel to Orange County totaled at $10.56 million, representing an $85 tax savings to county residents.
The Triangle
Commercial Nodes Urged in Chatham County
A 19-member task force created by the Chatham County Commissioners recommended the development of targeted commercial nodes as a way to preserve the county’s rural character. The task force recommends development occur along U.S. 15-501, the intersection of N.C. 902 and U.S. 421, N.C. 87 north of Gum Springs Road and south of Chicken Bridge Road, the intersection of U.S. 64 and N.C. 751, and U.S. 1 near Moncure. Further, the task force recommends varying sizes of commercial development at each node. A “neighborhood node”, for instance, would consist of two small retail or grocery stores each around 40,000 square feet. The nodes progressively increase in size all the way up to a “regional node” which would not be limited in size. A regional node is recommended for the intersection of N.C. 902 and U.S. 421. Beyond the nodes, the task force recommends parking areas be behind buildings and have at least 50 percent shade along with the use of proper landscape to screen the buildings from the road.
From The News & Observer
Chatham County Commissioners Approve $270 million in Construction
The Chatham County Board of Commissioners approved a five-year construction plan that will upgrade the county’s water lines and treatment plant and add a new elementary school in the northeastern part of the county. Northwood High School will also be expanded and Bonlee, Bennett and Silk Hope schools will receive new gyms. All told, the work will cost about $270 million and the Commissioners say they will do whatever they can to reduce the impact on property taxes. The new projects and costs require $84.5 million in funding, which would represent about 7 cents on the tax rate. For the full story, click here.
Durham Considers Expanded Incentive Policy
Durham County Commissioners proposed changes to the County’s current incentive policy last week, broaching the idea of offering financial assistance to high-dollar commercial and retail developments occurring in targeted historic business districts. The districts include downtown, the Fayetteville Street corridor between Main Street and Cornwallis Road and North/East Central Durham. While Durham’s existing incentive policy has resulted in new businesses moving to the County’s business parks, this expanded policy would only offer money to businesses locating in the historic business districts. The new policy would require some level of investment or the creation of at least 200 new jobs by the business seeking incentives.
From The News & Observer
Cary Town Council Commits to Save Land
A report released by the Cary Town Council following its January 24 meeting details the approval of a project allotting $23 million to reserve land now for future uses. The town seeks to reserve at least 700 acres for public use, including future school sites, open space, a new post office, parks and a fire station. For the full story, click here.
Neuse River under Consideration for Franklin County Water Supply
Although the proposal to use a spot in the Neuse River for Franklin County’s water supply has met some controversy, the county’s public utilities director said the proposal is still being considered. Following a meeting with a county-hired engineering firm, county officials found that the spot could potentially yield 8 million gallons of water a day. Raleigh’s proposed new environmental rules have met opposition from many residents, who declare that it would be more difficult to add a deck, driveway or other hard surface to many homes. For the full story, click here.
Wake County Leads State in Foreclosures
According to state data compiled by the N.C. Administrative Office of the Courts and recently released by the Office of the N.C. Commissioner of Banks, Wake County ranked number one in the state for foreclosures in 2007. With 4,461 foreclosures, the county increased 20.2 percent from 2006. For other Triangle counties in 2007, Orange County actually declined by 7.5 percent, whereas Durham County increased by 9.1 percent. Mecklenberg County saw a 10.9 percent increase in foreclosures from 2006 and Guilford County saw a 15 percent increase. Subprime mortgages – loans to home buyers with poor credit – account for about 15 percent of all loans written in the state. Mark Pearce, head of the banking commissioner’s mortgage division, says subprime loans have been implicated in as much as 50 percent of the state’s foreclosures.
Raleigh Home Builders Launch Company
Larry Lippincott, former Triangle division president for Pulte Homes and KB Homes, is returning to Raleigh to launch home-building company ForeverHome. The company will build single-family homes and townhomes in the $200,000 to $300,000 price range and already has 500 home lots to start. Lippincott’s partners are Judith Adams, formerly part of Adams-Bilt Co., Edythe Poyner, president of Capital Land Investment Co., and Mark Ward, who has been active in new home construction around the Five Points area of Raleigh.
State
Bank of America to buy Countrywide
The rumored purchase of Countrywide Financial Corporation by Bank of America is true, according to the Charlotte-based bank. Bank of America announced intentions of buying the nation’s largest mortgage lender in an all-stock transaction worth about $4 billion. In August, Bank of America bought $2 billion of preferred stock, about 16 percent of Countrywide’s common stock.
N.C. Laws Target Mortgage Scams
North Carolina has implemented a pair of laws designed to tighten regulation of the state’s $70 billion-plus home mortgage industry. The first, in effect Dec. 1, allowed the crime of mortgage fraud to be written into state statutes, broadly defined as “misrepresentation within the mortgage lending process.” According to the North Carolina Sentencing and Policy Advisory Commission, conviction on a charge involving a single loan carries a sentence ranging from four to 25 months, while cases involving five or more loans, defined as “a pattern of residential mortgage fraud,” carries a sentence ranging from 15 to 74 months. The law prohibits inclusion of “pre-payment penalties” in mortgage contracts, requires lenders to verify that a borrower can repay a loan, directs mortgage brokers to disclose total fee compensation and gives expanded authority to bank office commissioners to deny operating licenses for unfair and deceptive lending practices.
North Carolina Debt Capacity has Grown
According to the Debt Affordability Study, created by a panel of state officials and legislative appointees, North Carolina state government has more room to borrow money than it did last year because tax revenues keep growing and old debt is being paid off. With an increase over the average of $384 million last year, the state can issue an average of $479.4 million in new debt each year over the next decade. State Treasurer Richard Moore, the panel's chairman, said he's still concerned that lawmakers keep creating new debt that doesn't require voters to approve the borrowing. The so-called "special indebtedness" usually has slightly higher interest rates than voter-approved debt.
From The Herald Sun
The Real Estate Report is produced monthly by the Chapel Hill Chamber of Commerce and the Greater Chapel Hill Association of Realtors
