New Development
New Hotel Proposed for Southern Village
Southern Village developers D.R. Bryan and John Fugo unveiled a proposal to Southern Village residents in late October that features an "architecturally distinctive hotel with approximately 100 rooms," underground parking and 5,000 square feet of street-level retail space. The plan is to build on an existing parking lot, although Bryan said recently that he is open to uses other than a hotel. The key, he said, is to add another draw to a roster of businesses that includes anchors Weaver Street Market and The Lumina Movie Theater. The plan was scheduled to go before the Town Council last week but was pulled from the agenda by the developers at the last minute. For the full story, click here.
Council Gives Feedback on Homestead Road Project
The Chapel Hill Town Council gave the Cary firm The Design Response mixed feedback at a public hearing on Monday night. The firm is considering a mixed-use project along Homestead Road on the Fraley Property that would include 32 townhomes-- five "affordable" -- and two two-story buildings featuring up to 49,000 square feet of office space. Members of the Town Council offered suggestions, including improving traffic patterns, maximizing the proposed retail space and mixing the affordable housing throughout the project. For the full story, click here.
Schools
District Disagrees over Impact Fees
A proposal to increase school impact fees for the first time in seven years has the support of one of Orange County's two school districts, while the other is in favor of keeping the fee at its current level. Members of the Chapel Hill-Carrboro City School Board approved a resolution in September that urges the county commissioners to increase impact fees "in order to provide a source of funding to construct new schools to keep pace with the district's growing student population and the escalating cost of construction." The Orange County Schools Board of Education, however, agreed last month to support the current levels, adding that it "supports the county commissioners in all their efforts to fully fund our school district." For the full story, click here.
Orange County
Town Manager Projects Budget Cuts
The Chapel Hill Town Council is in the midst of deciding how to handle the local fall-out from the financial market crises. Town Manager Roger Stancil recently gave the Council an update on town revenue projections, citing that sales tax revenues are likely to be 5 to 10 percent below projections. Stancil is also projecting less revenue growth from property revaluations that will be done in 2009 and a decrease in money collected from development fees.
In order to meet those challenges, Stancil has reduced expenditures by 5 percent -- approximately $2.5 million -- and declared that no departmental positions can be filled without his approval. In response to Stancil's report, Councilman Jim Ward urged a budget cut of $1 million beyond the prescribed five percent, arguing that budget shortfalls would likely be deeper and more long lasting. For the full story, click here.
James Merritt Appointed to Chapel Hill Town Council
At a recent Town of Chapel Hill Council meeting, James Merritt was appointed by the Council to replace the late Councilman Bill Thorpe. Seven people sought the nomination to the Council, including Will Raymond, Gene Pease and Loren Hintz. Merritt, a retired middle school counselor and assistant principal, says he will focus on issues of public safety and affordable housing as well as Carolina North. For the full story, click here.
Smaller Halloween Considered a Success
Despite losses in revenue Halloween night, business owners, community officials and residents are calling the downsized Halloween celebration a success. “We really enjoyed partnering with the town officials to make it a safe Halloween,” said Robert Poitras, the owner of Carolina Brewery in Chapel Hill. There was a smaller, more manageable crowd, and officials say that Halloween was as good as they could have hoped for. However, more changes are expected next year. “I personally think it’s never small enough,” said Phil Smith, event coordinator for Chapel Hill police. Smith said town officials hope to implement and improve many of the same procedures used this year for Halloween 2009. Chapel Hill Public Information Officer Catherine Lazorko said that although cost estimates are not in for this year’s Halloween, rough estimates have it at about the same price tag as last year, $221,000. For the full story, click here.
Innovation Center on Hold
Alexandria Real Estate Equities, the firm developing the Innovation Center on Carolina North, has put the project on hold given the national economic downturn. University officials expect the project will occur once the economy turns around. The Chapel Hill Town Council is considering UNC’s request for a special use permit for the Innovation Center and will continue a public hearing on it at their January 26 meeting. For the full story, click here.
County Officials Weigh 2009-10 Budget Issues
As the nation’s economic future remains unclear, officials say it’s too early to worry about potential Orange County budget shortfalls. An early county budget report predicted a roughly $9.5 million shortfall between revenues and expenditures for the 2009-10 budget. “We do a process where we show where some budget issues will be coming up,” said Orange County Budget Director Dean Coffey. “We presented to the board things that we know are going to be issues.”
But Coffey said the predicted shortfalls may not be as drastic as the early report indicates, so county officials are not yet taking action. Coffey said it is too early to predict exactly what the budget will look like for the next fiscal year, and real budget discussions won’t begin until early 2009. For the full story, click here.
Orange County "lost" Millions
Officials may take $5.9 million from Orange County's savings account to replace money they thought they had in capital accounts. The money was not in the capital accounts but was logged in the wrong accounts or line items. The mistakes, according to Orange County Finance Director Gary Humphreys, date back at least five years before he or County Manager Laura Blackmon were hired.
"If I were to be asked to explain it to somebody else, I might be able to do it," said Commissioners Chairman Barry Jacobs. "I'm not sure I'd be right. I might be able to sound authoritative, but I'm not sure I'd be right." For the full story, click here.
Comprehensive Plan Passed
The Orange County Comprehensive Plan was passed unanimously by the Board of Commissioners during a November meeting. The Greater Chapel Hill Association of REALTORS was part of the Orange County Comprehensive Plan Coalition, which did not endorse the plan. The Coalition did not believe the plan laid out a compelling or adequate vision for growth in the County and neglected significant public input. The GCHAR will continue to be active during the implementation of the plan.
From the Daily Tar Heel
Airport Impact Study Results Questioned
N.C. State University economist Mitch Renkow is skeptical of the recently released consultant’s report suggesting a new general aviation airport would inject $40 million to $53 million each year into Orange County's economy. The study, commissioned by UNC and done by Talbert & Bright, is based on a previous study by the same firm that examined possible sites for a new airport. Renkow believes the figures are “implausibly large.” For the full story, click here.
Update from Chancellor Thorpe
Chancellor Thorp recently sent an email update to the faculty and staff of the University of North Carolina at Chapel Hill. In his update he highlighted how the global economic crisis will affect the University’s budget in the coming months and years. His points were as follows:
• North Carolina has cut one-time (non-permanent) state appropriations by 4 percent; an additional 1 percent is expected imminently. A 5 percent cut adds up to about $25 million for the University.
• UNC has received no word that a general state or UNC system hiring freeze is imminent. The funding designated in this year's state budget for university building repairs, renovations and new capital projects has been frozen.
• The university is planning for likely permanent (recurring) state budget cuts for fiscal 2009-2010 as revenues are expected to decline.
• The state does not completely fund the University. Other revenue streams include: tuition and fees, sales and services such as patient care, research contracts and grants, athletics, and private support.
Two New Restaurant Openings
Johnny's restaurant has opened in Carrboro at 901 West Main Street. It was formerly known as Johnny's Sporting Goods (mainly bait and tackle) and now serves gourmet coffee, pastries and bread from Durham's Guglhupf Bakery, seasonal produce and microbrew beer.
Shula’s 347 recently opened in the Sheraton Chapel Hill on Europa Drive. Shula’s serves breakfast, lunch and dinner at the full-service hotel. The restaurant’s atmosphere is casual and chic, sporting dark woods, flat panel TV’s and a sleek sports bar. Shula's 347 Grill has everything from gourmet salads to fresh specialty fish, and exclusively serves The Shula Cut—the same custom cuts and aging process from the legendary Shula's Steak House.
From the Orange County/Chapel Hill Visitors Bureau
County Turnout Tops 70 percet, Most Voting Early
The unofficial Orange County turnout numbers for the 2008 general election break records in voter turnout for the state, according to the North Carolina Board of Elections Web site. One stop voting totaled 51,964 ballots and absentee voting by mail accounted for 3,466. Additionally, 19,490 residents voted in the traditional manner on Election Day. In total, over 70 percent of eligible Orange County voters voted. For more information on this year’s voter turnout in Orange County and throughout the state, visit the N.C. Board of Elections Web site at www.sboe.state.nc.us. For the full story, click here.
Orange County Election Results
N.C. State Senate District 23 | Candidate | Percent | Votes |
| Ellie Kinnaird | 73.37 | 51,739 |
| Jon G. Bass | 26.63 | 18,780 |
N.C. House of Representatives District 50 | Candidate | Percent | Votes |
| Bill Faison | 100 | 17,894 |
N.C. House of Representatives District 54 | Candidate | Percent | Votes |
| Joe Hackney | 100 | 7,236 |
N.C. House of Representatives District 56 | Candidate | Percent | Votes |
| Verla Insko | 100 | 30,835 |
Orange County Board of Commissioners At-Large | Candidate | Percent | Votes |
| Bernadette Pelissier | 69.48 | 48,115 |
| Kevin Wolff | 30.52 | 21,132 |
Orange County Board of Commissioners District 1 (pick 2) | Candidate | Percent | Votes |
| Valerie Foushee | 53.38 | 50,556 |
| Pam Hemminger | 46.62 | 44,155 |
Orange County Board of Commissioners District 2 | Candidate | Percent | Votes |
| Steve Yuhasz | 100 | 54,670 |
The Triangle
Credit Crunch Delaying Chatham School
With credit markets tightening, Chatham County officials say their plans to build a fourth high school in the northeastern part of the county have been delayed as very few of the 12,000-14,000 homes approved there have been built. The County is focusing its school infrastructure investments in renovations to Northwood High School in Pittsboro and completing a new middle school in the Briar Chapel area. Chatham County Schools Superintendent Robert Logan says the renovations to Northwood should be finished by August 2009 and the new middle school will be done by August of 2010. For the full story, click here.
Chatham to Revalue Properties
After examining delaying property revaluations for one year, Chatham County Commissioners said they would not hold off but institute new values on January 1. Initially, the Commissioners were interested in delaying the revaluation to give tax payers a financial break, however data from the County tax office show the savings would not be significant. George Lucier, chair of the Commissioners says, "The estimated costs of a one-year delay were considerably higher than initial reports indicated.” For the full story, click here.
Durham Performing Arts Center Slated to Open November 30
Construction workers are putting the finishing touches on the new Durham Performing Arts Center. The Center, along with the Durham Bulls Athletic Park and American Tobacco complex, is a cornerstone of the transformation of Downtown Durham. Blues legend B.B. King, who will give a concert November 30, will be the first performer in the new, 2,800-seat theater. The city of Durham is sponsoring a free, public open house and ribbon-cutting December 1. On Dec. 13, R&B artist John Legend will be the guest artist for the inaugural celebration of the performing arts center. Tickets for events that have been announced are available at www.DPACnc.com, or through www.Ticketmaster.com.
Light Rail Plans Possibly Changed
Officials are now thinking a future rail-based transit system in the Triangle can use lightweight coaches and engines over its entire 56-mile length, rather than the heavyweight units they once envisioned. The potential change in approach comes after managers of the N.C. Railroad Co. signaled last month that they believe the region's main east-west rail corridor is wide enough to support a stop-and-go light-rail system for local traffic and heavier commuter trains for people arriving here from places as far afield as Greensboro and Goldsboro.
Light and heavier rail would share the corridor with the Norfolk Southern and CSX freight trains that will continue traveling through the area, planners say. “It's been done elsewhere," Durham Transportation Manager Mark Ahrendsen said, "Definitely not on the same tracks, but on the same right of way." For the full story, click here.
Glaxo Makes RTP Sole Headquarters
GlaxoSmithKline will make Research Triangle Park its sole U.S. headquarters and cut almost 2,000 sales jobs, the company said recently. The move eliminates the dual headquarters that London-based GSK has had in the U.S. since the 2000 merger that created GSK. Company spokeswoman Mary Anne Rhyne says the move makes sense in the midst of a major restructuring for GSK, “The announcements today are all aimed at streamlining the organization, and simplifying the business model.” RTP was picked over its Philadelphia office in part because the company has a bigger footprint here. The company has about 5,000 workers in RTP and owns 35 buildings on that campus. Rhyne says GSK also expects its new head of U.S. pharmaceuticals to be based in RTP. For the full story, click here.
State
Federal Reserve Bank Expects Recession to mid-2009
Minutes from the Fed’s Open Market Committee show that its members believe the national economy has been in a recession since the summer and will continue to struggle through the first two quarters of 2009. The bank says declining gas prices should ward off inflationary pressure. For the full story, click here.
State Unemployment Hits Seven Percent
The Employment Security Commission released figures for October which showed the State unemployment rate at seven percent. In October of last year, unemployment was at 4.7 percent. North Carolina’s unemployment rate is now higher than the national rate, which is 6.5 percent. Nevertheless, the state did create 5,076 jobs in October with most of those increases occurring in the construction industry. For the full story, click here.
Online Shopping Growth Slowing
According to a new report from ComScore, U.S. consumers are shopping less, even on-line. The study shows that online spending grew 6 percent in the third quarter, down sharply from a 13 percent annual growth rate in the second quarter. ComScore also surveyed 1,000 consumers about current attitudes on the economy. The survey results show that 27 percent expect the economy to be worse a year from now, while 50 percent expect it to be the same or better. For the full story, click here.
Restaurant Index Reaches Record Low
The National Restaurant Association’s Restaurant Performance Index (RPI) was released recently and reported contraction in the industry. The RPI measures industry health using four key indicators: same-store sales, traffic, labor, and capital expenditures. In September, the RPI reached an all-time low of 96.7 (100 is steady-state); figures below 100 represent contraction, figures above 100 represent expansion. September marked the 13th consecutive month the index dipped below 100. For the full story, click here.
