Wednesday, May 21, 2008

The Real Estate Report (May 2008)

Volume 3, Issue 5 May, 2008

The Real Estate Report
Local Government News Impacting the Real Estate Industry




Elections

Orange County Commissioner At-Large

At-Large Candidate

Percent

Votes

Neloa Barbee Jones

20.36

5,612

Bernadette Pelissier

50.30

13,865

Mary M. Wolff

29.34

8,087

Orange County Commissioner District 2

Candidate

Percent

Votes

Tommy T. McNeill

13.45

1,466

Steve Yuhasz

37.23

4,057

Leo L. Allison

27.72

3,021

Luther K. Brooks

21.6

2,354

State Senate

Candidate

Percent

Votes

Moses Carey, Jr.

34.12

11,885

Ellie Kinnaird

65.88

22,946

Transfer Tax


Percent

Votes

For

33.75

14,288

Against

66.25

28,053

Orange County Board of Elections

Candidate

Percent

Votes

Eddie M. Eubanks

20.96

7,089

Stephen H. Halkiotis

21.97

7,432

Al Hartkopf

14.83

5,016

Tony McKnight

18.24

6,172

Jeff Michalski

12.29

4,156

Stan Morris

11.08

3,747

Write-In

0.64

217


New Development

Chapel Hill and University Partner in New Homeless Shelter Site
On May 5, the Town of Chapel Hill, Inter-Faith Council and University of North Carolina at Chapel Hill held a press conference announcing a new location for the men’s homeless shelter. The new 50-bed shelter will open at the corner of Homestead Road and Martin Luther King Jr. Blvd and replace the shelter operating in the town owned building at the corner of Rosemary and Columbia Streets. The new shelter is estimated to cost $3 million and the IFC hopes to move into the shelter in 2011. For the full story, click here.

Revised Glen Lennox Plan Submitted

Following a meeting with residents earlier this month, the owners of the Glen Lennox property submitted a revised concept plan to the Town of Chapel Hill, in hopes of getting onto the Community Design Commission’s May agenda. Jim Schaafsma, spokesman of Grubb Properties, which owns the Glen Lennox shopping center and rental cottages, said residents of the apartment cottages did not want a business close to a church, so the Hayes Road small retail building planned near the Church of the Holy Family has been eliminated. Additionally, the plan had originally shown one of the three parking decks and attached building standing over Flemington Road, so that cars would have to drive through the deck to get to the other side of Flemington. The new concept plan has the parking deck and adjoined building pushed back from Flemington Road, so the road would remain an open street. Schaffsma said the concept plan is not concrete and developers are open to continued changes. For the full story, click here.

Buckhorn Village Project Given June 3 Deadline
Orange County planning board members are expected to present a recommendation on the Buckhorn Village redevelopment plan by June 3. Developers East West Partners Management Co., Tryon Investment Group and Montgomery Carolina submitted a proposal in December to redevelop the roughly 130 acres where the Buckhorn Road flea market sits on the southeastern corner of I-85/I-40 and Buckhorn Road in Efland. Developers hope to create 1.1 million square feet of retail and residential space which will include a 185,000-square-foot anchor store, hotels, offices, restaurants, residential space and a movie theater. After a lengthy discussion which allowed several landowners in the area to speak out in favor of the project, the board approved a motion requiring the planning board to present its recommendation on Buckhorn Village by June 3.
From the Herald Sun

Durham Tech-Orange County Campus Set to Open
Durham Tech has been offering courses in Orange County for some 20 years but as of this summer will have its first dedicated campus in Orange County. The DTCC building is the first building constructed within the Waterstone Development project in Hillsborough. Courses at the campus will begin this summer and include
emergency medical technology, a Spanish immersion course, computer courses and photography among others. Over time, the campus will ramp up its course offerings to a full two-year program. The Orange County building includes a number of green features including a rainwater collection system and photovoltaics. For the full story, click here.


Schools

School System Requests Budget Increase
Orange County Schools Superintendent Patrick Rhodes recommended a $1.8 million increase, or 8.35 percent increase compared to last year’s budget figure to the school board March17. Rhodes' budget recommendation would add 1.39 cents to the tax rate.

Chapel Hill-Carrboro City Schools recommended to its board a $6.8 million increase next year which could be funded in part by increasing the county's per-pupil spending, adding 2.62 cents per $100 valuation to the county tax rate. An increase in budget funds would go mostly toward expected state increases in teacher pay and benefits and a change in the state's requirements for the number of exceptional children's program positions. The Orange County Board of Commissioners is scheduled to adopt its budget in June. For the full story, click here.

Two New School Sites Selected

The Chapel Hill-Carrboro School District’s next elementary school could be located in a historically black neighborhood. Two sites are being examined; one in the Northside neighborhood on the border between Chapel Hill and Carrboro, the other is in the Rogers Road neighborhood off of Purefoy Road. Both pieces of property are owned by Orange County and the elementary school is slated to open in August of 2011. For the full story, click here.

Chatham Hires New School Superintendant
Robert L. Logan was unanimously selected by the Chatham County Board of Education as the next superintendant in mid-April. Logan comes to Chatham from the State Department of Public Instruction, a position he has been at for about a year. Prior to working for the State, Logan was superintendant of Asheville Schools. Logan was selected by the Board from among 29 candidates for his enthusiasm and innovative ideas. He will receive a salary of $140,000 plus benefits. For the full story, click here.

Orange County

Orange County Comprehensive Plan Public Hearing
This evening at the Gordon Battle Courtroom in Hillsborough, the Orange County Board of Commissioners will receive written and spoken input on a draft update to the Comprehensive Plan. This is a very important update and meeting as the Comprehensive Plan sets the direction and tone for development in the County for the next 20 to 30 years. The County’s development ordinances and regulations are supposed to be based on the vision put forth by the Comprehensive Plan. Please plan to attend this meeting if you live, work or own land in Orange County. The meeting will begin at 7:30pm. To review the draft Comprehensive Plan online, click here.

Nearly Six Cent Property Tax Increase Proposed for Chapel Hill
At the first Council meeting in May, Town Manager Roger Stancil presented his recommended budget for 2008-2009 and proposed a 5.9 cent property tax increase. The increase would go to fund the Town’s increasing debt service without diminishing current service levels. Manager Stancil stated during his budget message that, “This is a significant increase, but it comes on the heels of two consecutive years of zero tax rate increase and a doubling of the Town's debt load since fiscal year 2005.” The final Town budget as proposed would total $83.6 million, with $52.1 million going toward the General Fund, $14.6 million for the Chapel Hill Transit fund and the remainder for other funds. A public hearing has been set for Wednesday, May 14 at 7pm to allow the public to comment on the budget. The budget is scheduled for adoption on June 9.
From Chapel Hill eNews

Carrboro Looking at Tax Hike
At Tuesday’s Board of Aldermen meeting, Carrboro Town Manager Steve Stewart presented an $18.4 million budget that includes a 3.23 cent per $100 valuation property tax increase. The only expansions in the budget are the addition of six waterless urinals at the Carrboro Century Center, two police officers and increased funding for the Orange County Land Trust. The first public hearing on the budget will be May 27. For more information, click here.

Orange County Sales Tax Revenues Falling
In a work session last Thursday Orange County Commissioners received a report from county manager Laura Blackmon and budget director Donna Coffey who said that sales tax revenue for the County will be $1.5 million under projections for FY 2007-2008. Manager Blackmon cited the slowing economy as the problem; county residents are reducing their spending and thus limiting the amount of sales tax collected on potential sales. County staff did report that there would be a small pot of state lottery money available for capital projects. For the full story, click here.

Chapel Hill Hires Public Arts Administrator
Roger Stancil, Town Manager for Chapel Hill, recently announced the appointment of Jeffrey York as Town Public Arts Administrator. York comes from the N.C. Arts Council where he was director of public art and community design. Stancil described what York’s role will be in Chapel Hill, “He will facilitate the transition of the public art staff to town staff and current independent board to an advisory role. Our goal is to integrate public art into the context of what the town does every day." For the full story, click here.

Orange County Hires New Economic Development Director
Orange County Manager Laura Blackmon announced the hiring of Bradly Broadwell, formerly director of economic development in Dorchester County, Maryland, as the new Economic Development Director in Orange County. Broadwell will begin May 19 and has worked for US Agency for International Development in Mongolia and U.S. deputy secretary of commerce in Washington D.C. In a written statement, Manager Blackmon said, “Brad's vast experiences in developing successful economic programs, as well as his extensive background working with international communities are skills Orange County can put to use today.” For the full story, click here.

OWASA Gives Drought Update, Reservoirs at 81 Percent
On Monday, May 5, the Chapel Hill Town Council received an update from Ed Holland, OWASA Director of Planning, regarding the drought. Holland reported that the drought is now considered “moderate” and that as of May 5, water reservoirs were at 81 percent capacity. OWASA will continue to monitor the situation and residents and businesses will remain under Stage 1 water use restrictions and surcharges. You can contact OWASA at 919-968-4421 for a free water audit and learn of new ways to be a wise water user.
From Chapel Hill eNews

UNC-Chapel Hill Names Thorp Next Chancellor
H. Holden Thorp, currently Dean of the College of Arts and Sciences at UNC-CH, was named the 11th Chancellor of the University. Thorp is a Carolina grad and native of Fayetteville. He has served as Kennan Professor of Chemistry and previously director of UNC’s Morehead Planetarium and Science Center. Thorp will take over for exiting Chancellor James Moeser in July. For the full story, click here.

Orange County Housing Program Struggling
If Chapel Hill Town Council members reject a plea by the Orange Community Housing and Land trust to allow flexibility in affordable housing requirements, the model could fail, according to trust Director Robert Dowling. Based on the projections for the number of Land Trust properties that will go on the market during the next three years, which tops at 116 by 2010, Dowling said his sales staff of 1.5 positions cannot handle the workload.
Dowling and Jim Tucker, board treasurer for OCHLT, asked the council to consider conducting a study of the market for condominiums such as the proposed 346-unit Residences at Grove Park.

Dowling and Tucker asked the council to give developers more options for affordable housing, such as allowing a mixture of required units and payment-in-lieu of affordable housing, while the market study is being conducted. Dowling said flexibility would help manage the number of units added to OCHLT's program while giving the town time to see the market in action as units from developments like East 54 continue to sell. Council members seemed split on the proposal and voted to accept it as a petition to be considered at a later date.
From the Herald Sun

Church’s Expansion Proposal Could Bring Park-and-Ride Lot
The Orange United Methodist Church at 1220 Martin Luther King Jr. Blvd. brought expansion plans before the Chapel Hill Town Council during its February 18 meeting. The church, almost 180 years old, is proposing to build a 57,000-square-foot addition and 188 extra parking spaces on the 16-acre site. The construction will include a new worship space, classrooms, a youth facility and administrative offices. Currently, the sanctuary has a capacity of 240 seats and the campus has 110 parking spaces. The Planning Board requested the council to encourage the church to consider a park-and-ride facility at the site. The board reasoned that it's a good location for one because, among other reasons, it is on the bus line and a park-and-ride lot would help the town meet its goal of increasing the number of residents who take advantage of the bus service. For the full story, click here.


The Triangle

KB Home Rated Top Green Builder
Calvert Group, an investment management firm, and the Boston College Institute for Responsible Investment released a joint report evaluating the largest public builders in terms of energy, water, timber and land use in early May. According to the report, KB Home was the best of the builders. The Calvert Report states, “One company is clearly leading the homebuilding industry in terms of environmental sustainability: KB Home…this company leads the pack because of its comprehensive approach to sustainability.” Behind KB Home were D.R. Horton and Pulte and Centex in second and third respectively. For the full report, click here.

Chatham County to Receive Aid Following Plant’s Closing
Chatham County commissioners will consider a resolution telling lawmakers how they can help the county deal with the closing of Siler City’s Pilgrim's Pride poultry plant. County Manager Charlie Horne said he is already working with Dianne Reid, director of the county's Economic Development Corporation, on various actions related to the plant's closing, which affects more than 800 jobs and 40 farms in Chatham County. For the full story, click here.

Durham Impact Fees Approved
Beginning July 1, impact fees, those paid by developers upon completion of new construction, will go up. Downtown Durham will see a 24 percent increase, southern Durham 30 percent, and northern Durham will see a 55 percent decrease. The Durham City Council voted on the fee revisions during its March 17 meeting, with a 4-3 vote. The fees will help pay for streets, parks and open space. For the full story, click here.

Durham Athletic Park to Undergo Renovations
At the end of April, Durham City and Minor League Baseball officials participated in a historic groundbreaking event at Durham Athletic Park. The DAP, where the movie “Bull Durham” was filmed will undergo a $5 million renovation over the next six months and soon become home of the NCCU and Durham School of the Arts baseball teams. The DAP will also serve as a training ground of sorts for minor league baseball grounds crews and umpires. If everything goes according to schedule, the park will be finished in November. For the full story, click here.

Cary Developers to See Raised Impact Fees
Beginning July 1, developers in the town of Cary will pay 21.7 percent more in water and sewer fees on an average, 2,500-square-foot home, totaling $5,261. Water and sewer fees for a 150,000-square-foot office building would total $130,230, an increase of 20.6 percent. The town says that according to consultant studies, the fees are now at 75 percent of the "maximum" cost of providing water and sewer infrastructure to new developments. For the full story, click here.

Census Estimates Released, Big Growth in Wake County

The Census Bureau released its annual population growth estimates last Thursday for counties nationwide. Wake County led the Triangle in 2007 adding 38,841 people. This jump made it the seventh fastest growing county in the nation for 2007. Over the past seven years, Wake added 205,124 residents, putting it on pace to become North Carolina’s largest county very soon. See the table below for other Triangle county growth figures. For the full story, click here.

County

2007 Population

Percent Increase (‘00-‘07)

Durham

256,500

14.9

Orange

124,313

7.6

Chatham

61,455

24.6

Johnston

157,437

29.2

Wake

832,970

32.7

Triangle

1,400,000

34


State

Progress Energy Rolls Out Conservation Plan
Progress Energy announced three new programs aimed at energy conservation in the construction industry. One initiative in the plan, called Home Advantage, would pay builders and developers to build homes meeting federal Energy Star qualifications. The two other pieces of the plan target commercial builders and include “custom financial incentives” that would help builders recoup the costs of energy efficient measures in new projects and incentives to customers for retrofitting existing buildings. The goal of Progress’ strategy is to double the energy savings it gets through efficiency. For the full story, click here.

Governor Easley Releases Budget, Calls for Sin Taxes
Governor Easley’s recommended fiscal 2009 state budget was released last week and calls for $68 million to go toward changes in the state mental health system and a little more than $300 million to go toward an average 7 percent increase in public school teacher’s salaries. Funds for the mental health changes would come from a proposed 4 cent tax increase on beer and wine. The liquor tax would increase from 25 to 29 percent of the wholesale price as well. To pay for the teachers salary increase, Easley proposes increasing the cigarette tax from 35 cents per pack to 55 cents. For the full story, click here.

The Real Estate Report is produced by the Chapel Hill Chamber of Commerce and the Greater Chapel Hill Association of Realtors.



Thursday, April 24, 2008

The Real Estate Report (April 2008)


April, 2008

The Real Estate Report
Local Government News Impacting the Real Estate Industry




New Development

Glen Lennox Could be Site of Major Redevelopment
Grubb Properties, owner of the 440-unit Glen Lennox neighborhood, is looking to redevelop the neighborhood into a mixed-use transit friendly project to include single and multi-family residential, retail, office and hotel space. Grubb is planning to build buildings of between two and five stories along with parking decks. Though preliminary, Grubb is planning to utilize a good portion of the existing street network to save as many trees as possible. Currently, representatives from Grubb Properties are meeting with neighbors and tenants in Glen Lennox to discuss their plans. If all goes well, Grubb plans to submit a concept plan sometime this spring. For the full story, click here.

Buckhorn Village Project Given June 3 Deadline
Orange County planning board members are expected to present a recommendation on the Buckhorn Village redevelopment plan by June 3. Developers East West Partners Management Co., Tryon Investment Group and Montgomery Carolina submitted a proposal in December to redevelop the roughly 130 acres where the Buckhorn Road flea market sits on the southeastern corner of I-85/I-40 and Buckhorn Road in Efland. Developers hope to create 1.1 million square feet of retail and residential space which will include a 185,000-square-foot anchor store, hotels, offices, restaurants, residential space and a movie theater. After a lengthy discussion which allowed several landowners in the area to speak out in favor of the project, the board approved a motion requiring the planning board to present its recommendation on Buckhorn Village by June 3.
From the Herald Sun

Carrboro Officials Discuss New Developments’ Effect on Parking
A recent work session at Town Hall uncovered many town officials’ concerns about parking in Carrboro, particularly in light of new development. A study, being conducted by the town and university planning students, is being used to examine availability and use and future projections for downtown public and private lots. Town planners are also hoping the study will offer potential solutions for the anticipated parking shortage that will accompany downtown development. East Main Street and Carr Mill Mall development are already identified as projects which will reduce parking. Carrboro Board of Aldermen members suggested charging downtown property owners, constructing parking decks and charging for on-street parking as possible options. For the full story, click here.


Schools

School System Requests Budget Increase
Orange County Schools Superintendent Patrick Rhodes recommended a $1.8 million increase, or 8.35 percent increase compared to last year’s budget figure to the school board March17. Rhodes' budget recommendation would add 1.39 cents to the tax rate.
Chapel Hill-Carrboro City Schools recommended to its board a $6.8 million increase next year which could be funded in part by increasing the county's per-pupil spending, adding 2.62 cents per $100 valuation to the county tax rate. An increase in budget funds would go mostly toward expected state increases in teacher pay and benefits and a change in the state's requirements for the number of exceptional children's program positions.

The board will hold public hearings on both the operational and capital budget proposals at 6 p.m. April 7 and 7 p.m. April 10 in the auditorium of A.L. Stanback Middle School, 3700 N.C. 86 South, Hillsborough. The Orange County Board of Commissioners is scheduled to adopt its budget in June. For the full story, click here.

Two New School Sites Selected
The Chapel Hill-Carrboro School District’s next elementary school could be located in a historically black neighborhood. Two sites are being examined; one in the Northside neighborhood on the border between Chapel Hill and Carrboro, the other is in the Rogers Road neighborhood off of Purefoy Road. Both pieces of property are owned by Orange County and the elementary school is slated to open in August of 2011. For the full story, click here.


Orange County

Chapel Hill Tax Hike Estimated at Five Cents
Mayor Kevin Foy announced at a Town budget public hearing in late March that property owners should expect around a five cent per $100 valuation property tax increase. Foy reminded those in attendance that Chapel Hill has a high quality of life and that there are costs associated with maintaining that quality. Two items having a major toll on the budget are the Town’s new Operations Center and the Aquatics Center. The construction of both centers doubled the Town’s debt load from $32 million to $70 million. A five cent increase in property tax amounts to $100 per year for a $200,000 home. The next budget work session is scheduled for April 16 and the budget is expected to be adopted on June 9. For the full story, click here.

Orange County to Vote on Transfer Tax in May
The Orange County Board of Commissioners recently voted unanimously to put a 0.4 percent land transfer tax on the May primary ballot. About 10 audience members at the board meeting opposed the transfer tax by wearing stickers or holding signs, and a dozen people spoke before the board, many opposing the transfer tax. The other revenue option being considered by the Commissioners was a 0.25 percent sales tax increase. According to a poll recently conducted for the County, when asked which tax they would support, 48 percent of respondents said they would support the sales tax compared to only 32 percent for the transfer tax. Nevertheless, the Commissioners placed only the transfer tax on the ballot. For the full story, click here.

Tax Education Planned for Orange County Voters
The Orange County Board of Commissioners recently decided to support a voter education effort for the land transfer tax referendum, an effort which could cost as much as $100,000. A unanimous vote among commissioners solidified an agreement with Ballen Media, a Durham-based media consulting firm. The land transfer tax is projected to generate $3.5 million in the next fiscal year, if approved by voters. Last month, the board decided to put only the land transfer tax on the May 6 primary ballot, although the legislature approved a quarter-cent sales tax increase as a second revenue option that the board could have chosen to put before voters. The board has said if the tax passes it will spend the money on schools and parks. For the full story, click here.

Chapel Hill Trust Fund may Benefit Hillsborough Housing Options
As Hillsborough begins to consider a new approach to providing and ensuring affordable housing, Chapel Hill's decades-old housing loan trust fund may potentially be a valuable resource. The Hillsborough town board recently heard a report from Chapel Hill community development planner Loryn Clark on the town's housing trust fund. Using revenue-sharing funds to assist low-income families with the purchases of new homes or renovations to existing homes, the Chapel Hill Town Council established its housing loan trust fund in 1973. The Chapel Hill Town Council works through the county's land trust operation, Orange Community Housing and Land Trust, which offers affordable housing for residents including school teachers, police officers, nurses and others who provide basic services to the community but cannot afford to live in the county. The nonprofit developer's properties include single-family homes, townhouses and condominiums.

According to the organization, a typical three-bedroom, two-bath land trust townhouse in Chapel Hill with an appraised value of $165,000 would sell for around $105,000, a reduction made possible by housing subsidies and because ownership of the land itself remains with the land trust. A resident buying a home through the land trust model receives a 99-year ground lease and purchases the home at a lower price than it was appraised for. Homes stay in the trust, so a homeowner can sell it back to the organization, but not for its market value. Following the discussion, town board member Eric Hallman requested the board receive more information on how to move forward with the issue.
From the Herald Sun

Dispute over Permit Condition in Carrboro Development Project
Attorneys for Northwest Properties and the Town of Carrboro presented evidence in front of Superior Court Judge Allen Baddour concerning a dispute over a permit for a 77,000-square-foot center on Jones Ferry Road. The argument was over a condition for the permit which prohibited an entrance to the center from Barnes Street. The Shoppes at Jones Ferry is planned to include a 50,000-square-foot Harris Teeter grocery store and other retail space along Jones Ferry Road and Barnes Street. Without the disputed Barnes Street entrance to The Shoppes there would be one entrance into the center. Northwest Properties says its client, Harris Teeter, will pull out of the project unless there are two public driveways into the property. The Town of Carrboro is arguing that this entrance would increase traffic flow into a residential area and could cause safety problems for those residents who live on Barnes Street.

Northwest Properties is asking Baddour to strike the condition that restricts access to the shopping center from Barnes Street. The judge said he would read all of the evidence before making a decision. He will most likely make a decision out of term and out of session.
From the Herald Sun

OWASA Votes to Return to Stage 1, Urges Continued Conservation
At their meeting on Thursday, April 10, the OWASA Board heard from a number of business owners and Chamber representatives supporting the OWASA staff recommendation to return to Stage 1 water restrictions. After some discussion, the OWASA Board voted unanimously to rescind Stage 3 and reinstate Stage 1. On Monday and Tuesday of this week, OWASA staff presented a water update to the Chapel Hill Town Council and Carrboro Board of Aldermen and heard a number of concerns from elected officials over the move to Stage 1. In the end, both Mayors signed the OWASA Stage 1 proclamation and will hear another update in 30 days. For the full story, click here.

Downtown Chapel Hill Parking Solution Request Expedited
Members of the Chapel Hill Town Council and the Chapel Hill Downtown Partnership have agreed to expedite the request of property owner P.H. Craig to rezone parking areas behind The Courtyard shopping center. Since Courtyard owner Spencer Young purchased the property in 2005, Craig and Young have yet to reach a lease agreement and Craig closed his parking lot property to Courtyard use over the summer. As a result, Courtyard tenants have complained that the struggle between the business owners has reduced the already limited parking. Although the Council has agreed to expedite the request, Craig has not been given an indication of when the spaces would be available if the changes were approved. For the full story, click here.

Church’s Expansion Proposal Could Bring Park-and-Ride Lot
The Orange United Methodist Church at 1220 Martin Luther King Jr. Blvd. brought expansion plans before the Chapel Hill Town Council during its February 18 meeting. The church, almost 180 years old, is proposing to build a 57,000-square-foot addition and 188 extra parking spaces on the 16-acre site. The construction will include a new worship space, classrooms, a youth facility and administrative offices. Currently, the sanctuary has a capacity of 240 seats and the campus has 110 parking spaces. The Planning Board requested the council to encourage the church to consider a park-and-ride facility at the site. The board reasoned that it's a good location for one because, among other reasons, it is on the bus line and a park-and-ride lot would help the town meet its goal of increasing the number of residents who take advantage of the bus service. For the full story, click here.

Major Projects Come to Fruition in Hillsborough
Several Orange County services, including the register of deeds, land records, tax assessor and tax collector offices, will move into the Gateway Center, scheduled to open April 30. Pam Jones, the county’s purchasing director, said the offices will close March 14 at 5 p.m. and reopen the morning of March 19 on the building’s second and third floors. The Gateway parking deck will open to the public in mid-April. Of the deck's 400 parking spots, 200 will be occupied by county employees and 200 will be available for pay-by-the-hour parking. County employees will temporarily use the Weaver Street Market parking lot until the lot is opened to the public.

David Stancil, environmental resource and conservation director, said plans for Fairview Park, located on Rainey Avenue, appear to be on schedule and could move into the construction process "probably before Thanksgiving." Lori Taft, director of parks and recreation, said the town is optimistic about its application for a $500,000 grant to the N.C. Parks and Recreation Trust Fund for Fairview Park.
From the Herald Sun


The Triangle

Chatham County Approves Water Rules
Chatham County commissioners adopted new rules February 19 to promote year-round water conservation. The revisions allow about 5,000 households in northeastern Chatham served by the Jordan Lake Treatment Plant to apply a total of 1 inch of water on two specified days a week. Residents who get water service from Cary and county water customers outside the northeast are not included in the new rules. Irrigation systems must have automatic controllers and moisture sensors and watering landscaping or using water to clean vehicles, equipment or hard surfaces to the extent that water pools or runs onto adjacent property or public right-of-way is prohibited. Losing water through plumbing leaks that can be readily identified and repaired is also prohibited and all leaks must be repaired within 10 days of being detected. For the full story, click here.

Chatham County to Receive Aid Following Plant’s Closing
Chatham County commissioners will consider a resolution telling lawmakers how they can help the county deal with the closing of Siler City’s Pilgrim's Pride poultry plant. County Manager Charlie Horne said he is already working with Dianne Reid, director of the county's Economic Development Corporation, on various actions related to the plant's closing, which affects more than 800 jobs and 40 farms in Chatham County. For the full story, click here.

Durham Impact Fees Approved
Beginning July 1, impact fees, those paid by developers upon completion of new construction, will go up. Downtown Durham will see a 24 percent increase, southern Durham 30 percent, and northern Durham will see a 55 percent decrease. The Durham City Council voted on the fee revisions during its March 17 meeting, with a 4-3 vote. The fees will help pay for streets, parks and open space. For the full story, click here.

Durham County Commissioners Approve School Project
A unanimous vote among Durham County commissioners recently authorized the school district to use county money to fund 10 of the 14 items from the schools' 2007 general obligation bond offering. Expected costs on those projects total about $127 million, nearly two-thirds of the entire $194.2 million bond offering. Projects include building a 600-student elementary school in northeast Durham and an 850-student middle school in northern Durham, building a new facility by Durham Regional Hospital for the 400-student City of Medicine Academy, acquiring land for a future elementary school and a future high school at locations to be determined, renovating Neal Middle School, upgrading playgrounds at several schools expanding the cafeteria at Hillside High School and expanding the driveway at Jordan High School.
From the Herald Sun

Cary Developers to See Raised Impact Fees
Beginning July 1, developers in the town of Cary will pay 21.7 percent more in water and sewer fees on an average, 2,500-square-foot home, totaling $5,261. Water and sewer fees for a 150,000-square-foot office building would total $130,230, an increase of 20.6 percent. The town says that according to consultant studies, the fees are now at 75 percent of the "maximum" cost of providing water and sewer infrastructure to new developments. For the full story, click here.

Corps Cuts Water Flow from Lake to Help Raleigh
The U.S. Army Corps of Engineers has agreed to cut nearly in half the amount of water that flows out of drought-ravaged Falls Lake to extend water supplies for the city of Raleigh. Raleigh Mayor Charles Meeker lobbied congressmen for help. The lake is about 8 feet below normal level and the city has implemented mandatory water conservation. Meeker told WRAL-TV the reduction of 17 million gallons a day would last at least through March and retain as much as 500 million gallons of water in the lake. The reduction could be extended for up to a year. Rep. David Price told The News & Observer of Raleigh that the Corps acted unusually fast.
From the Herald Sun

Triangle Most Expensive Place to Live in N.C.
According to a recent report by the N.C. Justice Center, the Triangle is the most expensive place to live in the state. For a two-parent, two-child family to live a basic life in the Triangle, it would cost $49,937. By county, Wake was the most expensive at $51,856, followed by Orange at $50,180. The state average for a family is $42,841. For the full story, click here.

Census Estimates Released, Big Growth in Wake County
The Census Bureau released its annual population growth estimates last Thursday for counties nationwide. Wake County led the Triangle in 2007 adding 38,841 people. This jump made it the seventh fastest growing county in the nation for 2007. Over the past seven years, Wake added 205,124 residents, putting it on pace to become North Carolina’s largest county very soon. See the table below for other Triangle county growth figures. For the full story, click here.

County
2007 Population
Percent Increase ('00-'07)
Durham
256,500
14.9
Orange
124,313
7.6
Chatham
61,455
24.6
Johnston
157,437
29.2
Wake
832,970
32.7
Triangle
1,400,000
34

NAI Carolantic Realty Releases Figures
The 2008 Triangle Commercial Real Estate Report was released by NAI Carolantic recently and showed office vacancy rates were down throughout the Triangle. In downtown Raleigh, 2007 vacancy was at 7 percent down from 10 the year before. In downtown Durham, vacancy was down to 10 percent from 15 percent in 2006. Cary showed a slight increase rising from 13 percent to 14 percent in 2007. In the retail market, nearly one million square feet of new space was built during 2007, which caused an increase in vacancy rates by 2 percent in the Triangle.
From Carolantic Realty


State

Retail Internet Sales will Continue to Grow in 2008
The National Retail Association’s annual survey, The State of Retailing Online, is forecasting $204 billion in retail sales over the Internet in 2008, a 17 percent increase over last year. Sales categories with the greatest expected sales include apparel, with $26.6 billion, computers, with $23.9 billion, and autos, with $19.3 billion. For the full story, click here.


N.C. Cities to Discuss Neuse Basin Water
The state Division of Water Resources will lead a project including cities across North Carolina and state water planners to develop a long-range model of water use from the Neuse River basin. John Morris, director of the state agency, said plans by individual local governments to withdraw more water may look fine in isolation, but they do not take into account withdrawals in other parts of the basin that affect water supplies farther downstream. The agency is preparing overviews for most of North Carolina's major river basins, to which it will refer when making regulatory decisions about proposed water withdrawals and planning for increased water use, and the project is expected to take about two years to complete. For the full story, click here.

Sunday, March 30, 2008

The Real Estate Report (March 2008)


March, 2008

The Real Estate Report
Local Government News Impacting the Real Estate Industry




New Development

Roberson Square Granted Permit for Mixed-use Development
The Carrboro Board of Aldermen granted developers of Roberson Square a permit to build a five-story commercial and residential structure during its February 26 meeting. The project at 203 South Greensboro St., across from Open Eye Cafe, will be 91,575 square feet and will include 18 condominiums. The top three floors will house the condominiums and the bottom two floors will house shops and offices. Downtown business owners and residents expressed concerns at the last public hearing about the lack of parking. The new plans show the property will have 65 underground parking spaces and seven public, on-street parking spaces along Carr Street. The board is also trying to lower the speed limit on Carr Street. For the full story, click here.

Buckhorn Village Input Draws Large Crowd

A February 25 public hearing drew a crowd of about 120 people interested in the proposal of a 1.1 million-square-foot retail and mixed development project on the western edge of Orange County. Buckhorn Village project developers have asked for rezoning and a special use permit in order to build in three development districts totaling about 130 acres on a site which includes the Buckhorn flea market off Interstate 40-85. Planning consultants told the board that plans call for widening the bridge over the interstate and portions of Buckhorn Road and emphasized that the development would be pedestrian-friendly and link with bike paths. About 39 residents signed up to speak, either in favor of the development or to express concerns about traffic and effects on local property. For the full story, click here.

Carrboro Officials Discuss New Developments’ Effect on Parking
A recent work session at Town Hall uncovered many town officials’ concerns about parking in Carrboro, particularly in light of new development. A study, being conducted by the town and university planning students, is being used to examine availability and use and future projections for downtown public and private lots. Town planners are also hoping the study will offer potential solutions for the anticipated parking shortage that will accompany downtown development. East Main Street and Carr Mill Mall development are already identified as projects which will reduce parking. Carrboro Board of Aldermen members suggested charging downtown property owners, constructing parking decks and charging for on-street parking as possible options. For the full story, click here.

Developer’s ‘Carbon Zero’ Proposal Well-received by Town Council
Developer Phil Szostak has proposed a new concept for a 32-unit, mixed-use project at South Columbia Street and Fordham Boulevard: ‘carbon zero’ construction. ‘Carbon zero’ means the project would produce all necessary energy on-site, via solar, wind and geothermal technologies. Much of the lot, however, is protected as a resource conservation district, prohibiting Szostak to build on it due to the presence of a small stream. Szostak pitched his proposal during a recent meeting of the Chapel Hill Town Council, asking for advice on whether to continue with developing the concept. Town officials, including Chapel Hill Mayor Kevin Foy, encouraged him to continue with developing his proposal. For the full story, click here.


Schools

School System Requests Budget Increase
Orange County Schools Superintendent Patrick Rhodes recommended a $1.8 million increase, or 8.35 percent increase compared to last year’s budget figure to the school board March17. Rhodes' budget recommendation would add 1.39 cents to the tax rate.
Chapel Hill-Carrboro City Schools recommended to its board a $6.8 million increase next year which could be funded in part by increasing the county's per-pupil spending, adding 2.62 cents per $100 valuation to the county tax rate. An increase in budget funds would go mostly toward expected state increases in teacher pay and benefits and a change in the state's requirements for the number of exceptional children's program positions.

The board will hold public hearings on both the operational and capital budget proposals at 6 p.m. April 7 and 7 p.m. April 10 in the auditorium of A.L. Stanback Middle School, 3700 N.C. 86 South, Hillsborough. The Orange County Board of Commissioners is scheduled to adopt its budget in June. For the full story, click here.

School Board Member Whitling Resigns Following Embezzlement Charges
Following a February 14 arrest and facing charges of embezzlement in excess of $100,000, false pretense, corporate malfeasance and obstruction of justice, Orange County school board member Dennis Whitling resigned February 18. His bail was set at $75,000 then reduced to $10,000. According to a search warrant, a Durham Police Department investigator applied in December for access to Whitling's personal bank account information. Detective Cpl. Bennie E. Bradley wrote that Whitling left a Durham firm owned by Thomas J. Stevens in 2007 to start his own business and may have stolen more than $58,000 from the law office where he worked from 1984 to 2007. Bradley also said that in 2006 and 2007, Whitling wrote himself checks for more money than was authorized. The alleged incidents occurred between December 2005 and September 2007. The law firm reported them in November. For the full story, click here.


Orange County

Orange County to Vote on Transfer Tax in May
The Orange County Board of Commissioners recently voted unanimously to put a 0.4 percent land transfer tax on the May primary ballot. About 10 audience members at the board meeting opposed the transfer tax by wearing stickers or holding signs, and a dozen people spoke before the board, many opposing the transfer tax. The other revenue option being considered by the Commissioners was a 0.25 percent sales tax increase. According to a poll recently conducted for the County, when asked which tax they would support, 48 percent of respondents said they would support the sales tax compared to only 32 percent for the transfer tax. Nevertheless, the Commissioners placed only the transfer tax on the ballot. For the full story, click here.

Dispute over Permit Condition in Carrboro Development Project
Attorneys for Northwest Properties and the Town of Carrboro presented evidence in front of Superior Court Judge Allen Baddour concerning a dispute over a permit for a 77,000-square-foot center on Jones Ferry Road. The argument was over a condition for the permit which prohibited an entrance to the center from Barnes Street. The Shoppes at Jones Ferry is planned to include a 50,000-square-foot Harris Teeter grocery store and other retail space along Jones Ferry Road and Barnes Street. Without the disputed Barnes Street entrance to The Shoppes there would be one entrance into the center. Northwest Properties says its client, Harris Teeter, will pull out of the project unless there are two public driveways into the property. The Town of Carrboro is arguing that this entrance would increase traffic flow into a residential area and could cause safety problems for those residents who live on Barnes Street.

Northwest Properties is asking Baddour to strike the condition that restricts access to the shopping center from Barnes Street. The judge said he would read all of the evidence before making a decision. He will most likely make a decision out of term and out of session. For the full story, click here.

Downtown Chapel Hill Parking Solution Request Expedited
Members of the Chapel Hill Town Council and the Chapel Hill Downtown Partnership have agreed to expedite the request of property owner P.H. Craig to rezone parking areas behind The Courtyard shopping center. Since Courtyard owner Spencer Young purchased the property in 2005, Craig and Young have yet to reach a lease agreement and Craig closed his parking lot property to Courtyard use over the summer. As a result, Courtyard tenants have complained that the struggle between the business owners has reduced the already limited parking. Although the Council has agreed to expedite the request, Craig has not been given an indication of when the spaces would be available if the changes were approved. For the full story, click here.

Downtown Chapel Hill May Get Farmers’ Market
The Chapel Hill Downtown Partnership, local farmers and the Town's Parks and Recreation Department are working to establish an afternoon farmers’ market on top of the Wallace Parking Deck this spring. Organizers say the proposed market, which would follow the models of farmers’ markets in Carrboro, Hillsborough and Fearrington Village, would support the partnership’s goal of increasing downtown traffic. In addition to the fresh produce, flowers, meats and other farmers’ market products to be sold, organizers are also considering featuring live music and entertainment, as well as offering downtown business and restaurants the opportunity to sell their products. For the full story, click here.

Church’s Expansion Proposal Could Bring Park-and-Ride Lot
The Orange United Methodist Church at 1220 Martin Luther King Jr. Blvd. brought expansion plans before the Chapel Hill Town Council during its February 18 meeting. The church, almost 180 years old, is proposing to build a 57,000-square-foot addition and 188 extra parking spaces on the 16-acre site. The construction will include a new worship space, classrooms, a youth facility and administrative offices. Currently, the sanctuary has a capacity of 240 seats and the campus has 110 parking spaces. The Planning Board requested the council to encourage the church to consider a park-and-ride facility at the site. The board reasoned that it's a good location for one because, among other reasons, it is on the bus line and a park-and-ride lot would help the town meet its goal of increasing the number of residents who take advantage of the bus service. For the full story, click here.

Major Projects Come to Fruition in Hillsborough

Several Orange County services, including the register of deeds, land records, tax assessor and tax collector offices, will move into the Gateway Center, scheduled to open April 30. Pam Jones, the county’s purchasing director, said the offices will close March 14 at 5 p.m. and reopen the morning of March 19 on the building’s second and third floors. The Gateway parking deck will open to the public in mid-April. Of the deck's 400 parking spots, 200 will be occupied by county employees and 200 will be available for pay-by-the-hour parking. County employees will temporarily use the Weaver Street Market parking lot until the lot is opened to the public.

David Stancil, environmental resource and conservation director, said plans for Fairview Park, located on Rainey Avenue, appear to be on schedule and could move into the construction process "probably before Thanksgiving." Lori Taft, director of parks and recreation, said the town is optimistic about its application for a $500,000 grant to the N.C. Parks and Recreation Trust Fund for Fairview Park. For the full story, click here.


The Triangle

Chatham County Approves Water Rules
Chatham County commissioners adopted new rules February 19 to promote year-round water conservation. The revisions allow about 5,000 households in northeastern Chatham served by the Jordan Lake Treatment Plant to apply a total of 1 inch of water on two specified days a week. Residents who get water service from Cary and county water customers outside the northeast are not included in the new rules. Irrigation systems must have automatic controllers and moisture sensors and watering landscaping or using water to clean vehicles, equipment or hard surfaces to the extent that water pools or runs onto adjacent property or public right-of-way is prohibited. Losing water through plumbing leaks that can be readily identified and repaired is also prohibited and all leaks must be repaired within 10 days of being detected. For the full story, click here.

Residents Challenge Mixed-use Project Development
Following a decision by the Cary Town Council to approve a mixed-use project near the Prestonwood Country Club, nineteen residents have been engaged in a yearlong battle challenging the decision. In December, the Charlotte-based development company Crosland declared intentions of seeking attorneys’ fees if the case is dismissed and considered frivolous. A March 5 hearing is scheduled in Wake Superior Court. The 41-acre project is expected to be similar to Raleigh's North Hills and will include apartment units, townhouses and more than 100,000 square feet of commercial and office space. Residents say that will bring too much traffic and result in an urban feel to the area of mainly suburban residential subdivisions. For the full story, click here.

Corps Cuts Water Flow from Lake to Help Raleigh
The U.S. Army Corps of Engineers has agreed to cut nearly in half the amount of water that flows out of drought-ravaged Falls Lake to extend water supplies for the city of Raleigh. Raleigh Mayor Charles Meeker lobbied congressmen for help. The lake is about 8 feet below normal level and the city has implemented mandatory water conservation. Meeker told WRAL-TV the reduction of 17 million gallons a day would last at least through March and retain as much as 500 million gallons of water in the lake. The reduction could be extended for up to a year. Rep. David Price told The News & Observer of Raleigh that the Corps acted unusually fast.
From the Herald Sun

Census Estimates Released, Big Growth in Wake County
The Census Bureau released its annual population growth estimates last Thursday for counties nationwide. Wake County led the Triangle in 2007 adding 38,841 people. This jump made it the seventh fastest growing county in the nation for 2007. Over the past seven years, Wake added 205,124 residents, putting it on pace to become North Carolina’s largest county very soon. See the table below for other Triangle county growth figures.

County
Pop. Increase ('00-'07)
Percent
Durham
256,500
14.9
Orange
124,313
7.6
Chatham
61,455
24.6
Johnston
157,437
29.2
Wake
832,970
32.7
Triangle
1,400,000
34

Durham Greenfire Development Deal Delayed
The Durham City Council agreed March 3 to delay a decision on the nonbinding "deal points" that would have launched the final negotiations for Greenfire Development’s $284 million downtown redevelopment project. A city-owned parking deck and two parking lots would be redeveloped as a mix of residential and retail. The deal also includes turning the Hill Building, now home to SunTrust bank, into a hotel and the former Woolworth's department store site into an office tower. City officials said Monday they're generally supportive of the concept, but community feedback, which has included testy public meetings and sharply worded letters to city leaders, led the council to delay the deal. For the full story, click here.


State

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


N.C. Cities to Discuss Neuse Basin Water
The state Division of Water Resources will lead a project including cities across North Carolina and state water planners to develop a long-range model of water use from the Neuse River basin. John Morris, director of the state agency, said plans by individual local governments to withdraw more water may look fine in isolation, but they do not take into account withdrawals in other parts of the basin that affect water supplies farther downstream. The agency is preparing overviews for most of North Carolina's major river basins, to which it will refer when making regulatory decisions about proposed water withdrawals and planning for increased water use, and the project is expected to take about two years to complete. For the full story, click here.

The Real Estate Report is produced monthly by the Chapel Hill Chamber of Commerce and the Greater Chapel Hill Association of Realtors