The Real Estate Report (January 2008)

Volume 3, Issue 1

January, 2008

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

New Development Major Retail Project Moves Forward in Orange County A 120-acre major retail development at the Buckhorn Road flea market site moved forward for Orange County approval last week. The land, owned by Orange County Investors, is located at the southeast corner of I-85/I-40 and Buckhorn Road between Hillsborough and Mebane. Development plans call for around 1,000,000 square feet of retail development, a third of which will serve as a “walkable village” similar in concept to the Streets of Southpoint in Durham. By comparison, Southpoint is around 1.3 million square feet. The remainder of the development would include larger retail establishments. The development is occurring in a designated economic development node and does not include plans for any residential development. If everything goes according to plan and the project is approved, this would be the largest development 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. For the full story, click here. Schools UNC Receives Kiplinger’s Top Honor for Seventh Year The February issue of Kiplinger’s Personal Finance magazine named the University of North Carolina at Chapel Hill the best value in public education for in-state students for the seventh year in a row. An article about schools that made the best value list attributed UNC’s commitment to raising private funds as one of its best resources for making an outstanding and affordable education for North Carolina residents. The fundraising campaign at UNC, which concluded last year and brought in an extra $2.3 billion for the school, is just one example of the university looking outside of the tuition box to fund its prestigious academics and research. Kiplinger also commended UNC for being committed to meeting the financial need of students by allowing students from low-income families to graduate debt-free. The first group of students to benefit from this program, called Carolina Covenant, will graduate in May. To read the full article, click here. Orange County 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. 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. Town Council Lets Moratorium Expire A vote was made on Monday by the Chapel Hill Town Council to allow a moratorium in the Northern Study Area to expire this month. In November the council asked town staff to consider extending the moratorium for more time to explore other options for the plan to develop areas of northwest Chapel Hill. By allowing the moratorium to end in January the council accepted the proposals of Roger Stancil, manager of the Town Council and J.B. Culpepper who serves as the planning director. Another vote made by the council will allow a final report from the Chapel Hill Northern Area Task Force to be included in the town Comprehensive Plan. It will also add a “development opportunity areas” aspect to the current Land Use Plan. For the full story, click here. UNC and Town Council Move Ahead with Carolina North Plans The UNC Board of Trustees and the Chapel Hill Town Council met last Sunday to discuss the collaboration of both groups in the plan for Carolina North, the university’s new research campus on MLK Jr. Boulevard. The meeting addressed concerns from council members about UNC’s willingness to work with the town council in forming the long-term vision of Carolina North, especially its effects on the town. Chairman of the UNC Board of Trustees, Roger Perry, said that the university is flexible in its plans for the future of Carolina North and that it would work with the town in the process of developing the 250 acre campus. An agreement was made between the two groups that an official presentation would be made before the council and a public hearing would be held before moving forward with the Carolina North development. For the full story, click here. New Traffic Pattern for Erwin Road/Europa Drive As of Tuesday, January 8, vehicles will no longer be able to make left turns or through movements from Erwin Road/Europa Drive onto U.S. 15-501. According to the NC Department of Transportation, the new pattern will reduce traffic congestion at the busy intersection. For more information, contact Donnie Huffines at 336-570-6830. From the Chapel Hill eNews Visitors Center Sees Major Increase The Chapel Hill/Orange County Visitors Bureau recorded a 58 percent increase in visitors from 2006 to 2007. For all of 2007, the Center recorded 15,778 visitors compared to 9,947 in 2006. The Center, located on West Franklin Street in Chapel Hill, says July is the busiest month followed by April. For the full story, click here. Town Hires New Business Management Director Town Manager Roger Stancil announced in early January the appointment of Ken Pennoyer as Business Management Director. Pennoyer comes to Chapel Hill from Durham where he served as finance director for the past 4 years. Stancil said Pennoyer will be tasked with “transitioning the finance department into one that manages the business of the Town including budget, accounting, business analysis and information technology.” Pennoyer will begin on February 4. From the Chapel Hill eNews Hearing to be Held Concerning Town Towing Ordinances The Town Council announced Monday that it will hold a public hearing regarding proposals to change town towing ordinances. Consideration of amendments were brought to the attention of the council in October through a petition by Margaret McCann, who voiced her discontentment with excessive fees and abusive towing practices regarding two towing incidents of family cars on Franklin Street. The council is especially concerned with the existing ordinances’ lack of position on the issue of vehicle operators returning to cars while towing process is taking place. McCann has proposed that towing sign regulations be reconsidered and has suggested booting as an alternative. The Chapel Hill Police Department has submitted its suggestions to include $100 limit on removal fines and a provision preventing towing operators from removing a vehicle if the operator returns. To read all of the Chapel Hill Police Department ordinance proposals, click here. The Triangle State Tells Pittsboro to Redo Election After listening to accusations of voter intimidation and other election law violations, the State Board of Elections backed a new election for the Pittsboro Town Board. The special election will occur on March 18 between November’s third and fourth place finishers, Hugh Harrington and Michelle Berger, respectively. In the November election, Harrington beat Berger by six votes, though it was later determined that 17 voters received an incorrect ballot. The new election will come at a cost of $2,000. For the full story, click here. Chatham Retail Leakage Reported Early results of a study commissioned by Chatham County’s Commissioners reports, among other things, a sizeable retail leakage in the county. The following table details the amount of sales captured in the county and amount leaked outside the county. All figures are in millions. Chatham 2004-2005 Captured in County Leaked Outside County Total Spending Leakage Rate Apparel $2 $27 $29 92% Automotive $74 $72 $146 49% Food $134 $88 $222 40% Furniture $28 $16 $44 36% General Merchandise $110 $182 $292 62% Lumber and building material $44 $86 $131 66% Unclassified $41 $287 $329 87% Total $448 $788 $1,236 64% Source: Presentation by Jason Jolley, Chatham County Economic Development Summit 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 and 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 Water Bills Likely to Rise Mandatory water restrictions and the purchase of pumps and pipes to connect to new water sources will cause water bills in Durham to rise. Water use in Durham has decreased since mandatory restrictions were enacted September 21 and City Manager Patrick Baker said that means the water management department will not meet its revenue projections for the year. Leakages resulting from cracked pipes also costs Durham about 3.3 million gallons of water a day. 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 and Observer Raleigh Mayor Outlines Plan to Increase Water Bills by 50 Percent In an effort to stimulate conservation, Raleigh Mayor Charles Meeker announced to the press that he will ask the city council to increase water bills, both residential and commercial, by 50%. If approved the surcharge would take effect in March and not appear on bills until May. Below is a chart illustrating what the increase would mean to a household consuming 6,000 gallons per month and the relative prices of water in comparable cities. Current Price Per Year Proposed Price Per Year Raleigh $356.76 $535.14 Cary $693.48 -- Durham $533.88 -- Charlotte $480 -- If the rate hike works as the Mayor hopes, Raleigh would pump an average of 6 million gallons less water per day. For the full story, click here. RDU Reports Major Increase in Travelers for 2007 Raleigh Durham International Airport recorded over 10 million passenger flights in 2007, up 6.4 percent from 2006. The record for RDU is 10.4 million in 2000, prior to the September 11th terrorist attacks. According to the airport, the uptick in travelers was a nationwide trend and the addition of ExpressJet and new lines to Denver and New Orleans also helped. For the full story, click here. State N.C. Bankers Forum Forecasts More of the Same At the N.C. Bankers Annual Economic Forecast Forum, three keynote speakers all projected 2007’s economic trends to continue in 2008. David M. Walker, U.S. Comptroller General, told the audience that it would not be until 2009 that economic conditions might begin to improve. Walker did point out that the U.S. economy had seen similar slowdowns in previous decades and sited his alarm over current Federal spending patterns. David F. Seiders, the Chief Economist of the National Association of Home Builders, projected that it would not be until the third quarter of 2008 that the housing industry would see improvements. Nation Wachovia Economist Says U.S. Recession Unlikely The 2008 economic forecast presented by Mark Vinter, senior economist for Wachovia, does not include a recession for the U.S. economy. On Tuesday Vinter explained to the North Florida chapter of the Association for Corporate Growth that current talks of an economic recession are premature. Wachovia’s models for the national economy predict that in the next six months there is around a 50 percent chance that there will not be a recession. The key factor in the health of the economy lies in the annual growth of the GDP, which is expected to increase in the last six months of the year. Though the housing market is causing GDP growth to be lower, Vinter says that strengths in the economy such as manufacturing and income data will most likely keep the economy healthy. 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

The Real Estate Report (December 2007)

December, 2007

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

New Development Habitat Homes Approved In late November, the Chapel Hill Town Council approved a special use permit for 51 Habitat for Humanity homes off Purefoy Drive. The development will take place on 19.3 acres of land and likely include a community garden and recreation area. Habitat’s homes will be available to families making 50 percent or less ($35,650 in 2005) of the median income. For the full story, click here. Zero Carbon Project Proposed for Chapel Hill Thirty-two apartments and 12,000 square feet of shops and offices are proposed for the corner of N.C. 54 and South Columbia Street. The project will potentially be the greenest in the country with developer Phil Szostak proposing that the project be a zero carbon development. The development would include solar panels and roof top gardens and generate its own electricity entirely on site via wind and geothermal power. However, some concerns have been raised about the project’s proximity to a stream which the developer contends is sometimes dry. The state classifies the stream as year-round, a classification that would force the developer to move the project further from the stream. For the full story, click here. Regulatory Issues Northwest Chapel Hill Development Hearings Scheduled by Town Council The Chapel Hill Town Council has opened a public hearing, to continue January 14, on a set of development guidelines for northwest Chapel Hill. A second hearing on extending the moratorium past its January 31 expiration could happen at the following Council meeting on Wednesday, January 23. Citizens and Council Members have spoken against the town planning staff's rezoning recommendations for key properties in the area, but neither staff nor the Council could identify a better option for rezoning. For the full story, click here. Chapel Hill Bans Pine Straw as Landscaping Material In late October, the Town of Chapel Hill adopted an ordinance banning the use of pine straw or pine needles as landscaping material within 10 feet of any commercial or multi-family building. This ban is in effect for buildings made of combustible material including wood, vinyl, plastic, or other burnable materials. There have been a number of fires caused by discarded cigarettes being tossed into pine straw this year and the fire department has found that pine straw burns at a rate four times faster and three times higher than any other landscaping material. The fire department will not begin strict enforcement of the ban until February 1st, 2008 in order to allow property owners time to change the mulch. For more information, click here. Schools Chapel Hill-Carrboro City Schools Request $6.5 Million Chapel Hill-Carrboro City School officials are requesting $6.5 million, a 12-percent increase from current funds, to support continuing operations next year. "[The continuation budget] really is the basic necessities -- there's no expansion component, nothing new, nothing different, nothing better in what's being discussed at this point," schools spokesperson Stephanie Knott said. Anticipated new costs include salary and benefit increases, the opening of the area’s 10th elementary school and increased enrollment at Carrboro High School. The school board plans to submit the continuation budget to the county commissioners by the end of November. For the full story, click here. Orange County Chapel Hill Holiday Parking Expanded Courtesy of the Town of Chapel Hill, parking will be free in the downtown on Saturday December 22 at all on-street meters and at Parking Lots 2 and 5. In addition, parking coupons for one hour of free parking in the Wallace Parking Deck or Parking Lot 2 will be distributed by downtown merchants. The coupons will be valid through December 30. For more information, please contact the Town of Chapel Hill Parking Services at (919) 968-2758. Source: Chapel Hill eNews Council Funds Parking Study The Chapel Hill Town Council approved a payment of $27,000 to the Downtown Partnership for a parking study to be completed by the end of February. Rich and Associates were hired to undertake the study, a group that has done a number of similar studies throughout the United States. Rich and Associates spent all of Thursday, November 8th studying parking demand and will examine demand on December 17th to see how demand shifts when students are not in town. Chamber staff is participating on the Parking Study Advisory Committee hosted by the Downtown Partnership. For the full story, click here. Civilian Labor Force Grows According to the Employment Security Commission of North Carolina, Orange County’s civilian labor force grew fastest in the Triangle compared to numbers from 2006. The following figures are for resident workers in each county. September 2006 Number of People Employed September 2007 Number of People Employed Increase Percent Chatham 31,153 31,921 768 2.47% Orange 66,085 67,714 1,629 2.47% Durham 131,175 134,408 3,233 2.46% Wake 414,607 422,122 7,515 1.81% Source: Triangle Business Journal County Steps in to Help Courtyard Spencer Young, owner of The Courtyard in Chapel Hill and P.H. Craig, owner of the parking lot associated with the Courtyard have not been able to reach a lease agreement over 56 of the 79 parking spaces. Last week, Young and the Orange County Commissioners reached an agreement to allow Young use of the Skills Development Center and Visitor’s Bureau parking lot located across from The Courtyard. The lot will be available to Young for a monthly fee of $125 and will be open to Courtyard patrons on Friday, Saturday and Sundays between 5 pm and midnight for the next six months. For the full story, click here. ‘Anti-lingering’ Rule Passed in Carrboro The intersection of Jones Ferry and Davie roads is now under an ‘anti-lingering’ ordinance, adopted by the Board of Aldermen in a 4-1 vote. The ordinance would prohibit people to "stand, sit, recline, linger or otherwise remain within the area ... between the hours of 11 a.m. and 5 a.m. [the next day]." While the area is primarily used by day laborers, mainly Hispanic men waiting for rides to construction or farm jobs, residents say that non-day laborers cause a disturbance in the area. Former Alderman Mark Dorosin and Alderman John Herrera oppose the ordinance. For the full story, click here. Transfer Station Search Reopened The Orange County Board of Commissioners voted in a November meeting to re-launch the search for a new solid waste transfer site. The Commissioners also decided to hire a consultant to identify and evaluate potential sites. The transfer station is currently located near the Rogers/Eubanks neighborhoods and was a heated topic in the recent election. Some members of the community have claimed the site is an injustice and a sign of environmental racism. Going forward, the Commissioners are recommending the transfer site be located in the southern portion of the county since that area generates most of the waste. For the full story, click here. Chapel Hill Town Council to Vote on Campaign Financing Chapel Hill may be on its way to creating the state’s first General Assembly-approved municipal public financing program. If passed in time for the 2009 election, supporters say the public financing ordinance and the subsequent campaign spending limits could level the playing field between average candidates and their wealthier counterparts. Details of Chapel Hill's system haven't been worked out yet, but public financing programs typically require candidates to raise private money before receiving public funds. For the full story, click here. Chapel Hill Town Council, Carrboro Board of Aldermen Sworn In On December 3rd and 4th, the Chapel Hill Town Council and Carrboro Board of Aldermen were sworn in after the November election. Two newcomers, Matt Czajkowski in Chapel Hill and Lydia Lavelle in Carrboro, took their seats for the first time. In Chapel Hill, Mayor Kevin Foy said one of his priorities in this term is to find a new location for the homeless shelter. Jim Ward was appointed mayor pro tem as was John Herrera in Carrboro. For the full story, click here. January 1st Targeted Completion Date for 15-501 Work Although the projected completion date for work on the intersection of Europa Drive and Erwin Road has passed, the project might be completed by January 1, NCDOT Resident Engineer Donnie Huffines said. The project began July 2006 and is roughly 75 percent complete, Huffines said. Once work on the 15-501 "superstreet" is done, drivers will have to make U-turns instead of left turns to reach either Europa Drive or Erwin Road or to cross 15-501 from one to the other. For the full story, click here. Chapel Hill, Carrboro, OWASA, Orange County launch emergency alert system The Town of Chapel Hill, the Town of Carrboro, the Orange Water and Sewer Authority and Orange County Government are implementing an automated telephone alert system called CodeRED. The geographic data-based system uses street addresses to select phone numbers to receive emergency notification calls and enables local governments and OWASA to send pre-recorded emergency messages by telephone to selected areas or to the entire community about emergencies such as water service interruptions, missing children or severe weather conditions. The CodeRED system can send 60,000 thirty-second messages per hour to telephones including answering machines, cell phones, Internet-based phones and TDD/TTY devices for people with impaired hearing. A test call on the system is planned for Thursday, December 6. A CodeRED message will have caller ID number 999-911-9999. This is not a working number, and you cannot call this number for information. It is for identification purposes only. If you do not receive a test call, you are not in the telephone database and should register. Residents are encouraged to please register their phone number(s) at any one of the following websites or by calling one of the following telephone numbers: * Town of Chapel Hill website: www.townofchapelhill.org or call (919) 968-2743 * Town of Carrboro website: www.townofcarrboro.org; or call (919) 942-8541 * OWASA website: www.owasa.org or call (919) 968-4421 * Orange County Government website: www.co.orange.nc.us; or call (919)968-2050. The Triangle Chatham Commissioners Take Steps to Mitigate Growth Impacts After a 0.4 percent land-transfer tax was defeated in November, Chatham County Commissioners voted to increase the county’s school impact fee from $2,900 to $3,500 at a November 19th meeting. The fee will apply to all new single family homes, including mobile homes. The impact fee for multi-family homes will also rise to $1,100. Currently, Chatham’s impact fees are at their maximum though the county commissioned a study to examine significantly increasing impact fees, according to the county’s website. Commissioners also voted to approve zoning of a 1,500 foot buffer along both sides of several major highways in the county where zoning did not previously exist. The new zoning with be residential agricultural with lots of one acre or more though the county has exempted existing businesses from the zoning, allowing them to expand. The final measure taken by the Commissioners was a new zoning ordinance to regulate outdoor lighting. With the passage of the ordinance, new residential and non-residential development will have to submit a lighting plan as part of the permitting process. Some specific requirements relating to maximum light levels at property lines and proper installation of floodlamps will have an impact on vehicular canopies with lighting (i.e. gas stations). Businesses with these canopies are required to come into compliance within five years if they replace at least 50 percent of their lighting fixtures. For a full press release by Chatham County, click here. Chatham Retail Leakage Reported Early results of a study commissioned by Chatham County’s Commissioners reports, among other things, a sizeable retail leakage in the county. The following table details the amount of sales captured in the county and amount leaked outside the county. All figures are in millions. Chatham 2004-2005 Captured in County Leaked Outside County Total Spending Leakage Rate Apparel $2 $27 $29 92% Automotive $74 $72 $146 49% Food $134 $88 $222 40% Furniture $28 $16 $44 36% General Merchandise $110 $182 $292 62% Lumber and building material $44 $86 $131 66% Unclassified $41 $287 $329 87% Total $448 $788 $1,236 64% Source: Presentation by Jason Jolley, Chatham County Economic Development Summit Pittsboro Renews Ban on Development The Pittsboro Town Board unanimously voted to renew a ban on nonresidential and subdivision development in a late October meeting. The ban will be effective for two years as the town tries to build a new water treatment plant. Some local developers have offered to help upgrade the current plant and sped the construction process. Pittsboro’s Town Planning Director says the town is taking that offer seriously. For the full story, click here. Pittsboro Election Results Referred to State In the Pittsboro Town Board elections, just six votes separated former Board Member Michele Berger from newcomer Hugh Harrington. However, Tim Keim, the boyfriend of Berger filed a protest citing voter intimidation and other irregularities were a factor in Berger’s election loss. After listening to attorneys debate both sides of the case on December 4th, the Chatham County Board of Election decided to refer the decision about possibly holding a second election to the State Board of Elections. The Board will meet on December 19th to make a decision. For the full story, click here. Market Review Released by Highwoods Properties Highwoods Properties’ Third Quarter 2007 Market Survey was released in November and fairly little change in the Triangle’s office and flex market. In Chapel Hill, office vacancy rates declined from 6.68 percent to 6.24 percent. In Durham, the Pavilion East Building was completed adding vacant space to the market causing the vacancy rate to rise from 13.92 percent to 15.02 percent. There was a positive absorption of 20,845 square feet for the quarter. Overall, vacancy rates are down over the past three years throughout the Triangle. Source: Highwoods Properties 3rd Quarter Market Review Severe Water Conservation Restrictions Hit Durham Although water consumption already has dipped about 30 percent in Durham, more stringent water restrictions are aiming for an additional 20 percent reduction. Durham leaders, considering the 52 days of water remaining in the city’s main water supply and the threat of a drought lasting well into next year, announced the decision to go to severe mandatory conservation. The winter season is typically the wettest time of year, allowing sapped reservoirs to replenish, however, a drier-than-normal winter is predicted in 2008. For the full story, click here. Durham Water Bills Likely to Rise Mandatory water restrictions and the purchase of pumps and pipes to connect to new water sources will cause water bills in Durham to rise. Water use in Durham has decreased since mandatory restrictions were enacted September 21 and City Manager Patrick Baker said that means the water management department will not meet its revenue projections for the year. Leakages resulting from cracked pipes also costs Durham about 3.3 million gallons of water a day. For the full story, click here. Durham Rezoning Vote Delayed Crosland Investments’ request for zoning approval was denied during a recent meeting of the Durham County Board of Commissioners. Chairwoman Ellen Reckhow said the developer needs to reach an agreement with the Department of Transportation on streets that need to be improved in a plan for 1,300 homes, 500,000 square feet of offices and 150,000 square feet of shops in southeastern Durham County near Raleigh's Briar Creek area. For the full story, click here. Raleigh Mayor Announces Fourth-term Priorities Mayor Charles Meeker said increased impact fees and improved water conservation and bus service are top priorities for his fourth term in office. Meeker said he wants to more than double the impact fees, charges that the city places on developers for new roads and parks, that Raleigh imposes on new housing. Meeker said his proposed increase would raise an additional $8 to $10 million a year. Meeker said the current drought has shown that Raleigh needs to make changes to its water conservation policies. Meeker said his third priority will be to improve bus service in Raleigh, proposing that buses run more frequently within the city and favoring more options for people commuting from Raleigh to Durham, Chapel Hill and other surrounding areas. For the full story, click here. Raleigh Mayor Considers Tiered Water Rates The recent drought conditions have inspired Raleigh Mayor Charles Meeker to consider enforcing tiered water rates, meaning residents using the most water would gradually pay more for it. Cary and Greensboro already have tiered water rates in place and report a drop in water consumption as a result. Meeker said the varied rate structure would probably only apply to residential neighborhoods. For the full story, click here. State North Carolina Ranked First by Site Selection Magazine The state of North Carolina was ranked as the state with the “Top Business Climate” for the third consecutive year by the magazine Site Selection. The state’s selection was also the sixth time it was selected in the past seven years. States are ranked based on two equally weighted factors: 1) a survey of corporate site selectors asking them to rank their “top 10” states and 2) the amount of new plant activity in the state. "A significant number of corporate investors in North Carolina cited the state's quality of life, favorable business climate and access to top-notch academic and research facilities in our recent survey of site selectors," said Site Selection Editor-in-Chief Mark Arend. To view the complete rankings, visit www.siteselection.com. Source: The NC Chamber: Federation Insider Governor Appeals for Water Conservation Governor Mike Easley made his second appeal to North Carolinians to “conserve aggressively between now and the new year.” In October, Governor Easley asked residents to cut their water use in half; statistics show usage was cut by about 30 percent. As of Thanksgiving weekend, 56 counties were considered to be in an exceptional drought, the worst drought classification possible, compared to 25 just a week earlier. For the full story, click here. Nation Energy Prices Projected to Remain Steady E Source, an independent research contractor hired by energy companies, released its six month outlook on power and gas prices recently. The report shows that natural gas prices this fall will mimic prices seen last fall. E Source projects wholesale natural gas prices will remain between $7 and $8/MMBtu. E Source also reports that storage levels of natural gas are well above the five-year average. Electricity prices are predicated to continue to rise in 2008 and climb further in 2009. Source: CurrentLines 2007 Fall Outlook The Real Estate Report is produced by the Chapel Hill Chamber of Commerce and the Greater Chapel Hill Association of Realtors.

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