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Jeff Earley,Assistant Manager

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Economicsof

Chapel Hill[ ]

All information provided in this presentation is available in its original form at:

www.townofchapelhill.org/economic_development or

www.opentobusiness.biz

[ ]

WhyEconomic Development?

[ Council Study

Committee

2006 ]

“Chapel Hill is close to being built out, we need to maximize future opportunities for revenue.”

[ Tax Base ]

40%

Durh

am

35%

Rale

igh

25%

Cary

16%

C

hapel

H

ill

1%

Of regional market

for our growth

50,000,000SF in Triangle Market

[ O

ffic

e M

arke

t ]

2,200,000SF in Chapel Hill Market

70,0

00

Curre

nt a

bso

rptio

n

100,000 Potential annual absorption

500,0

00 to

700,0

00

SF

Dem

and in

5-8

years

224,000 SF vacant

600,0

00

SF A

ppro

ved o

r in-co

nsid

era

tion

4-5%Of regional

market share

1%

Total Vacant %Office Space 2nd qtr 2011 - Orange County

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000 1,494,859

224,000

16.78%

Series1

SF over 10,000 Vacant Vacancy rate

Down from 20.49% in 2011

Tax Base of

$200 million.

1 m

illi

on S

F o

f n

ew o

ffic

e =

$2.68 million in net-new property

taxes.

2,100 FTE

construction jobs.

Construction workers earn $140

million in wages.5

,00

0

perm

anent

em

plo

yees.

$350 million to

the economy

$28 million

in lease payments for property

management and operations.

= 4 cents on Chapel Hill’s Property Tax Rate

$3,350 Amount spent

by a typical office worker

spends on food.

[ Retail

Development

]

1,500,000 SF retail

2,2

00

,00

0

SF

reta

il –

Str

eets

of

SP 800,000

new residents in the region in next 20 years

1,3

00

,00

0

SF

of

new

reta

il in

10

years 400,000

SF of new retail 2010

35% Approximate

amount of market loss

35% Approximate

amount of market loss

[ Retail

Development

]

[ Housing ]

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

$180,000

$200,000

$175,067

$99,714

$49,736

$98,662

4.3H IMPROVED LAND COST PER ACRETown of Chapl Hill and Comparison Geographies

0 - .2 acresSeries2

Chapel Hill Raleigh Durham Cary

Chapel Hill – $388,000

Cary – $315,000

Raleigh – $237,000

Durham – $192,000

MLS - 2012

[ Ave

rage

Sal

es P

rice

]

[ Housing ]

Average sales price for-sale housing

321 to 463Annual housing permits demand for next 10 years

[ Housing ]

581 – 817demand for market rate rental units – 2009- 2014

Including 336 - 431 units of affordable rental housing

[ Housing ]

[ Housing needs ]

[ Ephesus Church- Fordham SAP ]

Residential Units 1,084 +/-

Office368,000 +/-

Retail258,000 +/-

Hotel 280,000+/-

[ Conceptual Plan Components ] Density levels

Neighborhood Transition Approximately 3-4 stories

Central Residential Core Approximately 5-6 stories

High Density Mixed-Use and Commercial Development

Approximately 6+ stories

[ Implementation ] [ Implementation ]

[ Land Use and Zoning Tools ]

• Create a New Redevelopment Zoning District

[ Financing Tools ]

• Municipal Service District

• Special Assessment District

• TIF/Synthetic TIF

• Revenue Bonds

• Loan Guarantees

[ Implementation: In process ]

• Phase I functional engineering complete

• Phase II functional engineering scope

• Exploring financing options

• This meeting begins rezoning discussion

• 5 redevelopment sites: plans being developed

• Redevelopment and construction planned for 2013-2014

[ Downtown]

Proposed: Downtown Framework and Action Plan

> 5-700,000 SF of retail (Town of Chapel Hill)

> 3-500,000 sf of office (Town of Chapel Hill)

> Some opportunity for Hotel> Future potential for Residential

[ Compact, Green ] Keep downtown Compact and walkable but identify new development opportunities

Improve Connections …cars, buses, peds and bikes

Develop parking and visitor facilities to Anchor downtown and deliver customers

Create new Green public space and advance environmental and financially sustainable development practices

Connected, Anchored an

d

PROPOSED Downtown Framework and Action Plan

Rosemary Imagined!

> 21st century approaches to Planning> Begin with interests> Use text-to-vote at all public meeting> Use chalk-boards to draw attention to potential redevelopment sites.

Leave comments and drawings.> Have at least 3 public meetings and 1 social> Focus on innovation and entrepreneurship> Insert finished process into former Downtown Framework

[ ]

Housing= 4,600 new housing units ][

=Reduced Residential property tax demand in the future

Retail= 500,000 – 1,000,000

Office= 1,000,000

][[ Current Projects: ]

• Rosemary Imagined• Marketing• Economic Analysis for new Rezoning/SUPs• Ephesus Church-Fordham Implementation• Housing Study• Development Agreement framework

Economicsof

Chapel Hill[ ]

?[ ]