Chapel Hill and Durham Real Estate

The Real Estate Report (April 2011)

Chapel Hill and Durham Real Estate — Fri, 08 Apr 2011 01:15:05 +0000

Orange County Approves Phase I of UDO and Sales Tax Referendum. Last night the Orange County Board of Commissioners voted to approve Phase I of a Unified Development Ordinance. The commissioners also voted to place a quarter-cent sales tax increase on the November ballot. Read more at the Daily Tar Heel.

Weigh In on Chapel Hill’s Changes to Commercial Signage Ordinances. The Town of Chapel Hill is looking at revisions to a sign ordinance for commercial centers larger than 50,000 square feet. If you want to weigh in on this issue, please plan to attend the public hearing on April 11th at 7:00 PM and email mayorandcouncil@townofchapelhill.org to express your views.

Local Real Estate News

Durham-Chapel hill ranked 3rd in healthiest real estate markets in U.S.
North Carolina adopts a new residential real estate contract simplifying the negotiation process for buying and selling a house
Underwater mortgages rise in U.S. and Raleigh, fall in Durham
More than 1,600 Triangle mortgages modified
Mortgage applications jump
Triangle home sales slip, but prices edge higher
NC Senate passes bill allowing groups to negotiate revisions to the state’s annexation law

In Case You Missed It

Developers financing gets creative
Trulia Survey: 70 percent of Americans view home ownership as part of personal American Dream
Administration calls for cutting aid to home buyers
U.S. Commercial property recovery spares economy
Land values fall along the N.C. coast
Mortgage deductions get scrutiny from feds
NC mention in NYT: “What You Get for … $300,000”

New Developments/Neighborhoods/Projects

Local News

Chapel Hill and Carrboro:

Chapel Hill wins ‘Distinctive Destination’ award
2010 Census: Suburban, urban counties blossom; rural counties wilt (find data here and here)
Chapel Hill-Carrboro school board approves redistricting
Chapel Hill skips deal to relocate public library to University Mall
Chapel Hill mayor gives State of the Town address
Chapel Hill Town Council approved a re-write of town’s comprehensive plan
Carrboro taps new economic development officer

Orange County:

Orange County looks at “A New Way Forward” for economic development
Orange County hires Gary Shope as interim Economic Development Director
GCHAR Member Desiree Goldman advocates for Unified Development Ordinance
Orange County Manager Frank Clifton: How to expand Orange economy
Herald-Sun gives $240K in-kind advertising to Orange County Is a Great Place Campaign

And beyond…

Western Wake’s growth brings change to Chatham County
North Carolina visitor spending jumps to $17 billion
N.C. added 6,400 jobs in 2010

The Real Estate Report (January 2011)

Chapel Hill and Durham Real Estate — Mon, 17 Jan 2011 02:09:19 +0000

Volume 6, Issue 1

January, 2011

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

New Development

IFC Shelter Passes Planning Board

The Chapel Hill Planning Board recommended the Town Council approve the IFC’s plan for a new men’s shelter off Homestead Road. Other town boards must review the plan before the council holds a hearing in March. For more information, see the full article by 1360 WCHL.

Chapel Hill Swears in New Police Chief, Chris Blue
Leaders were present in Chapel Hill to swear in the town’s new Chief of Police, Chris Blue. Blue has served the Chapel Hill Police Department for 13 years. Former Chief Brian Curran retired in November. See the full article by 1360 WCHL.

140 West Breaks Ground in Downtown Chapel Hill

The new mixed-use project in downtown will rise eight stories and contain condominiums, retail space, public space, and parking once completed. For more information on the project, see the full article by The Chapel Hill News.

Schools

Culbreth Middle Again an Apple Distinguished School

For the second year in a row, Culbreth Middle School received the distinguished honor from Apple. The school provides each student an iPod Touch and uses the product to help teach children. For more information, see the full article by 1360 WCHL.

CHCCS May Relocate Students to Solve Overcrowding

Morris Grove Elementary is overcrowded due to a growing neighborhood, and Chapel Hill-Carrboro City Schools leaders may have to reassign some students to area elementary schools that are under capacity. For more information, see the full article by 1360 WCHL.

Orange County

Unemployment Up in Orange County, Still Lowest in NC

The unemployment rate inched up in Orange County from 5.6% in October to 5.9% in November. For more details, see the full article by 1360 WCHL.

The Triangle

Chatham Commissioners Cut Service to Orange County

Chatham County Commissioners voted to end bus service between Pittsboro and Chapel Hill. Combined with four county jobs that were cut, the savings will be about $450,000 a year. For more information, see the full article by The Chapel Hill News.

NY Times Names Durham in “Top Places to Go”

The New York Times’ list of places to go in 2011 includes the Bull City. The paper cited Durham’s revitalized downtown and food scene. For more information, see the article by the Herald-Sun.

State and Nation

NC to Return Tax Refunds More Quickly

In 2011, tax refunds will be sent by the state within 30 to 45 days after individuals file returns. This will be a quicker response from the Revenue Department than in the past. For more details, see the full article by the News & Observer.

Congress Extends Tax Cuts in Lame Duck Session
President Obama signed into law the extension of tax cuts for all income levels. The measure passed Congress after compromise from both parties. For more information, see the full article by the News & Observer.

Pumpkin Patch 2010

Chapel Hill and Durham Real Estate — Tue, 26 Oct 2010 19:28:09 +0000

Pumpkin Patch 2010 was a success!!!

The Real Estate Report (October 2010)

Chapel Hill and Durham Real Estate — Tue, 26 Oct 2010 19:02:10 +0000

Volume 5, Issue 10

October, 2010

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

New Development

Sales Tax Would Support Community, Economic Development
The proposed quarter-cent sales tax increase could generate about a million dollars a year for economic development in the county. If passed, the sales tax referendum would grow the commercial tax base while reducing the need for future property tax increases. It would also help make the community a better place to live by upgrading schools, libraries, and emergency response services.

On Saturday, October 30, 2010 from 9:30 to 11:30 am, realtors are invited to join the Chamber of Commerce and Orange County Justice United at the parking lot of United Church of Chapel Hill for our Souls to the Polls rally. We will all walk to the Seymour Senior Center to vote.

Orange County Unemployment Down Slightly
While unemployment in the Triangle remains at 8 percent, Orange County unemployment dipped from 6.5 to 6.4 percent, according to the NC Employment Securities Commission. See the full article by 1360 WCHL for more information. Meanwhile the state unemployment rate also declined. See the release by the state for more information.

Carolina North Adjusts to Economic Climate
Jack Evans, executive director of Carolina North announced a research facility will now be the first development instead of the Innovation Center, a partnership with a private developer. See the full article by 1360 WCHL for more information on Carolina North.

Carrboro Aldermen Approve Smith Level Road Changes
The Carrboro Board of Aldermen approved a plan to add bike lanes, sidewalks, and a median to Smith Level Road. The plan does not allow left turns out of the Berryhill neighborhood, and its residents fought the changes. See the full article by the Herald-Sun.

Chapel Hill Council Postpones Tree Ordinance Decision
The Chapel Hill Town Council heard from the community, and decided to postpone a decision on the tree ordinance until its December 6th meeting. The extra time will allow town staff to clarify some measures. See the full article by the Herald-Sun for more information.

Chapel Hill Police Chief to Retire
After nearly thirty years of town service, Chapel Hill Police Chief Brian Curran is retiring. Town Manager Roger Stancil will work with others to identify the next police chief. See the full article by The Herald-Sun for more information.

UNC Chancellor Thorp to Address Innovation
Chancellor Holden Thorp will focus on innovation in a speech on campus. The new Innovate@Carolina plan was unveiled on University Day, October 12th, and directs $125 million at innovation from all university departments. Some university research projects become private start-ups. For more information, see the full article by The Daily Tar Heel.

Chapel Hill a Top Arts Destination
American Style Magazine readers ranked Chapel Hill among top arts destinations for the fourth year. To learn more about details of the title, see the full article by 1360 The Herald-Sun.

Schools

Chapel Hill-Carrboro City Schools Boast High Graduation Rate
Superintendent Neil Pedersen credits instilling a vision of success in its students for the system’s high graduation rate. The system rate is the second-highest in the state, and East Chapel Hill High Schools is among top high schools in the state. For more details, see the full article by 1360 WCHL.

Orange County

Hillsborough Entrepreneurial Kitchen Soon Under Construction

The Piedmont Food and Agricultural Processing Center will rent its commercial kitchen space to area farmers and food processors. The community project is set to open in March. For more information, see the full article by 1360 WCHL.

The Triangle

RTI International partners with Triangle Universities
UNC, Duke, and NC State Universities partnered with RTI International to create a new research institute in the Triangle. The Research Triangle Solar Fuels Institute will seek to develop fuel from sunlight, much like photosynthesis. See the full article by The Triangle Business Journal for more information.

State and Nation

President Signs Small Business Jobs and Credit Act
In Washington, DC, Congress passed the Small Business Jobs and Credit Act of 2010. The law increases the maximum size of 7(a) and other loans available to small businesses through the federal government. The Orange County Economic Development Commission recommended initiatives for Orange County Commissioners that would encourage local small business growth. For a description of the loans and tax benefits available to small businesses, see the column by Jeremy Todd Browner in the Herald-Sun.

Governor Plans to Streamline Bureaucracy
In Pittsboro, Governor Beverly Perdue announced plans to restrict unnecessary rules. She asked state agencies to refrain from making new rules unless they are critical to state citizens. The governor asked citizens to report rules that are in need of reform or elimination through a state website. For more information, see the full article by the News & Observer.

The Real Estate Report (September 2010)

Chapel Hill and Durham Real Estate — Mon, 20 Sep 2010 18:12:12 +0000

Volume 5, Issue 8

September, 2010

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

New Development

Greater Chapel Hill Association of Realtors Endorses Sales Tax Referendum
County Commissioners voted in June to put a quarter of one percent sales tax increase on the November ballot. The Greater Chapel Hill Association of Realtors along with The Chapel Hill-Carrboro Chamber of Commerce endorse the proposal. The proposal will support public schools, economic development, and emergency response services. See the full article by The Carrboro Citizen for more information.

Chapel Hill Library Moves to University Mall
While an expansion of its building is underway, the Chapel Hill Library will move to University Mall. The move to a space near the renovated entrance facing Harris Teeter will occur in about six months. See the full article by The Triangle Business Journal.Orange County, Town of Chapel Hill Cooperate in Library Plan
Officials from Orange County and the Town of Chapel Hill met in July to set out an agreement on library funding. A two-year agreement increases County funding for the Town Library and will allow officials from both parties to agree upon a formula for future funding. See the full article by The Carrboro Citizen.

UNC and CHPD Partnership Continues
The Good Neighborhood Initiative, a partnership between UNC and the Chapel Hill Police Department, will continue to advance relationships between students and other town residents. Project co-coordinator Aaron Bachenheimer believes relations have improved over the program’s seven years. See the full article by 1360 WCHL.

UNC and Town of Chapel Hill Draft Campus Connector Path
The Town of Chapel Hill and UNC proposed a draft recommendation for a path to connect UNC’s main campus to the future Carolina North. While following public right-of-ways, the project may require coordination with the 300 West Main development in Carrboro. See the full article by The Chapel Hill News or the town website for more information.

Chapel Hill Installs High Tech Parking Meters
The Chapel Hill Town Council approved replacing parking meters downtown with multi-space parking meters. A station for approximately every 10 parking spots will accept credit cards as well as change. A public survey will soon be available online. See the full article on the town website.

New Post Office Serves White Cross, Chapel Hill
A new contract postal unit at 3300 Highway 54 West will provide most traditional post office services and be open six days a week. See more information from the USPS here.

Police Issue Citations to Businesses for Illegal Alcohol Sales
Chapel Hill and Carrboro Police Departments along with UNC Public Safety conducted operations resulting in 22 citations to local businesses for underage alcohol sales. Police and the ABC Board lawyer met with business owners to discuss the problems. For more information, see the full article by the News & Observer or The Chapel Hill News.

Schools

Search for Next Chapel Hill-Carrboro Schools Superintendent
The Chapel Hill-Carrboro Schools board is asking for proposals from search firms for its search for a new superintendent. The current superintendent, Dr. Neil Pedersen, is retiring at the end of this school year. See the full article by 1360 WCHL for more information.

Orange County

Orange County Commissioners Fund Extra to Small Business Loans
The Orange County Commissioners approved $200,000 towards the county’s Small Business Loan Program to provide capital for local small businesses. See the full article by 1360 WCHL for more information.

The Triangle

Durham County Commissioners Approve 751 South
In Durham County, Commissioners approved 3-2 the controversial 751 South mixed-use development project. An easement accepted, and later rescinded, by the NCDOT invalidated signatures on a protest by neighbors. The invalidated protest allowed for 3 votes to clear the project. See the full article by The Herald-Sun here and here.

Durham County Officials Weigh Sales Tax Referendum
A proposed .25 cent sales tax increase in Durham County would support the Durham Public Schools. Durham County Commissioners scheduled a meeting to discuss the issue and possibly placing a referendum on the November ballot. See the full article by The Herald-Sun.

Chatham County Commissioners Support Application for Small Business Funds
In Chatham County, the Board of Commissioners approved a resolution supporting applying to the NC Department of Commerce for an agrarian growth zone in Siler City. The special economic zone is used to stimulate growth of business in areas with substantial poverty. See the full article by The Herald-Sun.

State and Nation

Homeownership Low in South
The U.S. Census Bureau reported that homeownership levels in the South are at a five-year low. While higher than the national average, the 69.1 percent of households occupied by their owners is down .9 percent since mid-2009. See the full article by The Triangle Business Journal. President Obama Praises UNC
In remarks to an audience at The University of Texas, President Obama praised UNC’s efforts to provide quality services during the economic recession. UNC recently raised tuition for all students to avoid cutbacks. See the full article by 1360 WCHL.

Congress Passes, President Obama Signs Jobs Bill
President Obama signed a bill to help states fix their budgets to preserve teaching jobs and avoid cutting other programs to pay for Medicaid. The $26 billion in the bill brings the sum of Congressional fiscal economic stimulus to more than $1 trillion since 2008. See the full article by The Washington Post.

North Carolina Unemployment is Down
The North Carolina Employment and Security Commission reported that the state unemployment rate in July dipped below 10% for the first time in more than a year. It was 11% for July last year. See the full article by 1360 WCHL.

The Real Estate Report (July 2010)

Chapel Hill and Durham Real Estate — Tue, 20 Jul 2010 18:13:12 +0000

Volume 5, Issue 7

July, 2010

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

New Development

Chapel Hill Approves Housing Guidelines
The Chapel Hill Town Council adopted an Inclusionary Zoning Ordinance to guide developers to include low- and moderate-income housing, priced at 65-80% of the area’s median income. See the full article by 1360 WCHL.

Rams Plaza Area Planning Meeting Set
The Ephesus Church/Fordham Small Area Planning Initiative will meet for the first time on July 22 at the Chapel Hill Library. The group will consider the traffic conditions, possible land uses, and development strategies. See the full article by The Herald-Sun.

Public Meeting for Franklin Street High Rise
140 West, an eight-story development planned for the town’s Lot 5 on Franklin Street, will hold a public meeting to share information with residents. The project will provide 140 residences, a two-story parking lot, and 26,000 square feet of retail space on the ground level. For more details on the meeting, see the full article by The Chapel Hill News.

Chapel Hill Begins Housing Study
As part of the 2008 economic development strategy, Chapel Hill began a housing market study to analyze market growth and the value of home sales. The study will also focus on affordable housing to go along with the Orange County Consolidated Plan for providing affordable housing over the next five years. See the full article by The Herald-Sun.

Chapel Hill Cuts Bus Service
The Chapel Hill Town Council modified transit routes and schedules to save more than $340,000 next year. Gone from the transit system will be the weekday feeder service for residents not near a bus line and Shared Ride services on Sundays and evenings. ADA eligible trips will not be affected. See the full article by The Herald-Sun.

Chancellor Prepares UNC Employees for Bad News
At a meeting for the Community Leadership Council, UNC Chancellor Holden Thorp was bleak about the future of UNC’s budget. Shortfalls might affect jobs, enrollment levels, or talent recruitment. See the full article by 1360 WCHL.

Economy Stalls Carolina North
The initial Innovation Center for entrepreneurial spin-offs may be delayed along with the Law School project. The Med Air program is waiting on construction at RDU to finish before moving sometime in the spring of summer of 2011. See the full article by The Carrboro Citizen.

Schools

Area High Schools Best in Nation
The 2010 Newsweek rankings put area high schools among the best in the nation based on advanced courses. See the list from Newsweek.

Chapel Hill Among Best Places to Live
Money Magazine ranked Chapel Hill 40th in the nation for the best small cities in which to live. The magazine considered economic climate, cultural attractions, schools, crime, and recreation in assigning the rankings. See the full article by The Triangle Business Journal.

Orange County

Visitors Bureau Absorbs Orange County Arts Commission

The Orange County Arts Commission moved from Hillsborough to West Franklin Street at the Chapel Hill/Orange County Visitors Bureau. Last month, the Orange County Board of Commissioners reflected on both organizations’ operations, and consolidated the Arts Commission to the Visitors Bureau. The Arts Commission distributes more than $60,000 in grants each year for local programs and art installations. See the full article by The Herald-Sun.

The Triangle

Chatham Declines Hotel Tax Increase
The Chatham County Board of Commissioners did not follow through on a plan to raise the lodging occupancy tax from 3% to 6% after hearing feedback from the community. Tourism pumps $25.35 million into Chatham County’s economy, or $1.45 million in county revenues. See the full article from The Chapel Hill News.

Triangle Unemployment Down
The Employment Security Commission of North Carolina reported that Triangle Unemployment decreased to 8%. Orange County held steady at 6% from April to May. See the full article by the Triangle Business Journal.

Report: Triangle Economy Looking Up
NC State economist Mike Walden’s semi-annual Economic Outlook reports sees the state economy improving in the next two years. Walden expects 70,000 to 80,000 new jobs in both 2010 and 2011. Unemployment will likely decline, with the Triangle falling among the lowest rates at 6.7% in 2011. Walden cautions against high real estate costs but praises current job creation rates. See the full article by The Herald-Sun.

State and Nation

General Assembly Passes Budget

For the first time since 2003, the General Assembly passed the state budget on schedule by the end of June. Governor Perdue signed the bill into law soon after. The recession created an $800 million spending gap, but Perdue predicts the budget will create or protect 20,000 over three years with a small-business tax credit and a new transportation fund. See the full article by the News & Observer.State Regulates Towing
Business owners will now be responsible for prominently posting tow company information. The new law limits towing beyond a 15 mile radius in most cases and prohibits vehicle owners from being forced to waive their rights to claim their vehicle. See the full article by the News & Observer or the Durham News Service.

State Ranks High for Business
CNBC ranked North Carolina fourth among states for doing business. The results were based on the economy, cost of doing business, business friendliness, transportation and infrastructure, technology, education, work force, and other criteria. See the full article by The Triangle Business Journal.

Hospitality Jobs Lead Job Growth
The unemployment rate in North Carolina fell almost half a percentage point to 10% in June, according to the Employment Security Commission of NC. 7,900 new jobs were in hospitality and leisure sectors of the economy. See the full article by The Triangle Business Journal.

Senate Passes Financial Reform
The financial regulatory reform bill has passed both houses of Congress and awaits the President’s signature. The bill imposes capital and leverage requirements and creates a system to liquidate faiing banks. It adds regulation to over-the-counter derivatives and creates a financial watchdog agency. See the full article by The Triangle Business Journal.

State Sales Tax Holiday Set for August 6-8
Items like school supplies, computers, and clothing will be exempt from the state sales tax the weekend of August 6-8. Retailers may not charge sales tax on certain items. For details, visit the sales tax holiday website from the state Department of Revenue.

The Real Estate Report (June 2010)

Chapel Hill and Durham Real Estate — Sun, 20 Jun 2010 18:16:02 +0000

Volume 5, Issue 6

June, 2010

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

New Development

New Parking Deck Downtown
Franklin West, LLC has proposed revamping The Courtyard at Franklin and Roberson Streets to add more retail space and a parking deck for ninety vehicles. The new plan mixes residential and retail with the addition of nineteen apartments. Parking has been a setback to the Courtyard in the past. See the full article from The Chapel Hill News.

Town Expands Public Library

On Monday, June 7th, the Town of Chapel Hill passed a $16 million expansion that doubles the size of the public library on Estes Drive. The addition is needed to keep up with demand of library services. $2 million has already been secured, and the remaining funds will be in place to begin construction by the end of the year. See the full article by the News&Observer.

Chapel Hill Museum to Close

Without money from the Town Council, the Chapel Hill Museum will close its doors. Museum officials made the request for operating and maintenance expenses, but the Council returned less than half of the request. The museum’s board will decide its next steps. See the full article by The Chapel Hill News.

New Outlet Mall on Schedule

The Tanger Outlet Center in Mebane, a new outlet mall in Alamance County, is on schedule to open in November of this year. After a ground breaking ceremony last December, workers have been laboring around the clock to see that the mall is open on time. The 317,000 square foot center will host an array of stores from Polo and Brooks Brothers to Nike. The signature store will be Saks Fifth Avenue which, while smaller than most Saks, will have the same look and feel of a larger store. Management of the mall recently set up in a temporary trailer to begin marketing the center. The mall will have a mix of indoor and outdoor spaces an shops. See the full article by the Herald-Sun.

Carrboro Board Weighs Permit Fees
After hearing from a local business person, the Carrboro BOA is set to discuss commercial building permit fees at its June 22nd meeting. Cam Hill brought the costs of these permits to the town’s attention. He wants the town to consider the impact of these fees on business owners. See the full article by 1360 WCHL.

Town Plans for Homeless Shelter
The Chapel Hill Town Council heard a request for more guidance from the Planning Board charged with improving homeless shelters. While the board has not made any recommendations, it has received input from organizations like the Inter-Faith Council. See the full article by 1360 WCHL.

Council Improves Development Review
The Chapel Hill Town Council will improve the development review process by putting in place a training program for advisory boards and staffs; field testing a process for one simultaneous developer presentation to all advisory boards; and reviewing the Land Use Management Ordinance. See the council agenda for June 21st on the town website.

Schools

Board Approves New Durham High School
School officials in Durham are ready to break ground on a new high school after purchasing land from Duke University. The new high school will cost $48 million and serve up to 1,200 students each year. See the full article by the News&Observer.

Orange County

Town Releases New Guide to Services
The Town of Chapel Hill released a 2010 Guide to Services to update and expand information on town services. The guide is available at the Chapel Hill-Carrboro Chamber of Commerce as well as various other locations. View the guide on the town website.

New Report Highlights Barriers to Small Business Development
Heather Schroeder, a UNC graduate student for the Department of City and Regional Planning, completed a report to the Town of Chapel Hill on barriers for local small business owners. Based on her interviews, Schroeder found many issues to local businesses had to do with local government, including sign ordinances, permitting, and a lack of guidance. Downtown businesses are hampered by high rent, lack of retail diversity, lack of parking, and homelessness, according to the study. Businesses owners praised the town’s location, “Buy Local” initiative, and the local Chamber of Commerce and Downtown Partnership.

Orange County to Hold Sales Tax Referendum
The Orange County Board of Commissioners voted unanimously to add a sales tax referendum to the November ballot. The 2010-2011 budget is already approved, and all board members agreed the additional revenues of a sales tax increase should support economic development. A public forum will be held in August. See the full article by 1360 WCHL.

County Commissioners Say No to Tax Increase
On Tuesday, June 8th, the Orange County Commissioners considered various tax increases in a budget meeting. The Commissioners voted against a school district request for a tax increase. However, they fully funded the economic development budget. See the full article by 1360 WCHL or Chapel Hill News.

OWASA Raises Water Rates
The OWASA Board of Directors approved the budget for next year, raising monthly rates by 9.25% for businesses, multi-family developments, irrigation-only and institutional customers like the university. The directors cite reduced sales, aging infrastructure, a decline in new customer connections, and workloads as reasons for the change. See the full article by the News&Observer.

Orange County Streamlining Development Ordinances
The Orange County Planning and Inspections Department is compiling a Unified Development Ordinance to contain existing ordinances in a single document. The UDO will contain zoning, signage, parking, lighting, and other regulations. For more information, see the county website.

The Triangle

Triangle Home Sales Up
The Triangle Multiple Listing Services reported an increase in home sales in the area for the month of May. The increase was fueled by a first-time home buyers’ tax credit of $8,000 and a $6,500 credit on repeat buyers who may have put homes under contract in April. The median sales price was also up from the same time last year. See the full article by the Triangle Business Journal.

New Transportation Option in Downtown Durham

A new bus service will run from the Golden Belt urban arts campus, through downtown on Main Street, and to the Duke Clinics on Trent Drive. In a partnership between Duke University and Durham, the Bull City Connector project will introduce six diesel hybrid buses to run every fifteen minutes. Until the new vehicles arrive in 2012, existing DATA hybrid buses will run the route. See the full article by the Herald-Sun.

Chatham Trims Tax Increase
After weighing a proposed 2.5 cent property tax increase, Chatham County Commissioners voted instead to raise taxes 1.97 cents. Nearly all of the tax increase will go to fund the opening of the Margaret B. Pollard Middle School and cover other school budget needs. The impact of the tax increase on a $200,000 home is roughly $40. The tax increase will not go toward salary increases—the second straight year Chatham County has gone without an increase. In related news, two bond rating agencies recently upgraded Chatham’s bond rating, giving the County the highest rating of any county in its population group. See the full article by the Herald-Sun.

Triangle Next Market for Electric Car
Duke Energy’s Mike Rowand, director of advanced customer technology, predicts the Triangle and Charlotte might be markets for the debut of electric cars to the US market. Local utilities are ready for the vehicles. Most consumers will charge their vehicles at home or at work, and charging stations seem less likely for now. See the full article by the Triangle Business Journal.

Resident Input Sought on Transit
The Capital Area and the Durham-Chapel Hill Carrboro Metropolitan Planning Organizations seek resident input on the 2009 Long Range Transportation Plan. Organizers are looking for input to back a plan to seek federal funding for capital investment. The Chapel Hill meeting will be held July 7th at Town Hall from 5:30-8:30. See the full article by 1360 WCHL.

Durham County Raises Property Taxes
The new property tax rate in Durham County will be 74.59 cents per $100, up 5.3%. The County Commissioners approved the increase while directing lottery funds to be spent on daily operations for the schools. The shift will hinder school maintenance and construction but will save teacher jobs. See the full article by the Herald-Sun.

State and Nation

Mobility Fund a Potential for Area Road Projects
The NC House included a version of Governor Perdue’s “mobility fund” in the state budget proposal to provide for much-needed transportation projects. The priority is the I-85 Yadkin River Bridge between Davidson and Rowan Counties, but Triangle officials are still pleased with the measure. Once the bridge project is complete, the fund would be available to other areas of the state without regard to the equity formula that has hindered road projects in the past. See the full article from The Herald-Sun.

Road Widening Compromise in Carrboro
The Carrboro Board of Alderman is working with the NC Department of Transportation on the plans to widen Smith Level Road in Carrboro. The compromise creates a two lane road with a divided median from NC 54 to BPW Club Road, where a center turn lane would replace the median southward to Rock Haven Road. Bicycle lanes and sidewalks would line the route, and a roundabout would replace the signal near Carrboro High School. See the full article from The Chapel Hill News.

State Incentives to Reach $300M in Five Years
Tax breaks from the General Assembly to spur economic growth could reach $300 million by 2015. These credits have benefited film, energy, paper, and other industries for creating jobs. Limits have been extended for the film industry, but in all cases, the tax credit only applies after jobs are created. See the full article from The Herald-Sun.

Grant to Fund Bioterror Warning System

Representative David Price secured a grant to allow The Gillings School of Global Public Health at UNC to develop a bioterrorism warning system. The system will use information from hospital records, doctors’ offices, and prescription databases to detect threats to security. See the full article by the News&Observer.

133,000 Lost Jobs in Previous Decade
The U.S. Bureau of Labor Statistics ranks North Carolina among 33 states having fewer private-sector jobs than ten years ago. The state lost 133,400 private-sector jobs in that time period. See the full article by the Triangle Business Journal.

The Real Estate Report (May 2010)

Chapel Hill and Durham Real Estate — Thu, 20 May 2010 10:17:15 +0000

Volume 5, Issue 5

May, 2010

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

Events

Friends of the Downtown to Spotlight Business Trends
Aaron Nelson, President and CEO, of the Chapel Hill-Carrboro Chamber of Commerce will speak at the Friends of the Downtown meeting on Thursday, May 27 at 10am. The meeting will be held in the Great Room at Top of the Hill (enter through the door to the right of Walgreen’s).

Nelson will be speaking about economic trends and indicators for the Chapel Hill and Carrboro community. He’ll also highlight social and environmental trends. This is a great presentation to get a feel for the state of the community. There is no cost to attend.

New Development

Council Approves Development on Homestead Rd
The Chapel Hill Town Council approved the Bridgepoint project, located at the intersection of Homestead Rd and Weaver Dairy Extension. The project, located on 9.2 acres, calls for 27,400 square feet of commercial space and 23 townhomes. Developers envision the commercial space looking similar to the current location of Fosters and Flyleaf books in Chapel Hill. The Council approved the project on a 7-2 vote with Council members Laurin Easthom and Gene Pease opposing it. Easthom was concerned about the impact of the project on quality of life in the area and Pease didn’t believe a commercial project should be located so far down on Homestead Road. For the full story from the Chapel Hill News, click here.

Development Proposed Across from Southern Village

A new project called Obey’s Creek, located across from Southern Village on US 15-501, has been proposed by Chapel Hill developer Roger Perry. The transformative project calls for 1,200 homes and over 500,000 square feet of commercial development on 120 acres. Chapel Hill Town Council members had a positive reaction to the project when they reviewed it in mid-May and pushed Perry to include more retail in the final plan. The Council believes the location of Obey’s Creek is one of the final places in town that could support major retail development and provide needed retail options for local residents. For the full story from the Chapel Hill News, click here.

Changes Coming to University Mall
University Mall owner Madison Marquette is investing millions of dollars in a new entrance to the mall from US 15-501. Starting in June, there will be a new cut in between the K&W Cafeteria and A Southern Season, making it easier for shoppers and visitors to access those businesses and others in the mall. In addition to the entrance, Madison Marquette is installing new entry facades, outdoor seating and lighting, and landscaping to improve the appearance of the mall. During the groundbreaking ceremony, Madison Marquette Senior Vice President Paul Harnett praised Dwight Bassett, Chapel Hill’s economic development officer for helping the project gain approval so quickly. It is estimated the project was approved in less than three months. For the full story from the News and Observer, click here.

140 West Contract Awarded
A $40 million contract to build the 140 West Franklin Street project has been awarded to John Moriarty & Associates Inc, a Massachusetts based construction firm. Groundbreaking is expected to begin in June of this year. The complex will contain 26,000 square feet of retail and one hundred forty condo units, forty of which have been sold already. It will also contain a 337-space parking deck owned and operated by the Town of Chapel Hill.
From 140 West Press Release

RFP Issued for Ephesus/Fordham Small Area Plan
The Town of Chapel Hill has issued a Request for Proposals (RFP) to select a firm to lead a small area plan for the intersection of Ephesus Church and Fordham Blvd. The plan will analyze current transportation conditions, define future land uses, and determine solutions for the existing traffic issues to encourage new redevelopment near the intersection. Town staff believes the planning exercise will kick-off sometime in early June.
From Chapel Hill Development Update

Schools

CHCCS Middle Schools Among Best in the State
A consultant to the Chapel Hill-Carrboro City School District reported that the districts middle schools are the premier schools in North Carolina. Mark L’Esperance, an associate professor at East Carolina University, presented a report about the middle schools at a recent school board meeting and concluded that the strength of the schools is in identifying the needs of each individual student. Speaking about McDougle Middle School, L’Esperance remarked, “I’ve been in 600 to 700 classrooms in the past year. It was incredible what was taking place.” The final report concludes that more needs to be done to develop a clear counseling plan. For the full story from the Herald Sun, click here.

Orange County

County Considering a 1/4 Cent Sales Tax Increase
The Orange County Board of Commissioners will hold a public hearing on Tuesday, June 1 at 7 p.m. to hear from residents about a 1/4 cent sales tax increase. During the 2007 legislative session, the General Assembly gave counties the authority to levy, subject to voter approval, an additional one-quarter cent sales tax increase. County offices estimate the quarter cent would generate $2.3 million per year. The vote on the tax, if the Commissioners elect to go forward with it, would be on November 2 of this year and not go into effect until April of 2011. The public hearing on June 1 will be held at Department of Social Services on Mayo Street in Hillsborough.
From staff notes

Crime Rates in Carrboro Outpace Chapel Hill
The property crime rate in Carrboro continues to outpace the rate in Chapel Hill. Carrboro’s rate per 100,000 people in 2008 was 4,226.5 compared to Chapel Hill’s 3,616. Likewise, the violent crime rate in Carrboro outpaced that of Chapel Hill’s in 2008. Carrbor recorded 400 violent crimes per 100,000 people compared to 292 in Chapel Hill. For more information from the Bureau of Justice Statistics, click here.

Chapel Hill Town Budget Proposed

Town Manager Roger Stancil has presented his budget plan to the Chapel Hill Town Council. The plan calls for no new taxes and it does not include staff lay-offs. The plan would, however, freeze current vacancies and would not increase salaries of town employees, outside of a one-time $800 bonus. The budget calls for an overall increase in spending by 5.6 percent but lower departmental spending by around three million dollars. Additionally, it increases funds for parks, which has been a goal of the Council. The final budget will be made and approved by the Chapel Hill Town Council in the coming weeks. For the full story from the Daily Tar Heel, click here.

NC 54 Corridor Under Examination
A consulting group has been hired by local governments in Chapel Hill and Durham to examine traffic congestion in the NC 54 corridor over the next 25 years. Early reports show that the corridor could be as congested as Capital Blvd in Raleigh if steps are not taken to improve traffic flow. Some proposed measures to improve flow include constructing more park and ride lots in South Durham for workers commuting to UNC-Chapel Hill as well as better bus service along the corridor. The consultants are also looking at ways to build “superstreet” improvements, similar to the one on Fordham Blvd in Chapel Hill. Many believe the plan needs to pay more attention to the Farrington Road intersection and land east of that area as there will be lots of new businesses open in that area of the corridor. For the full story from the Herald Sun, click here.

Town Wants New Members for Boards and Commissions
Spring is usually the time when the Town of Chapel Hill looks for new resident volunteers to serve on committees and boards in the community. The GCHAR supports this effort and strongly encourages its members to apply. Click here to view a short video about volunteering on a board and here to view a list of vacancies. For more information about opportunities to volunteer or any questions you have, contact Amy Harvey at 919-969-5013 or aharvey@townofchapelhill.org.

State DOT Yields to Carrboro
After a long argument between Carrboro and the North Carolina Department of Transportation, the state has agreed to add bike lanes and sidewalks along a stretch of Smith Level Road without adding automobiles lanes. Last year the state offered to pay $6.6 million dollars to convert Smith Level Road into four lanes. Carrboro rejected the proposal, saying they only wanted to add sidewalks and bike lanes. Carrboro said that it was trying to promote long term sustainability and have a community ready if gas prices rise to five or ten dollars. A public information meeting has been scheduled for April 27th, and a vote by the Board of Aldermen will follow. For the full story from the News and Observer, click here.

Hillsborough Town Budget Proposed
Hillsborough Town Manager Eric Peterson presented his budget to the town council in mid-May. The proposal calls for a five percent increase in sewer rates, but no increase on the property tax or water rates. The town’s operating expenses have increased by 1.9 percent over the current year’s budget. The proposed budget calls for an increase in town employee pay by 2.2 percent and will include money for infrastructure improvement and maintenance. The final budget will be made and approved by the Hillsborough Town Board in the coming weeks. For the full story from the News of Orange, click here.

OWASA Considering 9.25 Percent Rate Hike
The Orange Water and Sewer Authority will meet on May 27 to consider a 9.25 percent rate increase. Such an increase would add about $7 to the typical residential water bill each month. OWASA cites the need for an increased rate due to lower water consumption and reduced revenues from new development due to the slow economy. OWASA’s water rates have increased nearly 40 percent over the past five years. For more information from the Chapel Hill News, click here.

Orange County Census Return Rates Rising
Census workers and volunteers seeking to increase number of Orange County residents returning their Census forms have reason to celebrate. The response rate in Orange County is at 77 percent, up from 70 percent in the 2000 Census. Orange County’s response rate outpaces the rate at the state level, which is at 71 percent as of last week. Starting next month, Census workers will begin going door-to-door to get responses from those who have not yet mailed their forms. For the full story from the Daily Tar Heel, click here.

The Triangle

New Businesses Slated for Patterson Place II
Patterson Place II on 15-501 across from New Hope Commons will soon have a number of new restaurants and retailers joining the Spring Hill Suites which recently opened on site. Duke Medicine has taken 47,000 square feet of office space and AT&T has taken about 15,000 square feet and is now open. Moe’s Southwest Grill, Five Guys Burgers and Fries, and Applebee’s will also open by the first quarter 2011. For the full story from the Herald Sun, click here.

U.S. 64 Study Released
The State of North Carolina has released a report that provides details about a stretch of U.S. 64 that would connect Pittsboro to Cary. The plan calls for improvements that will accommodate higher traffic levels by 2035. The plan also includes short-term measures to improve mobility and safety and pedestrian accessibility at major intersections. For the full story from the News and Observer, click here.

Chatham Republican Primary Concludes

Brian Bock, chairman of the Chatham County Republican Party, won the district 3 primary in May and will face Democratic incumbent George Lucier. In District 5, Walter Petty won the Republican primary over Kim Beal and will face Carl Thompson. The Commissioner race will be decided in November. For the full story from the Carrboro Citizen, click here.

Chatham Budget Calls for Property Tax Increase
Chatham County Manager Charlie Horne has proposed a budget that raises the tax rate by 4.15 percent or 2.5 cents. The $84.6 million budget reflects a 6 percent increase in school funding with a 4 percent cut in non-school funding. The proposed tax increase will add $50 to the property tax bill for the owner of a $200,000 home. Chatham County will see a number of new facilities open in 2010-2011 including a new middle school, library, parks and expanded community college classrooms. For the full story from the News and Observer, click here.

Durham Approves Neighborhood Rehab
The city of Durham has approved $9.4 million for Rolling Hills/Southside neighborhood improvement. The dollars will be broken up into a $5.5-million zero-interest loan to start the Rolling Hills/Southside redevelopment project; and spending $3.9 million to prepare the Rolling Hills site and a portion of the adjoining Southside neighborhood for new construction. All of this will only take effect if the developer wins approval for $1.14 million in state tax credits. The plan has sparked controversy over the funding, as the city will pay for it by borrowing against federal grants for low-income housing and social services expected to be received over the next 20 years. For the full story from the News and Observer, click here.

Durham Consider a Fall Referendum on Roads
Durham city council members are considering putting a city street-paving bond on the November ballot. Mayor Bill Bell asked his fellow council members and staff to weigh a $20 or $30 million bond that would help the city get ahead on a backlog of road improvements. City-sponsored polling indicates that road conditions are some of residents biggest complaints. The Department of Public Works estimates there are about 105 miles of city-maintained streets that need improvements. For the full story from the Herald Sun, click here.

Triangle Home Sales Rise in April
Buoyed by credits from the Federal Government, home buyers rushed to purchase homes in the Triangle, driving sales up 33 percent compared to sales in April of 2009. There were 1,880 homes sold in Durham, Orange, Wake, and Johnston counties in April. There was a major surge in home listings–25 percent more homes were listed this April than last. Finally, the average price of a home sold was up in the Triangle from $216,000 to $230,000. Many experts believe the real test for the home market will be in June when the credits have expired and the market must stand on its own. For the full story from the News and Observer, click here.

Home Prices in Triangle Expected to Bottom in 2010
A new study from Fiserv Case-Shiller has predicted that Triangle home prices will bottom out in the fourth quarter of 2010 and return to peak prices in year 2013. This puts the Triangle market well above other regions across the country. Many other markets are not expected to recover until 2025 or later. According to Fiserv, the Triangle market peaked in the third quarter of 2008, and so far has dropped around 4.9 percent in home prices. For the full story from the Triangle Business Journal, click here.

State and Nation

NC House Leaders Looking to Trim Budget Further
NC House budget writers are eyeing other funding sources and looking at places to cut to improve next year’s budget. House leaders are considering cutting about $200 million more from public education than the current Senate budget. To keep teachers, the House is looking at siphoning more money from the lottery to the tune of $90 million. Leaders are also considering asking the University of North Carolina system and community colleges to cut another $35 million. For the full story from the Herald Sun, click here.

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The Real Estate Report (April 2010)

Chapel Hill and Durham Real Estate — Thu, 15 Apr 2010 18:18:02 +0000

Volume 5, Issue 4

April, 2010

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

Events

Vote in the Upcoming Primary!

The Association encourages you to get out and vote in the upcoming election on May 4. In Orange County, there is an important County Commissioner race that will be decided on the 4th. If you live in Orange County, please do your part and vote. For more information about the candidates, please contact Desiree Goldman, the Association’s Legislative Liaison at 919-696-5848. For information about where to vote, click here. To view a sample ballot, click here.

New Development

123 West Franklin Possible by 2014
The University Square redevelopment, now referred to by its developers as 123 West Franklin, may have new buildings coming out of the ground by 2014. Project leaders believe it will take two years to gain approval for the process from the Chapel Hill Town Council and another two years to develop the first phase of the project. The first phase would include redeveloping the buildings facing Franklin Street with new 4 and 5 story buildings that would include retail and office space. Phase One also calls for a parking garage wrapped with townhomes. Leaders don’t believe the University Square towers will be removed for at least 10 years. Plans also call for more civic and green space. For the full story from the News and Observer, click here.

New UNC Dorm Proposed
The Wesley Foundation of UNC-Chapel Hill proposed building a four story dorm on the corner of Rosemary and Church streets in downtown Chapel Hill. The dorm would be approximately 80,000 square feet and would include retail and parking, as well as residential space for one hundred forty students. It will also be an entirely substance free dorm, with no alcohol or smoking allowed. The project has stirred controversy, with residence of the area calling it out of character from the rest of the neighborhood. Others are also concerned with parking availability. The current plan calls for twenty-nine underground spaces available at the site, and additional parking available in Chatham County accessible via a shuttle. For the full story from the Carrboro Citizen, click here.

Schools

CHCCS Ask for Bigger Budget
The Chapel Hill-Carrboro City School Board approved a budget of just north of $128 million last week. The budget is actually an increase in funding for students, raising the average amount to $3,158 per student. Overall, it is a two percent increase in funding. Nevertheless, indications from the County and State are that the district will be receiving less money this year. It is looking likely that state funds will decline this year by about $1.6 million for the district. County Commissioners are also saying that they will not be able to increase funding to the district this year. The Commissioners must adopt a budget by June. For the full story from the Chapel Hill News, click here.

Orange Schools Tap New Principals
The Orange County School District selected two internal candidates to fill principal positions at its two high schools. Armond Hankins will become the new principal at Orange High, while John Wheeler will serve as his counterpart at Cedar Ridge. Wheeler was named assistant principal at Cedar Ridge in 2008 and will repace Gary Thornburg. Similarly, Hankins served as assistant principal at Orange beginning in 2008. For the full story from 1360AM WCHL, click here.

New Student Study Approved
The Orange County School Board has approved a new student reassignment study to be conducted at a cost of $27,500. It will attempt to find solutions to the uneven levels of student school assignment, with some schools being over crowded while others are operating below capacity. The study will be funded by lapsed salaries from vacant district positions. For the full story from the News of Orange, click here.

Orange County

Crime Rates in Carrboro Outpace Chapel Hill
The property crime rate in Carrboro continues to outpace the rate in Chapel Hill. Carrboro’s rate per 100,000 people in 2008 was 4,226.5 compared to Chapel Hill’s 3,616. Likewise, the violent crime rate in Carrboro outpaced that of Chapel Hill’s in 2008. Carrbor recorded 400 violent crimes per 100,000 people compared to 292 in Chapel Hill. For more information from the Bureau of Justice Statistics, click here.

Meadowmont Apartments Sold

The apartment complex at Meadowmont has been sold to Bell Partners, a Greensboro real estate company. Bell paid $37 million for the complex. The apartments boast a ninety-one percent occupancy rate and include over 250 apartments. According to Bell, the buy, “represents an improving acquisition environment.” For the full story from 1360AM WCHL, click here.

Town Suspends Visioning Panel
After ten months of meeting, Chapel Hill’s visioning panel has been suspended due to a lack of clarity about how to proceed. The original charge to the task force was to advise the town on proper ways to grow. Members of the task force said they faced many challenges, including a lack of knowledge and lack of direction from the town council. The town council has asked the Town Manager to come up with a new blueprint for growth in place of the task force. For the full story from the News and Observer, click here.

Town Wants New Members for Boards and Commissions
Spring is usually the time when the Town of Chapel Hill looks for new resident volunteers to serve on committees and boards in the community. The Chamber supports this effort and strongly encourages business people and non-profit leaders to apply. Click here to view a short video about volunteering on board and here to view a list of vacancies. For more information about opportunities to volunteer or any questions you have, contact Amy Harvey at 919-969-5013 or aharvey@townofchapelhill.org.

State DOT Yields to Carrboro
After a long argument between Carrboro and the North Carolina Department of Transportation, the state has agreed to add bike lanes and sidewalks along a stretch of Smith Level Road without adding automobiles lanes. Last year the state offered to pay $6.6 million dollars to convert Smith Level Road into four lanes. Carrboro rejected the proposal, saying they only wanted to add sidewalks and bike lanes. Carrboro said that it was trying to promote long term sustainability and have a community ready if gas prices rise to five or ten dollars. A public information meeting has been scheduled for April 27th, and a vote by the Board of Aldermen will follow. For the full story from the News and Observer, click here.

Carrboro Planning Board Vacancy
There is currently a vacancy on the Carrboro Planning Board. The vacancy is for the seat that represents the Carrboro Extraterritorial Planning Jurisdiction (ETJ) and is a seat appointed by the Orange County Board of Commissioners. Interested applicants must reside in the ETJ; the Carrboro Planning Board meets on the first and third Thursday of each month at 7:30 pm. Click here to apply for the seat.

Grant Given to Protect Farmland in Rural Orange

A state grant in the amount of $150,000 was given to Orange County by the Development and Farmland Preservation Trust Fund to protect 153 acres of farmland. Orange County is working with Colonel William Breeze Sr. to conserve part of his farm under a conservation easement program that will prevent the land from being for anything other than agricultural purposes. For the full story from the Daily Tar Heel, click here.

Orange County Personal Income Up
Personal income in Orange County rose by 1.2 percent in 2008. This brings the average income to $47,063. It also puts Orange County ahead of both Wake and Durham county, which had $41,691 and $38,795 respectively. Wake and Durham Counties both experienced a decline in personal income in 2008. Personal income for 2009 is estimated to decline in all triangle counties, including Orange. Those numbers will be released in 2011. For the full story from the Triangle Business Journal, click here.

New Data Show Drop in Commercial Tax Base

Data from the Orange County Economic Development Office show a decline in the county’s commercial tax base as a percent of the overall tax base. From 2008 to 2010, the commercial tax base declined from 3 percent to 2.5 percent of the overall tax base, largely due to increases in the residential portion which incresed from 83.1 percent to 84.6 percent over the same period. In terms of value, the commercial tax base rose from $1.58 billion in 2008 to $1.83 billion in 2010. The residential base rose from $9.4 billion to $12 billion from ’08 to ’10.
From Staff Notes

Association Signs Onto Economic Development Letter
The GCHAR recently co-signed a column, along with four other partner organizations, stating that economic development is one of the most important, if not the most important, issue facing Orange County and the Board of County Commissioners. The column lays out concrete ways the Commissioners can begin to improve the situation, including providing water and sewer in the long-standing economic development districts, replenishing the existing small business loan fund, approving a streamlined Uniform Development Ordinance, and creating a fund to leverage and match State incentive dollars. To view the column, click here.

The Triangle

Chatham Forming Task Force for Courthouse

Chatham County Commissioners are seeking volunteers for a task force to consider how to use the renovated courthouse in Pittsboro. The task force will include 19 voting members and one non-voting county commissioner. Commissioners will make the appointments on May 17 and the task force will meet from May through August of 2010. Applications for the task force are due by May 7, click here to apply or find more information.

Commission Says “No” to Durham Development
A proposed Durham development got a “No” recommendation from the Durham Planning Commission. The plan called for a new development to be built on the outskirts of Durham, near Chatham County. The final vote was 11-1 against the project, with members saying that the development was too far from the region’s planned transit network and would direct growth where it wasn’t desired. The vote from the commission has no legal authority, and it will now go to the Durham County Commissioners for the final decision to be made. For the full story from the Herald-Sun, click here.

Durham Schools Face Cuts
Durham Public Schools is facing a $3 million budget cut by Durham County. This comes on top of another estimated $17 million cut to the school system made by the state. Durham County Commissioners have asked the school system to look into cost saving measures that won’t effect teachers, such as freezing top officials salaries and reusing office paper. Parents have also asked the county to waive cuts from the school system in favor of other agencies who are not as heavily effected by state cuts. A final decision will be made in May by the County Commissioners. The full article can be found here.

Durham and Raleigh Residents Big Spenders
According to a News and Observer blog, Durham and Raleigh are home to some of the biggest spenders in the country on things like food, shopping, and travel. A survey done by Bundle.com ranks Raleigh as number 6 and Durham as number 10 on the list of highest-spending cities. The report shows that Durhamites spend just over $10,000 per year on food and drinks, about $700 ahead of San Francisco. Austin, Texas is number one on the list. Observers think the reason Raleigh and Durham spend so much more than major markets like New York and L.A. is that the cost of housing is far less. For the full story from the News and Observer, click here.

Home Prices in Triangle Expected to Bottom Out in 2010
A new study from Fiserv Case-Shiller has predicted that Triangle home prices will bottom out in the fourth quarter of 2010 and return to peak prices in year 2013. This puts the Triangle market well above other regions across the country. Many other markets are not expected to recover until 2025 or later. According to Fiserv, the Triangle market peaked in the third quarter of 2008, and so far has dropped around 4.9 percent in home prices. For the full story from the Triangle Business Journal, click here.

State and Nation

State Budget Cuts Could Affect Universities
Governor Bev Perdue’s proposed budget for this year calls for a four percent cut to the North Carolina University System. Erskine Bowles, University system president, has said that the cuts will result in larger class sizes and less class offerings. He also said it would force the system to eliminate 1,200 positions. Bowles has asked for the cut to be reduced to two percent. This may prove difficult for Perdue, as she faces a budget gap of over one billion dollars. A final decision about the state budget and University system funding will be made in July by the state legislature. For the full story from The Herald-Sun, click here.

Cuts to K-12 Education Looming

Federal stimulus money for North Carolina public schools is set to expire in July of 2011, something that is creating concern among school board officials throughout the state. Legislators have cut about $790 million in public school funds and 3,700 jobs. The cuts would have been much deeper without the stimulus funds. But with those funds expiring and local government budgets drying up, school board officials are now looking at alternative measures to keep costs down. Charlotte-Mecklenburg Schools recently asked the state if there is flexibility to alter the minimum number of days that schools need to be open. The Charlotte School Board also voted to cut 600 teacher positions in the 2010-2011 school year. Most districts are in a “wait-and-see” position and likely won’t make a move for a few more months. For the full story from the Daily Tar Heel, click here.

The Real Estate Report (March 2010)

Chapel Hill and Durham Real Estate — Mon, 29 Mar 2010 01:44:26 +0000

March, 2010

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

Events

Meet and Greet with County Commissioner Candidates

Thursday, April 20 4-6 p.m. at GCHAR Office
The Greater Chapel Hill Association of REALTORS will hold a candidate meet and greet with all Orange County commissioner candidates on Thursday, April 20. This is an excellent opportunity to speak directly to the candidates and ask them about their positions on issues affecting the real estate industry. Light refreshments will be served. For more information, contact Sue Millager at 929-4032 or Desiree Goldman at 696-5848.

New Development

Council Approves Walgreen’s
The Chapel Hill Town Council approved a new Walgreens to be built at the corner of East Franklin Street and South Estes Drive. It will take the place of the BP gas station. The new drug store prompted worries about increased traffic in an already busy area. In response, the council decided to put a new concrete island to prohibit left turns, and make Walgreens pay $21,000 for traffic improvement construction. The Walgreens will be the first corner drugstore in Chapel Hill as well as one of the first eco-friendly drugstores, using natural light and other green features. For the full story from the Chapel Hill News, click here.

Three development projects are being considered off of Homestead Road, in addition to a new homeless shelter. The first project is an apartment or condominium project on 31.5 acres of land just west of the Southern Human Services Center. In early February, Capstone Properties held a design charrette to get input from the public about the project and its design. Across the street from the Capstone project, a new townhome and office/retail project is also being considered. This project, called Bridgepoint, would include 23 townhomes and two office/retail buildings on 9.2 acres and could go before the town as early as April. The third project on Homestead Road is a proposed Episcopal church. The Episcopal Church of the Advocate is interested in building a 42,300 square foot project on Merin Road, further west from the two projects above. The first project on the site would be a 3,600 sq ft building but eventually the site would expand to include a welcome center, meeting space, a retreat center, outreach building, cottage and parsonage. For the full story from the Chapel Hill News, click here.

New UNC Dorm Proposed

The Wesley Foundation of UNC-Chapel Hill proposed building a four story dorm on the corner of Rosemary and Church streets in downtown Chapel Hill. The dorm would be approximately 80,000 square feet and would include retail and parking, as well as residential space for one hundred forty students. It will also be an entirely substance free dorm, with no alcohol or smoking allowed. The project has stirred controversy, with residence of the area calling it out of character from the rest of the neighborhood. Others are also concerned with parking availability. The current plan calls for twenty-nine underground spaces available at the site, and additional parking available in Chatham County accessible via a shuttle. For the full story from the Carrboro Citizen, click here.

Schools
Dropout Rates Down in Area Schools
Chapel Hill-Carrboro City Schools and Orange County Schools both saw a decrease in the number of dropouts during the 2008-09 school year. The Chapel Hill-Carrboro dropout rate was 1.4 percent, which was down by about 9 percent from last year. Orange County Schools’ rate also fell, with a decrease of 21.5 percent for a total dropout rate of 3.62. Chatham County, however, saw a drastic increase in high school dropouts. Its rate was up by 45.7 percent from last year with a dropout rate of 5.69. For the full story from the Herald Sun, click here.

Orange County

Towns, University Apply for Google Fiber Network
Chapel Hill, Carrboro, and UNC are applying jointly for ultra-high speed Internet paid for by Google. The fiber network would run at speeds of up to 1 gigabit, nearly 100 time faster than the speediest network currently available. Google will pay for the construction and operation of the networks and charge customers a market rate to use the fiber. Neighboring Durham is applying for the fiber network in a separate application. Leaders in Chapel Hill and Carrboro believe the communities have a good chance of being selected because of work already underway to lay a fiber-optic network and opportunities such as Carolina North, that would open up new applications for the network. Communities were required to submit their application for the network on March 26. For the full story from the Daily Tar Heel, click here.

Early Results from Office Space Study
Ernie Bleinberger, consultant to the Town of Chapel Hill for an office market study, reported that office market in Chapel Hill is about 2.2 million square feet in size and that 1.7 million square feet is in buildings greater than 10,000 square feet while another 500,000 square feet is in buildings less than 10,000 square feet. Bleinberger noted that the local market is trending toward smaller product and that while most space in Chapel Hill is being listed at Class A prices, it would not pass as Class A space in Durham or Raleigh. In terms of the Chapel Hill market compared to the Raleigh and Durham markets, Bleinberger reported that Chapel Hill is about four percent of the overall Triangle market. Approximately 450,000 square feet of new office product has been approved in Chapel Hill but is not yet built.
From Staff Notes

Town Opens New Parking Lot
Chapel Hill announced the completion of an additional parking lot located at 104 W. Rosemary St. The lot is a block away from the corner of Franklin and Columbia, and it will be able to accommodate 17vehicles. The new lot is one of many new improvements passed by the Town Council in order to make parking easier in downtown Chapel Hill. The town has also opened the West Franklin-Basnight Lot with 42 leased spaces, and has converted parking lots with leased spaces into public parking.
From Staff Notes

Carrboro Planning Board Vacancy
There is currently a vacancy on the Carrboro Planning Board. The vacancy is for the seat that represents the Carrboro Extraterritorial Planning Jurisdiction (ETJ) and is a seat appointed by the Orange County Board of Commissioners. Interested applicants must reside in the ETJ; the Carrboro Planning Board meets on the first and third Thursday of each month at 7:30 pm. Click here to apply for the seat.

Sign up for Orange County Government Updates
Orange County government is now offering an easy way to sign up for news, agendas and updates about what is happening in local government. Click here to sign-up and be included on a distribution list. The new automated program replaces an old system that required interested residents and community members to call and sign up for the updates.

New Data Show Drop in Commercial Tax Base
Data from the Orange County Economic Development Office show a decline in the county’s commercial tax base as a percent of the overall tax base. From 2008 to 2010, the commercial tax base declined from 3 percent to 2.5 percent of the overall tax base, largely due to increases in the residential portion which incresed from 83.1 percent to 84.6 percent over the same period. In terms of value, the commercial tax base rose from $1.58 billion in 2008 to $1.83 billion in 2010. The residential base rose from $9.4 billion to $12 billion from ’08 to ’10.
From Staff Notes

The Triangle

Chatham Approves New High School and Jail

Chatham County Commissioners recently approved a five-year Capital Improvement Plan that includes a new high school and jail as well as a landfill site study. The high school will be located on Jack Bennett Road in northeastern Chatham County and plans to open in 2015 with a capacity of 800 students. The school will have a core–gymnasium, cafeteria, and media center–that will allow it to expand to 1,200 students, though. The jail is a much needed project with the current facility over capacity nearly 65 percent of the time, according to the Sheriff’s office. Due to construction market conditions, the County cut significant costs in the projects. For the full story from the Chapel Hill News, click here.

Pittsboro Blaze Affecting Court System, Businesses
The fire that consumed the Chatham County Courthouse in Pittsboro last week is causing slow downs to the court system in Chatham County and is also impacting downtown businesses. Many businesses in the downtown circle opened the day after the blaze but have seen little traffic. The Chapel Hill Transit Pittsboro Express route is stopping service to the Courthouse circle as the road is currently closed. New estimates are slightly more optimistic about the condition of the courthouse. For the full story from 1360AM WCHL, click here.

Hillsborough St Project Redevelopment Proposed
A Charlotte developer, FMW Development Co., is proposing two new buildings at the intersection of Hillsborough and West Morgan streets in Raleigh. Plans call for a four and five story building to include 240 apartments, multiple townhouse units, 10,000 square feet of ground floor retail and commercial space, and parking. FMW is asking for a rezoning and hopes to participate in a public hearing July. Plans aim for a ground breaking in the spring of 2011. For the full story from the Triangle Business Journal, click here.

State and Nation

Cuts to K-12 Education Looming

State Jobless Rate Rises
North Carolina’s jobless rate rose in February to a record high of 11.2 percent. That figure is up by 0.1 percent from January. Economists believe the increase is due not to lay-offs as much as new workers looking for jobs. Employment levels in February held steady but the number of people looking for a job increased. Another dim figure was the number of hours and wages paid in manufacturing. Those figures dipped in February and indicated that factories aren’t yet in expansion mode. For the full story from the Herald Sun, click here.