Volume 1, Issue 4 November, 2006
 
The Real Estate Report
Local Government News Impacting the Real Estate Industry

 


 

Fellow REALTORS®:

Thank you for your support of this monthly update on area governmental and developmental news affecting the real estate industry. Please note we now are including links to some pertinent Web sites, including one for TMLS statistics that are updated monthly. As always, we welcome your feedback. Have a safe and happy Thanksgiving holiday. We are blessed with a wonderful area in which to live and work, and have much to be thankful about.

Best,

Mark Zimmerman
Chair, Legislative Affairs Committee
Greater Chapel Hill Association of REALTORS®


New Development

Council Holds Public Forum on Lot 5 Development
Chapel Hill Town Council heard from 22 different speakers at Monday’s council meeting concerning the Ram Development proposal for Lot 5. Current plans call for a mixed use development with 137 residential units, 28,500 square feet of retail space, a public plaza with 27,000 square feet, and an underground parking structure. Initial projections called for a town investment of $500,000, although rising construction costs have altered that figure to $7.2 million. Though the town projects positive cash flow by year four of the project, two UNC faculty speaking at the public forum called those forecasts “too rosy.” The Council will take up the issue again at the December 4th meeting. For full story, click here.

Chapel Hill Re-evaluates Plans for Downtown Projects
The town might have to scale back its plans on proposed business and residential condominium towers on two downtown municipal parking sites. The town has continued to review the projects following summer reports from Ram Development estimating project costs at $100 million which is $20 million more than the town anticipated. The negotiating team, which includes Town Council members Cam Hill and Sally Greene met to discuss scenarios that Ram submitted in the month of October. A public forum on the Parking Lot 5 redevelopment project will take place on November 20th .The committee might not make a recommendation to Town Council until November or later. For full story, click here.

Developer Plans to Build New Homes along I-40
York Residential, an Atlanta-based developer, wants to build 374 housing units in Northern Chapel Hill adjacent to another project. The University Station development would embrace Interstate 40 between the Chapel Hill North development off Martin Luther King Jr. Blvd. and the Carol Woods retirement community off Weaver Dairy Road. The Town Council is still receiving input from Town Hall staff and advisory boards on the projects and the Council is scheduled to review the University Station proposal in February.
From The News & Observer

Condos Added to Woodmont Office Complex
Capital Associates submitted a revised plan for the Woodmont office complex in a 33-acre parcel between Barbee Chapel and Little John roads south of N.C. 54. The latest plan covers just above 580,000 sq.ft. in total. The proposal calls for almost 480,000 sq.ft. of office space and 102,000 sq.ft. of condominiums have been added to the plan. Nine of the 60 condos would be dedicated as affordable housing under the Orange Community Housing and Land Trust. Town Council will consider the plan in February 2007. For full story, click here.

New Construction in Downtown Hillsborough Meets County’s Need for Space
A freestanding library, parking deck, and three-story county office building may soon be coming to downtown Hillsborough. The Orange County Board of Commissioners is proposing the new construction in collaboration with local developer George Horton, who has approval for the future Gateway Center building. The County wants to lease the second and third floors of the Gateway Center for offices, with an option to buy after a year. The total cost to the county would be about $25 million. For full story, click here.

 


Elections

Election Results
Elections for Orange County Commissioners took place on Tuesday, November 7, 2006 between the hours of 6:30am-7:30pm. The winners of the race for the Orange County Board of County Commissioners are: Alice Gordon (D), Barry Jacobs (D), and Mike Nelson (D). Results are pending for Allan Baddour and Adam Stein for the second judicial seat in Superior Court district 15B.

County Commissioner District Voting Passes
Last Tuesday Orange County residents voted to alter the county’s current system for electing county commissioners. For future commissioner elections, Orange County will be divided into two districts. The Board of Commissioners will also increase in number from five to seven members. Three seats will be designated for District 1 comprised of the Chapel Hill-Carrboro area. Two seats will correspond with District 2 covering Hillsborough and the remainder of the county. Two seats will remain at-large. The measure passed with almost a two/third majority of voters. Additional coverage from the Chapel Hill News can be found here.

 


Regulatory Issues

Taskforce Makes Report Recommending Inclusionary Zoning
The Chapel Hill Town Council heard the findings of a report from its Taskforce on Affordable Housing. The taskforce recommended the creation of a clearly defined inclusionary zoning ordinance but also said additional time and resources need to be spent reviewing the matter. Members of the taskforce said ordinances need to be applied more frequently and force developers to include affordable units in all cases. Current ordinances allows developers to satisfy requirements by selling 15 percent of units at “affordable prices,” typically defined as affordable for families earning 80 percent of the area’s median income. Developers may also limit the size of 25 percent of the units built to 1,350 square feet (small house requirement) or make a “payment-in-lieu” towards the town’s affordable housing initiatives. The taskforce also recommends the establishment of an inclusionary zoning advisory board and the hiring of a consultant to craft an ordinance for the town to enact.
For full story, click here.

Hillsborough/Orange County Growth Plan
The strategic growth plan for Hillsborough and Orange County met with criticism at last night’s public hearing. The plan is the result of almost a year’s worth of meetings by the strategic growth plan steering committee chaired by Commissioner Barry Jacobs. The plan calls for residential development along the south side of town to ease traffic on Churton St. Long term proposals from the plan call for a reduction of the areas where water and sewer lines could be extended. The plans would effectively create a rural area outside of Hillsborough similar to Chapel Hill’s rural buffer. Hillsborough will take public comments on the plan at an open house and public hearing at 6:30 p.m., Nov. 27 in the Gordon Battle Courtroom at the new courthouse. The plan is available for review at www.ci.hillsborough.nc.us. Click on “economic development” and then “strategic growth plan.” For full story, click here.

Estes Drive Expedited Repair Rejected by the Department of Transportation
Attempts for the towns of Chapel Hill and Carrboro to make improvements of Estes Drive Extension a priority for the state Department of Transportation have not yet been successful. The Carrboro section of the road lacks adequate shoulder space, and can be difficult for bikers, pedestrians and drivers who share the road. Despite Estes Drive being a perennial high-priority project for the town, major improvements are not scheduled to be made until 2014.
From the Herald-Sun


Progress Seeks Extension for Shearon Harris Nuclear Plant
Progress Energy has applied for an extension of its nuclear license for an additional 20 years at the Shearon Harris nuclear facility in Wake County. The plant’s license is slated to expire in 2026. The license renewal process is expected to take up to 22 to 30 months to complete and is based on a thorough assessment of the facility’s operating equipment, maintenance programs, replacement procedures and potential environmental impact. Information on public hearings concerning the plant can be found at www.nrc.gov. Progress Energy’s license renewal application follows recent increased public scrutiny of the plant over reports highlighting problems to the plant’s emergency warning sirens and back up system protective fire wall. For full story, click here.


Schools

High School Juniors Will Begin 2007-2008 School Year at New School
A divided school board voted to open Carrboro High next year with a full class of juniors. The Chapel Hill-Carrboro School board was split between requiring juniors in Carrboro High’s assignment zone to enroll and allowing them greater freedom to stay at one of Chapel Hill’s established schools. Students have the ability to appeal their re-assignment in writing by March 1, 2007 and each appeal will be reviewed on a case-by-case basis. For full story, click here.

Few Local Schools Receive High Honor
A record few schools received the state’s highest honors this year for academic performance. The trend has been attributed to a new, harder math curriculum and higher required scores that students have to achieve on state tests in order to be deemed proficient. Last year, the state designated all 13 of Chapel Hill-Carrboro’s elementary and middle schools as Schools of Excellence. This year, just two, Sewell and Rashkis elementary schools, received the honor. No schools in Orange County have been named Schools of Excellence.
From the Herald-Sun

Early School Prototype May Be Launched in Chapel Hill-Carrboro City School District
A leading child development institute based at UNC-Chapel Hill wants to transform education by enrolling 3-year-olds in public schools. The proposal, which is scheduled to be reviewed by the school board on November 16, would create a model school on the Sewell Elementary campus where students would start at age three and continue through fifth grade. For full story, click here.

 


The Triangle

Triangle & National Housing Markets See Readjustment
Sales of existing homes in the Triangle dropped for the first time in four years. Sales were 4.5 percent lower in October while inventories increased 6.6 percent. The number of sellers that reduced listing prices also increased by 17 percent. The National Association of Realtors reported that nationally, new home sales declined by 13 percent in the third quarter while the average closing price declined by 1.2 percent. For the year Triangle home prices are up 3.4 percent. For full story, click here.

Local Jobless Rate Rises
Unemployment in the Triangle rose in September from 3.7 percent to 3.8 percent, despite continued job growth. The worsening rate is triggered by a growing population that includes more job seekers. The state unemployment rate in September in September was 4.9 percent, while the U.S. jobless rate was 4.6 percent. The Triangle is on track to add 33,000 jobs this year, the largest gain since the late 1990s. For full story, click here.

Triangle Residents Favor Rail as Solution to Traffic Congestion
A recent poll conducted for the News & Observer and WRAL-TV shows that many residents want commuter trains in the region’s future. The poll gauged the opinions of 600 likely voters in Wake, Durham, and Orange counties. Almost 80 percent of those interviewed said the Triangle needed some improved mass transit. Roughly 39 percent said the Triangle needs rail. For full story, click here.

 


Federal

Road Planning Short-Circuited in Congress
North Carolina’s Congressional delegation took control of more than $135 million from the State Department of Transportation last year to help pay for dozens of highway projects they favored. This has delayed other projects deemed more important by state and local officials. The new projects dictated by Congress did not have enough support in North Carolina to be included among the 2,337 funded in the state’s 2006-2012 Transportation Improvement Program. For full story, click here.

Existing Home Prices Suffer Decline
Prices for existing homes posted the biggest year-over-year decline on record in September while new home prices sank almost 10 percent, the biggest drop in nearly 36 years. Economists believe the economy is set to bounce back after this year’s mid-year slow-down, highlighting the recent decline in energy prices.
From the U.S. Chamber of Commerce Legislative Updates


Other

Women’s Center Offers Savings Matching Plan to Encourage Homeownership
The Women’s Center of Chapel Hill is offering assistance for first time homebuyers. The center’s Individual Development Account Ownership Program matches personal savings up to $2,000 for a down payment on a home in Orange County. Participants must save $1,000 and attend 18 hours of workshops on home-buying and managing personal finances over an 18 month period. The program is funded through a community development block grant from the N.C. Department of Commerce and is available to applicants who make 80 percent or less of the county's median income. Applications are being accepted a new cycle of the program. For full story, click here.

 


Links

Town of Chapel Hill
www.townofchapelhill.org

Town of Carrboro
www.townofcarrboro.org

Town of Hillsborough
www.ci.hillsborough.nc.us

Orange County
www.co.orange.nc.us

Chatham County
www.co.chatham.nc.us

TMLS Statistics
http://trianglemls.com/tmls-stats.html