Volume 2, Issue 4

November, 2007

 

 

 

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

 

 


 

 


New Development

Zero Carbon Project Proposed for Chapel Hill
Thirty-two apartments and 12,000 square feet of shops and offices are proposed for the corner of N.C. 54 and South Columbia Street. The project will potentially be the greenest in the country with developer Phil Szostak proposing that the project be a zero carbon development. The development would include solar panels and roof top gardens and generate its own electricity entirely on site via wind and geothermal power. However, some concerns have been raised about the project’s proximity to a stream which the developer contends is sometimes dry. The state classifies the stream as year-round, a classification that would force the developer to move the project further from the stream. For the full story, click here.


Regulatory Issues

Northwest Property Group Disputes Conditional Use Permit
“Abuse of discretion and contrary to law” is how Northwest Property Group, developers of Carrboro’s Jones Ferry Road shopping center, describes the conditions put on the project by the Carrboro Board of Aldermen. Northwest says that one of the 37 conditions the Town of Carrboro attached to its conditional use permit, approved Sept. 25, allows only emergency access to the shopping center from Barnes Street. The developer has filed a petition in Orange County Superior Court asking a judge to strike the condition required by the aldermen. For full story, click here.

Chapel Hill Bans Pine Straw as Landscaping Material
In late October, the Town of Chapel Hill adopted an ordinance banning the use of pine straw or pine needles as landscaping material within 10 feet of any commercial or multi-family building. This ban is in effect for buildings made of combustible material including wood, vinyl, plastic, or other burnable materials. There have been a number of fires caused by discarded cigarettes being tossed into pine straw this year and the fire department has found that pine straw burns at a rate four times faster and three times higher than any other landscaping material. The fire department will not begin strict enforcement of the ban until February 1st, 2008 in order to allow property owners time to change the mulch. For more information, click here.


Schools

Carrboro High Nominated for Building Award
The recently opened Carrboro High School, a Leadership in Energy and Environmental Design (LEED) certified building, was selected from hundreds of projects and nominated for the Gold Medal Building of America Award in the Carolinas. This award, given by the Real Estate and Construction Review, honors regional projects that are innovative, unique and challenging. If selected, Carrboro High will be featured in an eight to ten page article in the Review which will include pictures of the high school, commentary and highlight some of the subcontractors, vendors and suppliers involved in the project. For the full story, click here.

Chapel Hill-Carrboro City Schools Request $6.5 Million
Chapel Hill-Carrboro City School officials are requesting $6.5 million, a 12-percent increase from current funds, to support continuing operations next year. "[The continuation budget] really is the basic necessities -- there's no expansion component, nothing new, nothing different, nothing better in what's being discussed at this point," schools spokesperson Stephanie Knott said. Anticipated new costs include salary and benefit increases, the opening of the area’s 10th elementary school and increased enrollment at Carrboro High School. The school board plans to submit the continuation budget to the county commissioners by the end of November. For the full story, click here.


Orange County

Chapel Hill Election Results
In Chapel Hill, five incumbents ran for reelection including Mayor Kevin Foy and four Town Council members. Mayor Foy was reelected by a wide margin, garnering more than 70 percent of the vote and will serve his fourth term as mayor. In the Chapel Hill Town Council race, incumbents Jim Ward, Sally Greene and Bill Strom all were reelected. Cam Hill, the remaining incumbent, however was defeated by challenger Matt Czajkowski by 60 votes. Hill asked for a recount but was denied by the Board of Elections because the margin of victory was just above the one percent threshold necessary for a mandatory recount. The following are the unofficial tallies from the Board of Elections website:

Mayor:

Candidate

Votes

Percent

Kevin C. Foy

4,333

70.17%

Kevin Wolff

1,803

29.20%

Write-In

39

0.63%


Town Council:

Candidate

Votes

Percent

Matt Czajkowski

2,932

13.74%

Sally Greene

3,917

18.36%

Cam Hill

2,872

13.46%

Will Raymond

1,409

6.60%

Penny Rich

2,442

11.44%

Bill Strom

3,735

17.50%

Jim Ward

3,929

18.41%

Write-In

102

0.48%

For more information, click here.

Carrboro Election Results
Three incumbents were up for reelection in Carrboro, including Mayor Mark Chilton and Aldermen Joal Hall Broun and Dan Coleman. Mayor Chilton, similar to Mayor Foy, won in a landslide with nearly 75 percent of the votes. Broun and Coleman were also reelected and will be joined by challenger Lydia Lavelle, a resident of Carrboro’s annexed northern area. Lavelle was the top vote getter in Carrboro winning 25.5 percent of the votes on Election Day. Below are the results from the Carrboro election:

Mayor:

Candidate

Votes

Percent

Mark H. Chilton

1,743

74.11%

Chuck Morton

163

6.93%

Brian D. Voyce

430

18.28%

Write-In

16

0.68%


Board of Aldermen:

Candidate

Votes

Percent

Frank Abernethy

263

3.99%

Joal Hall Broun

1,478

22.42%

Dan Coleman

1,332

20.21%

Sharon Cook

873

13.24%

Lydia E. Lavelle

1,686

25.58%

Katrina Ryan

938

14.23%

Write-In

22

0.33%

For more information, click here.

Hillsborough Election Results
Hillsborough Mayor Tom Stevens was reelected to another term as he ran unopposed in the recent election. On the Board of Commissioners, incumbents Evelyn P. Lloyd, Eric Hallman, and Brian J. Lowen were victorious. The following are the complete election results:

Mayor:

Candidate

Votes

Percent

Tom Stevens

499

96.15%

Write-In

20

3.85%


Board of Commissioners:

Candidate

Votes

Percent

Eric Hallman

381

25.32%

Evelyn P. Lloyd

414

27.51%

Brian J. Lowen

367

24.39%

Bryant Kelly Warren, Jr.

338

22.46%

Write-In

5

0.33%

From Orange County Board of Elections

Council Funds Parking Study
The Chapel Hill Town Council approved a payment of $27,000 to the Downtown Partnership for a parking study to be completed by the end of February. Rich and Associates were hired to undertake the study, a group that has done a number of similar studies throughout the United States. Rich and Associates spent all of Thursday, November 8th studying parking demand and will examine demand on December 17th to see how demand shifts when students are not in town. Chamber staff is participating on the Parking Study Advisory Committee hosted by the Downtown Partnership. For the full story, click here.

Chapel Hill Announces New Police Chief
Chapel Hill Town Manager Roger Stancil announced Brian Curran as the new chief of police in a September town council meeting. Curran has been a part of the Chapel Hill department for 21 years and served as the interim police chief since April of 2007. Curran has also been charged with assessing the police department, creating a leadership development program, expanding community policing efforts and leading in finding innovative solutions to community issues.
Source: Chapel Hill eNews

Chapel Hill Announces New Police Chief
Chapel Hill Town Manager Roger Stancil announced Brian Curran as the new chief of police in a September town council meeting. Curran has been a part of the Chapel Hill department for 21 years and served as the interim police chief since April of 2007. Curran has also been charged with assessing the police department, creating a leadership development program, expanding community policing efforts and leading in finding innovative solutions to community issues.
From Chapel Hill eNews

Chapel Hill Welcomes Downtown Visitors with Banners
Visitors coming to Chapel Hill for athletic events, Halloween festivities or general visits this fall were welcomed by 30 Carolina blue banners. "Banners are a distinct and creative way to welcome everyone to downtown Chapel Hill," said Liz Parham, executive director of the Downtown Partnership. Plans are currently in the works to design a year-round banner program promoting community celebrations. For the full story, click here.

Orange Tax Options Vote Still On
Orange County officials remain optimistic about plans to seek an alternative revenue source, despite neighboring Chatham County’s failure to pass proposed land transfer tax referendums. "After looking at what is funded, if the [commissioners] feel that additional revenue is going to be important, then we'll try to focus it on things that will appeal to the community," County Manager Laura Blackmon said. Residents will vote on a new local revenue option on May’s primary ballot. County commissioners have until Feb. 19 to decide if the option on the ballot will be a land transfer tax, a sales tax increase or both. For the full story, click here.

UNC given $4 million for real estate program
The University of North Carolina at Chapel Hill’s Kenan-Flagler Business School has been given $4 million to help expand its MBA program in real estate and its Center for Real Estate Development. Trammell Crow Residential’s former principal Leonard Wood has committed the money for the project.
From Triangle Business Journal

Rain Helps but Water Levels still Low
With nearly five inches of rain falling on Chapel Hill and Carrboro over the past few weeks, some of the town’s lakes have recharged. However, OWASA reports that its water supply levels only rose from 50.0% capacity to 50.7% capacity after the rain. Water demand has decreased recently down from 7.8 million gallons per day to just less than 7.5 million gallons. Please do remember that Stage Two water restrictions are still in effect for OWASA customers and take the necessary measures on your part to conserve water.

OWASA also reports that its bills in mid-October to over 700 businesses were incorrect. Most of the mistakes were in the rate that was charged to businesses per their 1,000 gallons of water and sewer use. Customers should have been charged the “off-peak” rate of $3.08 per 1,000 gallons that is in effect from October, 2007 to April, 2008. Instead, businesses were charged the “peak” rate of $5.51 per 1,000 gallons. The mistake will be corrected in the November billing cycle.
Source: OWASA website


The Triangle

Durham Election Results
Durham voters approved four bonds totaling $227.1 million for Durham Public schools, Durham Technical Community College, the Museum of Life and Science, and city streets and sidewalks. In the mayoral and city council races, Mayor Bill Bell defeated Thomas Stith and incumbent council members Dianne Cattoti and Eugene Brown retained their seats. Challenger Farad Ali won the final seat which was vacated by Stith in his run for mayor. Ali ran on an economic development platform and is vice president of the N.C. Institute of Minority Economic Development. For the full story and election results, click here.

Pittsboro Election Results

In the Pittsboro election Mayor Randy Voller won reelection as did incumbent board members Gene T. Brooks and Clinton E. Bryan. Challenger Hugh Harrington edged out fellow challenger Michele Tracy Berger for the final spot on the board. Challengers Berger, Jim Hinkley and Gary Simpson all ran as a slate with Mayor Voller that was backed by planned-growth organization Pittsboro Together. For the full story and election results, click here.

Chatham and Johnston Counties Reject Land Transfer Tax
Chatham County voters soundly rejected a measure to tax real property at a rate of up to 0.4% on Tuesday night. Final results show 69 percent of voters voted against the referendum. In Johnston County, a similar referendum was rejected by an even larger margin with 85 percent of voters voting against the tax. The results were not uncommon for the state where the transfer tax was voted down everywhere it was on the ballot. For the full story, click here.

Pittsboro Renews Ban on Development
The Pittsboro Town Board unanimously voted to renew a ban on nonresidential and subdivision development in a late October meeting. The ban will be effective for two years as the town tries to build a new water treatment plant. Some local developers have offered to help upgrade the current plant and sped the construction process. Pittsboro’s Town Planning Director says the town is taking that offer seriously. For the full story, click here.

Chatham Weighs Major Rezoning
Chatham’s County Commissioners are considering rezoning 32.2 square miles of land along major road corridors in the county. The concept of rezoning came from the Major Corridor Ordinance Task Force, formed by the commissioners in February, which looked at how to guide commercial development in the area. The Task Force recommended rezoning 1,500 feet of land on both sides of U.S. 421, U.S. 64 and U.S. 15-501-N.C. 87 south of Pittsboro to agricultural-residential. Commissioners said if they do decide to rezone the land that they would then consider designating specific economic development zones in the county. The proposal now goes to the county planning board, which will meet in November and decide whether or not to recommend it. Land owners in the potentially rezoned areas are already threatening lawsuits. For the full story, click here.

Durham Left with 144 Days of Water
According to Durham City Manager Patrick Baker, Durham has 144 days of water left, including emergency water sources. Assuming there is no rainfall over the 144 days, Durham has a 72 day supply of “premium” water but could use special equipment to draw another 72 days worth of water from current sources. For the full story, click here.

RTI international expands in the Triangle
RTI International has begun working on a $100 million expansion at its Research Triangle Park headquarters. RTI is hoping that the 120,000 square-foot building will win a LEED Gold Certification from the U.S. Green Building Council. The project is expected to be completed by fall 2008. For the full story, click here.


State

SBA Lending in N.C. at All-time High
North Carolina saw more approved loans from the U.S. Small Business Administration in the 2007 fiscal year, which ended Sept. 30, than ever before. Approvals for 7(a) and 504 mortgage loans totaled at 1,869 loans and greater than $373 million. Bank of America Corp., based in Charlotte, topped statewide lending, with 315 SBA loans in North Carolina. For the full story, click here.

North Carolina Ranked First by Site Selection Magazine
The state of North Carolina was ranked as the state with the “Top Business Climate” for the third consecutive year by the magazine Site Selection. The state’s selection was also the sixth time it was selected in the past seven years. States are ranked based on two equally weighted factors: 1) a survey of corporate site selectors asking them to rank their “top 10” states and 2) the amount of new plant activity in the state. "A significant number of corporate investors in North Carolina cited the state's quality of life, favorable business climate and access to top-notch academic and research facilities in our recent survey of site selectors," said Site Selection Editor-in-Chief Mark Arend. To view the complete rankings, visit www.siteselection.com.
Source: The NC Chamber: Federation Insider


Nation

Homebuilder Outlook at Record Low
For the past 22 years, the National Association of Home Builders have published a housing market index that gauges builders’ perceptions and expectations of home sales over the next six months. In October, the index fell to an all-time record low of 18—index figures above 50 indicate a positive feeling among builders. The index has been below 50 since May of 2006. For the full story, click here.

Energy Prices Projected to Remain Steady
E Source, an independent research contractor hired by energy companies, released its six month outlook on power and gas prices recently. The report shows that natural gas prices this fall will mimic prices seen last fall. E Source projects wholesale natural gas prices will remain between $7 and $8/MMBtu. E Source also reports that storage levels of natural gas are well above the five-year average. Electricity prices are predicated to continue to rise in 2008 and climb further in 2009.
Source: CurrentLines 2007 Fall Outlook