Volume 2, Issue 3 October, 2007
 
The Real Estate Report
Local Government News Impacting the Real Estate Industry

 


 

 


Events

David Price Breakfast
On November 5th, the Chamber will host a Breakfast with Congressman David Price at the Carolina Inn. The event will run from 8 to 9:30am and will feature Congressman Price speaking about current and future issues facing the Congress. There will also be time for audience questions. Cost for members is $25 and includes breakfast. To register either call Meg Branson at the Chamber, 919-967-7075 ext. 21, or click here.


New Development

Plans for Shoppes at Jones Ferry Approved, then Withdrawn
The Shoppes at Jones Ferry, a 77,000 square foot commercial project located at the corner of Jones Ferry Road and Barnes Street was approved by the Carrboro Board of Aldermen in late September. A week later, however, the developer, Northwest Property Group, withdrew the development plans citing the need for a side entrance from Barnes Street that the Aldermen would not approve. The developer cited that the primary tenant of the Shoppes, Harris Teeter, would not agree to locate in the development without another entrance. For the full story, click here.


Regulatory Issues

OWASA Restructures Water and Sewer Rates
As of October 1st, most OWASA customers will see a slight increase in their water and sewer bills, depending on the amount of water they consume. OWASA has implemented an “increasing block” rate scale that is aimed at encouraging water conservation by individually metered customers. Essentially, the increasing block system establishes five different “blocks” of rates based on how many thousand gallons of water are consumed. As consumption increases, the price per 1,000 gallons increases as well. For example, a typical household consumes around 6,000 gallons per month and under the new system would spend $4.31 more per month (a 6.8 percent increase). But for residents who are currently consuming less than 3,000 gallons of water per month, monthly costs would actually decrease.

For non-residential customers and multi-family developments, the seasonal rate structure will remain though rates will increase. Right now from May to September 1,000 gallons costs $5.51, from October to April, the cost is $2.90. The new rate will be $5.85 from May to September and $3.08 from October to April. The sewer service availability fee, sometimes called a tap fee, will also rise by around 45 percent as well. OWASA says these rising costs are going to cover improvements to the Mason Farm Wastewater Treatment Plant, improvements to old sewer and water pipes and increased fuel and chemical treatment costs. 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.


Orange County

American Asset Presents Plans for Daniel Boone Property
At a joint workshop with the Hillsborough Town Board and planning board, American Asset presented a revamped plan for the Daniel Boone property near Hillsborough’s downtown. The new plan includes two planned public green spaces and a reduced number of dwelling units. Originally, American Asset wanted to build 1,100 apartments, town homes and condominiums; however, the new plan calls for 250 fewer units bringing the total to 850. Most members of both boards liked the proposal and will continue discussion at a joint workshop next month.
From the Herald-Sun

Orange County Commissioners will put Revenue Measure on May Ballot
In a September meeting, County Commissioners approved a motion to put a ¼ cent sales tax increase and/or a land transfer tax on the May ballot. Commissioner Mike Nelson voiced strong support for the land transfer tax saying the sales tax option was “regressive.” The motion did not indicate which option would be placed on the ballot but the Commissioners agreed to appoint a community task force to educate the public and advise the Board. Due to the change in Medicaid funding, Orange County will lose more revenue than either tax increase can replace. The land transfer tax is estimated to net the county $4 million per year, while the sales tax increase will generate $3 million in revenue. 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.
From Chapel Hill eNews

Carolina North Approved by Trustees
Shortly after UNC Chancellor James Moeser announced he would step down from his post in June of 2008, UNC’s Trustees unanimously approved a 50-year concept plan for the Carolina North campus. The plan calls for protection of environmentally sensitive areas and sustainable, transit-oriented development. In the first 15 years of the project, UNC plans to build approximately 2.5 million square feet of research labs and office space and potentially a new law school building. The Innovations Center, a business accelerator, would be the flagship part of the campus and university officials hope to begin work on that building within the next year. It is unclear how the town council will respond to the concept plan; in a September presentation to the Council, tempers flared between Council members and University leaders over a change in location of the Innovations Center. For the full story, click here.

Orange County Job Losses Up in 2007
According to the North Carolina Department of Commerce, 17 Orange County firms either announced a layoff or closure through June of 2007, resulting in 192 lost jobs. For all of 2006, Orange County had 20 firms announce layoffs or closure and only 93 lost jobs, nearly 100 fewer than this year. Importantly, the Department of Commerce reports that there have been no announced jobs or investments in the first half of 2007. To view the full report, click here.

Council sets Public Hearing for Northern Area Zoning
At a Town Council meeting last week, council members agreed to hold a public hearing on November 12th to decide whether to rezone underdeveloped and undeveloped parcels in the northern area of Chapel Hill. The Council voted to have five different zoning types four of which are low-density residential. The rationale for using lower-density zoning is to force developers to apply to the town for a rezoning in order to develop more densely. Only one zone, mixed-use village, includes any commercial development. This is a new zone in Chapel Hill and was used to develop East 54. For the full story, click here.

 

The Triangle

Chatham Commissioners Vote to Use Transfer Tax for Schools
On Monday, October 1st, Chatham County Commissioners voted to set aside 85 percent of revenue from the land transfer tax, should the tax be passed by voters in November. Unless the Commissioners overturn their own vote, the restriction would remain until 2010 when most of the commission is up for reelection. County officials estimate the tax will generate about $2 million per year. 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.

Cost of Living about Average in the Triangle
According to the Council for Community and Economic Research, Raleigh and Durham rank at or just below the national average in cost of living. The ACCRA Cost of Living Index compiles a composite index with 100.0 as the average cost of living in the United States. A figure below 100.0 indicates a lower comparative cost of living. In the fist quarter of 2007, Raleigh’s composite score was 99.1 while Durham’s was 91.3. By comparison to other North Carolina urban areas, Wilmington came in at about average with a composite score of 99.9, while Charlotte recorded a score of 88.8. New York City ranked most expensive with an index of 213.7.
From The Triangle Business Journal

Northern Chatham County Set for a New Library
On Wednesday, Chatham County Officials held a ground breaking ceremony on the campus of Central Carolina Community College in Pittsboro for a new public library. The library is the county’s first “green” building, incorporating water re-use features among other things and will serve as a library for both the community college and county. Chatham stands to quadruple its library space by building the new 25,000 square foot library, its current one is just over 5,000 square feet. Construction on the building will be complete in the fall of 2009.
From the Herald-Sun

TTA Ridership Outpaces National Average
The Triangle Transit Authority reported a 3.3 percent gain in ridership during the first six months of 2007, according to a recent announcement by TTA. From January to June of this year, TTA recorded 433,195 trips, up 13,701 or 3.3 percent from last year. TTA’s mark is ahead of the American Public Transportation Association’s which reported national increases of 1.1 percent and 2.3 percent for the first and second quarter, respectively. For the full story, click here.

Wake County’s School Enrollment Not as High as Projected
According to statistics released last Thursday, enrollment in the Wake County School System was slightly less than projected by school and county planners. Compared to last year, Wake’s schools grew by 5,930 students or about 2,000 less than the 8,014 projected. The significance of this news is that these figures were used to push for the conversion of 22 schools to a year round calendar. Some think this shortfall could invite criticism from people upset about the move to year-round schools. For the full story, click here.


State

Marine Expansion in Eastern North Carolina Planned
State and local officials announced plans for the addition of 25,000 Marines, sailors, civilians and family members in eastern North Carolina over the next five years. Of the 25,000, 11,500 will be Marines stationed at Camp Lejeune in Jacksonville, Marine Corps Air Station Cherry Point at Havelock, and New River Air Station at Jacksonville. State and local officials said the salaries of these new Marines will total around $400 million. Economic development officials estimate the troop build-up will also attract another 15,000 people seeking military related work opportunities. For the full story, click here.


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.