economic development for chamber 7 11

Town of Chapel Hill | 405 Martin Luther King Jr. Blvd. | www.townofchapelhill.org

Economic Development Goal Statements

Focus on locally grown and/or oriented businesses.

Develop educational and employment opportunities to expand workforce skills and reduce commuting.

Grow the non-residential tax base consistent with the principles of the Town’s Comprehensive Plan.

Maintain an open and collaborative relationship with the University.

Welcome green and ecologically sound businesses and developments.

Maintain a community character that promotes economic vitality, environmental protection and social equity.


Economic Development

Council Goals:

Increase absorption in the Office Market by 30,000SF.

- Web portal (opentobusiness.biz) with market search tool for available space.- Targeted marketing to select businesses for office space.

Grow the retail market by guiding developments in key areas.

- Working to guide projects like Eubanks Road development (Edge) (450,000 +/- SF)- Growth opportunities through redevelopment Ephesus Church – Fordham Small Area Plan (200,000 +/- SF)


Retail

Market Analysis Complete June 2009

- 1.6 million SF available (June 2009)- Ability to capture between 500,000 – 700,000 SF in the next few years.

> Working on Retail Development Strategy (2011)

- This is to combine land-use with market economics to guide future retail and mixed-use developments.- Estimates up to 1,000,000 SF available in the Chapel Hill market.

Both available at: www.townofchapelhill.org/economic_development


Retail

Approximately 2,100,000 SF of retail in our existing market.


RetailChapel Hill/Orange County

Data courtesy of Grubb & Ellis | Thomas Linderman Graham

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

-80,000

-60,000

-40,000

-20,000

0

20,000

40,000

60,000

80,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 1Q2011

Absorption Vacancy


Office Market



Office Market

> 2.2 million square feet of available office space.

> 1.7 million square feet of the space in buildings of 10,000 SF and greater.

> Approximately 30% vacant.


Office Market

> Currently absorb 70,000 SF per year.

>Grow to 100,000 by increasing our regional percent by 1. (We current have about 5% of the regional market share.)


Office MarketChapel Hill

Data courtesy of Grubb & Ellis | Thomas Linderman Graham

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

-100,000

-50,000

0

50,000

100,000

150,000

200,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 1Q2011

Absorption Vacancy*


Office MarketGrowing our Market

Recommendations from Office Market Study:

More business friendly.

Join regional agencies.

Compete with adjacent communities.

Development Review and related issues. (Short-term related to expansion and

retention of businesses in centers with existing SUPs.)


Housing Market



Housing Market

Housing Supply

• The median sales price of a for salehousing unit was $323,300 in 2010, higher thanCary ($269,960), Raleigh ($185,000) and Durham($164,000).

• Chapel Hill has experienced rapid growth in homeprices. In 2000, the median sales price for a singlefamily home in Chapel Hill was $287,000. Just 6 yearslater, the median sales price was $425,000 - an increaseof 45%.


Housing Market

Housing Demand

• Population and employment growth will drive continuedhousing demand within the market area.

• There should be enough demandto justify as many as 28,192 units in the Chapel HillHMA from 2011 - 2015.


Housing Market

Housing Demand

• There will be sufficient demand for321-463 housing permits annually in Chapel Hill forthe next 10 years.

• There is an estimated demand for 581 - 817 market raterental units between 2009-2014, including 336 - 431units of affordable rental housing.


Housing Market

AMI – Area Median Income

Housing Needs -


Ephesus Church – Fordham Small Area Plan




Development Summary:

Retail +/-258,000 Square FeetOffice +/-368,000 Square FeetResidential Units +/-1,084 UnitsHotel +/-280,000 Square Feet



Traffic improvements include:

> Extension of Elliott Road across Fordham> Realignment of Ephesus Church to Elliott Rd extension> Extension of Legion Road to Fordham Blvd> Access improvements:

- Disconnect southern leg of western service road at Ephesus- Consolidate number of parking aisles on Ephesus Church Road going through

Eastgate Shopping Center- Limit Ram’s Plaza and car dealership entrance on Ephesus to right in and right out

> Connectivity improvements:- New road behind Staples and Village Plaza connecting to Elliott Road- New internal roads in Rams Plaza- New road by Hampton Inn connecting to Legion Road- New road connecting Legion Road extension to realigned Elliott extension-

Ephesus Church Road


Next Steps:

1) Create zoning tools to help encourage redevelopment.

2) Move forward with further evaluation of transportation/transit solutions for the district.

3) Work to organize the area for future conversations based around planned and conceptualized

improvements.

4) Seek alternatives to finance improvements based onengineering work and other public improvements.




Other things:

Retail Development Strategy (2011)

Housing Study

Internal Review of the Development Process – new Development Review software

Review of LUMO

Council passed text-amendment for Medical Office

Council passed text-amendment for ground signs in shopping centers.



Marketing Chapel Hill:

Ads in Chapel Hill Magazine

Quarterly mailers to new corporations in the Triangle region.

E-news

Short commercials on WCHL

Beginning targeted mailers for industry specific businesses for office market.

New web portal (9/2011) opentobusiness.biz



Focus on locally grown and/or oriented businesses.

Develop educational and employment opportunities to expand workforce skills and reduce commuting.


Maintain an open and collaborative relationship with the University.

Welcome green and ecologically sound businesses and developments.


Questions?

economic development for chamber 7 11

Technology

office market study

market area

existing market

sf of retail

market economics

chapel hill market

sf available

regional market share