Category Archives: EconomicDevelopment

140West: RAM Development’s Money Tree, Chapel Hill Taxpayers Moneypit

Local commentator and involved citizen Fred Black invited me to do a WCHL1360 Who’s Talking segment last week.

It airs this evening (Tues. Aug. 3rd, 2010) at 6PM.

While the subject was supposed to be the Lot #5/140 West project, which is slated to finally get started later this month, Fred used this opportunity to talk about development Downtown, public engagement, and Council.

As I said then and before, I believe Lot #5 presented an excellent opportunity for redevelopment.

I and others argued for a fiscally prudent, environmentally sustainable, community-oriented development that had workforce housing, affordable commercial opportunities, an integrative tenant – like a grocery store – and real public space.

Instead of getting a signature development that met those goals from the RAM Development/Chapel Hill collaboration we got a $10M+ taxpayer funded luxury condo development with little public utility. Architecturally, the project’s look fits the Atlanta beltway more than Chapel Hill – it says little, if anything, significant about our community.

Not only was the business model flawed but so was the underlying commitment to adhere to measurable energy and environmental targets (the Council, unlike what they’ve pushed UNC to do, did not adopt and has no plan to evaluate energy usage, for instance, using ASHRAE or other quantifiable standards).

Of course, I thought that the scale of this development (which you can get a sense of from the site models I created 4 years ago) didn’t fit the human-scale dimensions of our current Downtown. That human-scale is part of Chapel Hill’s ‘brand’ – evidenced by the Town’s own logo – and shouldn’t have been casually tossed without at least a proper attempt to educate our residents and some informed buy-in from the community.

What now?

The Council had many chances to walk away from the project over the last few years as RAM Development missed contractual obligation after obligation. The majority didn’t.

The Council had 2 years to work with local businesses to minimize the impact of the next 2 years of construction. That collaboration just started and already there is some significant friction between the Town and the Franklin St. commercial district.

The public financial burden begins immediately as the environmental remediation begins though the Town’s finances are stretched to the maximum by the majority of this Council’s decision to issue $20+ M in bonds for the Library expansion among others capital improvements. There’s no plan in place to publish those costs as they mount.

Is it too late to do anything? No.

This is OUR project. WE are investing $30-40M in cash and property and have every right to expect that nearby businesses can still function, that questions of public access be finally laid to rest, that every dollar invested by our residents is accounted for and that we have a solid commitment to measuring the success or failure – in terms of tax and parking revenues, energy efficiency, growth of commercial activity – of the project

I did a quick review of my posts on the Lot $5/140 West project and have collected those from 2006 to 2010 below for further background:
Continue reading 140West: RAM Development’s Money Tree, Chapel Hill Taxpayers Moneypit

Lucky #13: Vimala’s Curryblossom Café

Local chef and stalwart activist Vimala Rajendran (Indy profile) opened her new Curryblossom Cafe today.

Though Ellie, Elijah and I were her 13th customers, our luck was far from bad. Not a big surprise for anyone who has tasted Vimala’s take-home menu.

By 5:30pm the small restaurant was bustling with activity. The kitchen was full, the dining room was full – folks were spilling out into the courtyard.

I had the BBQ with plantains and both Ellie and Elijah had the Chicken Thali. All around an excellent meal.

Vimala’s is located at the Courtyard [MAP] in the old SandWhich location.

Congratulations Vimala!

Brother, can you spare a quarter percent?

The Orange County Board of Commissioners (BOCC) opened up discussion this evening of putting a %0.25 increase in local sales tax before voters in November (Levy of a One-Quarter Cent (1/4¢) County Sales and Use Tax [PDF]).

The tax, if approved, will bump our local sales tax to %8 with all the additional proceeds going directly to the county (it seems like it was mentioned several hundred times that the municipalities would get NADA from the increase). Best estimates, and only if a pending state bill is passed, has the county reaping in $500K in 2011 rising to $2.4M in 2012.

I spoke before the BOCC on the issue – raising a few concerns, suggesting a possible course of action.

I acknowledged the Commishes quandary in filling the current $9.4M hole in the County’s budget and the near certainty of dealing with an even deeper one in 2011. I recognized the appeal in making a seemingly small increase in a tax that is spread across a wider arc than property taxpayers. I understood it probably seemed an easier sell especially given the recent turmoil over our hefty property revaluations and the failed attempt to create a land transfer tax.

I also pointed out even though it doesn’t apply to food or medicines that the increase represented an additional burden on those folks living here who can least afford it (the characterization in the press that “what the heck, it’s only a few more bucks week!” really bothers me).

By its nature, it is a regressive tax.

Given that increased burden, I asked the BOCC to commit in as legally a binding way as possible, to dedicating the new revenue to funding the rapidly growing demand on social services. That revenue should bolster the existing commitment and go well beyond this year’s baseline (not to rely on it, as many counties have with the NC lottery and education).

Steve Yuhaz and a few other commissioners suggested throwing this modest amount of money – $2.5M at best – at the schools or pouring it down the current economic development rat-hole.

Spending $2.5M on needed social services would have a much more profound effect than adding to the considerable school system overhead or to funding economic incentives during this downturn. And it’s the right thing to do given the rather dire outlook for next year.

Other than clearly dedicating the use of the funds, I also asked for two additional provisions:

  • that the tax increase be time limited – maybe 3-4 years at most – in order to emphasize that this wasn’t a case of avoiding fiscal discipline but a response to some very difficult circumstances
  • that the public be given plenty of opportunity to weigh in.

At the conclusion of the topic it was clear that public input beforehand will have to come quick – June 15th to be exact.

Some quick observations/comments.

Several counties, like New Hanover, were used as success stories for the referendum. New Hanover, of course, has much lower property taxes and with its tourist draws has much greater outside revenue flows. Orange County’s increase will be borne mostly by Orange County residents.

Comments by several commissioners that this broad 1/4 percent sales tax would bring revenues in from residents not currently “paying their fair share” made very little sense given that a pretty good chunk of the existing %7.75 sales tax paid by all residents ends up in the county coffers.

It was also strange how quickly the discussion settled on two options – raise sales taxes or property taxes. The obvious third option – raise no taxes – didn’t make it onto the table.

My suggestion to time limit the measure didn’t get traction. Long time NC residents probably recall that a fair portion of the existing %7.75 sales tax was supposed to be “temporary”. Like many of the current “usage fees” and other tax burdens, government claims on our income tend to take on a life of their own and rarely get rolled-back (at least on middle and lower income folks). The rates might get adjusted but the real outlays stay the same or increase.

It’s hard to dodge the appearance that raising the sales tax rate has more to do with an inability to prioritize spending than fiscal discipline when the increase has an open-ended expiration date.

Sales tax revenue is sensitive to prevailing economic conditions. Without a dramatic upturn in the economy or a steep expansion in the County’s commercial tax base – both unlikely in the near future – the dependability of this revenue stream is not sufficient to fund core services.

Finally, the oddest arguments of the evening circulated around the reason for raising and the commitment to restrict the expenditure of the funds. Many commissioners argued (and then voted for) a course of action that essentially boiled down to this: put the referendum on the ballot with little public discussion and then invite the community to speculate on what the funds are to be used for and how firm the obligation to spend them accordingly will be.

Strange inversion.

I pushed for public participation first, a clear statement on the use of the new revenues (I lobbied for human services first, debt reduction – as County Manager Clifton pointed out – a good second) and a legally binding obligation to use the funds for that specified reason.

That way the community would have a clear idea early on as to what they would be asked to vote into being.

Feels like, at least at this point (with June 15th weeks away), public participation is an afterthought.

Sustainability Task Force: The Whole or The Sum of the Parts?

As some readers might recall, I was appointed to serve on Chapel Hill’s Sustainable Community Visioning Task Force early last year.

Before we got started there were a few issues to address involving recruitment of a diverse membership to reflect both the concerns of the business community and the community as a whole. After settling on over 20 members, we began to work on a fairly ambitious task – to create a framework for making reasonable decisions on beneficial growth over the next 10 years.

The last few months the SCVTF worked diligently to create a set of principles that will inform our final work product. In the last few weeks, though, concerns about how to address issues raised as long ago as last Spring, once again surfaced.

Four members, Amy Ryan, Del Snow, Madeline Jefferson and myself, submitted the following letter to the committee as a whole this evening outlining not only our concerns but some proposals to more effectively, efficiently and energetically move forward with the task at hand.

Kudos to Amy for doing a fantastic job of word-smithing:

March 8, 2010

Members of the Sustainable Community Visioning Task Force,

When the task force was convened last summer, we were united in one thing: our willingness to commit a significant amount of time and energy to the task of ensuring that the future development of Chapel Hill would proceed in a positive and equitable manner. We all see the importance of providing citizen guidance to town staff, review boards, and local developers for managing the successful growth of our town.

As was made evident at the last meeting, there is a group of task force members who are concerned with the direction our work has taken and feel that our mission is being compromised. We would therefore like to take this opportunity to state our concerns in detail and propose an alternative to the process currently under way.

Our concerns with the current process fall into four specific areas:

1. No opportunity to look at the big picture

By focusing first on individual key areas in town that are likely to develop, we will not be looking at the town as a whole, as we were charged to do, and will not be able to see the cumulative impacts of our recommendations.

Unless we spend many meetings looking at every key area (which the task force seems disinclined to do) and then assessing the cumulative impact of all of them together, under the current plan we will have no way of determining whether our recommendations are reasonable, equitable, or practical for the town as a whole.

2.No specificity

The current Comprehensive Plan does an admirable job of providing general guidance for the development of Chapel Hill, but many of its provisions and recommendations are vague enough that they can be used to justify a broad range of development options, some less desirable than others. The task force’s set of guiding principles, while useful as a general statement of our vision, do not make any progress toward offering more specific, concrete guidelines for the town and local developers.

We agree that it is not the SCVTF’s job to create detailed small area plans, nor do we feel that such exercises are a particularly effective way of guiding real world development. Rather, beginning with the principles’ general vision for the town’s development, it should be the task force’s goal to provide leadership in guiding the town to begin developing specific, context-based guidelines for future development.

3.No acknowledgment of constraints

As the process is currently constituted, there is no mechanism for the task force to acknowledge and plan for factors that will limit the town’s development. The school district has confirmed that we are running out of sites in town for building new schools; the resources of our local watershed are finite; we can add only so many more cars to current roads before quality of life deteriorates; like all communities we have a responsibility to work toward sustainable resource use.

Phil’s “Where Do We Go from Here” memo of 3/9/10 (PDF) states that our charge is “recommending what kinds of growth and where growth can occur if it does occur, not whether growth should occur, or how much or how little.” While none of us are in a position to predict the future, we also can offer no meaningful guidance to growth without accepting and working with at least some general parameters of how much growth is expected, responsible, and desirable. We were charged by Mayor Foy to “challenge all assumptions,” not to work without any assumptions whatsoever.

4. No plan for iterative community input

In our discussions at the beginning of our tenure, the group was strongly in favor of obtaining community input that would provide feedback on our work along the way.

Until Phil’s 3/9 memo, the task force had not been informed of any plans for eliciting community opinion on our recommendations before our report goes to council. If the goal of a May report to council still holds, we question whether there is time for steps 3 and 4 of Phil’s plan to be implemented and incorporated into our report.

For our work to succeed, it must be “owned” not just by us, but by the community as a whole. Adequate time for public input on the guiding principles, hierarchy of trade-offs, and vision for all key development areas is crucial to making this happen.

Given these concerns, we would like to propose modifications to the plan of the task force’s work as we carry forward:

1. Spend one or two meetings on a Reality Check exercise

Given high and low estimates of population changes anticipated in Chapel Hill, along with accepted formulas for calculating expected demand for schools, commercial space, water, etc., it should be possible to form rough estimates of how many square feet of new residential, commercial, and civic space the town will require and can support. The task force could then spend one meeting in small groups deciding how this growth could be logically allocated throughout town; another meeting would allow reconciliation of the groups’ visions into a single task force plan, which town staff could review for conflicts or other problems.

This step would allow us to address big picture issues while avoiding hours of extra meting time looking at each small area in detail in order to build a picture of the cumulative development effects. It would also allow us to work within our development “budget,” accommodating constraints and planning for the town’s future needs. The resulting map would also provide a clear object for testing against the task force’s guiding principles.

2.Conduct character-based small-area development studies of one or two key neighborhoods

Using the information obtained from the Reality Check exercise, the task force could take the development allocated to one or two specific areas and take a close look at how best it could be accommodated.

The product of such a study would be a clear statement of the current neighborhood character, identification of opportunities for development and important elements to preserve, guidance for reconciling expected conflicts and making trade-offs, and specific examples for developers and town staff and boards on what kind of development would be appropriate.

Ideally, this exercise would be a quick example of a more in-depth process that the town would ultimately conduct in each neighborhood in town where significant development is likely to occur.

3.Plan for community input

It is vital to provide enough time for citizens to review and comment on the task force’s work as it progresses. Key elements for review would include (1) our refined list of guiding principles (after we have tested them in one or two small areas); (2) our map showing general allocation of development across the town from the Reality Check exercise; and (3) our recommendations for the select key areas we study.

When the town moved forward to develop in-depth neighborhood plans, it would obviously be crucial to get citizen input about how they see the neighborhood, what is lacking, what development works, and what doesn’t. This information would be the basis for the work of whatever group was charged with carrying this work forward.

While all members of the SCVTF may not have the exact same vision for Chapel Hill, we are united in our concern for the town and its future. It is time for us to be united in framing and agreeing to the process that will carry us forward. At the end of our tenure, we should all agree that we have produced a product that will identify the principles we hold in common, help us preserve what we value and improve what is falling short, and provide useful guidance for the town as it grows and develops. The process we have outlined above can be accomplished efficiently, will produce more useful guidance for the town, and will provide the basis for developing the specific development vision and guidelines the town so urgently needs.

Signed,

Amy Ryan
Del Snow
Madeline Jefferson
Will Raymond

cc: Garrett Davis
Phil Boyle
Mayor Kleinschmidt
SCVTF mailing list

WCHL Commentary: Library Expansion Next Year or Lot #5 Project, Not Both

Ron Stutts and WCHL 1360 invited me to do a commentary on a Chapel Hill issue.

I chose to speak out on the fiscally imprudent idea that we can “have our cake and eat it too”.

Run this and the following four year’s budget numbers, look at anticipated impacts – funding Town retirees’ health-care, fixing Police Headquarters, meeting our clean water responsibilities under the Lake Jordan compact, the doubling in demand on our social services, etc. – and it becomes clear – we can walk away now from the discretionary Lot #5 project – at little additional cost to the taxpayer – or do the Library expansion next year.

We can’t do both.

Thanks to Ron and crew for somehow squeezing 10 pounds of commentary [MP3] into a 5 pound bag. Amazing!

Jan. 25th the Council considered two projects with major financial impacts – the Library expansion and the problematic Lot #5 private/public development project.

After discussing their options at length, they decided to postpone approval of the Library expansion pending a more thorough review of the Town’s spending priorities during the Town’s normal budget process which, by the way, kicks off Wednesday, Feb. 3rd.

This was a reasonable and prudent course of action given the serious fiscal condition of the Town, the weakened economy, continued expectations of poor revenues and Council’s touted commitment to public participation.

Unfortunately, the Lot #5 project didn’t get the same level of concern.

The Town’s debt has doubled to $55M over the last 5 years. It’s been used to fund necessary and discretionary capital improvements like the construction of the new Aquatics Center – which at about $7M was almost on budget – and the Town Operations Center – which at $52M went roughly $10M over-budget.

Supporters claim the typical household will ONLY pay $40 more a year but that $40 only covers the increased cost of operating the Library and not the cost of discharging the $16M bond debt.

The Town Manager says that as we payoff existing obligations we can issue new bonds without increasing taxes. This might be true through 2011, but as the Town’s finance director pointed out, from 2012 on the construction debt pushes our overall debt very close – maybe even exceeding – the level necessary to keep our Town’s AAA bond rating.

At that point a tax increase is certain.

The Town Manager’s analysis is also rather one dimensional – challenges like the Town’s rapidly growing unfunded retirement obligations – projected to be as much as $56M or replacing Police headquarters – $10M if Council had purchased Dawson Hall – were not considered.

So what about Lot #5? Lot #5 requires 8 to 12M taxpayer dollars and represents the Town’s greatest, riskiest discretionary fiscal liability.

Part of the sales pitch for Lot #5 was the supposed need to stimulate development Downtown.

With Greenbridge nearly built and other Downtown projects on the way it’s clear that we didn’t need a stimulus. In fact, directly across Franklin St. the University at University Square is already putting forward a much more interesting, integrative proposal which better fulfills the goals of the Lot #5 project – and at little cost or risk to our taxpayers.

Given that the cost reductions that allowed RAM Development to lower their gold-plated condo prices haven’t been passed on to the taxpayer, that the number of pre-sold units hasn’t grown in-line with those price reductions, and that the Town still doesn’t know how it plans to borrow that $8 to 12M – now is the time to drop Lot #5.

Three years out – three contract extensions granted – no significant improvement in proposal.

What does this have to do with the Library?

We can have a Library expansion – hopefully starting next year – or we can have Lot #5 – we can’t handle both.

Contact Council – ask them to pull the plug on the Lot #5 project now so that we can take on projects that are more central to Council’s charter.

More information on my website, CitizenWill.org.

Library or Lot #5?

Here is what I meant to say at this evening’s Council meeting.

Like a lot of my remarks, I find myself editing on the fly, so what I managed to get out in less than 3 minutes wasn’t quite what follows but I believe I made the points I needed.

The simple summary?

We can’t do the Lot #5 (140 West) project and the Library expansion together. Lot #5 hasn’t met its goals, the cost/benefit ratio is decidedly out-of-whack, the necessity quite clearly not there anymore.

Further, the Library expansion project needs to be delayed until taxpayers can bear the total cost. Beyond that, we need to request an extension from the North Carolina Local Government Commission to allow issuing bonds beyond the current deadline so when it is fiscally prudent we can move expeditiously.

Finally, public participation, once again, is barely considered.

Tonight’s remarks:

In 2010 you will be making several key budgetary decisions whose impacts will span the next decade – the Lot #5 (West 140) and Library expansion – two examples.

Lot #5 represents the greatest and riskiest fiscal liability going forward that can be safely dispensed with.

Part of the sales pitch made by some on this Council is we needed this project to kick-start development Downtown.

With Greenbridge nearly built, University Square poised for redevelopment, approval of Grove Park – which will displace the affordable Townhouse Apts. on Hillsborough St. with luxury condos – and other Downtown projects on the way it’s clear that we don’t need that supposed stimulus Lot #5 brings anymore.

It’s time to reconsider this troubled project especially given that:

1) the cost reductions that allowed RAM to lower prices haven’t been significantly passed on to the taxpayer,

2) the number of units pre-sold hasn’t grown in-line with price reductions (33 units pre-sold so far, down from the reported 2008 commitment of 35).

3) the open-ended nature of the cost of the environmental cleanup is still being underplayed,

4) the University at University Square has already put forward a much more sound, interesting and integrative proposal (123 West Franklin) for that stretch of Franklin St. than the expensive – at least to the Chapel Hill taxpayer – Lot #5,

5) still up in the air how we will borrow the money – COPs, TIFs, etc. In any case, however we borrow the $9-10M or more it will limit the Town’s ability to prudently respond in funding core needs,

6) and from what I can see in RAM’s recent missive ( RAM Dec. 22nd, 2009 letter [PDF]) no effort has been made to involve the nearby business and residential community in discussing mitigation of the type of construction-related problems that have plagued Greenbridge or even apprise their future neighbors of current developments (let alone present a coherent and consistent story to the local press).

Three years out and no significant improvement in the proposal. Three extensions to the contract granted by Council. Lot #5 should be shelved now so that the Town can take projects that are more central to its charter.

What does this have to do with the Library?

I want to see the Library expanded but now is not the time.

The memos before you [here] paint a fairly rosy picture of the borrowing in terms of adopting new debt but they don’t do a very good job in putting that increased debt in context of our already astonishing – at least by historical Chapel Hill standards – debt load.

Memo #A, in fact, disingenuously characterizes the increase to homeowners using examples of property valuations well below ($200K) the Chapel Hill baseline.

Look at the chart in Memo #A. The rate of increase in the debt load – that rapidly increasing impact on the Town’s flexibility in borrowing – running our debt right up to the debt ceiling for our AAA bond rating – starts in late 2012 and zooms steeply from there.

Of course, besides adding new debt that and anticipated G.O. additions will account for roughly several cents on the current tax rate while the real kicker is the growth in cost of Library operations – which appears to be even more significant.

Worse, the continued structural instability and weakness of our economy gets short shrift.

Now is not the time to take on a large forward liability.

Making a decision based on these figures tonight will be guaranteeing a tax increase or steep cuts or just ignoring basic obligations two years hence.

Here are my suggestions:

1) Shelve Lot #5. We can have a Library expansion – hopefully starting next year – or we can have Lot #5 – we can’t handle both.

2) The Library borrowing should be delayed until prevailing economic conditions show signs of improvement – strengthened sales tax revenues, stable fund markets which will lend money at a more favorable rate – say less than %100 of the 20 year Treasury bond ratio.

3) Have staff prepare a request to NC Local Government Commission to extend Chapel Hill’s time limit for issuing these bonds so the Council and community have adequate time to plan.

4) Use the established public budget process which kicks off next week [2/3/2010 7:00 PM Council Chambers Townhall) to discuss the Library in light of all our Town’s needs – competitive staff wages, affordable housing reserve funds, the growing retirement fund deficit (Unfunded Liabilities: Pay As You Go Not Sustainable) among many others.

Last Fall many of many on Council obligingly participated in a special “emergency” meeting to acquire Dawson Hall for police and other key Town services. That urgent need hasn’t gone away – the police department’s facility still needs attention – why isn’t that part of the rosy projections?

Our citizens deserve a diligent evaluation of the cost of the Library expansion and operations within the context of our total budget and foreseeable needs – not wants.

They also deserve to participate – not just get an agenda item 3 days before a decision is scheduled.

5) Finally, postponing tonight will give you the opportunity to carefully consider this proposal in light of all your priorities, give you time to evaluate the rosy picture drawn by these memos against your own understanding of the economy and think about how to engage the community during this weekend’s Council retreat.

In addition, it buys needed time for the public to review the current proposal, attend the budget sessions, ask their questions, get their answers and finally weigh in in a thoughtful manner.

Thank you.

[UPDATE: Council Postpones Consideration]

From tonight’s Council flash report:

Consideration of Proceeding with the Library Expansion Project: The Council considered the project schedule and associated costs for expansion of the Chapel Hill Public Library. The Council delayed action and indicated its desire to discuss the expansion costs in greater detail and in the context of the entire Town budget. The Council stated it wants to know what level of funding Orange County will provide toward Library services.

Orange County provides no capital support toward the Town’s Library expenses; this includes all past and present Library construction costs, debt service for same, equipment or special project costs. County support toward Library operating expenses has remained at $250,000 since 1995 and represents 11 percent of this year’s Library operating budget. About 12,000 of the Library’s patrons live in Orange County outside Chapel Hill limits. The number of materials borrowed by these patrons was 386,000 items last year. This represents approximately 40 percent of the Library’s annual circulation.

Unfunded Liabilities

[X-POSTED from my campaign website]

Tonight was the final Council meeting before the election.

I’ve attended every Council meeting this Fall except the special Friday morning one. I go to quite a few Council meetings in general, so attending this Fall’s during my run for office was not much of a stretch. Penny Rich and Augustus Cho usually show up to catch what’s going on directly (Augustus was there this evening, Penny was participating in UNC Healthcare’s Tickled Pink event to benefit cancer research). Watching the meeting on TV or via the Web is just not quite the same.

Over the last eight years it has been interesting to see which candidates do show up – it seems like you would want to make sure you really want the job given the time commitment, to get up to speed on the relevant issues so you can hit the ground running, to learn a bit more of the nuts-n-bolts of how the Council operates so you can fit into the process fairly quickly – yet cycle after cycle it’s only a few that show.

While the media will probably focus on the Kidzu presentation, the approval moving Glen Lennox’s neighborhood conservation district (NCD) forward, Jim – on election eve – asking the Town to enforce Northside’s NCD (which I talk about in my recent brochure) or Council letting their next incarnation decide on Strom’s replacement, probably the most consequential issue on tonight’s agenda will not get word one.

Ken Pennoyer, the Town’s director of business management, was proposing a change in the structure of staff benefits. All new employees hired after June 30th, 2010 would get a defined benefit plan covering retirement health coverage. Existing employees would retain their Town guaranteed benefit, the payout based on term of service and retirement age.

What’s the big deal?

The existing plan, which is a “pay as you go” approach paid out of general revenues, has increased from $400K to $891k in 5 years – more than doubling our current obligation. To fully fund our commitment to our retired workforce would take $32M to $56M, roughly $3+ M or more per year, for a couple decades!

While the Town has set aside $400K in designated funds over the last two years, the forward obligation makes those contributions pale in comparison. $3-4M per year is equivalent to $0.05 to $0.07 of Chapel Hill’s tax rate – an additional $150 to $210 per year on a $300K home tax bill. This unfunded liability is just one of a number of other obligations – like the $3M affordable housing maintenance fund – which has been allowed to grow and grow over the last 6 years.

Tonight is the first attempt to truly grapple with that overhanging debt to our valued retirees. There are risks inherent in moving new employees to a defined benefit plan but the alternative, scrambling to find funds each fiscal cycle to adequately maintain that obligation, is not sustainable.
Continue reading Unfunded Liabilities

Engage Now in the NC54 Planning Process

Given the time of year and Durham’s recent problems in protecting the Lake Jordan watershed, the fiscal impact of mitigating damage which might well be shared by Chapel Hill’s taxpayers, I was tempted to title this post “Trick or Treat on NC54?”

Even if the “development process is broken in Durham”, as LaDawnna Summers, who resigned from Durham’s Planning Commission over the Lake Jordan mess, it is important that both Chapel Hill’s elected folks and greater community engage directly in the NC54/I-40 corridor planning process.

Thirty years ago, when I first came to Chapel Hill, I drove into town on the scenic two-lane NC54 (I-40 from RDU on was still a set of dotted lines on a map). The beautiful pastured hills to the north are now covered by Meadowmont. The woods and vales to the south, by the Friday Center and office parks. And the majestic hill-side entry to the University? Now obscured by the “anywhere USA belt-line architecture” of the road hugging East54.

The process starts Wednesday, Nov. 18th, 2009 from 5pm to 8pm at the Friday Center [MAP]

What: NC-54/I-40 Corridor Study Public Workshop #1
Who: Durham-Chapel Hill-Carrboro Metropolitan Planning Organization (DCHC MPO), City of Durham, Durham County, and the Town of Chapel Hill
When: Wednesday, November 18, 2009, from 5 p.m. to 8 p.m.
Where: William and Ida Friday Center for Continuing Education
100 Friday Center Drive Chapel Hill, N.C. 27599-1020

Fast Facts:

  • The Durham-Chapel Hill-Carrboro Metropolitan Planning Organization (DCHC MPO) will host an interactive community workshop on November 18 to obtain guidance on developing a blueprint for mobility and development in the NC-54/I-40 corridor, a critical gateway linking the City of Durham, Town of Chapel Hill, and University of North Carolina at Chapel Hill.
  • The NC-54/I-40 corridor serves as one of the major gateways between Chapel Hill and southwest Durham, with its interchange with I-40 consistently ranking as the top congested location in the region. Development pressures within the corridor coupled with mobility and capacity issues have highlighted that the existing and planned transportation infrastructure is insufficient to accommodate growth and address land use and transportation problems.
  • To develop land use and transportation strategies to preserve this important corridor, the DCHC MPO, the City of Durham, Durham County, and the Town of Chapel Hill have begun a corridor study to analyze short- and long-term land use issues and multi-modal transportation problems, evaluate opportunities and challenges, and recommend short- and long-range land use and transportation solutions and strategies along the corridor.
  • The vision of the DCHC MPO is to develop and implement transportation plans that are multimodal and that fully integrate land use and transportation issues. To achieve this vision this study will:

    • Clearly define a realistic “blueprint” for an integrated growth and mobility strategy for the corridor;
    • Establish a development framework that strengthens multimodal travel options and reduces vehicle miles of travel;
    • Improve operations, safety, and travel time; and
    • Categorize strategies into near, mid-term, and long-term phases.
  • A critical component of this study is public outreach and involvement. Three public
    workshops will be held as a part of this study, which should be completed in June 2010.

    • The first public workshop on November 18 will present the community profile and
      solicit input on issues, opportunities, and trends to guide the development of future
      scenarios.
    • The second public workshop, tentatively scheduled for late winter 2010, will evaluate
      alternatives and seek public input in the selection of the preferred scenario.
    • The third workshop, tentatively scheduled for spring 2010, will give participants an opportunity to review and refine the corridor master plan and provide input on setting priorities for multimodal transportation and land use strategies, implementation strategies, and phasing.
  • Once the study is finished, the final master plan will be presented to the local and regional
    policy boards and used to inform transportation/traffic analysis, land use decisions, project
    planning, and funding priorities.

    • The total cost for the study is $257,432 with 80 percent of the funding coming from federal transportation planning funds and the remaining 20 percent funded jointly by the City of Durham, Durham County, and the Town of Chapel Hill.
    • Residents interested in joining a group of citizen contacts for this study should contact Leta Huntsinger with the DCHC MPO at (919) 560-4366 ext. 30423 or via email at leta.huntsinger@durhamnc.gov. For more information about this study, visit www.nc54-I40corridorstudy.com .

More on Summers’ resignation:

Continue reading Engage Now in the NC54 Planning Process

Finishing in the Midst of Community

[X-Posted from WillRaymond.org]

After 17 formal forums, neighborhood meetings, community picnics and other organized opportunities for candidates to meet and engage with our wider community, we ended this evening in the midst of community.

Tonight I witnessed the birth Orange County Justice United, a new umbrella organization comprised of 25 local advocacy, service and faith-based groups who are working together to improve the quality of life for all our town and county residents.

As part of that process, the new organization asked each of the Council candidates that attended to pledge to meet within 90 days to discuss a breadth of issues, including remedying the problems found during a recent census of the Northside/Pine Knolls communities (Orange County Justice United Northside/Pine Knolls Census).

While I applaud the formation of an organization dedicated to community service, I wish, as I said this evening to the 450+ assembled activists, they had organized a bit earlier in the campaign cycle in order to encourage a wider discussion of the challenges facing our people.

Simply put, this year’s focus has been more on houses than homes, more on begging hands than offering a hand up.

That said, tonight’s event was the best possible way I can imagine to finish this phase of the campaign.

Thank you Justice United for inviting me to participate.

What’s left then? Organizing folks to hand out materials election day (volunteer here), raise a few more hundred dollars (contribute here) and continue to work to get the message out that a vote for Raymond is a vote for beneficial change.

Varsity to Reopen: $3 Seats, $? Parking

According to this WCHL 1360 story Downtown’s Varsity will reopen in November.

The Varsity’ new website VarsityOnFranklin.com advertises all seats are $3 for “recently released and classic movies with excellent service and a customer focused staff to create an enjoyable movie experience at a discounted price.”

I’ve seen hundreds of movies at the Varsity over the last few decades and am happy, both as a customer and someone interested in enhancing Downtown’s vibrancy, that the Varsity is returning.

Quick question, “What is more expensive? A night at the movies – popcorn and all – or the cost of parking in the Town’s lots during the movie?”

Until Council starts rolling out the core recommendations of the Downtown Parking Task Force, of which I was a member, it seems like a venue that is targeted at providing a reasonably priced evening’s entertainment will have difficulty making that value proposition.

Carolina North: Where is the Development Agreement?

As some of you folks know I’ve been involved – as a citizen – fairly deeply in the attempt to create a successful agreement between UNC and the Town managing growth of the massive Carolina North project.

The Carolina North project could either contribute greatly to or severely diminish the quality of life in Chapel Hill.

To succeed we need a comprehensive agreement that we all can live with. It needs to be fair, not shifting significant costs onto local residents. It needs to manage impacts so that water, air, noise and traffic concerns don’t spill over into the wider community. It needs to meet the needs of the University while honoring the community in which it thrives. It also has to have understandable consequences, demarcated trade-offs and a compliance regimen that UNC will follow.

I’ve attended almost every forum, meeting and public hearing. Suggested improvements in both process and content, more than a few which have been incorporated into the CURRENT draft.

When Council started the final phase of the process, the creation of a binding legal contract between the Town and UNC governing some period and extent of development on the Horace-William’s Airport tract (Carolina North), I took the firm position that their schedule was too aggressive, the amount of work clearly underestimated.

Unlike a traditional development zone, once the agreement is signed the Town – which is us – will be bound not only to the agreement’s stipulations but the supplementary addenda – most notably UNC’s Carolina North Design guidelines [PDF] (which envisaged 8-story buildings lining Martin Luther King Jr./Estes).

There are many moving parts to the agreement – each serving a vital function: protecting the environment, maintaining nearby neighborhoods’ integrity, providing a flexible and transparent process to manage UNC’s growth, etc.

I argued then, as I do today, that the schedule – which has become even more arbitrary (no money to build) – would severely limit the Council’s and wider public’s ability to review and digest the final agreement.

I knew that the bulk of the work would be rushed at the finish line with the public short-changed in the end.

Many of the meetings I would start my comments by pointing out that the public was ill-served by the continuing trend of providing key documents late, incomplete or not at all. As recently as last Thursday’s “public” information event (more like window dressing) the revised development agreement was not available until nearly 6pm (for a 7pm session!).

The information session reviewed a version of the agreement, completely reorganized and extended, with folks who had no opportunity to have read it (I had my laptop and was scrambling to both read the new revision and find out if my prepared questions had any relevance anymore).

Worse, I had to guess on where to find the correct revision (it is here [PDF], not available as a markup or clean version as noted on Monday’s agenda here) [I notified staff later that evening – the problem still exists as of 4:30pm Sunday].

How can Council hold a public hearing on a development agreement that is unavailable to the public 24 hours prior?

They can’t but they will.

Unfortunately, with key underlying studies delivered nearly a year late, with the development agreement still in flux, informal public input not only not fully integrated but cut-off, my prediction of a rush to failure was all to correct.

Council is poised to adopt an agreement incorporating hundreds of pages of supplementary material that they and the Town Manager have not fully read (watch June 8th’s Council meeting) , that is not – as of June 15th – finalized and that continues to have several substantial points of contention – including major traffic issues and costs essentially amounting to a yearly fee of up to several hundreds of dollars per homeowner.

Worse, the current draft agreement is peppered – just like a lousy credit-card deal – with “to be determineds”.

Without a firm contract and the time to adequately review it, the public continues to be ill-served (heck, when you buy a house you get at least 3 business days to back out after signing – and that contract has legal boilerplate that is well-established, one house instead of 3 million square feet of development and an established legal framework to protect your rights).

Why Council is insisting on adopting an agreement that is unfinished and unread? Why not limit the term from 5 to 8 years, the scope to 800,000 to 1,000,000 square feet to protect the public’s interest in maintain our quality of life? Why the rush?

Please contact Council here and ask them to grant the public fully 60 days to review a complete and finalized agreement.

Feb. 19th: Busy Thursday

A couple meetings tonight that folks may want to check out.

First, a meeting on Northside and the corrosive effect burgeoning development, taxes and shrinking opportunities is having on that traditional community.

From today’s Herald-Sun:

Local activists united to address what they view as “historic discrimination, rising property taxes, and development that threaten communities of color in Chapel Hill” will share alternate visions for collaborative sustainability and social change at 6 tonight.

United with the Northside Community Now (UNC-NOW), St. Joseph C.M.E., NAACP, and EmPOWERment Inc. will host a community meeting at St. Joseph C.M.E. Church, 510 W. Rosemary St., to discuss the impact of local development on historically African American neighborhoods.

“It is important that we come together as a community to be the voice of righteousness and justice in the face of the injustice and racist environmentalism that is threatening our neighborhoods,” the Rev. Troy F. Harrison of St. Joseph C.M.E. said in a news release.

Second, at 7pm, the second Town-sponsored community outreach on the Carolina North development agreement.

A Public Input/Information Session on Carolina North will be held at 7 p.m. Thursday, Feb. 19, in the Chapel Hill Town Council Chambers of Town Hall, 405 Martin Luther King Jr. Boulevard.

Carolina North is a proposed satellite campus of UNC-Chapel Hill. It is expected to be contained within about 250 acres of the Horace Williams Tract’s 1,000 acres and be built in phases over the next 50 years, as proposed. The property lies just to the north of Estes Drive adjacent to Martin Luther King Jr. Boulevard.

The Thursday session will provide an update on the status of UNC-Chapel Hill’s
Carolina North plans and a description of issues being addressed by policy-makers and Town/University staffs. These issues include the following: design standards and public art; police/fire/EMS facilities and services; school site; recreation facilities; greenways, connections; historic, cultural features; stormwater management on site; water use and reclamation; energy conservation, carbon credits; Solid waste management; remediation of landfill; stream buffers; trees, landscaping; sedimentation; neighboring lands, compatibility, buffers; noise, lighting. A public comment period is scheduled.

This meeting will be aired live on Chapel Hill Government TV 18. Additional informational sessions on Carolina North have been scheduled for 1 to 5 p.m. March 4 and 7 to 9 p.m. April 1.

For more information, contact the Town of Chapel Hill Planning Department at (919) 968-2728 or carolinanorth@townofchapelhill.org.

Additional material is posted online at www.townofchapelhill.org/carolinanorth.

Tonight presents an excellent opportunity to not only get information but to help steer the discussion on what should be part of the development agreement which will codify the community’s expectations.

Multi-modal Design I Appreciate


Today’s Chapel Hill News carries an interesting story from Jesse DeConto on concerns circulating around the misfire (not to sugarcoat it) known as East54. The story, which was as much about how the “dense/tall growth at any cost” Council majority’s vision is running up against reality, as it was the anonymous “I could be in Atlanta or Charlotte” East54.

OK, even though I wasn’t thrilled with East/West Partner’s “virtualization” of Chapel Hill, I did credit them for committing to meet the Leadership in Energy and Environmental Design for Neighborhood Development (LEED-ND) standards (though Council wasn’t clear on what to do if the project didn’t meet those goals).

But does that justify such a pedestrian (to be nice) heap?

I expressed my concerns about the trade-offs – minimal setbacks, in-lieu monies instead of affordable square footage, height on Highway 54, traffic patterns, etc. – but was in the minority as the project sailed through an orchestrated “public review” (count me in as one of East/West developer Roger Perry’s “vocal minority” that unfortunately points out that the current sustainability political palaver is parading sans clothes).

Though the story tried to be balanced, it appears, as reported here to have raised the hackles of a few folks.

I understand the realities of today’s news media but I really wish the CHN had spent a bit more time using the “wayback machine” to contrast today’s political posturing from the more “veteran” of the Council folks (including those up for re-election) with what they stood for when they were more than happy to push East54 (and Woodmont) right on through based on a strange read of sustainability.

More on that later.

Bill Strom, following his usual strategy of playing to his “expertise” in transportation, said

“It’s a change in the development pattern, but the guiding principle there is that it is at a regional rail stop,” said Strom. “In order to get federal and state support for these projects, you have to have density organized in a way that promotes ridership.”

Yes, approval of that pile of nondescript architecture, looming over the Glen Lennox neighborhoods and serving as the “de facto” gateway to Chapel Hill, was justified by a rail stop coming sometime mid-century.

This is what passes nowadays for cogent analysis.

In any case, I’d rather leap off the train ala “Slumdog Millionaire” than alight on East54’s commercial doorstep.

Is there an alternative I believe is better?

Sure. Look east to Durham’s new multi-modal public transit station which will serve the Bull’s ballpark, the “white elephant” (Durham’s County jail), Downtown Durham and the American Tobacco complex. Downtown shopping, the Durham Performance Center and Theater, the Durham public library and Arts Guild is not that far away.

The glass heavy design (not sure the role environmental concerns played there) would not be fitting for Chapel Hill but every time I drive by the construction site (finishing this month) it seems like the unfolding design complements Durham’s retrofitted Downtown. Of course, like other Durham projects, the budget was blown – not unlike Chapel Hill’s Town Operations Center.

Central. Convenient. Complementary to its urban environment.

More on Durham’s multi-modal transit station backstory from the Urban Planet forums.

Carolina North: Community needs to wake up and show up!

[UPDATE]

The Daily Tar Heel’s Emily Stephenson chimes in here (DTH ‘blogs). A story on yesterday’s poor turnout here.

[ORIGINAL]

Earlier today (Nov. 19th), UNC’s Board of Trustees approved the draft Carolina North design guidelines making the proposal official UNC policy.

This evening, the first in a series of informational/public feedback sessions on Carolina North was held. With the creation of the Carolina North development agreement well on its way, the Council’s explicit call to advisory boards to attend, if possible, and the aggressive schedule to meet next July’s commitment, I expected a fairly full house.

Crowded house? Not the case.

The meeting started with roughly two dozen citizens in attendance. By the time Jack wrapped his presentation covering UNC’s design intent the group of interested citizenry was down to 19. At the end of the Dr. Owen’s presentation, covering the development agreement process, only 17 non-staff/non-press folks remained. Of those, eleven were drawn from the “usual suspects” ( Fred Black, Joyce Brown, Fred Stang, David Godschalk, George Cianciolo, Lynne Kane, Mike Collins, Loren Hintz, Ed Harrison, Bob Henshaw, me).

Disappointing! As Carolina North’s development director Jack Evans noted this evening, the formal process for approval has begun. The first phase of Carolina North is on its way.

Chapel Hill residents need to wake up and show up.

Every resident will eventually be affected by Carolina North’s development. At least 5 advisory boards will be consulted on both the outline and details of the development agreement. Community groups like the Friends of Bolin Creek and Neighborhoods for Responsible Growth (well represented this evening) could play key roles in shaping the discussion.

There is quite a bit of work before the community. If we follow Pal Alto’s trajectory, the development agreement – which is, as Dr. Owens pointed out again this evening, essentially a binding legal contract – could swell to 200+ pages over the next 8 months (that’s 25 or more pages of detailed legal requirements per month – a heavy responsibility). Those pages will dictate development over a long period. Once set, unlike zoning ordinances, the ability to tweak conditions requires mutual agreement. Mistakes could be difficult to correct.

The community has a tremendous opportunity to shape the outcome at Carolina North. Both UNC and Chapel Hill’s Town Council agreed to involve the public at every point in the process. But, so far, Chapel Hill’s citizens have not turned out.

The negotiations between UNC and the Town will continue to accelerate. The momentum is building rapidly. My concern is that by the time citizens go into reactive-mode – recognizing missing elements in the plan, trying to wedge in protections beyond those outlined – the inertia will be too great and the time too short to significantly change course.

Now is the time for public concern. Now is the time for community involvement.

Because of the extensive impacts Carolina North will have on this community over the next several decades, I’ve asked Council to “bang the drum loudly”, to go beyond simply inviting the public into the process. We need to seek out folks, develop multiple avenues of engagement and draw them into the discussion. That said, at some point it comes down to whether our citizens want to shoulder their part of the burden and work on behalf of folks that will live here decades hence.

East 54’s Virtual Chapel Hill

Do you recognize the following scene?

This is East West Partner’s revisionist view of Chapel Hill as improved upon by their East 54 project. They have provided a cool animation of the eventual East 54 living experience.

One small problem.

Their Chapel Hill doesn’t match reality.

What is it about big time developers and their desire to re-conceptualize reality?

From what I hear, East West Partners are working hard on their Leadership in Energy and Environmental Design for Neighborhood Development (LEED-ND) certifications. East54 could be the first North Carolina development to leap LEED-ND’s hurdles. An accomplishment well worth noting if they run the whole race.

Isn’t that worth overlooking a little virtual retouching of Chapel Hill?