Sparks fly over fire station talks

Last Wednesday night at its kickoff meeting, Town Council came that close Nancy Oatesto delivering what sportscasters would call an “explosive” performance as it debated whether to grant an amended Memo of Understanding to East West Partners in the exchange for land and a new fire station.

In November 2013, the town put out a Request for Proposal, stating that we taxpayers would agree to give the 1.12 acres on which Fire Station #2 sat on Hamilton Road to a developer who would build a new fire station that better served the town’s needs. The developer would then get air rights above the new fire station, up to 90 feet, to build office space, which is in short supply along the U.S. 15-501 corridor.

As EWP already owns the condo, office and retail complex of East 54, acquiring this additional parcel would be the real-life equivalent of picking up Park Place when you already own Boardwalk. Other investors seemed to understand that, and EWP turned out to be the only developer submitting a proposal.

By September 2014, the town and EWP had inked an MOU that spelled out the requirements for the improved fire station: expanding from two bays to three, having larger training and meeting rooms, creating separate bathrooms and sleeping quarters for men and women, etc.

Then EWP surveyed some prospective tenants who said the site would be more attractive if the fire station were separate from the office building. That means extra expenses to complete infrastructure and digging a new foundation for two buildings instead of one. No one brought up the fact that two buildings doubles the impervious surface and stormwater runoff, a topic voters increasingly are concerned about.

EWP said the town wants too much in a new fire station and that the town won’t “value engineer” the new station (that is, build a cheaper version). EWP asked for an amended MOU that would cap its expenses at $1.75 million and have the town kick in another $500,000, which I’m guessing might be the cost of the extra site work.

Fortunately for taxpayers, the town’s negotiator is interim fire chief Matt Sullivan, a lawyer on staff whom the town has looked to for years to fix one trouble spot after another. Sullivan held firm that the “value engineered” station EWP proposed would not meet the needs of the town.

Jim Ward asked whether separating the two buildings would result in more office space for EWP. (Roger Perry hedged.) Sally Greene suggested putting out another RFP, since the original one made no mention that the project could be two buildings and the town would kick in extra funds.

Having recently run our neighborhood yard sale, I learned this about negotiating: Don’t be afraid to walk away from a deal. Perry admitted he wanted that property badly. And EWP would be getting extra profit-generating office space from the ground floor that had been reserved for the fire station. If EWP balked, another developer might come in with a more favorable deal. Worst case, the town would have to build its own new station at a cost of about $2 million, which about matches the cost of recent renovations to Town Hall.

Ultimately, the town agreed to the modification (7-1; Lee Storrow voted no), with its own caveat that it might walk away if EWP pressed too close to the $500,000. I’m putting my faith in Sullivan to do right by us.
– Nancy Oates

Season opener

Wednesday, Sept. 16, at 7 p.m. public television will air the season opener Nancy Oatesof The Town Council Show. As season premieres go, this one may lack a little of the dramatic tension that keeps an audience riveted. But perhaps, given that the election season has also begun, a low-key start may be welcome.

Here’s a sampling of what’s on tap for Wednesday:

UNC will give its semi-annual development progress report. Among the fine print, the university spent almost $2.5 million on campus way-finding signs.

Recall that East-West Partners had agreed to build a fire station for the town to replace the one near Glenwood Elementary School, if the town would cede the land to the developer and permit East-West to build an office building there as well. Now it looks like East-West underestimated how much it would cost to build the fire station and is looking for a cheaper alternative. East-West also wants to execute a development agreement for the project instead of having to go through the standard town review process. One little vagueness I’ll be listening to find out more about: the mention of adding a $500,000 maximum monetary contribution sentence to the agreement is not clear whether that is to protect the town or the developer.

The town manager is requesting repair of a hole in the LUMO that eliminated the Extraterritorial Jurisdiction seat on the Planning Commission that is required by state law.

And here’s what you won’t hear about, because it is on the consent agenda, which is designed to be approved without discussion:

The developers of Amity Station at 322 W. Rosemary St. (where Breadman’s is now) have requested that the concept plan review for their 9-story student rental apartment building be delayed until Monday, Sept. 21. The most recent iteration of the project made public shows 500 bedrooms and 350 parking spaces.

The developer of Southern Village has partnered with Weaver Street Market to request that the outdoor dining area in front of the mini-grocery be made permanent, and they have asked Town Council to consider it at its Nov. 16 meeting.

Town staff have asked to schedule a public hearing on Sept. 28 on the controversial changes to town ordinances that regulate bed-and-breakfasts and to allow single-family homes to have accessory apartments.

The town manager would like to waive permitting fees in connection with energy-efficiency improvements to houses and apartments through the WISE program. Of the 302 units that received a grant, 63 were not inspected or did not have all the required permits for the work. Those inspections are being done now. Awaiting word on whether the recipients of the fee waivers are homeowners or investors.
– Nancy Oates

Putting B&B’s to rest

When I read town staff’s original proposal for an ordinance to allow bed-and-Nancy Oatesbreakfasts in the historic district, my first thought was: We’re eating our seed corn.

In August, town staff unveiled a plan to allow homes in the historic district to convert to B&B’s of up to 12 bedrooms and as many as 25 guests at an event. The homeowner was not required to stay on-site with the guests (contrary to state law). Instead, those duties could be turned over to a tag-team of managers.

The Chapel Hill-Carrboro Chamber of Commerce has been pushing for such an expanded B&B ordinance — at present, the town allows B&B’s of only two bedrooms in a home where the owner lives — ever since a 2010 field trip to Asheville, where B&B’s were useful in reinvigorating a deteriorating historic district. As the staff readied its proposal for the Planning Commission meeting on Sept. 1, the expanded ordinance had the backing of the Visitors Bureau and Preservation Chapel Hill as well. Allowing large-scale B&B’s would preserve expensive-to-maintain historic homes, they said, and would bring more visitors downtown.

Historic district homeowners, on the other hand, were quick to point out the drawbacks of living next door to a boutique hotel: not enough parking, too much noise, destabilizing effect of transient guests, too easy to convert to a student boarding house. The town has a noise ordinance, but if the B&B owner doesn’t live on-site, the onus for keeping the peace shifts from the innkeeper to the neighbors who have to call the police after a certain hour.

Given how much we’ve heard in recent years about supply-and-demand theory being used to rationalize building more high-end apartment complexes, I was surprised that the chamber backed off supply-side economics when it came to overnight accommodations. Rather than argue that increasing the options of where people can stay overnight would drive down the price of hotel rooms all across town, the chamber contends that the target markets are different: Guests drawn to a B&B would not stay in a hotel. (Note: They would if the town had no B&B’s.) (Note again: That stratified market theory applies to the housing market, too. Flooding the town with high-rent apartments won’t have any effect on middle-class and workforce housing. Consistency, people.)

Back to the seed corn: The town needs money for some big-ticket items like more buses, a new police station and replacement fire stations, and the extra revenue from permit fees, occupancy tax and commercial property tax rates looks mighty tempting. But if a new ordinance sullies the gracious historic neighborhoods by allowing a B&B on every corner, it destroys the off-the-beaten-path charm that attracts B&B customers in the first place.

At its Sept. 1 meeting, the Planning Commission worked out a compromise: B&B owners have to live in the B&B as their primary residence; only four bedrooms can be rented to guests; and historic districts are exempt from the new B&B rules.

The matter comes before Town Council on Sept. 28.
– Nancy Oates

Reservations suggested

Imagine a diehard Carolina fan having to spend eternity in Durham, in the shadow of Nancy OatesThat Other School. And paying extra for it. Yet people who don’t understand that someday they — like all of us — will die, face such a fate.

Chapel Hill Memorial Cemetery has only 59 casket-size plots left and 94 smaller spaces for ashes. Now that it seems all but certain Town Council will approve selling 8.5 acres of cemetery land to DHIC for $100 to build apartments that the Raleigh nonprofit will rent at affordable rates for 30 years, local funeral home operators are concerned.

“It really should concern all citizens who live within the city limits,” said Henry Jones, owner of Jones Funeral Home in Chapel Hill. “If people haven’t purchased their plot, they need to be concerned.”

Families want their loved ones to be buried nearby, yet once Chapel Hill Memorial’s plots have sold out, families will need to find secular burial space out of town. The town wants out of the cemetery business, though it will continue to have the responsibility of maintenance.

Debra Lane, the Parks & Rec Department administrator in charge of the town’s cemeteries, handles the site visits and sales. The town owns four cemeteries, including Barbee-Hargraves, Old Chapel Hill and Jay Street. Chapel Hill Memorial is the only one with any unsold plots.

“People assume those spaces will be there forever,” Lane said.

In a sort of reverse commute, people in Durham are coming to Chapel Hill to buy burial space because our cemeteries are less expensive, even with out-of-towners paying double the rates Chapel Hill residents are charged. In-town residents pay $750 for a full-sized plot, compared to $1,500 for out-of-towners. Chapel Hill may not have an affordable place to live, but it does have an affordable place to die.

The price differential between towns isn’t an apples-to-apples comparison. Durham plots include opening and closing fees (the cost of digging a grave and back-filling it), whereas in Chapel Hill those fees are charged by the funeral home. Fees vary by digger, but Lane estimates they will be at least $400 in Chapel Hill. While Durham cemeteries allow burials on weekends, Chapel Hill Memorial does not.

Some churches have cemeteries or columbaria for their members. Private cemeteries, like Chapel Hill Memorial Gardens on N.C. 86 just north of town, usually have much higher rates, Lane said. Neither she nor Jones knew of any ordinance that requires the town to provide cemetery land.

Some residents have objected to the town converting Chapel Hill’s only remaining cemetery land to homes for the living. Former council member Jim Merritt can see both sides of the issue. He serves on the town’s Cemeteries Advisory Board and the board of the Community Home Trust.

“We need affordable housing,” he said, “but we also need cemetery space.”

If you want to be buried in the Southern Part of Heaven, you might want to reserve your spot now. Just in case your plan to live forever doesn’t work out.
– Nancy Oates

A sense of place

Talk about your humble pie. I’ve long joined the throngs dissing Cary for its Nancy OatesStepford wives design standard ordinances and over-regulation of how development should look. Then I made a field trip to Waverly Place, a shopping center at the intersection of Kildaire Farm and Tryon roads. I realized that at least in this redevelopment project, Cary got it right in a way that Chapel Hill has yet to do.

Waverly Place was a typical shopping center for its time when it opened in 1988 on 31 acres of a topographically challenging site. Its neighbors included a hospital, a few office buildings and some neighborhoods of comfortably upscale homes. But it sat below street level and, due to Cary’s aversion to signs, its stores had difficulty attracting customers who didn’t already know what was there.

By 2007, its owners at the time, Zapolski & Rudd, having deemed Waverly Place an underperforming asset, wrangled approval from the town to demolish the back half and re-imagine the design. The approved plan added another 200,000 square feet of office space, a hotel and 200 residential units to existing retail, increasing the total square footage by 50%. The developer agreed to pay for the roadwork to mitigate the extra traffic the redeveloped site would generate.

But the Recession crashed down before the plan could be built. RP Realty Partners bought the site in 2008 for $17.3 million and began a more modest but innovative renovation. RP focused on creating a community gathering space with several pockets of open space, reserving an acre in the center for a playground and water feature for children, a decorative fountain and performance space and room for an audience. Rather than one vast parking lot, the shopping center uses pocket parking lots separated by shrubbery (not view-blocking trees that create a traffic hazard in Chapel Hill’s University Place) that generate multiple points of entry.

In December of last year, RP sold Waverly Place to Northwood Investors for $66.2 million.

In the past year, Northwood has concentrated on “re-tenanting” by attracting some upscale chain stores. But many local businesses remain, including a wine store, independent restaurants, a warren of single-chair hair salons for independent stylists, and national chains that sell useful items such as cupcakes.

The community gathering place seems key to attracting customers and averting community opposition to the redevelopment. Nearby residents can walk to the open-air concerts hosted at Waverly Place and let their kids climb and splash in the play areas. Those who live farther away can drive and park and buy coffee and lunch. Cary residents have their planning board and town council to thank.

Think what we in Chapel Hill might have had if our town staff and elected officials had put the public first in approving the form-based code used in Ephesus-Fordham and subsequently applied to The Edge, not to mention what Obey Creek could have become.
– Nancy Oates

Walk to ride

Let’s say you live in Phoenix Place, near the intersection of Rogers Road and Nancy OatesPurefoy, and you wanted to ride Chapel Hill’s prepaid buses into town. Maybe you don’t have a car or you embrace the walkable community ideal we hear Town Council members and developers talk about. Because bus service along Rogers Road is so infrequent, the best place to catch a bus is at the Park-and-Ride lot on Eubanks Road. So you set off walking that 2-mile journey.

A few dozen people last Saturday afternoon learned firsthand what that trek feels like. Here’s my summary: It is long, tiring and hot under the cloudless Carolina blue sky with few trees offering shade. (Note to Mayor Kleinschmidt who favored buildings over trees along the path from the Southern Village hotel to the market center: Trees may not be as engaging as buildings, but they are a welcome, cooling presence for people on foot.)

We walked along Eubanks to Rogers Road, then Purefoy. None of those roads has a shoulder. We had the benefit of a sheriff’s escort, which allowed us to walk in the road instead of through the tall grass, likely chigger-infested, bordering the tarmac. And we had the company of dozens of interesting people to chat with to pass the time. Even so, it’s not a walk you would do for fun.

Back at the Rogers Road community center, we huddled in the shade of the protective overhangs and listened to Jim Ward, council liaison to the Public Transit Committee, predict what changes in transit service might be possible. Because a new bus costs about a half-million dollars, driver not included, service would have to be increased with existing equipment and personnel. He said the Rogers Road route loop could be shortened so that buses would come by more frequently. Route changes usually are made at the start of fall and spring semester. The Chapel Hill Transit Partners will meet on Aug. 25 and take up the matter.

This being an election year, the hikers included council members and hopefuls. Lee Storrow, council liaison to the Affordable Housing and Justice In Action committees, walked the entire way (as did Ward). Ed Harrison, not up for re-election but a liaison to the Public Transit Committee and a Triangle Transit Authority board of trustees member, spoke at the start of the march. He was unable to walk, but his wife took his place.

I was among the new candidates for Town Council who hiked, as was Jessica Anderson and David Schwartz, and mayoral candidate Pam Hemminger. School board candidates Margaret Samuels and Rani Dasi went the distance as well.

As this is an election year, I urge community members and organizations to bring your issues to the fore. You will leverage your power for change and hold council and town staff accountable to turn theory into action.
– Nancy Oates

Golf lessons

While on vacation last week, I spent quite a bit of time on mini-golf courses, where Nancy OatesI had ample opportunity to observe how parents and grandparents dealt with children who could not putt a ball into a hole if their life depended on it. Time after time, adults would use their own club or their foot to guide a child’s ball closer to the cup, or record only half the number of strokes, then exclaim what a talented golfer the child was. Not once did I see a parent instruct a youngster on how to hit the ball or let the kids swing away without keeping score. The kids probably left the course with puffed-up self-esteem but no better at the game than when they started.

It’s hard to teach exuberant kids how to play a game that takes patience and discipline. But those adults missed teachable moments by opting for immediate gratification rather than putting in the time and effort to foster traits that would be useful throughout life.

In thinking about the town’s fiscal status, I wondered whether Roger Stancil or anyone on the current Town Council had been taught to play mini-golf as a kid.

The town is living pretty much hand-to-mouth in paying its bills through the General Fund. As Matt Czajkowski pointed out repeatedly, the town has no money socked away to put toward long-term obligations, such as what we have promised retired municipal employees for health-care and retirement benefits.

Many towns the size of Chapel Hill have in reserve enough to meet as much as 70% of their long-term obligations. Why have we fallen so short?

The town’s debt service — what it costs to borrow the money we have been loaned — is 13%, which means 13 cents of every dollar the town brings in goes to cover the cost of borrowing money. The rule of good governance is to keep debt service no more than 10%, and the state average is 6%. To reduce our debt service percentage, we would have to hold the payment constant — not borrow any additional money — and grow revenue at the same time, or cut costs to live within a scaled-back budget until the debt is paid down.

But where to cut? Transit, parking, public housing and stormwater are operating at a deficit. And Stancil wants the town to borrow more money for a new police station and some fire stations.

That looming fiscal implosion may be fueling Town Council’s panic to approve every development proposed, without considering that those with substantial residential components cost the town money. Most recently, the town manager has proposed giving away the town-owned parking lot at 415 W. Franklin St. to a developer who would erect a 5-story commercial building with 15 affordable rentals on the top floor.

Didn’t council learn from the sale of the museum, which sold for twice its appraised value once council opened up bidding? I appreciate the town putting forth a vision of how to use the land. But the town could get the same building and twice the revenue by using the Special Use Permit process.

Immediate gratification? Or patience and discipline? Which will council choose?
– Nancy Oates

What defines character?

Red flags went up for me when I got the email about a meeting to introduce an initiative called Nancy Oates“Neighborhood Character Standards.” Not so much because of its title that evoked right-wing conservative ideology, and not because of anything in the standards themselves. What caught my attention was that the email, in a chipper tone, asked for community input, but the public comment was barely a week away. The quick turnaround time and the scheduling during one of the most popular vacation weeks in this college town created an aura of sneakiness, and my gut reaction was, “What now?”

After rattled residents contacted town staff and at least one council member, Megan Wooley (now Megan Wooley Ousdahl, due to recent nuptials), provided an explanation for the timing. She wanted the Historic District Commission to review the standards at its August meeting and make recommendations. What it didn’t say was why the rush to push this through? My skepticism prompted me to wonder whether a commissioner likely to raise questions would be on vacation then.

At the urging of council member Ed Harrison, staff scheduled a second public comment session on Aug. 31; however, the HDC will already have made its recommendation then.

The character standards launch an initiative that sets out how a property in a historic district can be rebuilt should it be damaged or destroyed. To my knowledge, the last time a property was torn down in the Franklin-Rosemary Historic District was the Dey House at the corner of Rosemary and Hillsborough streets in 2006.

The standards state that any structure torn down can be rebuilt to the maximum allowable size in the district. That means any small house could be replaced with a house equal to the largest house in the neighborhood. The document specifies architectural details such as porches and building height. While perhaps well-meaning, the plan holds the potential for destroying the unique architecture of those history-rich homes.

The plan may solve a problem, but town staff have not told us what it is. There may be some looming threat that the plan would thwart. But again, staff have not told us what.

The execution emits a furtiveness that always, in my experience, requires we pause to look more closely.
— Nancy Oates

Not just a numbers game

For all the talk about the rigorous approval process in Chapel Hill quashing Nancy Oatesdevelopment, the town sure has grown prodigiously in the past 20 years. Drawing on U.S. Census Bureau figures from 1990 and 2010, public policy strategist John Quinterno pointed out that the town’s population has increased by almost 50% and the number of housing units increased commensurately.

Quinterno, a principal at South by North Strategies in Chapel Hill, presented his analysis at a lecture on economic development hosted by CHALT at the library last Wednesday afternoon. He noted that changes in the demographic composition of the town would affect the local economy and public policy.

The percentage of families in town rose from 49% in 1990 to 51% in 2010. During that same period, the percentage of single-family houses increased from about 38% to more than 41%. The occupancy rate of all housing units — owner-occupied and rental — held steady over 20 years at 92%.

These numbers don’t include the explosion of rental apartments approved after the 2010 census.

All of these figures add up to economic growth. But that quantitative metric is not the same as economic development, which is more nebulous, a qualitative increase in collective well-being.

Governments tend to measure economic growth, mainly because it is concrete: Count the number of people and the number of jobs; if they’re both rising, the economy must be good. But policy decisions — such as how much housing to build and where to put it — based only on quantity tend to ignore the long-term capital costs, such as building more fire stations and schools.

Because public officials aren’t playing with their own money, these costs are easier for them to ignore. Officials are more comfortable declaring “any job is a good job,” without looking at the salary level or whether the jobs are being filled by local hires or by people transferring in laterally from another state. Public officials also are prone to deal-making, pushing the theory that our town has to compete with other towns for the same jobs, when in reality different venues attract different jobs. Mebane would be hard-pressed to lure Lantern from Chapel Hill, and Chapel Hill would have been unlikely to convince Morinaga to build on the parcel now designated for The Edge.

Paying attention only to economic growth biases public officials toward deal-making, believing that they have to “buy” economic activities through taxpayer-funded subsidies.

Making policy decisions based on economic development, on the other hand, involves values-laden discussions. The vast majority of the employees from the town’s three largest employers — the hospital, the university and municipal government — commute long distances because they can’t afford to live in town. Might taxpayers rather subsidize workforce housing to enable people who serve the town to live here, rather than subsidize a developer who will make his profit and leave?

Quinterno goes into much greater detail in his book “Running the Numbers: A Practical Guide to Regional Economic and Social Analysis” (Routledge, 2014). Not quite beach reading, but interesting to those wanting to understand how economic and social issues shape policy.
– Nancy Oates

Cloud could brighten our economy

Thank you to Orange Politics for hosting a reception Friday evening for all the Nancy Oatescandidates in our rectangle of Chapel Hill, Carrboro, Hillsborough and the Chapel Hill-Carrboro City Schools to meet one another. Perhaps the gratitude comes most strongly from our family and friends who have listened, with eyes glazed, to us go on and on about how to improve things until we finally talked ourselves into running for office. The OP-sponsored meet-and-greet at DSI Comedy Theater gave all of us a chance to air our views with others who also care deeply.

Development decisions figured prominently, especially the Big Three: Ephesus-Fordham, The Edge and Obey Creek. Many candidates agree with the many voters who believe the town needs commercial development, not more apartments. I’ve heard the town’s economic development officer Dwight Bassett say on more than one occasion that businesses want office space where employees can walk to lunch. Yet of the more than 3 million square feet of impervious surface those three projects will generate, about 75% will be apartments.

Developers say they’re trying to attract stores and businesses, but can’t seem to do it. Granted, retail is changing. More people shop online, and brick-and-mortar stores are much smaller than a generation ago. But non-retail businesses are changing, too, and that opens an opportunity to fill some office space in town.

A decade ago, many businesses turned to offshoring to cut costs and ostensibly enhance convenience. A call center in India, for instance, allowed lower personnel costs, and the time difference extended operating hours well beyond 9-5 in the U.S. But in recent years, cloud has had an impact on business transactions, and many companies are finding that it is more cost-effective to build and manage those IT functions in-house. You’d think businesses would want to site those IT offices near a major university in a town with excellent public schools for their employees’ children.

Why not look for companies ripe for such in-house expansion and pitch Chapel Hill?

Maybe that’s what Bassett has been trying to do. If so, it might behoove the town to hire a young upstart to assist him, someone conversant in ITO, BPO, SIAM and SaaS and all those other acronyms for functions that mean something to recent business school grads.

Not that Bassett doesn’t shine at attracting traditional businesses. But commerce is changing, and the longer you do something one way, the harder it is to shift to a new mode. I should know. I’ve been struggling to put aside my print newspaper and email to make room for Facebook and Twitter. And after that, there’s Instagram, Pintrest, Snapchat and Periscope.

We hear developers tout that “if you don’t grow, you die.” I’d rather see Chapel Hill evolve to keep our local economy strong, our taxes affordable and our traffic jams to a minimum.
– Nancy Oates