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10 <br />between the County Commissioners and the developers indicate that the developers are <br />considering an industrial use of the site. <br />Barriers to Development <br />Though mixed use development plans have been approved for the site, development will is <br />not currently going forward. Based on correspondence between the developer and the <br />County Commissioners, the following barriers prevent development at this time. <br />Poor economic conditions. The economy has created a declining retail market, and <br />few anchor -type tenants are opening new stores. The large retail development was <br />dependent on having certain anchor tenants in place, and the market now makes <br />this type of development infeasible. The developers are now considering an <br />alternative of industrial and flex space development. <br />Acquisition cost The acquisition cost of $86,000 was cited as probative and not in <br />line with similar sites in Burlington and Butner, which are on the market for <br />$47,000 - $50,000. These sites include infrastructure. <br />Inadequate infrastructure. The lot considered for development doe snto have access <br />to water or sewer infrastructure. The expense to the developer to build this <br />infrastructure is considered prohibitive. <br />Strategies for Encouraging Development <br />In encouraging real estate development, there are three main strategies available: reduce <br />costs, increase revenues and reduce risk. Outlined below are some potential strategies for <br />the Buckhorn site. <br />Reduce costs. Orange County can negotiate with the current owners to get a <br />more reasonable price based on comparable properties. Based on the NC Site <br />Selector tool, the Buckhorn site has come down in cost quite significantly. Other <br />potential means of reducing costs include providing infrastructure and providing <br />incentives or tax abatements. Financing infrastructure could potentially be done <br />through Tax Increment Financing, detailed in another report. Providing or <br />guaranteeing loans could also reduce the cost of capital, malting the project more <br />feasible. <br />Increase Revenues. The main means of increasing revenue would be to allow <br />increased density. A closer analysis of the site zoning could determine if this <br />approach would increase project feasibility. <br />Reduce Risk. Providing more detailed market information, site analysis or <br />environmental assessments can reduce the risk for prospective developers. <br />Orange County may consider North Carolina's certified site program, which <br />could certify the site as development ready. This could further reduce risk by <br />reducing the entitlement timeline. <br />