Minutes 05-15-2014 - Laserfiche WebLink

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Commissioner Pelissier echoed Commissioner Gordon's earlier comments regarding the need for a full accounting of all increased costs. She questioned what the effect will be on debt capacity if schools need to be moved up in the Capital Investment Plan (CIP). Commissioner Pelissier asked if the County portion of the debt would be higher if the road improvements cost more than projected Ken Pennoyer said at this point public improvements are being limited to $10 million. Commissioner Pelissier asked if Chapel Hill would absorb the difference if the amount is higher. Ken Pennoyer said the Town would either scale back the project or find a different source of revenue. Dwight Bassett said these costs are projected based on road projects that have actually occurred in this region. He said the projects have a 15 percent contingency in place for engineering and cost overruns, so staff is comfortable with the numbers. Commissioner Pelissier asked what the town's contingency plan would be if the County funds less than 50 percent. Ken said the town would use their debt management fund if the commitment fell short. Commissioner Pelissier asked if staff is familiar with any similar projects like this across the state. Michael Talbert said he is not that he is aware of, other than a large theater in Granville County that failed. Commissioner Pelissier clarified that she is asking about interlocal agreements, not the Synthetic TIF. Bob Jessup said he is not aware of any projects that are based on the tax increment but there are examples where a County agrees to make money available to a local government. He said he can work to come up with something more concrete on this. Commissioner Pelissier said she is talking about a project specifically like this one. Michael Talbert said is not aware of any examples for road improvements and stormwater projects. Commissioner Price asked about the anticipated impact on existing housing in this area. Dwight Bassett said many homes in this area are being rented, and staff believes that increasing the supply of multi-family housing will create new opportunities for home ownership in those adjacent neighborhoods. He said staff thinks the value of these neighborhoods will grow dramatically, and the development will make it a desirable area to live. Commissioner Price said her concern is affordability. She said if the value of current property goes up, rent and costs would increase, and many people may be displaced. Dwight Bassett said urban areas are beginning to realize that in order to meet market demand, they need to look at micro units. He said staff has had that conversation with the developers about including smaller, market rate, affordable units for those residents under that median income category. Commissioner Price asked if he is admitting that some people will be displaced. Dwight Bassett said the Colony units are actually substandard, and staff believed they can provide a better product at a similar market rate that will meet that need. Commissioner Price said she is fine with making the housing decent and safe, but she is concerned with the affordability. Dwight Bassett said this is a long term issue that needs to be looked at, but staff believes that increasing the housing supply in Chapel Hill will do more longer term to stabilize the housing rate. He said the growth has not risen to meet the demand in Chapel Hill. Commissioner Prices asked if there will be affordable units.