Agenda - 06-21-2016 - 5-a - Minutes

Browse Search

2 1 will move forward with other staff members to develop the first draft policy documents for further 2 review. 3 Steve Brantley and Dwight Bassett reviewed the Chapel Hill and Orange County 4 Incentive Policy Worksheet, found in attachment 1A. 5 Mayor Hemminger said staff has been attending different economic development 6 outreaches in and around the research triangle area. She said there is growing economic influx 7 into this region that can be tapped into. 8 Mayor Hemminger said there are companies in Chapel Hill that want to grow and 9 expand, but there is no space available. 10 Chair McKee said there is UNC Launch, but there should be a framework for those 11 companies that are outgrowing the Launch facilities. 12 Steve Brantley said when he and Dwight Bassett have met in recent months, they have 13 considered if there were incentives, and asked what are they looking to get out of these 14 incentives. He said they also talked about how to fund incentives. 15 Steve Brantley said the types of possible projects are a myriad of mixed-use re- 16 development areas, large single purpose uses, as well as moderate and small-scale businesses 17 and start-ups. 18 Steve Brantley referred to synthetic tax increment financing and said there are examples 19 of this being used across North Carolina. He said the basic concept is that the net new 20 property tax values that spin off from such projects goes into the repayment of the synthetic tax 21 increment financing. 22 Steve Brantley said a second area could be a performance agreement that outlines 23 what is agreed upon. 24 Steve Brantley said there are projects that could require a State of North Carolina 25 matching fund. He gave an example. 26 Steve Brantley said smaller companies may represent a more marginal net new property 27 tax value. He referred to Attachment la to highlight the various options the County could 28 pursue. 29 Council Member Parker said there are two primary areas in which the Council has 30 expressed an interest, the first of which is making Orange County and Chapel Hill an innovation 31 community. He said the other priority is an inventory of spaces. He said either inventory needs 32 to be created, or at least have specs for new inventory. He said the largest need seems to be 33 job expansion and job creation. 34 Council Member Palmer asked if spaces, such as industrial innovation zones, should be 35 built in order to get ahead of the curve. 36 Dwight Bassett said the market is not driving office space. He said retail is at a 6% 37 vacancy and only two thirds of the market potential is being captured. 38 Mayor Hemminger said whatever happens in Orange County benefits Chapel Hill, and 39 vice versa. She said she was hoping Orange County would help the Town get the Eubanks 40 Road area off the ground, and asked if there is an appropriate time to have those 41 conversations. 42 Chair McKee said the County would also like to be partners, and he hoped that some 43 directions could be framed on a few of these items. 44 Council Member Oates said she has heard from developers that it is difficult to get 45 lenders to give funding to spec office space. 46 Dwight Bassett said that is one of the barriers that is being faced on many projects. He 47 said it is a matter of showing developers that the tenants will come if the spaces are built. 48 Commissioner Price referred to the analysis of the current space, and asked if it would 49 be wise to get ahead of the curve in terms of the types of spaces needed versus what currently 50 exists.