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12 Agreement will have to be amended, requiring approval of all participatingentities (i.e. OrangeCounty, Chapel Hill, and Carrboro) after a joint public hearing. While this may promote development of `affordable housing' these issues represent only 1 small component of housing costs. This issue transcends Planning and will not be resolvedsolely throughaltering existing land use regulations. Recommendation The Managerrecommends that the Board receive the information and provide comments/direction on potential subdivision amendment(s). Chair McKee said he appreciated the presentation, but he is not sure that the changes being discussed will affect the affordability of the lots. He said he understandsthat affordable housing will not be developed in the northern part of the County as it is away from water and sewer. Michael Harvey said this is just one aspect of a globalissue that warrants discussion. He said if there is significant reduction in lots sizes withthe implementation of innovative, off-site septic with increased density allowances andwith incentives for developers, there may be an improvement with respect to the cost of the lot. He said the value of land in a protected area versus an unprotected area versus the rural buffer will all be different. Commissioner Pelissier saidthis has been a great presentation and it wasdone in response to her petition. She said the originalintent of her petitionwas not so much affordable housing but ratherpreservationof rural character. She said the hope of an affordable housing byproduct was secondary. Commissioner Pelissierasked if there are any successfulexamples of the options outlined this evening from otherlocations. Craig Benedict said several examples have been received that included a variety of the options. Commissioner Pelissier asked if there is anything that could be developed to differentiate the size of a development. Michael Harvey said there is some viability with this idea. He said further discussion is neededregarding incentivizingdevelopers. Commissioner Pelissier said in her tenure on the BOCC, every major subdivision has been high-end housing. She asked if mixedhousing could be incentivized to allow for greater diversity of price points. She asked if this idea is even realistic. Michael Harvey said there is probably no incentive that can be offeredunlessthe County is purchasing the property. He said the valueof land is the valueof land. Commissioner Jacobs asked if permanent protected open space is valued by Orange County, could theBOCC direct the appraiser to appraise at a reduced value forpermanently protected open space in a subdivision. Commissioner Price said conservationeasements could perhaps reducecosts. She said the Community Home Trust has several homes that are mixed into the high-end subdivisions. She saidshe does not promote the idea but noted it points to an example. Commissioner Dorosin referred to Commissioner Jacobs' point about incentivizing. He said it is important to determine what the County wants to incentivize. He said he would like to address the questionof affordable housing. He said if the main concern is environmental preservation then it is not practically possible to have affordable housing in these areas. He said it may be worthexploring how development in the environmentally sensitive areas can subsidize the building of affordable housing elsewhere. He said it may bean impact fee or a cost in exchange for the incentives. He said he is veryexcited about the concept of off-site septic. Craig Benedict said there is currently a multi-department effort on affordable housing. 121