Downtown Economic Development Initiative

The Town Council has initiated a $75 million development project to construct a three-section building complex combining condominiums, retail, and parking on Town-owned Parking Lot 5 in downtown Chapel Hill.

Proposed Development Highlights:

• Located on Town-owned parking lot facing both Franklin and Rosemary streets
• 3-sectioned complex with large public plaza
• 28,540 sq. ft. commercial/retail space
• 137 condominiums including 21 affordable units to be placed in Land Trust
• Complex is 8 stories at highest point; highest point is 104 feet
• 345 total parking spaces (330 underground plus up to 15 on the street).
• Ownership of parking: 161 Town-owned garage spaces; 169 Condominium-owner parking spaces; 10–15 on-street parking spaces
• 27,000 sq. ft. public space

With the following proposed financial arrangement:

• $75 million estimated value of development.
• The developer commits to invest $12.5 million of equity
• Town retains ownership of the site
• Town leases the property for 99 years at $1 per year
• Developer has right to acquire building “air rights” in 50 years at cost of $2 million
• Developer assumes all development risks
• The Town pays developer maximum $7.245 million using tax-exempt borrowing for public parking spaces ($45,000 per parking space) after construction
• Revenues from property and sales taxes, and parking estimated at $1.06 million in the project’s fifth year

With the following proposed building design and public benefits:

• Energy efficiency: minimum 20 percent improvement in energy efficiency (as measured against standards established by the American Society of Heating, Refrigerating and Air-Conditioning Engineers - ASHRAE)
• 27,000 square foot public plaza
• $671,000 from the developer for public art
• Developer funds $200,000 of programming for new public space