AGENDA #4L
MEMORANDUM
TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manager
SUBJECT: Response to a Petition to Update the Comprehensive Plan to Include a Chapter Titled “Business Development”
DATE: April 26, 2004
This memorandum responds to a February 23 , 2004, petition brought by Doug Schworer to include a chapter titled “Business Development” in the Town’s Comprehensive Plan.
The attached resolution would state the Council’s intent to continue to pursue the actions identified in the Comprehensive Plan, Chapter 6, Economy and Employment; and the Council’s intent to give this matter additional attention when it undertakes a revision of the Comprehensive Plan.
The petition requests the update of the 2000 Comprehensive Plan to include a chapter titled “Business Development.” The sponsor envisions that the chapter would: focus on sustainability; solidify the type of businesses the Town seeks to retain and recruit; demonstrate how these businesses would build a commercial tax base creating higher value jobs; and, articulate the Town’s vision while supporting the Orange County Economic Plan and the Council for Sustainable Community. The sponsor advocates that without growing the Town’s commercial tax base, the tax burden on residential property owners could become unmanageable.
Attachment 1 is a copy of the petition.
On May 8, 2000, the Town adopted a new Comprehensive Plan, the culmination of eighteen months of work by the citizens of Chapel Hill. Based upon the community values identified during the plan development, it lays out a vision for the future and describes the strategies the Town should pursue to achieve the future its residents desire.
The Town’s prior Comprehensive Plan was adopted in 1989. The 2000 Plan reaffirms the values articulated in the 1989 plan, as reflected in similar statements of goals and objectives. The Plan also focuses on new issues that emerged during the 1990s such as the need to manage change in the context of Chapel Hill as a maturing community and the effects of rapid growth in the Research Triangle Region.
A major emphasis of the plan is on implementation, i.e., the specific actions that should be taken to turn the vision for the future into a reality. Chapter 13.0 lays out a program for implementing the Comprehensive Plan. This program sets priorities for the short-, mid-, and long-term action; establishes a monitoring process to track the progress in implementing the plan; and, suggests statistical indicators used to help assess the health of the community. On May 12, 2003, the Council amended the Comprehensive Plan Action Plan to conform to the Council’s goals adopted earlier that year.
Chapter 6.0 of the Plan, “Economy and Employment,” pages 43-48, encourages economic diversity, commerce and mixed use developments for the Town. Attachment 2 is a summary of the goals, objectives strategies and actions set out in Chapter 6.0.
We believe that the matters expressed in the petition are similar to those already discussed in Chapter 6.0, Economy and Employment of the 2000 Comprehensive Plan. The Plan outlines the Town’s goals and objectives, and sets out strategies and actions to implement its stated vision. Below, we respond to the specifics of the petition.
1. The petition calls for a Business Development chapter to the Plan which will focus on sustainability to complement the existing social and environment structure of the Plan.
Comment: In Chapter 6.0, Economy and Employment, the stated objective is to promote economic diversification consistent with supporting a high quality of life.
2. The petition calls for the Plan to include a vision and strategy to solidify the type of businesses the Town seeks to retain and recruit.
Comment: Chapter 6.0 states the desirable types of non-residential development are those that are attracted to and complement the Town’s quality of life and high standards of community character. Examples include appropriately scaled office and research facilities, businesses that involve the humanities or the fine arts, and retail uses that serve the community.
Strategy 6A-1 of the plan which is to encourage desirable forms of non-residential development includes the stated action:
“Develop and implement a proactive strategy to encourage and retain non-residential development, including small businesses (Town staff, Town Council, Orange County Economic Development Commission).”
On March 22, 2004, the Town Council adopted its Goals and Implementation Plan for 2004 based on the Town’s Comprehensive Plan. In the 2004 Goals, this action item is scheduled to commence in 2006. This action to develop a proactive strategy for non-residential development would further develop the Comprehensive Plan goals and objectives. A strategy would also likely need to address the market reality of a chosen strategy.
3. The petition states that the Plan should clearly articulate the Town’s position on its own economic vitality, also, demonstrate how businesses would build a commercial tax base to create higher value jobs and provide career opportunities that would keep college graduates in Chapel Hill.
Comment: In order to achieve Strategy 6A-1 to encourage desirable forms of non-residential development, the Comprehensive Plan calls for the Town and UNC to explore opportunities to establish University-related research and development businesses in Chapel Hill. Potential areas include medical sciences, communications, engineering and other research /technology functions. The plan identifies the Horace Williams tract as a logical candidate for this type of development.
The 2000 Comprehensive Plan also designates general locations where mixed-use developments are encouraged. The mixed use concept could include smaller sites or buildings that could serve as incubators for small business enterprises. The encouragement of mixed-use developments that integrate uses such as office/employment, retail, and residential is an action set out in Chapter 6 of the plan. This action is implemented as part of the daily business of considering development proposals in the Town.
In addition Strategy 6A-2 of Chapter 6.0 includes an action to strengthen design standards for new non-residential development and achieve compatibility with existing development.
This action also is scheduled in the Town Council Goals work program to commence in 2006.
OPTIONS FOR PROCEEDING
The following options are offered to the Town Council in consideration of this petition:
Manager’s Recommendation: That the Council continue to pursue the actions already identified in the Comprehensive Plan, Chapter 6, Economy and Employment which address the matters expressed in the petition; and, that the Council give this matter additional attention when it undertakes revision of the Comprehensive Plan. We believe that work on the revision should begin in fiscal year 2005-06.
ATTACHMENTS
1. Petition from Doug Schworer (p. 6).
2. Abstract of Chapter 6.0 Economy and Employment. Comprehensive Plan adopted May, 2000 (p. 7).
A RESOLUTION REGARDING BUSINESS DEVELOPMENT AND THE TOWN’S COMPREHENSIVE PLAN (04-04-26/R-8)
WHEREAS, the Town Council has established a vision for the local economy and employment in Chapter 6.0 of its Comprehensive Plan adopted May, 2000; and
WHEREAS, on March 22, 2004, the Town Council adopted a Goals and Implementation Plan, which established tasks to be undertaken in fiscal year 2004-05 and succeeding years;
NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council continue to pursue the actions already identified in the Comprehensive Plan, Chapter 6 Economy and Employment which address the matters expressed in the petition; and, that the Council give this matter additional attention when it undertakes a revision of the Comprehensive Plan.
This the 26th day of April, 2004.
Insert ATTACHMENT 1- Petition from Doug Schworer here.
Abstract of Chapter 6.0 Economy and Employment, Town of Chapel Hill Comprehensive Plan. Adopted May, 2000.
This chapter of the Plan sets out the Town’s adopted Goals, Objectives and Strategies for the local economy and employment. It also identifies Actions to be undertaken to implement these as set out below:
Goal
Increase employment opportunities for residents and satisfy local demand for commercial and retail services.
Objectives
Economic Diversity: Promote diversification of the Town’s economy and employment opportunities for residents, consistent with supporting a high quality of life.
Commerce:
· Develop and maintain commercial uses that are compatible with the character and scale of Chapel Hill.
· Develop and maintain the downtown as a pedestrian-oriented focal point for the community’s commercial and retail needs.
Mixed Use: Provide opportunities to create “living and working neighborhoods,” or mixed-use developments in appropriate locations.
6A. Non- Residential Development: recognizes that UNC and the UNC Health Care System are the driving forces in the local economy also the given the tax exempt status of the institution, an objective is to diversify the economy, and to encourage appropriate forms of private non- residential development:
“This strategy is intended to achieve a variety of purposes – to make it easier for people to live and work in Chapel Hill, increase local shopping opportunities, augment the tax base, support mixed-use development, etc. – in a manner compatible with the Town’s character and scale.” p44-45
Strategy 6A-1 Encourage desirable forms of non-residential development defines an approach which includes the following:
Designate appropriate locations for new non-residential development.
Define desirable types of non-residential development.
Consider proactive approaches to attracting new development.
Encourage small business development.
Support the incubation and growth of entrepreneurial/start-up businesses.
Retain existing businesses.
Under these headings the plan outlines aspects and considerations of this approach, for instance concerning the definition of desirable types of non-residential development page 45 Chapter 6.0 states:
“In Chapel Hill, desirable types of non-residential development are those that are attracted to and complement the Town’s quality of life and high standards for community character. Examples include appropriately scaled office and research facilities, businesses that involve the humanities or the fine arts, and retail uses that serve the local community. The presence of UNC and the UNC Health Care System suggests that businesses derived from University-related research activities may be good candidates (see Strategy 6C-1). Office uses provide the greatest net fiscal benefits to the Town (see Chapter 12.0, Fiscal Conditions).”
Chapter 8.0 of the Comprehensive Plan (Land Use and Development) identifies appropriate locations for office and commercial uses wherever possible in mixed-use settings.
The following action is identified in the Plan to facilitate the adopted approach:
Action: Develop and implement a proactive strategy to encourage and retain non-residential development, including small businesses (Town staff, Town Council, Orange County Economic Development Commission)
Strategy 6A-2: Strengthen design standards to ensure that new non-residential development is compatible with existing development.
Strengthened standards are planned to compliment the proactive approach to encourage non- residential development recommended by Strategy 6A-1
Action: Review and strengthen existing design standards and guidelines for non-residential development (Town staff, Design Commission, Town Council)
6B. Mixed Use Development. This plan concept is to foster mixed-use environments that create opportunities for living, working, and shopping in close proximity.
Strategy 6B-1 Encourage new non-residential development in mixed-use settings.
This strategy aims to encourage non-residential development to be located in mixed rather than single –use settings wherever possible. Regulatory or other issues which may hinder such developments will be addressed as part of this effort.
Action: In implementing Strategy 6A-1, encourage mixed-use developments that integrate uses such as office/employment, retail, and residential (Town staff, Town Council)
6C. University-Related Business Development. This section of the chapter recognizes the potential of a strategic relationship between the Town and UNC to turn research and related activities into local economic development opportunities.
Strategy 6C-1 Work with UNC to identify opportunities for private entrepreneurial activity related to University research.
As part of the strategy to encourage appropriate non-residential development recommended by Strategy 6A-1, the Plan states on page 48 that:
“The Town and UNC should explore opportunities to establish University-related private businesses in Chapel Hill. Potential areas include medical sciences, communications, engineering, and other research/technology functions.”
The Plan identifies that the Horace Williams tract is identified as the logical candidate for this type of development. The Plan goes on to identify that:
“Appropriate sites not owned by UNC should also be considered in order to generate local property tax revenues. Potential sites include areas designated for mixed-use development on the Future Land Use Plan and smaller sites or buildings that could serve as incubators for small business enterprises.
Action: Initiate discussions with UNC to explore opportunities for University-related business development (Chapel Hill, UNC)