MINUTES OF A PUBLIC HEARING HELD BY THE MAYOR AND COUNCIL OF THE

TOWN OF CHAPEL HILL, NORTH CAROLINA, MONDAY, MAY 18, 1992

Mayor Broun called the hearing to order. Council members in attendance were Julie Andresen, Joyce Brown, Joe Capowski, Mark Chilton, Joe Herzenberg, Arthur Werner and Roosevelt Wilkerson, Jr. (arrived at 8:02 p.m.). Council Member Alan Rimer was absent excused. Also in attendance were Assistant to the Mayor Lisa Price, Town Manager Cal Horton, Assistant Town Managers Sonna Loewenthal and Florentine Miller, Planning Director Roger Waldon and Town Attorney Ralph Karpinos.

Item 1 McGregor Place/Erwin Village

Persons wishing to testify in the matter were sworn by the Town Clerk.

After requesting the introduction of applicable materials into the record of the hearing, Planning Director Roger Waldon briefly reviewed the application and a vicinity map of the proposed site. He noted that a townhouse development for the tract and a special use permit for ninety‑one dwelling units on the seven acre parcel had been approved in 1981. Mr. Waldon stated that sixteen units had been constructed on one acre of the parcel. He said the applicant's request was to modify the existing special use permit so that only one acre would be encumbered. Mr. Waldon said the Manager's preliminary recommendation was to approve the requested modification. He said the modification would make possible the construction of a twenty‑lot subdivision at slightly below market prices. The lots and homes would be sold with public subsidies so that households with incomes below 80% of the area median could buy them.

Council Member Capowski asked whether the subject property was in the Town limits. Mr. Waldon said yes. Council Member Capowski inquired whether a contract was pending on the property. Mr. Waldon said this was his understanding. Council Member Capowski inquired about the impact of applying current development ordinance requirements for the project. Mr. Waldon said it would not be possible for the development to meet current requirements, particularly for setbacks and buffers. Council Member Brown requested clarification of board actions on the special use permit modification. Mr. Waldon briefly reviewed the recommendations of the Planning and Transportation Boards.

Jack Smyre, representing John McAdams Co., the project's design firm, said the project had two owners, Barclay's American Mortgage and Orange Community Housing Corporation. He requested that the Council keep in mind the public good of the requested action to establish twenty units of affordable housing.

Mary Reeb, representing the Planning Board, said that the Board had voted to recommend proposed resolutions A and C.

Council Member Werner asked who the applicants were. Mr. Smyre said the Orange Community Housing Corporation was the contract purchaser in partnership with Waxboro (?) Associates. Council Member Werner asked whether it was possible to improve buffering along Erwin Road. Mr. Waldon said there was inadequate space to do so.

Mr. Smyre indicated that the applicant was agreeable to the proposed conditions of approval.

COUNCIL MEMBER HERZENBERG MOVED, SECONDED BY COUNCIL MEMBER WERNER, TO RECESS THE HEARING TO JUNE 22ND AND REFER THE MATTER TO THE MANAGER. THE MOTION WAS ADOPTED UNANIMOUSLY (7‑0).

Mr. Waldon reviewed the request for preliminary plat approval and related issues, denoting the proposed street plan and recreational area. He said twenty lots were proposed, with the recreational area composed of a combination of dedicated land and payment‑in-lieu. Mr. Waldon added that the proposed t‑turnaround street was narrower than usual, with curb and gutter, and fronting onto the recreation area to accommodate parking. He also noted that the application had received expedited processing, as requested by the Council. Mr. Waldon said the application met all subdivision ordinance requirements excepting recreational facilities. He said that the applicant proposed to drain a manmade pond on the site and use the area for active recreation. Mr. Waldon stated that the staff recommended draining the pond and rebuilding the dam.

Council Member Andresen inquired about the proposed location of the recreation area. Mr. Waldon pointed out the proposed location. Council Member Andresen asked whether the area could be used for recreational area, given its location in a low drainage area. Mr. Waldon said the area could be suitable for active recreation. Council Member Andresen asked why the recreation area did not meet standards. Mr. Waldon said there was not quite enough land. Council Member Andresen inquired about the location of buffering. Mr. Waldon specified the proposed location of buffering. Council Member Andresen inquired about the width of the proposed roadway. She noted that the entrance onto Erwin Road would be a difficult one. Council Member Andresen also inquired whether the road would be connected or a stubout. Mr. Waldon said that right‑of‑way existed to the property line. He also stated that there was a lot of traffic on Erwin Road, making it necessary to carefully examine any additional proposed street connections. Council Member Andresen suggested that the Engineering Department examine possible modifications of entrances onto Erwin Road. She said the layout of the subdivision looked very good.

Council Member Capowski inquired about the draining and filling of the pond. Mr. Waldon said the water would be drained and the pond filled with soil. He said that Mr. Smyre could provide additional information on this matter. Council Member Capowski noted that sidewalk requirements were being waived due to financial considerations. Mr. Waldon noted that the Manager's preliminary recommendation was to require sidewalks along Erwin Road frontage. Council Member Capowski requested additional information on the estimated cost of sidewalks in the staff's follow‑up report.

Keith Aldridge, Chair of the Orange Community Housing Corporation (OCHC) Board, said the corporation was committed to providing homebuying opportunities for low‑income persons and families. He stated that the proposed project was targeted toward school teachers, University and local government employees. Mr. Aldridge noted that OCHC had an option on the land until the end of the year. He stated that the homes would cost about $89,000, with mortgages being approximately $60,000, net of subsidies. Mr. Aldridge said OCHC hoped to start construction in September, 1992, with units completed in 1993.

Jack Smyre noted that development costs for lots included water and sewer connections, roadway and sidewalk improvements. He added that left turns on to Erwin Road would be somewhat difficult. Mr. Smyre said that reductions in right‑of‑way from sixty to fifty‑five feet and cross sections from thirty‑three to twenty‑seven feet were proposed, due to the anticipated small volume of traffic.

Council Member Werner inquired whether curb and guttering was proposed for both sides of the street. Mr. Smyre said yes, noting that a class B street was proposed. He stated that the applicant was not opposed to providing curb and gutter and sidewalks on both sides of the street. Mr. Smyre noted that the pond on the site currently received overflows from the Greenfield apartments pond. Council Member Andresen inquired what would happen to this overflow after the recreational area was established. Mr. Smyre responded that several strategies, including piping and swales, could be used to attain positive drainage in the area. Council Member Andresen requested additional detail on sheet drainage. Mr. Smyre said this flow could discharge into a drainage channel.

Noting that a public‑private development partnership was proposed, Council Member Andresen inquired about the extent of profit for the private developer. Orange Community Housing Corporation Executive Director Donna Dyer said that approximately $1,500 per house in contingencies would be returned to OCHC if not needed during construction. She noted that the private owner of the existing townhouses would not participate in the proposed subdivision. Council Member Andresen asked whether OCHC was the developer of the proposed subdivision. Ms. Dyer said yes, adding that two private contractors and builders were also involved in the project.

Council Member Capowski inquired about the cost of the land. Ms. Dyer said the net price was $215,000, or about $10,750 per lot. Council Member Capowski inquired about the per house costs, including site improvements. Ms. Dyer said approximately $29,000, including $2,900 per house for water and sewer connections and $2,500 per house for planning and engineering. Council Member Capowski asked how much per house costs would increase if the developer were required to meet all development requirements. Mr. Waldon stated that the application met all current development regulation requirements. Council Member Capowski asked how much it would cost to meet current buffering requirements. Mr. Waldon said it was not physically possible for existing units to meet current setback and buffering requirements.

Council Member Brown asked whether water and sewer lines were in place in the area. Mr. Smyre said yes, noting that this would somewhat reduce connection costs. Council Member Andresen emphasized the importance of using good quality materials and foundations for the houses. She inquired who would deal with future construction difficulties. Ms. Dyer said that a group of fourteen builders had been reduced to four. She added that about $56,000 was budgeted for each house. Ms. Dyer stated that efforts were being made to obtain the best product for the best price.

Council Member Werner inquired about the proposed size of the houses. Ms. Dyer said 1,100 to 1,300 square feet. Council Member Werner inquired about the rationale for the developer to provide sidewalks and curb and guttering. Mr. Smyre said the sidewalks and curb and guttering were desirable amenities for the neighborhood's residents. Council Member Werner said he preferred that the subdivision be designed so that no access road to the east was proposed. Mr. Smyre said a number of alternatives had been explored. He noted that the applicant did not wish to build a portion of an arterial roadway. Council Member Werner said it appeared that a cul‑de‑sac would likely be provided. Council Member Andresen inquired about access to adjoining properties. Mr. Waldon said additional information on roadways and access to adjoining properties would be provided in the staff's follow‑up report.

Council Member Werner said the provision of sidewalks in front of seven lots was being discussed. He noted that there were other areas needing sidewalks. Council Member Andresen inquired whether some sidewalks were in place in the area. Mr. Waldon showed the location of existing sidewalks. Noting that she did not normally support curb and guttering, Council Member Andresen inquired whether the Town would have to maintain curbs and gutters. Council Member Werner said he was not sure of the need for additional curb and guttering in the area. Council Member Andresen said that sheet drainage from the proposed recreation area might trigger the need for curb and guttering. Ms. Dyer said the estimated cost of sidewalks was $3,800 for 400 linear feet of sidewalks and $12,600 was the estimated cost of curb and guttering. She noted the importance of making the neighborhood look as nice as possible. Mayor Broun said that sidewalks would provide access to the recreation area from neighborhood townhouses. Council Member Werner said sidewalks were not needed since there would be relatively little traffic in the neighborhood.

Council Member Brown asked if additions could be made to houses in the event that curb and guttering improvements were not required. Ms. Dyer said OCHC had not considered this possibility. Ms. Dyer said she was not sure that anything else needed to be added to the houses.

Council Member Capowski inquired about the extent of risk involved with the request for $200,000 of short‑term construction financing from the Town. Mr. Horton said the Town had never made a short-term investment loan of this type. He added that the project appeared to be sound. Council Member Andresen inquired about the cost of loaning the money. Mr. Horton said this was dependent upon the interest rate. Ms. Dyer added that banks preferred not to make loans to ventures such as the Erwin Village proposal.

Guido de Maere said he was concerned that the developer proposed to fill the existing pond with fill from the remainder of the site. He noted that adjoining property was considerably higher than the roadway, creating a steep bank between the subdivisions. Mr. de Maere requested that existing planting remain intact. He stated that lots in Windhover had been purchased at a cost of $35,000 per lot with no requirement waivers. Council Member Andresen asked whether Mr. de Maere was concerned about storm drainage and aesthetic problems arising from levelling the area. Mr. de Maere said this was correct. Noting the importance of a good storm drainage plan, Council Member Andresen requested that the staff provide recommendations on drainage in its follow‑up report.

Council Member Wilkerson inquired about the implications of the Town being unable to meet the developer's requested stipulations relative to project financing. Ms. Dyer said if the HOME element of financing were unavailable, the project would not be viable. She noted that it was unlikely that all funds requested from the Housing Finance Agency would be received. Council Member Wilkerson inquired whether financing for site acquisition had been consummated. Ms Dyer said no, noting that it was not necessary to buy the land unless financing was obtained. She added that the land contract had a ninety‑day extension provision.

Mary Reeb, representing the Planning Board, said the board had recommended preliminary plat approval for Erwin Village by a vote of 8‑1. She noted that some board members had expressed concerns about the proposed use of the pond, recreational area and clustering.

Howard Ross, 108 Windhover Drive, said his family had resided in the area for two weeks, said he had major concerns about the proposal. Mr. Ross said that notice had not been provided to all adjoining property owners. He stated that the pond in question was beautiful and was enjoyed by area residents. Mr. Ross said he wanted to see an environmental impact statement on the proposed project. He said that the existing lake did not have to be destroyed. Mr. Ross also expressed concern that four people living in a 1,100 square foot house would represent a very low quality of life. He said the proposal was not the best use of the property.

Ms. Dyer said the Orange Community Housing Corporation was committed to providing affordable housing. She said OCHC was agreeable to the proposed conditions of approval, excepting numbers ten and eleven which would require some additional discussion.

COUNCIL MEMBER CAPOWSKI MOVED, SECONDED BY COUNCIL MEMBER WERNER, TO RECESS THE HEARING TO JUNE 22ND AND REFER COMMENTS TO THE MANAGER.

Council Member Werner said the idea of payment‑in‑lieu for recreational facilities was a good one. He inquired about the source of $30,000 for the park. Mr. Horton said the likely source was Community Development program funds. Council Member Werner asked whether the funds could be used for improvements at Hargraves Center. Mr. Horton said yes. Noting the overall shortage of Town park facilities, Council Member Werner said he was somewhat concerned about spending $30,000 for parkland for a twenty‑lot subdivision. Council Member Andresen said this was interesting argument. She stated that some existing pocket parks were very successful. Council Member Herzenberg noted that some residents of Windhover would likely use the proposed park. Council Member Wilkerson noted that Mr. Ross had indicated an interest in maintaining the pond in its existing state.

Council Member Capowski requested a summary of all requested subsidies in the staff's follow‑up report. Council Member Brown asked if a community park was proposed. Mr. Horton said this was correct. Council Member Brown asked whether there were other parks in the area. Mayor Broun noted that there were some risks associated with affordable housing proposals. Noting that the plan was well thought out, Mayor Broun urged the Council to consider the proposal carefully. Council Member Chilton inquired about other options for the $30,000 for parkland. Council Member Werner said the money could be spent on other priorities identified by the Council. Council Member Chilton inquired about the payment‑in‑lieu proposal. Council Member Werner said he was willing to waive this requirement.

THE MOTION TO RECESS AND REFER THE MATTER WAS PLACED ON THE FLOOR AND ADOPTED UNANIMOUSLY (8‑0).

Item 2 Ironwoods North SUP Revocation and Preliminary

Plat Approval

Mr. Waldon briefly reviewed the applications, noting that the Ironwoods development was located on Seawell School Road, with a large portion of the land remaining undeveloped. He noted that a partial revocation of the special use permit was being requested. Mr. Waldon requested the introduction of applicable materials into the record of the hearing. He showed an exhibit map depicting the location of the subdivision and surrounding area. Mr. Waldon stated the applicant was requesting unilateral revocation of a portion of the special use permit. He said the staff believed the request was reasonable.

Council Member Herzenberg requested that the Council be provided with the text of the original special use permit. Mr. Waldon said the staff would provide this information in its follow‑up report.

Jack Smyre said his client needed to be released from the confines of the current special use permit. Mr. Smyre requested that all Ironwoods subdivision residents receive notice of the proposed action.

Mary Reeb said the Planning Board had recommended that the revocation be permitted.

Council Member Capowski asked whether there was a sunset provision for special use permits. Mr. Waldon said yes, noting that construction had to be started and finished within specified time limits. Mr. Waldon added that once a special use permit expired, no further development activity could occur until a modification had been approved. Council Member Capowski inquired whether there were options other than revocation. Mr. Horton said he suspected that the land holder would eventually sue the Town to seek relief if the revocation were not granted. Council Member Capowski inquired about the typical price of homes in the subject subdivision. Mr. Waldon said he did not have this information. Mr. Horton said his preliminary recommendation was the adoption of Resolution A.

There were no comments by citizens.

Mr. Smyre said his client accepted the proposed conditions of approval.

COUNCIL MEMBER HERZENBERG MOVED, SECONDED BY COUNCIL MEMBER CHILTON, TO RECESS THE MATTER TO JUNE 22ND AND REFER COMMENTS TO THE MANAGER. THE MOTION WAS ADOPTED UNANIMOUSLY (8‑Q).

Mr. Waldon requested that memorandums and materials pertaining to the application be entered into the record of the hearing. He briefly reviewed the application, noting that single‑family lots were proposed fronting on roadways and cul‑de‑sacs. Mr. Waldon said the applicant proposed to dedicate an additional eleven acres of land for recreational purposes. He noted that all lots in the subdivision had buildable areas outside the Resource Conservation District.

Council Member Herzenberg asked whether a map could be provided showing the location of recreational areas. Mr. Waldon said yes. Council Member Chilton asked whether the area proposed for dedication ran along Umstead and Estes Drives on the south side of the creek. Mr. Smyre said yes. Council Member Andresen asked whether improvements were proposed for Seawell School Road. Mr. Waldon said widening of the road had been completed, but sidewalks might be added in the future. Council Member Andresen said there might be a greater need for a bikeway along Seawell School Road. Mr. Waldon said the staff would further investigate bikeways and sidewalks along Seawell School Road. Council Member Andresen inquired about the location of the Airport Hazard Zone. Mr. Waldon said there was none in terms of Town standards. Council Member Andresen emphasized the importance of making certain that future property owners would be aware of the proximity of the airport.

Council Member Brown requested additional information on the location of and access to, the park and ride lot. Mr. Waldon pointed out the lot and access, noting that the lot was fenced. Council Member Brown asked whether the greenway easement was owned by the applicant. Mr. Waldon said the easement was owned by the seller. He noted that the applicant had agreed to make dedication of the easement a condition of approval. Council Member Chilton asked whether the property adjoined Umstead Park. Mr. Horton said yes.

Mary Reeb said the Planning Board had recommended the adoption of Resolution A.

Mr. Smyre said that efforts were underway to arrange for a pedestrian easement and a private recreational facility open to all Ironwoods subdivision residents. He said the applicant was comfortable with proposed off‑site improvements and the proposed conditions of approval as written. Council Member Werner inquired who owned the adjoining property. Mr. Smyre said the Horace Williams Airport adjoined the property. Mr. Horton said his preliminary recommendation was the adoption of Resolution B.

There were no citizen comments.

Mr. Smyre said his client agreed with the conditions outlined in resolution B. He indicated that discussions would continue with staff on condition 2d, concerning clear title to off‑site recreation land and environmental assessment conditions.

Council Member Werner inquired about the applicant's identity. Mr. Smyre said G‑W‑D, Inc. along with Goforth Properties was requesting the revocation.

COUNCIL MEMBER WERNER MOVED, SECONDED BY COUNCIL MEMBER CAPOWSKI, TO RECESS THE HEARING AND REFER COMMENTS TO THE MANAGER. THE MOTION WAS ADOPTED UNANIMOUSLY (8‑0).

Item 3 Annexation of Oaks Subdivision

Mr. Waldon said the staff recommended approval of the annexation request. Council Member Herzenberg ask what would happen to the two properties bisected by the Durham/Chapel Hill jurisdictional line. Mr. Waldon said this would be somewhat problematic. Council Member Andresen inquired whether there were drainage problems in the area. Mr. Waldon said there would be none which would be the Town's responsibility. Noting the bankruptcy of Goforth Properties, Council Member Capowski inquired about the status of buildout of the subdivision. Tom Heffner said most lots were currently being developed. He added that Goforth Properties was not bankrupt. Mr. Heffner said the applicant's intention was to complete the development and sell the lots.

COUNCIL MEMBER HERZENBERG MOVED, SECONDED BY COUNCIL MEMBER ANDRESEN, TO REFER THE MATTER TO THE TOWN MANAGER. THE MOTION WAS ADOPTED UNANIMOUSLY (8‑0).

The hearing concluded at 10:17 p.m.