Chapel Hill developer Roger Perry says the Town should be welcoming commercial development with open arms, and if it does, the tax burden on it citizens will begin to subside.
“If you’re going to remain competitive, and if you’re going to keep a tax base that can sustain the community, you must build higher densities, and you must build a bigger concentration of commercial property than we have been building,” Perry says.
Perry says the land has to be developed efficiently because Chapel Hill, along with Carrboro and Orange County, decided about 30 years ago to draw an urban growth boundary to define just how far out it would develop.
The largest portion of Chapel Hill land held by one entity is taken up by UNC, which is tax exempt. Perry says the Town has to be smart about how it uses the remainder of the property.
“In Chapel Hill, we only have 15 percent, plus-or-minus, of our tax base (coming) from commercial property,” Perry says. “Most rules of thumb suggest that equilibrium in that regard is to have at least a third of your tax base come from commercial property tax. In Durham, for example, that number is 40 percent; it’s approximately the same in Wake County.”
The Ephesus-Fordham redevelopment plan was designed to spur economic growth. Perry says those who are against the project are focusing on the wrong problem and don’t have all the facts.
“The issues in flood control in that whole district are a huge problem, but they’re a huge problem today,” Perry says. “The Town’s plan is that, with this redevelopment and the increased tax base that it will provide, it will provide the resources necessary to remedy that problem and fix that problem.”
Perry made these comments in a WCHL News Special with Jim Heavner.
Chapel Hill’s tax rates—city, county, and school taxes–support the city schools, free local busses, and social services, at the highest rate in North Carolina. Local government development policies have made Chapel Hill’s taxes on residences the highest percentage in the state, and commercial taxes the lowest. Orange County exports more retail spending to other counties than any county in the region. In a WCHL news special, Jim Heavner interviews Roger Perry, who has recently been more outspoken on those issues.
Perry, a Chapel Hillian, is the President of East West Partners Management Company, and since 1983 East West Partners has developed more residential real estate than any company in North Carolina. That includes Meadowmont, Downing Creek and East 54 here in Chapel Hill. He’s now trying to develop Obey Creek, so he’s a big player. Perry, a UNC graduate has also served as chair of the UNC Board of Trustees, and that is also a topic of the special interview.
***Listen to Part One***