Obey Creek Estimated to Net $600k to $1M Annually for Chapel Hill

On Thursday night, the Chapel Hill Town Council discussed the fiscal impact of the proposed Obey Creek development on the town.

Chapel Hill Business Management Director Kenneth Pennoyer estimated the mixed-use development would net between $600,000 and $1 million every year. This is the revenue, which comes from taxes and fees, minus the cost of extending town services, like fire, police and transit services.

Town council members are looking into the impact of two different development scenarios to help the town strategically negotiate with the developer, East West Partners. This wide range in the bottom line – $600,000 to $1 million – comes from comparing a bigger development plan, the original scenario, with a smaller development plan, the minimum scenario.

“The original development plan called for 1.5 million square feet of development with residential being slightly more than half, retail, office and also hotel included,” said Pennoyer. “The minimum scenario is slightly less than half the square footage containing residential, retail and office but no hotel.”

The development would also generate revenue for the county and the local school district. The town estimates the smaller development scenario would add 50 students to area schools and the bigger development would add 130 students.

Ben Perry, finance director of East West Partners, said this minimum development scenario may not be financially feasible for his company.

“I think what we’re really looking at is something closer to the original analyses you received on the traffic and on the fiscal, starting at that 1.5, 1.6 million and working down from there,” said Perry.

The public is invited to comment on the Obey Creek negotiation process at the town council’s 7pm meeting on January 12 in the town hall council chamber. The council will hold special meetings with Victor Dover from the planning firm Dover, Kohl and Partners, on January 22 at 7pm and January 23 at 4 pm. Both meetings will be in the council chamber.