Chamber: Orange County Tax Base Falling Into “Retail Gap”
Aaron Nelson and Chamber board chair Paige Zinn at the State of the Community meeting. Photo by Donn Young, courtesy Orange County Visitors Bureau.
CHAPEL HILL – Orange County is the wealthiest county in the state of North Carolina—but the steady flow of money outside county lines continues to be a cause for concern.
“Per capita income is the highest (and) unemployment is the lowest in the state, but we still have this huge retail gap,” said Aaron Nelson, president of the Chapel Hill-Carrboro Chamber of Commerce, presenting data Tuesday at his annual State of the Community report.
The “retail gap” refers to the difference between the amount of money spent by Orange County residents each year and the amount of money that’s actually spent in Orange County.
According to the state Department of Commerce, Orange County residents spent about $1.68 billion dollars last year alone—but retail sales in Orange County were less than $1 billion.
“The gap in Orange County is $728 million” in 2012, says Nelson. “Making gains on this will have (a) huge impact.”
That $728 million gap is nearly twice that of Durham County ($376 million) and more than three times the retail gap of Chatham County ($236 million). And Alamance County—thanks in part to Tanger Outlets—actually has a $154 million retail surplus. Nelson says that gap helps explain why Orange County—number one in the state in per capita income—ranks only 65th in terms of sales tax revenue.
And he says eliminating that gap—or at least reducing it—will go a long way toward easing the tax burden on local property owners. About 87 percent of Orange County’s taxable land is residential property (compared to just 60 percent in Durham), which means the county’s property tax burden will always fall most heavily on homeowners. Nelson says that number’s not going to change—so the key is to generate more sales tax revenue from the commercial property we have, so as to be less reliant on property taxes as a whole.
“We should stop focusing on (and) beating ourselves about that split between residential and commercial,” he says. “We need to use that to remind ourselves (that) we’ve got to grow revenue from commercial sources.”
And Nelson also says Orange County can ease its burden by taking steps to reduce “wealth migration,” the amount of income that leaves the county whenever people move. Not surprisingly, Orange County draws in wealth from all over the country—but when it comes to our neighboring counties, there’s a lot more money leaving Orange County than coming in.
“The biggest outflow is $179 million worth of wealth…moving to Chatham County,” says Nelson. “The second highest amount was to Alamance County, $86 million, (and) Durham County, $83 million…Wealth migration has had a negative impact on Orange County, but a positive impact on our neighbors.”
Those numbers cover the period from 1992-2010; in that span, Orange County suffered a net wealth-migration loss of nearly $50 million in gross income. (All of that loss came in the last nine years; until 2001 Orange County was gaining more than it was losing.)
Nelson delivered his State of the Community report on Tuesday at the Friday Center. You can see the full presentation at this link.
Orange County Wealthy On Average, But Poverty Still Lingers
Aaron Nelson and Chamber board chair Paige Zinn. Photo by Donn Young, courtesy of the Orange County Visitors Bureau.
CHAPEL HILL – Year after year, Orange County consistently ranks as the wealthiest in the state of North Carolina—but poverty, even here, continues to be a nagging and serious issue.
“There’s a big disparity between wealth, (and) there continues to be growth in childhood poverty,” said Chapel Hill-Carrboro Chamber of Commerce president Aaron Nelson at his annual State of the Community presentation this week. “That is (a statistic) that we need to pay close attention to.”
Orange County ranks first in the state with a per capita income of $48,683 in 2011, well above the state average of $36,000. But in spite of that, our poverty rate is also well above the state average: in 2011, 16.9 percent of Orange County residents were living below the poverty line, compared to 16.1 percent of all North Carolinians (and 14.3 percent of all Americans). The percentage is even higher in Chapel Hill alone, where 22.1 percent of residents lived below the poverty line in 2011.
“Some folks have often discounted that–(because they think) that’s just the student population…but our poverty level is high,” Nelson says. “We ought not to discount it simply because it includes students.”
For the first time, researchers this year were able to distinguish between students and non-students when analyzing wealth and poverty in the area. Students do account for much of the poverty rate in Chapel Hill—but that poverty rate is still elevated even when they’re taken out of the equation. About ten percent of Chapel Hill’s non-student population lives below the poverty line—a poverty rate that’s less than the state average, but still more than twice as high as nearby communities like Apex and Cary.
And the poverty rate increases when the focus is narrowed to children. “That is on the rise,” says Nelson, “and in a pretty serious way.”
The key increase is in the percentage of “economically disadvantaged” children, which is to say children who qualify for free and reduced lunch. 26.5 percent of Chapel Hill-Carrboro City School students and 41.6 percent of Orange County School students qualified for free and reduced lunch in 2011-12—the highest percentage in both districts since at least 2006, when the Chamber began collecting data.
And the high level of need in Orange County is at odds with the common perception of Chapel Hill as a wealthy community—a disconnect that actually makes it harder for governmental and non-governmental organizations to address the real need that exists.
“(It’s called) ‘Chapel Hill Syndrome,'” Nelson says. “Donors get this: it’s a belief that we don’t need anything, Orange County doesn’t need anything–we have the highest per capita income, the University’s there, the hospital’s there, your economy’s bulletproof–but the reality is that some of us feel that way and forget to reinvest and take a look under the rocks on what’s going on in our community with respect to poverty, particularly children in poverty.”
Nelson delivered his State of the Community report on Tuesday at the Friday Center. You can see the full presentation at this link.
In Orange County, Housing Crunch Is Here To Stay
Aaron Nelson and Chamber board chair Paige Zinn compare notes before the State of the Community presentation. (Photo by Donn Young, courtesy of the Orange County Visitors Bureau.)
As the country, the state and the region pull slowly out of recession, the state of our community is strong — but still could stand to get stronger, particularly when it comes to housing.
That was the takeaway from the Chapel Hill-Carrboro Chamber of Commerce’s sixth annual State of the Community report, delivered at the Friday Center on Tuesday by Chamber president Aaron Nelson.
View the full presentation here.
“(We have a) strong, educated workforce (that’s) increasingly diverse,” he says. “Our economy and community are resilent — we were late into this recession and we were first out — and many of those indicators look good.”
Generally speaking, Orange County ranks among the best in the state in most indicators of social wellbeing, from educational achievement to the crime rate to public health. Fittingly, though — for a region so often concerned about its perceived status as a ‘bedroom community’ — many of the more worrying statistics relate to movement.
“We are growing, and we will still grow…(and) we’ve got to figure out where these folks are going to live,” Nelson says. Orange County’s population in 2012 was just shy of 138,000, up 22,000 from the turn of the century — and by 2025 Orange County is projected to add another 30,000 residents, for a total of more than 166,000.
“That’s a lot of folks,” Nelson says. “Let me give you some perspective: 140 West Franklin downtown, the big tall thing, that holds 300 people. I just said 30,000.”
And the local housing market is struggling to keep up — a fact that’s contributing to the already-high cost of renting and buying homes.
More than half of all housing units in Chapel Hill are occupied by renters — in Carrboro it’s more than 60 percent — and affordable housing remains persistently scarce. More than half of all renters in Orange County now pay more than 35 percent of their income in rent, well above the “affordability” threshold.
“The rental market is growing, but the lack of supply is driving (the) rate,” Nelson says. “This huge increase in those rates — folks are moving into our community and (adding) pressure.”
And the cost of homeownership remains elevated as well. Nelson says the average closing price for an Orange County home has dropped slightly from its peak in 2010 — it’s now about $319,000, down from $330,000 — but that’s still far pricier than an average home in our neighboring counties, and it’s not just because the houses are bigger.
“The price per square foot in our market is dramatically higher,” Nelson says. “(It’s) $134 a square foot (in Orange County)…in Chapel Hill city limits it’s $180 a square foot. That’s — my editorial comment — a supply challenge, because folks are able to build it in Durham for $93 a square foot.”
Compounding the housing crunch, of course, is the demand coming from UNC: of the 29,000-plus students at UNC-Chapel Hill, 63 percent live off campus—more than 18,000 in total, all seeking housing in and around Orange County. That’s already caused some controversy in the Northside and Pine Knolls neighborhoods, both very near campus—where Town officials have had to step in to address parking concerns, and longtime residents have been driven out by the rising cost of housing (and the resulting property tax hike) that came with the increased demand.
But Nelson says it could be worse: in fact, 55 percent of UNC’s undergrads live on campus, a far higher percentage than many of UNC’s peer institutions. (At Indiana University, for instance—in the Chapel Hill-esque town of Bloomington—only 40 percent of undergrads live on campus.)
And there are also several housing projects currently in the works near downtown that are specifically geared for students—a development that Nelson says will also go a long way toward alleviating the problem of affordable workforce housing as well.
“(In) my view, the greatest growth of workforce housing, workforce rental, has been new student rental,” Nelson says. “If you go back in time (and) take a look at all the apartments that were student apartments in the late 1990s, early 2000s — when new student housing got built, students moved to that, and what was backfilled into the old student housing was workforce housing.”
Still, with 30,000 more residents projected to move into Orange County in the next twelve years, the housing crunch is not likely to go away anytime soon—and Nelson says that’ll be the case across the entire Triangle, where half a million more residents are expected to flock in by 2025.
We’ll have more from the Chamber’s State of the Community report throughout the week, but you can see the entire presentation for yourself at this link.
Local Businesses Rebuild After Flooding
CHAPEL HILL – More than a month after flooding hit our local area, some businesses are still working to make repairs and get back their original state.
Kristen Smith, vice president for advocacy and engagement at the Chapel Hill-Carrboro Chamber of Commerce, says that in the wake of the flood, local businesses worked to support one another.
“Businesses really stepped up, as far as helping their fellow business folks,” Smith says. “People like Peter DeLeon at the University Mall opened up space so that there could be an assistance center for businesses or individuals. Different businesses made cash contributions and in-kind contributions to be a part of the relief effort.”
Smith says that even businesses who may not have had a lot of resources managed to contribute something.
“Businesses stepped up with contributions of space, boxes, storage pods,” Smith says.
Since the June flood, Smith says the Chamber of Commerce has been going to different businesses in the area to try and provide the services needed.
“We’ve been trying to monitor the needs of businesses, particularly since Governor McCrory declared a state of emergency in our county and that makes businesses eligible for loan funding and other grants,” Smith says.
Smith is referring to the low-interest rate loans provided by the Small Business Administration during the state of emergency.
“Some businesses are just discovering damage, and so we want to make sure that even though the assistance center at University Mall is closed, people can still apply for assistance,” Smith says.
The SBA can be reached at 1.800.659.2955.
Chapel Hill-Carrboro Chamber Says Thank You
The Chapel Hill-Carrboro Chamber’s board members and investors met with (and thanked!) local elected officials and municipal/county senior staff at the Franklin Hotel!
Kristin Smith, Fred Black
Rachel Hawkins, Ray Lafrenaye, Annette Stone, David Andrews
Rennee Price, Mike Gering
James Barrett, John Morris
Hugh Morrison, Joel Levy
Tommy Schenck, Tucker Bullock
Michael Parker, Brian Litchfield
Lydia Lavelle, Cammie Bellamy
Bruce Ballentine, Trish McGuire
Anita Jones-McNair, George Seiz
Megan Wooley, Mark McCurry, Ralph Karpinos
Walter Wells, Carver Weaver, Tucker Bullock
Janice Tyler, Rachel Hawkins
Gary Hill, Wes Pope
Indira Everett, Jessica Aylor
Desiree Goldman, Erica Perel
Will McInerney, Linda Convissor
Barry Jacobs, Sally Greene
Mayor Mark Kleinschmidt, Ed Harrison
Todd LoFrese, Butch Kisiah
Jamezetta Bedford, Chief Chris Blue
Brett Bushnell, Jennifer Stenner, Cub Berrian
Lori Eichel, Tom Stevens
Robert Dowling, John Morris
Jay Patel, John Anderson
The Chamber meeting was held in The Franklin Hotel, Wednesday, June 26.
Robert Dowling waves someone over to join him, as Wes Pope surveys the heavy hors d’oeuvre.
Tucker Bullock is one of the first speakers for the meeting.
Trinitas Groundbreaking Ceremony
Trinitas, a national developer of student housing, broke ground on Wednesday for a new site being developed over the next few months for students who are looking to live within biking distance of classes and community. Dubbed a “bicycle community,” Trinitas celebrates both the housing’s location and tailored Carolina style.
The tent and refreshments were organized by Kelly Burroughs and Ashely Ewing.
Groundbreaking ceremonies always include golden shovels and hard hats and this one was no different!
Ashley Ewing and Kelly Burroughs smile for Chapelboro.com. Ewing and Burroughs orchestrated the event for Trinitas.
Travis Vencel opened up the ceremony.
Loren King, COO of Trinitas Ventures, speaks on the importance of bicycle communities.
Travis Vencel introduced the next speaker.
Meg McGurk at the podium!
Michael King, CEO of Trinitas Ventures, is proud to have his son, Loren King and COO, following in his foot steps.
Kelly Burroughs and Ashley Ewing prepared a delicious spread for the spring day.
Beth Pinder samples some of the treats!
Joe Blake shows Brett Harbour, the team’s public artist whose specialty is sculpture, renderings of the future property.
Jullian Rawl, Bruce Ballentine and Tim Smith crack jokes and enjoy each other’s company after the groundbreaking.
Scott and Austin Montgomery were thrilled to be at the ceremony as Scott just joined the Trinitas team.
Aaron Nelson, Chris King and Michael King break ground with golden shovels and hard hats.
Aaron Nelson, President of Chapel Hill’s Chamber of Commerce, and Michael King, CEO of Trinitas Ventures, celebrate the ground breaking and the new bonds of friendship formed.
Aaron Nelson and Kristen Smith
Chris King, Brandon Bogen, Bruce Ballentine and Desiree Goldman before the ceremony begins.
Aaron Nelson, Chris King, Michael King, Loren King, Meg McGurk and Travis Vencel break ground for the new site of Trinitas Bicycle Community in Chapel Hill.
Economist: Rosy Picture For NC, US In Next Five Years
CHAPEL HILL – The unemployment rate is still high and the recovery is still slow, but one prominent Triangle economist says the outlook for the next five years is very, very good.
“Despite everything that’s going on Washington (and) everything that’s yet to go on…the underlying fundamentals of the economy are dramatically improved,” says Michael Walden, professor of economics at NC State. Walden delivered the keynote address Wednesday at the Chapel Hill-Carrboro Chamber of Commerce’s annual Economic Outlook Briefing.
The U.S. economy lost nine million jobs and six percent of its GDP during the “great recession” of 2008-09, but Walden says things have turned around on both fronts. The national gross domestic product is now above pre-recession levels—and the country has regained about six million new jobs, a trend Walden says is likely to continue.
“We had a very good jobs report last week, and I think that’s going to be more the standard rather than the exception,” he says.
In fact, Walden says he expects the country to add about 250,000 new jobs each month for the rest of the year—three million new jobs in the next 12 months, enough to bring the number of jobs in the U.S. back to where it was in January of 2008.
The recession hit especially hard here in North Carolina, where the unemployment rate spiked into double digits for nearly three years. Walden says given the history of past economic slumps, that was actually to be expected.
“We have a bumpier economic ride,” he says. “We tend to have deeper recessions (because) we’re still more of a manufacturing state…and manufacturers always take it on the chin during recessions, because people can postpone buying manufacturing products…
“But the upside of our bumpy ride is (that) we tend to have better recoveries.”
North Carolina hasn’t seen that better recovery yet, Walden says—we’ve added jobs at about the same rate as the nation as a whole—but Walden says that’s going to change, beginning this year.
“We’re going to see a big boost to North Carolina’s economy, starting this year,” he says. “In the next five years, (we’ll see) at least 400,000 net new jobs coming to North Carolina…(with the) unemployment rate at the end of five years down near six percent.”
Walden says he projects North Carolina to add 90,000 new jobs in 2013 alone, up from 65,000 last year. That would drop the state’s unemployment rate to 8.2 percent by year’s end.
Walden’s predictions are optimistic, but even he says the employment picture isn’t entirely rosy: the state and the country are gaining jobs, but many of those are low-paying jobs in the service sector—a sign of what Walden calls a “dumbbell economy.”
“(That means) fast job growth on the high end, in terms of high skills (and) high pay, but also fast growth on the low end–low skills (and) low pay,” he says. “A lot of those middle income jobs have been replaced by technology.”
Still, Walden says the overall economic outlook is strong, locally as well as nationally—and he says the Triangle is poised to be one of the fastest-growing regions in the state in the next five years.
If that prediction holds, it can’t come too soon for local businesses. Chamber president Aaron Nelson says in the last year, with the economy still sluggish and money still tight, more local business owners have reported feeling the pressure of the recession—in spite of the recovery on paper.
News Around Town: Awards
The teachers who ultimately receive these awards have a difficult test to pass. Each require an A-plus in being able to “ignite enthusiasm for learning…create an exceptional learning environment for all students… (and serve as) a role model” for students and other members of the community—no small accomplishment. This year, the Public School Foundation is awarding two Teaching Chairs: the Upper Elementary Chair for Excellence in Teaching Innovation at the grade-5 level, and the Zora Rashkis Chair for Excellence in Teaching Middle School Language Arts. Honorees receive $1,000 per year for two to three years.
If you’d like to nominate a teacher, visit PublicSchoolFoundation.org. Nominations are due by January 31.
The Chapel Hill-Carrboro Chamber of Commerce is seeking nominations by Friday afternoon for its annual Business of the Year awards.
Each year the Chamber recognizes area businesses that demonstrate “growth, innovation, customer service, response to adversity, and contribution to the community.” There are four categories: small business, mid-size business, large business, and non-profit. Winners will be announced at the Chamber’s annual meeting later this month.
If you’d like to nominate a business or non-profit, visit CarolinaChamber.org. Nominations are due by Friday at 5:00 p.m.
True Community in a Transient Town
Though I’ve been in the Chapel Hill area for over 25 years, I only began getting involved in the community a few years ago when I attended “Leadership Chapel Hill” through the Chamber of Commerce. I thoroughly enjoyed that class, learned a ton, and met lots of wonderful people. From there I plugged into the “Chapel Hill Leads Group,” have been to some Chamber events, and attend “Friends of Downtown Chapel Hill” when I am able.
I would imagine that my experience with really getting to know Chapel Hill is shared by many others. We come for what we think will be a season (graduate school, a fellowship, an internship, a first job), but soon our time is over and many of us leave. We have little time to see the Town’s inner workings, and little opportunity to connect with people who actually live and work here. Some of us stay, but our busy jobs and families tend to keep us on the fringe. For some, the lack of connection leaves us isolated, lonely, and bitter.
Local churches provide an enormous service to the town of Chapel Hill in creating and building meaningful community. One aspect of the vision of our church (like many others in the area) is to help make the connection between the longer term Chapel Hill residents and those who are here only for a season. Each year new people come through our doors and soon find themselves getting to know older members, singles, married people and their kids. And each year dear friends walk their commencement aisles, pack up their vans and say goodbye. We have mentored young doctors, counseled young married couples, connected singles, and brought meals to beleaguered moms and dads.
But true gospel community goes deeper than just mentorship and meals. Its basis is a common relationship with a living Person—Jesus Christ. United to Christ, Christians share a most important commonality: We are brothers and sisters, bound in covenant to one another across racial, socio-economic and gender lines. The Apostle Paul’s letter to the Ephesian church captures this vision of Christian community in chapter 4, verses 15-16: “…speaking the truth in love, we will in all things grow up into him who is the Head, that is, Christ. From him the whole body, joined and held together by every supporting ligament [i.e., each person], grows and builds itself up in love, as each part does its work.”
“That’s all well and good, but the baby’s crying, I don’t know anyone in my apartment complex, and I’m nursing a grudge against that jerk in my lab. My dissertation is languishing. This neighborhood is changing. I feel disconnected and forgotten.”
Christians believe that only God’s grace in Christ can provide lasting answers to these very real trials. True Christian community recognizes the difficulties but is empowered to then roll up the sleeves and go to work (Titus 2:11-12). Initiative replaces lethargy. Honest and loving speech elbows out the gossip and put-downs (Ephesians 4:29). Forgiveness is asked for and offered (Colossians 3:13). And over time a new hope is born—hope that the sin that splinters communities and wrecks relationships really does have an antidote in Christ, and that the community we now know in part, through the church, will one day be fully realized.
There is much room for growth! There are so many people who come to Chapel Hill and never get connected meaningfully to true community. It is our hope and prayer that the churches of Chapel Hill can be safe harbors of community that connect the riches of Christ to the realities of life.
Question for further reflection: How can churches help reach out to those who are only in Chapel for a season? How can we not only help them get the most out of our community, but also give back to the community?
Byron is a pastor of Christ Community Church in Chapel Hill (www.cccpca.org). Christ Community is a congregation rooted in biblical, historic Christianity and affiliated with the Presbyterian Church in America. They meet each Sunday at Extraordinary Ventures on S. Elliot Road. Byron is married to Ruby Bea and they have 4 children. He enjoys rock climbing, yard work and biking.
Dock to Door: Fresh seafood from Carolina fishermen delivered weekly
Memo: Summer is almost over.
I’m bummed about this reality check. While most of you chapelboro.com readers escaped to Pawleys Island or Topsail at some point this season, this little piggy stayed home. I might not have road tripped it to the beach nearly as much as I wanted, but I was sorta productive, and I have the pasty white skin to prove it.
A few big projects kept me indoors this summer. Amongst other things, I launched a biz that should be on the radar of every food-lovin’ person in the Piedmont, Dock to Door. Dock to Door is a fresh seafood delivery/distribution service based here in Chapel Hill. I saw the need to connect friends and neighbors with restaurant quality fresh seafood from the boats of Carolina fishermen, and I jumped. The idea is simple: make super-fresh seafood available to folks in the Triangle on a weekly basis.
HOW IT WORKS
- Visit docktodoorseafood.com and order online by 10pm Wednesday evening.
- Pay for your order online. You’ll receive e-confirmation of your order.
- Pick up your order at 3Cups in Chapel Hill on Friday evening between 5pm – 7pm.
ZZIIIING! Fresh seafood from North Carolina fishermen will be on the table in no time!
Preparing your seafood couldn’t be easier! In addition to including recipes with each item online, I bring several each week as takeaways for customers needing additional inspiration.
Last week shrimp stole the show, people couldn’t buy enough of those gorgeous 16/20s for just $13. Plenty of you chapelboro.com readers picked up a pound or two so I’m curious…without channeling Bubba, what are some of your favorite ways to prepare shrimp?