The Town of Chapel Hill has a space problem.

“Companies are trying to grow and expand,” said mayor Pam Hemminger. “There’s no place for them to go. There’s  not enough office space to go to.”

The Orange County Board of Commissioners and the Chapel Hill Town Council tried to tackle the issue in a joint meeting Thursday evening.

Both sides acknowledged the lack of space, saying that businesses have either turned away or been turned down because of it.

“We have a nine percent vacancy,” said Economic Development officer Dwight Bassett said. “We’ve approved just about 1 million square feet of office space that could be built in the future, but the market is just not driving office space for all of it to come out of the ground right now.”

Bassett said nine percent vacancy of office space means the town needs to add more.

But the town could also be losing out on potential development because of state incentives.

Currently the state offers money to certain businesses that bring job growth to an area. This could be $1,000 per job created or more depending on the project.

Orange County Economic Development director Steve Brantley said that money is only given if the local municipality decides to at least match the state funding.

“It creates a dilemma for the business because if they still pick that community, they would not get the state grant,” he said. “There could be examples of projects wanting to come to Chapel Hill that are incentivized at the state level.”

But commissioner Penny Rich said the county needs to be careful when thinking about development.

“You have people that want to have the amenities nearby,” she said. “If we start thinking about putting spaces out in the county, we need to be careful that we’re also putting amenities out there.”

Both Hemminger and board chairman Earl McKee said they wanted to move past a point of just talking.

“A lot of times we have these meetings and we get information but we really don’t interact,” McKee said. “I was hoping tonight on a couple of these items we might be able to frame at least how we move forward.”

McKee suggested that the county and town managers and staff work together to learn about the barriers to economic development and discover possible solutions.

Related Stories
‹
Local Government Meetings: September 9-13, 2024
This week in local government, Carrboro revisits charging for parking, while Chapel Hill hears a big development proposal on Weaver Dairy Rd.
Still No Solution, But Lots Of Action To Help Displaced Mobile Home Residents
Town and county officials met last week to discuss their ongoing efforts to help residents of two mobile home parks, who face imminent eviction to make room for development.
Affordable Housing On Agenda For Town, County Meeting
Town council members and county commissioners will discuss next steps for helping residents of two mobile home parks who face imminent eviction.
As Chapel Hill Library Weighs Options Amid Possible Funding Cut, Supporters Speak Up to County
After receiving more than $620,000 annually from the Orange County government, the Chapel Hill Public Library may soon lose that funding.
Blue Sky Robotics Expanding Chapel Hill Headquarters, Moving to Rosemary Street
Blue Sky Robotics, which has been headquartered in downtown Chapel Hill since its founding in 2023, will be moving to the Innovate Carolina Junction building at 136 East Rosemary Street. The company is currently located in the Hill Commercial Building on 142 East Franklin Street. In a presentation to the Chapel Hill Town Council Wednesday […]
No Tax Increases and Increased Spending Featured in Chapel Hill Staff's Proposed FY27 Budget
Following a year with improved revenues and a new town manager at the helm, the Town of Chapel Hill may go into the next fiscal year without a tax increase or significant cuts.
Orange County Hires Firm to Review Property Appraisal Practices Amid Tax Revaluation Reform
The Orange County Board of Commissioners approved the hire on Tuesday in the latest step to attempt reforming local appraisals and valuations.
Impassioned Public Comment Leads Chapel Hill Town Council to Drop Discussion of Downsizing
A discussion by the Chapel Hill Town Council about trimming its seats and extending the length of mayoral term was met with swift, vocal opposition during a public hearing last week.
Orange County Clerk of Court Mark Kleinschmidt Wins State, National Honors
Orange County Clerk of Superior Court Mark Kleinschmidt has been recognized with two awards – one statewide and one national – in recognition of his service. Kleinschmidt received the North Carolina Guardianship Association’s Trailblazer Award last week in Asheville, recognizing his two terms as Clerk of Superior Court and Probate Judge. In legal terms, guardianship […]
Climate Action, A New Hotel and Downsizing Council? Highlights from Chapel Hill Town Council's Apr. 15 Meeting
The Chapel Hill Town Council held its first official business meeting of the month on Wednesday, Apr. 15 to cover a full agenda — which included discussing affordable housing funding, ongoing climate action efforts, parking incentives for a hotel project, and more.
›