The Chapel Hill Town Council is slated to hear a major redevelopment proposal for a large portion of East Rosemary Street at its meeting on Wednesday night.

A draft presentation from Grubb Properties on the council’s agenda proposes changing more than 3.2 acres along the street into office and wet lab space with additional parking. The project, which is outlined to be within Chapel Hill’s Opportunity Zone, is estimated to cost the town more than $28 million and drastically change the landscape of East Rosemary Street.

In order for Grubb Properties to construct the proposed 200,000 square-foot office building, they are asking for an exchange of land with the town, using the space currently occupied by the Wallace parking deck for the building. The developer would then demolish the current parking deck at 125 East Rosemary Street, which it owns, to construct a bigger parking deck that would potentially add 159 spaces. Since Grubb Properties owns the 137 East Franklin Street property and the 136 East Rosemary Street property, the exchange would give the group ownership over most of the buildings along that stretch of Rosemary Street.

With that control, the developer is proposing adding two public green spaces to connect with the alleys leading foot traffic from Rosemary Street to Franklin Street. Draft plans from the presentation show a park being added between 136 East Rosemary Street and the surface parking lot at 100 East Rosemary Street, leading pedestrians to Varsity Alley. An additional green space would be added on the opposite side of the proposed office building at the corner of Rosemary Street and Henderson Street and would connect with Post Office Alley.

Concept plans for development on East Rosemary Street in Chapel Hill. (Design via Perkins and Will.)

According to the presentation, Grubb Properties will make these moves with the expectation of UNC eventually moving its admissions office to Franklin Street. In its proposal for the new parking deck, the outline describes reserving rights to 100 of the spaces specifically for university employees working in a new admissions building downtown. The designs also include further development at the 136 East Rosemary property, saying UNC is exploring it being an “innovation hub and other uses.”

In addition, concept art shows the parking deck having a ‘retail porch’ for pop-up shops, food trucks and outdoor seating.

According to the draft presentation, the majority of the $28 million the Town of Chapel Hill would pay for the project is from construction of the new parking deck, which would include updated amenities like electric vehicle charging stations, bike parking, emergency stations and more.

The presentation group will recommend authorization from the town council on Wednesday for an agreement to be drafted by Chapel Hill’s town manager. That memorandum of understanding would then go up for approval on March 4. In the initial proposal’s timeline, construction on the new parking deck would begin as early as September 2020 with the deck being completed the following year. The authorization of the new office building space would not be until June 2021, according to the presentation packet.

Designs via Perkins and Will.