Last week, the Chapel Hill Town Council passed a resolution of $12.5 million for the sale of general obligation (G.O.) bonds to fund public improvement projects – including the purchase of the American Legion property off Legion Road.

Director of Business Management Ken Pennoyer led the discussion at the meeting. Pennoyer explained that the $12.5 million in G.O. bonds comes from the $40.3 million of G.O. bonds that Chapel Hill voters approved in 2015 for streets and sidewalks, trails and greenways, recreation facilities, solid waste facilities and storm water improvements.

“Tonight’s’ resolution is for the issuance of $5.5 million of streets and sidewalk bonds, $4.3 million of recreation facility bonds, and $2.7 of storm water bonds,” said Pennoyer. “The parks facility bonds will be used, the $4.3 million, to complete the purchase of the American Legion property.”

Chapel Hill Mayor Pam Hemminger said the town had decided to use the G.O. bonds in order to receive a better interest rate from the American Legion property purchase.

“There’s been a lot of confusion out there that we used…the cultural arts bond money to pay for the Legion – therefore deleting the cultural arts project – and that’s not true,” said Hemminger.

A concerned local artist made a public comment about the need for a cultural arts facility in town and council member Donna Bell said she has received phone calls from residents concerned about the change in funding.

“We don’t seem to have a set plan about how we are going to reimburse those funds or at what level we are going to reimburse those funds,” said Bell. “There is concern over what that means for the future of having a cultural arts building or facility.”

Mayor Hemminger said finding funding for the cultural arts facility remains a town priority.

“The voters voted for $3.4 million for cultural arts and we are going to stand by that commitment,” she said. “I don’t know when it’s going to happen, when or exactly how but we are going to be committed to finding a way to make it work.”

The storm water G.O. bonds will pay for the design and construction of the Elliott Road flood storage facility.

The street and sidewalk G.O. bonds will pay for various high priority projects – including bicycle and pedestrian improvements on Estes Drive Extension, repaving and reconstructing priority roads, and streetscaping on Franklin Street.

The local government commission is scheduled to begin the sale of the bonds on April 3; after April 19, the projects will be brought back to the council and funds will be appropriated to the project accounts.

Related Stories
‹
Chapel Hill Town Council Rekindles Talk of Legion Road Property's Future
Five Chapel Hill Town Council members recently submitted a petition asking to advance work on the future of the 1714 Legion Road property.
On Legion Road, Chapel Hill's Parks Commission Wants A Park
The town will make a decision on the Legion Road property at a later date.
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.
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.
Chapel Hill to Resume Conversations for West Rosemary Street Hotel With Public Hearing
This week, Chapel Hill is resuming talks for a proposed hotel development in its downtown along West Rosemary Street.
Local Government Meetings: March 23-27, 2026
The Chatham County Board of Commissioners and Orange County school board are set to meet after seeing their prior meetings postponed.
›