Grubb Properties is proposing bringing nearly 500,000 square feet of office space to Chapel Hill as it is redeveloping Glen Lennox. But in order to get that construction closer to reality, Chapel Hill is preparing to offer more than $2 million in incentives.

Chapel Hill Economic Development officer Dwight Bassett said projects like this are needed in the town because of years where no office space was produced.

“From 2010 until 2017 – eight continuing years – we produced zero office space coming out of the ground,” Bassett said.

President of the local chamber of commerce Aaron Nelson told the Chapel Hill Town Council last Wednesday that this office space would allow the town to be competitive to a wider variety of business prospects.

“I know of very specific examples of companies that were it built, they would have stayed,” he said. “They were interested, they just couldn’t wait the 18 months that it sometimes takes to get approved and to build.”

Chapel Hill elected officials approved guidelines in 2017 that included allowing incentives to be awarded when creating spaces to host businesses. But councilmember Hongbin Gu expressed concerns about the precedent of incentivizing development, especially as the town is encouraging office space in other areas.

“We’re incentivizing this office development at Glen Lennox, then how is that going to impact our Blue Hill District,” Gu asked.

The town would like to see more commercial development in the Blue Hill District, Mayor Pam Hemminger said, but the proposals in the form-based code district so far have been residential.

“We want to balance our tax base, have more commercial, have more jobs here, be that place where we can live, work and play,” she said. “We have had only two buildings come out of the ground in the last 10 years; two, that’s it.”

She added, “we have nothing else on the horizon at all, besides Glen Lennox at this point in time.”

Hemminger said that she felt committing to five years for the incentive timetable for a building that could benefit the community for years to come was not a risk. And the mayor said the office space might not be built at all without the incentives.

“In my mind, this is the path that helps us get what we need, that’s an incentive package in order to get it going now instead of waiting for 25 years.”

The town and Orange County approved an incentive package when recruiting Wegmans to Chapel Hill. The grocery store is currently under construction on Fordham Boulevard. An incentive package was also approved for Carraway Village, which is under construction near I-40 and Martin Luther King Junior Boulevard.

In this proposal, Glen Lennox would be eligible for up to $2.2 million in economic development grants from the town over the course of five years from 2021 through 2026. Grubb Properties would be eligible for a grant from the town up to the amount of taxes that had been paid by the developer.

Wednesday’s vote was approved 6-1 – with Gu dissenting – and authorized town staff to negotiate the final details of the incentive agreement with Grubb Properties. The final document will be brought back to the Town Council for approval.

Related Stories
‹
Downtown Starbucks To Relocate on East Franklin Street in Chapel Hill
According to Starbucks' store manager Daniel Reutzel, the new location is expected to open between mid-July and August 1st, before the new school year starts at UNC. Reutzel said Starbucks has been "looking into" the new location for at least two years, and he is excited to expand.
Small Businesses, Big Changes: Owners Share Local Challenges and Access to Resources
With more demand for property and land in Chapel Hill and Carrboro, small businesses are being priced out. This year, during 97-9 the Hill’s annual Forum on The Hill series, FRANK Gallery, The Gathering Place and The Purple Bowl came in to talk about the stages of change they have experienced as a result.
Chapel Hill Police Charge 4 for Breaking Into Vehicles
Four people are facing charges in Chapel Hill after being spotted attempting to break into parked vehicles this week. The Chapel Hill Police Department shared a release Thursday saying officers arrested three Durham men and a Greensboro resident shortly before 1 a.m. on Wednesday. 19-year-old Daquan Lamarcus Hart, 20-year-old Jordan Keyshawn Bey, and 19-year-old Jayvian […]
Seafood Destiny Express To Open in Downtown Chapel Hill Tuesday
A new Chapel Hill restaurant on the corner of Franklin and Columbia Streets will open its doors to the public on Tuesday. Seafood Destiny, a Greensboro-based eatery that cooks “soulful seafood,” announced its plan to move into the vacant storefront on 100 West Franklin Street under the name Seafood Destiny Express in July. Owned by […]
Chapel Hill: Back to School and The Gwendolyn
Chapel Hill Mayor Pam Hemminger speaks with 97.9 The Hill's Brighton McConnell on Thursday, August 19. She shares thoughts on UNC's opening so far, as well as the university's public health protocols for the year, as well as a suggestion for parents before K-12 classes begin. Plus: a new office building with a special namesake officially opens in Chapel Hill.
Chapel Hill Police Investigating Shooting in Glen Lennox Neighborhood; 1 Injured
A shooting in a Chapel Hill neighborhood in the early hours of Friday morning left one person injured, according to police. The Chapel Hill Police Department shared a release saying officers responded to Glen Lennox Apartments on Maxwell Road shortly after 1:30 a.m. on Friday. Upon arrival, they found one person with non-life-threatening injuries from […]
Lane Closures, Reduction Expected Along Fordham Boulevard in Chapel Hill
Motorists using U.S. 15-501 and Fordham Boulevard in Chapel Hill will begin to see some lane closures for the next few mornings.
Breadman's Announces Grand Opening at New Location in Chapel Hill
The popular Chapel Hill restaurant Breadman’s has announced the date for its grand opening at its new location in town. Earlier this year, Breadman’s informed customers that it would be moving from West Rosemary Street to a new home at 261 South Elliot Road. The grand opening of a new restaurant under new ownership will take […]
Coronavirus Pandemic Claims Another Chapel Hill Restaurant
The ongoing coronavirus pandemic has forced another restaurant in Chapel Hill to close its doors. Tobacco Road Sports Cafe announced on Facebook that it will close its Chapel Hill location and will focus on its restaurants in Raleigh and Durham. The restaurant cited the initial closing time in March as a contributing factor. “We had […]
Construction on Fordham Boulevard for Glen Lennox Access to Begin Soon
Contractors working on the redevelopment of Glen Lennox apartments will soon be working along Fordham Boulevard to improve access into the complex. According to a release published by the Town of Chapel Hill on Tuesday, motorists will see an increase in work along Highway 15-501 near Glen Lennox beginning early in February, as contractors remove […]
›