The Chapel Hill Town Council voted 8-1 on Monday to enter into negotiations for a development agreement for the Obey Creek project near Southern Village. At the same time, the council agreed to consider developing the town-owned park and ride lot across the street.

Though developer Roger Perry has been eager to move forward with the Obey Creek project, this gave his pause.

“I’m a little troubled that we’re going to do this,” said Perry. “And yet at the same time you’re going to begin looking at a process of developing your own property.”

Perry is president of East West Partners Management Company. This company will soon negotiate with Chapel Hill on the terms of building a multi-use development that will include 400,000 square feet of retail, a quarter million square feet of office space and up to 700 residential units on 35 acres.

Ben Perry, Finance Director of East West Partners, said company officials are “troubled” because the town is asking East West Partners to pay for road improvements costing “millions of dollars” which will increase the value of the town-owned park-and-ride lot across the street.

Roger Perry told Mayor Mark Kleinschmidt this situation introduces a conflict of interest into the negotiation.

“Well thank you, and I was wondering when you were going to notice that,” said Kleinschmidt. Perry  replied, “I’ve noticed it for some time. I didn’t realize you were going to go quite this far.”

In response to the concern, Kleinschmidt said cameras will record and broadcast each meeting, and East West Partners can continue to remind council members of this potential conflict. He also said this is one example of the council navigating multiple issues at the same time.

During the public comment period, resident Amy Ryan listed priorities for the proposed development. She said the development should be well-connected to other parts of Chapel Hill, and it should not negatively impact traffic on side roads near Obey Creek.

She also discussed affordable housing.

“Obey Creek will be worth it if it achieves some important town goals,” said Ryan. “For example this is a great spot for moderate priced housing. The area has plenty of high-priced single-family homes already. Let’s ask for units that cater to UNC employees who can then bike or take the bus to work.”

Affordable housing will be one of the discussion topics at the council’s next “special meeting” focused on Obey Creek  on November 13 at Chapel Hill Town Hall.

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