Development in the Chapel Hill Community
A perspective from Clay Grubb
Since 1978, Grubb Properties has been an active part of the Chapel Hill community. Today, we are investing in Chapel Hill because we see the Town leadership trying to improve the quality of life for everyone. They value the importance of improving the tax base so there is more money to invest in affordable housing, green space, biking infrastructure and other Town priorities.
The current administration realizes that good development doesn’t just happen. Development is driven by capital, and capital, like a river, always takes the path of least resistance. That’s why it is critical for developers, town leaders, and neighbors to be able to work together to bring beneficial things to the community. Unfortunately, the Town’s past approach has resulted in a decline for Franklin Street. Although it was probably the single best address in the entire Southeast decades ago, it would not likely be in the top 100 streets for retailers today. It is sad to hear about restaurants closing and pizza now being the main viable option (not that I don’t love good pizza).
Thankfully, today there seems to be a strong desire by leadership to turn the tide and make downtown an attractive alternative. The federal government jump-started the investment opportunity in downtown Chapel Hill through the creation of Opportunity Zone tax incentives. But time is of the essence if we are to take full advantage of these benefits. Using the Opportunity Zone program, Grubb Properties is prepared to invest $30 million renovating the eyesore that is currently the CVS/Bank of America Plaza on E Franklin.
From there, we proposed to the Town the opportunity to invest in building a 1,100-space parking deck, followed by attempting to bring another $100 million of these incentivized tax dollars to build a new 200,000-square-foot office building that we hope will house research and lab space to fight future viruses. However, these tax subsidies are diminishing daily.
If Chapel Hill passes on this opportunity, I don’t anticipate there being another chance to significantly renovate or build new office in downtown without the Town providing significant subsidies – something Grubb Properties has not asked for in this project. While we would be happy to build and own the parking deck, the Town’s investment in the new deck is consistent with the policy goal for the Town to own and control more parking. This address the Town’s concern that they can ensure parking is fairly priced to support the retailers and small businesses throughout downtown, rather than risking that private ownership could result in parking managed to maximize profit. I do not know whether they are right or wrong about that concern, but I do know that the parking deck should be a cash-positive endeavor for the Town’s parking enterprise fund. The current plummet in interest rates will save the Town millions if it can act soon. A 1% decline in interest rates on $25 million results in a savings of $250,000 per year.
Right now, the parking in downtown is predominantly scattered surface parking, with disparate ownership, that creates environmental damage and enhances the potential for crime. While the current proposal to build a new 1,100-space deck would increase the parking count in the immediate vicinity, it would likely result in less total parking eventually by giving nearby properties the opportunity to eliminate their surface parking, including Lot 2 currently owned by the Town. The incremental net increase of just over 350 spaces in this new deck supports current parking demand as well as smart, denser redevelopment of this area of downtown, with less need for additional parking over time – all in keeping with the Town’s public policy and land use goals.
To say that we do not want to densify and invest in the core of the Town is the same as saying that we want to push development to Chatham and Durham Counties. It is saying that we would rather have asphalt parking lots that store heat and spew water runoff than active uses for people to enjoy, work and live in. Densifying downtown is the most environmentally friendly approach, as Franklin Street is the most accessible street in the Town for pedestrians, cyclists, and bus riders.
My vision for Chapel Hill is a place where bikes outnumber cars and pedestrians outnumber bikes. Chapel Hill could become one of the great places to live, where people don’t live behind gated communities, but where affordable housing is interspersed with other housing options. Economic mobility is more prevalent when residents can walk and bike to work – and avoid paying the $9,000 that the average American spends annually on their car, according to AAA. This is the goal we are pursuing at Glen Lennox, where we partnered with Copenhagenize to design world-class infrastructure with a goal that 50% of all commutes in and out of Glen Lennox will be by some form other than car by 2030.
I personally would like to see the Town support a vision that inspires a diversity of retail, housing and offices, and promotes walking and biking over cars. Now is our opportunity to begin pursuing this vision.
(Editor’s note: Grubb Properties is an advertiser with 97.9 The Hill & Chapelboro.com. The opinion expressed in this “Viewpoints,” however, has been given no priority or preference of any kind. “Viewpoints” is open to any and all community contributors, and submissions are published in the order they are received and approved by our staff.)
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Most towns with low level attraction/ run down main street like Franklin offer free parking.
But the town of Chapel Hill is in hock and can do nothing but take from here on in.
The best days of Chapel Hill are clearly behind it.
Urban decay will lead to UNC looking to Durham.
The ever declining and corrupt school system are contributing too.
The type of people moving into town are transitional with no intention of making Chapel Hill a permanent home.
It’s over. The party ended. Move on.