The document outlines economic development goals for the Town, including focusing on local businesses, expanding workforce skills, growing the non-residential tax base consistent with the Comprehensive Plan, maintaining collaboration with the University, promoting environmental protection and social equity, and welcoming green businesses. It also summarizes the office, retail, housing, and Ephesus Church-Fordham Small Area markets and plans to increase absorption in these areas through targeted marketing, development guidelines, and infrastructure improvements.

1. Economic Development Goal StatementsFocus on locally grown and/or oriented businesses.Develop educational and employment opportunities to expand workforce skills and reduce commuting.Grow the non-residential tax base consistent with the principles of the Town’s Comprehensive Plan.Maintain an open and collaborative relationship with the University.Maintain a community character that promotes economic vitality, environmental protection and social equity.Welcome green and ecologically sound businesses and developments.

2. Economic Development Goal StatementsGrow the non-residential tax base consistent with the principles of the Town’s Comprehensive Plan.

3. Economic DevelopmentCouncil Goals:Increase absorption in the Office Market by 30,000SF.- Web portal (opentobusiness.biz) with market search tool for availablespace.- Targeted marketing to select businesses for office space. Grow the retail market by guiding developments in key areas.- Working to guide projects like Eubanks Road development (Edge) (450,000 +/- SF)- Growth opportunities through redevelopment Ephesus Church – Fordham Small Area Plan (200,000 +/- SF)

4. RetailMarket Analysis Complete June 2009 - 1.6 million SF available (June 2009)- Ability to capture between 500,000 – 700,000 SF in the next few years. > Working on Retail Development Strategy (2011) - This is to combine land-use with market economics to guide future retail and mixed-use developments. - Estimates up to 1,000,000 SF available in the Chapel Hill market.Both available at: www.townofchapelhill.org/economic_development

5. RetailApproximately 2,100,000 SF of retail in our existing market.

6. Retail Chapel Hill/Orange CountyData courtesy of Grubb & Ellis | Thomas Linderman Graham

7. Office MarketGrow the non-residential tax base consistent with the principles of the Town’s Comprehensive Plan.

8. Office Market> 2.2 million square feet of available office space.> 1.7 million square feet of the space in buildings of 10,000 SF and greater.> Approximately 30% vacant.

9. Office Market> Currently absorb 70,000 SF per year.>Grow to 100,000 by increasing our regional percent by 1. (We current have about 5% of the regional market share.)

10. Office MarketChapel HillData courtesy ofGrubb & Ellis | Thomas Linderman Graham

11. Office MarketGrowing our MarketRecommendations from Office Market Study:More business friendly.Join regional agencies.Compete with adjacent communities.Development Review and related issues. (Short-term related to expansion and retention of businesses in centers with existing SUPs.)

12. Housing MarketMaintain a community character that promotes economic vitality, environmental protection and social equity.

13. Housing MarketHousing Supply• The median sales price of a for salehousing unit was $323,300 in 2010, higher thanCary ($269,960), Raleigh ($185,000) and Durham($164,000).• Chapel Hill has experienced rapid growth in homeprices. In 2000, the median sales price for a singlefamily home in Chapel Hill was $287,000. Just 6 yearslater, the median sales price was $425,000 - an increaseof 45%.

14. Housing MarketHousing Demand• Population and employment growth will drive continuedhousing demand within the market area.• There should be enough demandto justify as many as 28,192 units in the Chapel HillHMA from 2011 - 2015.

15. Housing MarketHousing Demand• There will be sufficient demand for321-463 housing permits annually in Chapel Hill forthe next 10 years. • There is an estimated demand for 581 - 817 market raterental units between 2009-2014, including 336 - 431units of affordable rental housing.

16. Housing MarketHousing Needs -AMI – Area Median Income

17. Ephesus Church – Fordham Small Area PlanGrow the non-residential tax base consistent with the principles of the Town’s Comprehensive Plan.

18. Ephesus Church – Fordham Small Area Plan

19. Ephesus Church – Fordham Small Area PlanDevelopment Summary:Retail +/-258,000 Square FeetOffice +/-368,000 Square FeetResidential Units +/-1,084 UnitsHotel +/-280,000 Square Feet

20. Ephesus Church – Fordham Small Area PlanTraffic improvements include:> Extension of Elliott Road across Fordham> Realignment of Ephesus Church to Elliott Rd extension> Extension of Legion Road to Fordham Blvd> Access improvements:- Disconnect southern leg of western service road at Ephesus- Consolidate number of parking aisles on Ephesus Church Road going through Eastgate Shopping Center- Limit Ram’s Plaza and car dealership entrance on Ephesus to right in and right out> Connectivity improvements:- New road behind Staples and Village Plaza connecting to Elliott Road- New internal roads in Rams Plaza- New road by Hampton Inn connecting to Legion Road- New road connecting Legion Road extension to realigned Elliott extension- Ephesus Church Road

22. Ephesus Church – Fordham Small Area Plan Next Steps:1) Create zoning tools to help encourage redevelopment.2) Move forward with further evaluation of transportation/transit solutions for the district.3) Work to organize the area for future conversations based around planned and conceptualized improvements.4) Seek alternatives to finance improvements based on engineering work and other public improvements.

23. Economic DevelopmentOther things:Retail Development Strategy (2011)Housing StudyInternal Review of the Development Process – new Development Review softwareReview of LUMO Council passed text-amendment for Medical OfficeCouncil passed text-amendment for ground signs in shopping centers.

24. Economic DevelopmentMarketing Chapel Hill:Ads in Chapel Hill MagazineQuarterly mailers to new corporations in the Triangle region.E-newsShort commercials on WCHLBeginning targeted mailers for industry specific businesses for office market.New web portal (9/2011) opentobusiness.biz

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28. Economic Development Goal StatementsFocus on locally grown and/or oriented businesses.Develop educational and employment opportunities to expand workforce skills and reduce commuting.Grow the non-residential tax base consistent with the principles of the Town’s Comprehensive Plan.Questions?Maintain an open and collaborative relationship with the University.Welcome green and ecologically sound businesses and developments.Maintain a community character that promotes economic vitality, environmental protection and social equity.