Orange County Development Briefing

1. Welcome to the
Orange County
Development Briefing
Thursday, Oct. 23
Top of the Hill’s Great Room

2. Our Breakfast Sponsor

3. Our Gold Sponsor

4. Our Silver Sponsor

5. Our Bronze Sponsors

6. Our Greening Sponsors

7. Thank you to our 2014 Major Investors!

8. Thank you to our 2014 Major Investors!

9. Thank you to our 2014 Major Investors!

10. Welcome to Our Newest Major Investor

11. Thank you to our 2014 Major Investors!

12. Join the Conversation
@carolinachamber
#OCDB14

13. #OCDB14

14. Mark Zimmerman
Broker/Owner
Re/Max Winning Edge

15. Orange County
Development Briefing
The Residential Real Estate Market
October 23, 2014
Mark Zimmerman
All data provided by Triangle Multiple Listing Service
and
10K Research and Marketing

16. 2012 was a Good Year
2013 was a Better Year

17. 2014
What a difference a year makes.

18. 2013
• Confident Trends
• Good things up
– Closed Sales & Prices
• Bad things down
– Days on Market, Inventory & Month’s Supply
• Moving from Buyer’s to Seller’s Market

19. But 2014 . . .
What Happened to Our Momentum?

24. Summary
Trends shifting in 2014
• Good things flattening or trending down
– Closed sales and pricing
• Bad things flattening or trending up
– Days on Market, Inventory & Month’s Supply
• But there’s another troubling trend
– Orange is faring much worse

25. Summary 2014
YTD vs YA
Closed
Sales
Ave Sales
Price
Inventory Month’s
Supply
Triangle +3.6% +3.8% -15.8% 5.9 ( 4.7
Durham +3.4% +4.1% -29.3% 5.2 ( 3.5
Chatham +5.7% +3.8% -6.1% 8.6 ( 7.1
Orange -15.5% -0.4% +5.1% 6.0 & 7.1

26. Why?

27. 2014 YTD New Construction Sales
Growing Everywhere Except Orange
vs. YA % Total Sales
Triangle +4.7% 19.4% & 19.6%
Durham +4.9% 15.9% & 16.1%
Chatham +16.6% 28.6% & 31.5%
Orange -52.2% 13.7% ( 7.7%

28. New vs Resale Closed Sales
Sept, 2014 YTD
New
20%
Resale
80%
Triangle
New
8%
Orange County
Resale
92%
New
31%
Resale
69%
Chatham County
New
16%
Durham County
Resale
84%

29. Why?
• We are no longer as competitive
– Aging inventory
– High price of entry
– Higher cost of living
– Neighbors are improving quality of life

30. 2014
Momentum Has Slowed
In Orange, it has Shifted

31. Dwight Bassett
Economic Development Officer
Town of Chapel Hill

32. Follow us @CHEconDev

33. Follow us @CHEconDev

34. Follow us @CHEconDev
> Developments in Chapel Hill
1
2
3
4
5
6

35. Follow us @CHEconDev
1
University Square
- Moving toward construction –
> 300 Residential Units
> 210,000 SF Office
> 75,000 SF Retail

36. Follow us @CHEconDev
___
New tool for Economic Development
- Development Agreement -
___

37. Follow us @CHEconDev
2
Glen Lennox
- Approved –
> 1,500 Residential Units
> 600,000 SF Office
> 150,000 SF Retail
> 150 Hotel rooms

38. Follow us @CHEconDev
3
Obey Creek
- in consideration –
120 acres with a potential of 35 developed
> 600 Residential Units
> 375,000 SF Office/Civic
> 350,000 SF Retail
> 130 Hotel rooms

39. Follow us @CHEconDev
___
By-right and traditional rezoning
___

40. Follow us @CHEconDev
4
Ephesus-
Church/Fordham
- Approved -
> 1,000 Residential Units
> 350,000 SF Office
> 250,000 SF Retail
> 150 Hotel rooms

41. Follow us @CHEconDev
5
Edge Development
(Eubanks Road)
- in consideration –
> 400 Residential Units
> 100,000 SF Office
> 120,000 SF Retail
> 150+/- Hotel rooms

42. Follow us @CHEconDev
6
Central West (Small Area Plan)
- Approved –

43. Future Development
Project Office Retail Residential * Units
123 W Franklin 120,000 55,000 240,000 300
Glen Lennox 600,000 150,000 1,200,000 1,500
Obey 225,000 400,000 560,000 700
Eph-Ford 350,000 250,000 800,000 1,000
Edge 100,000 120,000 320000 400
Central West 40,000 20,000 140000 175
TOTAL 1,435,000 995,000 3,260,000 4,075
Follow us @CHEconDev
* = average 800 SF per

44. Follow us @CHEconDev

45. Follow us @CHEconDev
Now comes….
Economic Development!

46. Open.
Follow us @CHEconDev

47. Open.
: Business
: Livability and Lifestyle
: Education
: Innovation and Entrepreneurship
Follow us @CHEconDev
Web site

48. Follow us @CHEconDev
Marketing:
1. Focus on sponsorship of regional events
related to development and real estate.
2. Participate in regional organizations like;
Urban Land Institute, Triangle Commercial Association of Realtors, and NAIOP
3. Expand marketing to continue to change
perceptions of our market.

49. Follow us @CHEconDev
___
T hank you!
___

50. Craig Benedict
Director of Planning, Inspections and
Public Transportation
Orange County

51. ORANGE COUNTY
PLANNING
INSPECTIONS
ENGINEERING &
ORANGE PUBLIC TRANSIT
51

52. 52

53. 53

54. 54

55. County Uses of Article 46 Sales Tax
Since 2011

56. Econ. Dev. Uses of Article 46

57. Proposed Econ. Dev. Uses for FY 2012-2013

58. Elise Kohn
Senior Advisor and Program Director
North Carolina Next Generation
Network (NCNGN)

59. DRAFT
http://ncngn.net
Orange County Development Briefing
Project Update
October 2014

60. Collaborating Municipalities and Universities
http://ncngn.net

61. http://ncngn.net
Key goals and objectives of the RFP
• Create a gigabit fiber network to foster innovation, drive job creation, stimulate
economic growth, and serve new areas of development in the community
• Use public-private assets to reduce the digital divide, enhance workforce
knowledge and skills, promote economic development, enhance access for
anchor institutions, and serve other targeted purposes
• Provide high speed internet at a substantial discount from current market prices
City Top Speed Price/mo. Provider
Kansas City 1 Gbps $70 Google
Austin 1 Gbps $70 AT&T, Google
NCNGN Cities 50 Mbps $65 (1yr promo rate) TWC
NCNGN residents pay the same or more for connections 5% as fast

62. Triangle and Triad broadband users pay more for less
Cost ($ / Mb) of lowest, highest, and mid-speed broadband tiers
1 Gbps
45 – 60 Mbps
15 – 20 Mbps
3 - 5 Mbps
http://ncngn.net
$14.00
$12.00
$10.00
$8.00
$6.00
$4.00
$2.00
$-
KC MN Wilson NC (TWC) NC (ATT)
Low Tier
Mid-tier
High Tier

63. Initial announcement spurs competitive offers
http://ncngn.net
Kansas City
March 2011 –
Google announces
plans to build
November 2012 –
Google Fiber live in
first neighborhoods
December 2012 – TWC
announces 100Mbps
service only in KC
April 2013– Google
announces plans to build
April 2013 – AT&T
announces similar plans
just hours later
April 2013 – TWC
announces plan to
speed up
deployment of WiFi
hotspots
December 2013 –
AT&T begins
offering 300Mbps
service with free
upgrade to 1Gbps
in 2014
Austin

64. http://ncngn.net
2014 local announcements to date
February: Triangle
being considered for
Google Fiber
April – June: NCNGN cities
approve agreements for
March: RST Fiber
planning gigabit
services for Triangle
AT&T Gigapower
July: TWC planning
to upgrade Raleigh
Metro to TWC
Maxx (300 Mbps)
Today: Frontier
planning Gigabit
service in Durham

65. http://ncngn.net
What about the specifics?
• AT&T: Majority of build-out expected in 2015 – 2016
• Residential tiers up to 1 Gbps symmetrical
• Pricing TBA
• Google Fiber: Decision about deployment expected by end of year
• Additional timing and pricing details TBD
• TWC: Upgrades begin in 2015
• All speed tiers will be adjusted; current customers can expect free
upgrades (e.g. 15 Mbps standard  50 Mbps standard; max = 300 Mbps)
• Frontier: TBA
• Service expected to be limited to Durham

66. http://ncngn.net
Overview of agreement with AT&T
• No cost to local municipalities or universities
• No set build-out requirements or price targets
• Community benefits:
• Up to 100 community centers will receive free gigabit service for 7 years
• Up to 10 low income MDUs will receive 3 Mbps service for 5 years
• All Chapel-Hill Housing Authority MDUs count as 1 MDU
• Up to 100 multi-tenant office buildings pre-wired with fiber and electronics
• Cities agree to try to make municipal processes more efficient (vendor-neutral)
and memorialize existing practice of treating similarly situated vendors alike

67. Next Gen Network: Opportunity to shape the future
• Next gen networks = foundation for continued virtuous cycle of
http://ncngn.net
innovation and economic development
HIGHLY-SKILLED,
EDUCATED
WORKERS
INNOVATIVE
APPLICATIONS
AND
PRODUCTS
SUCCESSFUL
BUSINESSES
One of the greatest benefits available today is the opportunity to shape and lead in
in the economy tomorrow

68. Other communities in the gigabit game Feb. 2013
http://ncngn.net
UTOPIA
≥$300
Kansas City, KS & MO
Google
$70
Bristol, TN
Lafayette, LA
$1,000
Chattanooga, TN
$300
Orono, ME
GWI
Burlington, VT $140
$150 – 200
Cedar Falls, IA
~$270
Minneapolis, MN
US Internet
$115
Seattle, WA
CondoInternet
$120
(MDU only)
Sebastopol & SF, CA
Sonic.net (pilot)
Bristol, VA
Tullahoma &
Clarksville, TN
≥$300
Monroe County, IN
Smithville
$394
Issaquah, WA
Highlands Fiber Network
$200
SF Bay Area, CA
Paxio
$139
Chicago, IL
Gigabit Squared
Lansing, MI
DTN Management
(MDU only)
Pricing for stand-alone residential internet service with download speeds up to 1 Gb. May exclude additional charges for taxes, equipment, or other fees.

69. Other communities in the gigabit game now
LEGEND
Salem/Greensboro
Raleigh-Durham
Res. GB service <$160 mo.
Limited coverage or res.
service > $160/mo.
Planned Res. Gb service
Recently issued or
announced plans for
RFI/RFP or Google Study
http://ncngn.net
Omaha
CenturyLink
(pilot)
$150
Dallas/ Ft. Worth
Austin
AT&T
Google , AT&T
Grande
$65 - 100
DTN Management
(MDU only)
Louisville
Lansing
Cincinnati
Cincinnati Bell
Nashville
Chattanooga
$70
Wilson
$155
Orono
GWI
Burlington $140
$150 – 200
Springfield
Vtel
$35
Minneapolis
US Internet
$115
Seattle
CondoInternet
$120
(MDU only)
Portland
Sebastopol & SF
Sonic.net (pilot) Provo
Google
$70
UTOPIA
≥$65
Chicago
AT&T
St. Louis, MO
AT&T
Carbondale, IL
Kansas City, KS & MO
+ 16 others
Google
$70
Frontier
Hattiesburg + 8, MS
C-Spire
$80
Longmont
$50
College Station
Houston
AT&T
Smithville & La
Grange, TX
LiveAirNetworks
$75
San Jose
AT&T
SF Bay Area
Paxio
$139
Salt Lake City
Las Vegas
Centurylink
$150
Los Angeles
Winston-
AT&T
Charlotte
AT&T
AT&T
Summerville
Home Telephone
Jacksonville
AT&T
Tampa
Atlanta
AT&T
Bright House
Phoenix
San Antonio
AT&T
Miami
AT&T
Pricing for stand-alone residential internet with download speeds up to 1 Gbps. Prices as advertised on provider websites or other publicly available sources as of 12/11/2013. May
exclude additional charges for taxes, equipment, or other fees. Does not reflect plans for Anchorage, AK and cities throughout NC announced by GCI and RST Fiber, respectively.

70. http://ncngn.net
How can we further distinguish the region?
• Create/utilize civic infrastructure needed to help region take advantage of
gigabit networks
o Accelerate gigabit applications
o Digital inclusion
• Consider how networks can advance other regional priorities
• Promote availability of networks at specific properties and across the region
• Continue to foster local competition among providers

71. Jack Smyre
The Design Response
Lloyd Farm

72. Lloyd Farm
Carrboro, NC
Orange County Development Briefing
The Design Response
Jack L. Smyre, PE, AICP
October 23, 2014

73. Vicinity Map
Site
*

74. Market Area West

75. Area Map

76. Illustrative Site Plan

77. Charettes – Nov/Dec 2011

78. U-shaped retail w/ one-stop parking

79. Lloyd Farm – Plaza Area
Approximate size 0.37 AC
Compared with the
Weaver Street Market
lawn @ 0.30 AC & the
Southern Village Lawn
@ 0.56 AC

80. Retail Plaza – Lot 1
View from Public Street

81. Retail Plaza – Lot 1
View from Parking Lot

82. Oak Grove
Approximate size 0.50 AC
Existing tree stand with lawn.

83. Oak Grove
Approximate size 0.30 AC
Existing oak tree stand near
former homestead location.

84. Illustrative Site Plan

85. Site Cross Section

86. Enlargement Showing Apartments

87. Apartments at Lloyd Farm
View from Hwy. 54
Image by Risden McElroy

88. Apartments at Lloyd Farm
View from James Street

89. Apartments at Lloyd Farm
View from Merchants Way

90. Pedestrian Access & Circulation

91. Community (Town/County) Benefits
• Shopping and employment center with low impact on local roads
• Sales tax revenue for Orange County
• $90M - $100M addition to the property tax base
• $1.1M Affordable housing payment-in-lieu (15% of base units)
• $400K in school impact fees
• Extension of bike / walk system between West Main Street and Old
Fayetteville Road
• Diverse sustainable housing w/decked parking on small footprint
• Mixed-use center with 30% preserved open space

92. Illustrative Site Plan

93. The Graduate
Jay Patel
Wintergreen Hospitality

95. Village Plaza Apartments
Lee Perry
East West Partners

97. Building Plans

98. Building Plans

99. Building Plans

100. Building Plans

101. The Edge

102. The Edge

103. The Edge

104. The Edge
Address: 3000 Eubanks Road
Developer: Northwood Ravin
Property owner: Park West Investors, Morris IV
Acres: 53.8
Buildings: 18 to 24 buildings, 44 to 90 feet tall
Residential: Between 400 and 700 units
Affordable housing: 50 units proposed
Commercial: Between 140,000 and 416,000 square feet
Office: Between 60,000 and 270,000 square feet
Open Space: Village Square and two greenway trails
Hotel: up to 250 rooms
Zoning: Mixed-use Office/Industrial, Mixed-Use Residential
Current property value: Roughly $3.1 million
Projected Post Development Value: $100+ million

106. Q&A
Facilitated by Aaron Nelson

107. Life In The Fast Lane:
High Speed Fiber in the Triangle
7:30-10:00 a.m., Thursday, Nov. 13 at DoubleTree in RTP
Tweet: #TriFiber Register: bit.ly/TriFiber

108. Business Hall of Fame Gala
6:30-9:30 p.m., Nov. 13 at The Carolina Inn
Tickets and information: carolinachamber.org/halloffame

109. Celebrating the Pillars of Our Community
Susie & Bynum Weaver Al Pons Eunice Brock
Bob Nutter Mary & Maurice Julian Sandy McClamroch

110. Business After Hours & Mini Expo
5:30-7:30 p.m., Nov. 20 at The Carolina Inn
Come to a unique Business After Hours,
co-hosted by The Carolina Inn and Chapel Hill Magazine.
Purchase a table display and get your brand out there!

111. Salute to Community Heroes
6:00-8:00 p.m., Dec. 11, at University Mall
Nominate Your Hero!
• Citizen of the Year
• Town & Gown Award
• Jim Gibson Volunteer of the Year
• Irene Briggaman Lifetime
Achievement Award
Nominations due Nov. 19
carolinachamber.org/salute

112. Early Voting Begins Today
NC State Board of Elections: www.ncsbe.gov

113. Early Voting Begins Today
More info: www.ncsbe.gov

114. Thank you, briefing sponsors!