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INFORMATION ITEM
PLANNING & INSPECTIONS DEPARTMENT
Craig N. Benedict, AICP, Director
Administration „mow 131 W. Margaret Lane
(919) 245 -2575 Suite 101
(919) 644 -3002 (FAX) III' III NIVVVVVV P O. Box 8181
www.orangecountync.gov 111 ;1°1 I C. 1 1: LV,1i . Hillsborough, NC 27278
MEMORANDUM
TO: Board of County Commissioners
FROM: Craig N. Benedict, AICP, Planning & Inspections Director
DATE: February 25, 2015
SUBJECT: "The Edge" Proposed Development Project in the Town of Chapel
Hill's Planning Jurisdiction
PURPOSE: To receive a planning based report on a proposed development project
known as "The Edge" located in the Town of Chapel Hill's planning jurisdiction on
Eubanks Road at Southwest corner of Interstate 40 and MLK Blvd.
NOTE: The Chapel Hill Town Council approved this project on onda�, February 23,
2015. The newspaper and staff report that Northwood Ravin (developer of `The Edge')
wants the Town's help to pay for $3.5 million of road improvements by a later
development agreement. We have not been contacted to date regarding participation.
BACKGROUND: The review of this project was originally based in the Joint Planning
Area planning courtesy review process area. We have corresponded with Chapel Hill
staff over the last few months. Although economic development and finance are familiar
with the proposal, their direct involvement was not requested at this stage. The Town of
Chapel Hill has received a Special Use Permit (SUP) application for a proposed
development project known as "The Edge" located on 53.75 acres on Eubanks Road at
the Interstate 40 off ramp. Portions of the project were located in Chapel Hill's JPA
Transition Area but is now part ETJ and part Town limits. The land use map is noted as
"Mixed Use - Office Emphasis" in this area. County planning staff has determined the
proposed project is generally consistent with this land use classification if the project is
predominantly non - residential. The prior JPA land use text did not have percentages of
the mix but described this as an "Office /Institutional Area ".
The application materials state that current market demands in this suburban location
limit the ability to bring the project to fruition if office is to be the predominant use. The
zoning code and Special Use Permit process employed for this project offers a great
deal of project mix (i.e. amount of non - residential versus residential) flexibility. The
application proposes the following minimum and maximum use percentages:
Minimum Maximum
Residential 43% 75%
Commercial 15% 44%
Office 6% 29%
The project could include 23 or more low to mid -rise buildings (multi - family,
commercial /retail, office, bank, and hotel) with 600,000 to 935,290square feet of floor
area.
with application materials available at
http: / /www.townofchapelhill.org /home /showdocument ?id ®24597. Although lengthy, the
staff report and application materials contain a wealth of information about the proposed
project.
The SUP application includes four conceptual site layouts. This is different from the
Town's typical SUP application which usually includes only a single layout. The idea is
to provide the parameters under which the site will be developed, establishing minimum
and maximum floor areas, build -to lines, block frontage percentages, building heights,
etc. and as the final densities, users, building footprints and tenant requirements are
identified, the developer will work closely with Town staff to provide final plans that meet
not only the requirements of the development but also the vision of the Town and the
applicable ordinances.
County Planning Comments
County Planning staff is focusing on the aspects of the project that have a more direct
effect on the County and its residents and as noted earlier, the jointly developed land
use plan of the general area near the intersection of 1 -40 and MILK. An interesting note
is that this site is proximate to the `population center' of Orange County. This means the
shortest cumulative drive distance to a central point based on population countywide.
Schools Adequate Public Facilities Ordinance
A Certificate of Adequate Public Schools (CAPS) must be issued by Chapel Hill -
Carrboro City Schools prior to issuance of a Zoning Compliance Permit for any phase
proposing residential dwelling units. A maximum of 806 multi - family (MF) dwelling units
are being proposed.
At current expected student generation rates of 0.07 students per unit, approximately 56
students.
K
However, it should be noted that the County contracted with a consultant last year to
study student generation rates in newer housing types (defined as constructed within
the past 10 years) and the preliminary results of the study is showing higher student
generation rates in newer MF housing (0.20 student per multi - family unit).
At these preliminary rates, 161 students would be expected from 806 multi - family units.
Project specific MF that have been built have shown a wide array of student impacts
from extremely low (i.e. 1 or 2 students per 100 units) to as high as single family at
approximately 73 students per 100. This variation is related to number of bedrooms,
location and how and who the developer markets the project.
Transportation Improvements Proposed
The application materials included information on proposed transportation
improvements:
• Widening Eubanks Road in both directions
• Installing two new 4 -way traffic signals on Eubanks Road
• Adding additional turn lanes to each leg of the existing traffic signal at the
Eubanks
Road /MLK intersection
Modifications to both the ingress and egress routes from the park- and -ride lot
and BRT program.
Orange County Transportation Staff Comments
The North -South corridor should be shared by multiple transit agencies, including
Orange Public Transit (420 Route), Triangle Transit, and Chapel Hill Transit (Interlining).
The location of a northern terminus park and ride lot for connection to any future BRT in
the MLK corridor should be considered during the review of the EDGE
development. Keeping the proximity of the existing park and ride lot (downsized or
structural) would facilitate 2 strong retail opportunities: one, allow commuters to shop
nearby before return to exurbia and two, allow students from campus and MLK areas to
shop and use retail and restaurants creating transit demand nodes at both north and
south ends promoting efficiency.
Stormwater
The project is located in the Jordan Lake Unprotected Watershed and the Town of
Chapel Hill enforces its stormwater regulations within its municipal limits. However,
County staff may suggest increasing mitigation of stormwater impacts. While the
development will be required to preserve stream buffers and install best - management
type post - development stormwater management facilities, primarily for peak flow
attenuation and nutrient export reduction, the County would be interested inassisting in
one or more of the following:
1. Upgrading the proposed stormwater management facilities to a higher level of
nutrient reduction, such as including bio- retention or stormwater wetlands, with
the goal of reaching or beating export limits recognized by Orange County (2.2
pounds per acre nitrogen & 0.82 pounds per acre phosphorus), without
compensatory mitigation.
2. Evaluating a portion of the adjacent property for an off -site regional stormwater
management facility that would have a net neutral or positive impact on water
quality, when contrasted with existing conditions.
M
The benefits which the applicant may realize include reduction in compensatory
mitigation or, in the case of option 2, some potential for increased on -site development.
In the case of the latter, Orange County would encourage Chapel Hill to ensure that this
"additional capacity" would not be utilized to press the nutrient limits but rather to
actually improve the outcome.
Affordable Housing
The applicant is voluntarily proposing to allocate land for 50 affordable on -site multi-
family rental units and agrees to pursue funding to bring the units to fruition. This
would be equivalent to 7% - 13% (depending on the final mix) of the new housing
created within the project. Financing approval for up to 50 affordable units would be
pursued for a period of no less than 5 -years after SUP approval, and land allocated for
the new affordable units would be held for this use during the period. If financing were
awarded, the proposed development would target renters earning less 80% of less of
the area median income and would remain affordable for 15 — 30 years, depending on
the requirements of the funding agency. If Low Income Housing Tax Credits or bond
financing is awarded, the project could serve households earning less than 60% of the
area median income. If financing is not secured after 5- years, the applicant also agreed
to offer to sell the Town the affordable housing site for the 2015 tax value.
1 -40 Road Buffer
Chapel Hill had inquired about Orange County's Major Transportation Corridor buffer.
The applicant had requested clearing near 1 -40 for additional visibility. An illustrative
buffer plan approve by the Town Council can be viewed at the below link
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While Orange County allows 50% clearing in certain circumstances in the various types
of buffers we enforce, we do not allow clearing in the stream buffers.
Other Services
Orange County has been in the process of developing estimates of county service
impacts. Adding residents to the county is expected to result in some impact to
governmental services provided by Orange County. Examples of such services include
social services, health services, library services, and emergency management services.
Although this specific human service cost may be minimal, school impacts are
appreciable. Due to the potential variability of housing and student generation, no
impacts were financially totaled as part of this abstract but staff has the information if
necessary. The revenues and employment gained are definitely positive. Because the
proposed development will be annexed and be within the Town of Chapel Hill's
municipal units, the Town will provide police and fire protection to the development.
FINANCIAL IMPACT: There is no financial impact to receive a report. If approved and
developed, the proposed project would add to the tax base and retail would produce
sales tax. The project would also require governmental services, some of which are
provided by Orange County. The exact dollar amounts related to the tax base increase
and the governmental services have not been calculated due to the variability in the mix
of uses in the project. The applicant has not asked for county financial participation to
date.
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RECOMMENDATION(S): The Manager recommends the Board receive the staff
information item.