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Home My WebLink AboutReference Materials for 01-25-2019 Board Retreat Adompt- ORANGE COUNTY NORTH CAROLINA Urban/Rural Demographics and Characteristics Board of Orange County Commissioners Retreat January 25, 2019 2 Population Density Population Distribution in Orange County, bar Building Footprint r---.-.- - -- ._ ,...,-------- FF. 45 �Or74 �Q '� �• .� � � U uty Limits x _ M1•y,... I I r ..ti FOwrrl2170 60urilJ8riC5 Built5ex2 FuutprirW5 1 2 3 4 5 mi - 2 - - ORANGE CCOUN�TY 3 Race Percent of Population Who Are a Minority. by Census Block Group f 1. _ 4 t —HI LLSBOR lJO GH r CARR13DW CHAPEL HILL 0 City Limits _ Township Boundaries l Minority 16-25 0 1 2 3 4 6 mi 26-40 mmmg� 0 41-50 51-58 !�?! ORANGE COUNTY 3 NORTH CAROLINA 4 Language Percent of Adults(18-34) Who Speak English Percent of Children (5-17) Who Speak English 'Not Well' or'Not at All', by Census Block Group 'Not Well' or'Not at All', by Census Block Group ----------- - ------------ I ! o I i _ o .MEBANE i I * -, .MEBANE 6 ! +; 1 —its— "ILLSBORO) 1 HILL556ROUGH f f �• - CRRR60` —/' CH EL'ILL ; CARRBORO CHRPEL HILL i 0 City Limits E _r , City Limits Township Boundaries f _ Township Boundaries %of Adults Who t - 56 of Children Who AOn't Speak English 11Don't Speak English 0 1-5 --- F-I 1-s 0 1 2 3 4 5mi 0 6-10 0 1 2 3 4 5mi 6-10 11-20 11-20 � z1-33 � z1-31 4 �Ntl NZI 5 Income Percent of Households Receiving Median Household Income,, by Census SNAP, by Census Block Group Tract —---------------------- ---------------- -----------------1A ----- . tj�Niz UG11 HILLSKROUGH -- — ------------ PR7HILL C AREL UL ED CO urmt CD City Ufnits Tomship Boundaries TMMORP Boundaries of Hous eholds an SW Median FiousdwAd Income O-S % Ejj No cerksus Defined r 6-10 Households a 1 2 3 4 5 nfi ------------ ---------Ij it-15 U 1 2 3 4 5 FT11 ----- - 0-$15k 16-20 $36k-$701k 521 sa $71k-$10011; %ook W$150k $15 1k-$176k 6 Health Care Percent of Adults (18-34) Receiving Percent of Children Receiving Medicaid, Medicaid, by Census Tract by Census Tract i I ' I � � I E i I f f f f 1 f .MEBANE ' MFBANF, i v i fi. y 9 f I 1 HILLSBOFGUGH HILLSBOROUGH i e ' I s f f f — ! CARRBDRG CHAPEL HILL r CARRBORO CHAPEL HILL :r f 7 Q City Limits City Limits Township Boundaries ;Township boundaries 1/4 of Adults on Medicaid %of Children on Medicaid =0 L—] 0-10 -- n 1-5 �.'�' n 11-20 ® 0 0 1 Z 3 4 Smi - 6-10 0 1 2 3 4 5mi 21-30 r• � 11-15 � 31-50 m m 15-19 M 51-70 6 IVZI hRl ORANGE COUNTY NORTH CAROLINA AFFORDABLE HOUSING OVERVIEW BY THE HOUSING AND COMMUNITY DEVELOPMENT DEPARTMENT Board of County Commissioners Retreat January 25 , 2019 8 INTRODUCTION ORANGE COUNTY NORTH CAROI.INA The Orange County Board of County Commissioners has made affordable housing one of its top priorities the past several years given identified needs. The Housing and Community Development Department (OCH&CD) is charged with the administration of all affordable housing and community development activities in the County but works collaboratively with other County departments and a number of community partners to provide a comprehensive array of programs and services for residents in order to meet identified needs and priorities. 9 For the past year and a half the department, under the leadership of a new Department Director, has undertaken an internal review of its activities in order to complete a restructure to more fully realize its County charge , as well as enhance effective use of available resources. The information shared today hopefully will provide guidance to the BOCC as it reviews and sets policy for ongoing strategies to meet Orange County's identified affordable housing and community development needs. io ORANGE COUNTY CURRENT CONDITIONS NORTH CAROLINA ❑ According to the 2017 Census data , Orange County has 138 ,644 residents, which is an increase of 18% over the total population reported in 2000 . ❑ Of the County's 1 , 728 households, 64% or 13, 160 households are cost-burdened , making less than $50 ,00 per year and spending more than 30% of their gross income towards housing . ❑ Of the total households in the County, 20% make less than 30% of AMI or $22 ,470 . 11 ❑ The median rent for a 3-bedroom unit is $ 1 ,470 . o As an update, the mean or average rent for a 3-bedroom unit in Hillsborough as of January 2019 is $ 1176. o In Chapel Hill , the mean or average rent for a 3-bedroom is $ 1792 as of January 2019 . ❑ According to the OC Affordable Housing Coalition's 2018 Summit Report: o Between 2009 and 2015 , there has been a 16% increase in the cost of rental housing in the County. o There are zero (0) rental units of any size that are affordable to the 20% of households who earn less than 30% of AM I . o In 2015, only 3% of the total housing units in the County were permanently affordable according to the HUD 12 definition of permanently affordable. o The gap between the supply and the need for affordable housing is wide . o Seniors are the most cost-burdened age group. o The number of low income households decreased more in Orange County as compared to surrounding counties . See Attachment A — Orange County Infographic. Other Key OCH&CD Findings: ❑ Orange County lacks good infrastructure (water and sewer) in areas that may be suitable and available for affordable housing development. 13 ❑ There is a lack of County-owned vacant land suitable for development. ❑ There is a need for a review of land use , zoning and development regulations in order to identify needed changes to facilitate affordable housing in the County. EXISTING PROGRAMS AND 14 ORANGE COUNT 7 SERVICES NORTH CAROLINA Presently, Orange County has a number of programs and services in its "tool box" to address affordable housing needs and priorities . The programs and services are viewed as to whether or not they enhance affordability, availability and accessibility. See Attachment B. In addition , OCH&CD utilizes the following structure to list its existing programs and services: 15 Development Preservation Supportive Services The Affordable Housing The Affordable Housing Housing Choice Voucher Bond Program ( Bond Program (Local Program, including VASH Funds) Funds) Vouchers (Federal Funds) HOME Program HOME Program Local Rent Supplement (Federal Funds) (Federal Funds) Program (Local Funds) The Affordable Housing Urgent Repair Program Risk Mitigation and Land Banking Fund (State Grant and Local Housing Displacement (Local Funds) Funds) Fund (Local Fund! ) Manufactured Home Park Single-Family Housing Displacement Mitigation Revolving Loan Fund Rehabilitation Program, Assistance Program (D- (Local Funds) inclusive of manufactured MAP) (Local Funds) homes repair or replacement (State Grant and Local Funds) Manufactured Home Park Revolving Loan Fund Funds) 16 ORANGE COUNT ) NORTH CAROLINA CURRENT FUNDING SOURCES The funding sources are listed in the preceding table . One of the goals for the department is the continued diversification of the types of available monetary sources. Note that the state funds (NCHFA) are awarded based on a competitive application process every 2 years. 17 ORANGE COUNT NORTH CAROI.INAY ACCOMPLISHMENTS TO DATE See Attachment C . Ques tion s ? 19 ORANGE COUNT 7 NORTH CAROLINA OPEN DISCUSSION - BOCC LJ Identifying priorities and consensus on affordable housing in Orange County. Ll Agreement on priorities. zo PART II — AREAS FOR INTERGOVERNMENTAL ORANGE COUN a 7 NORTH CAROLINA COLLABORATION Current or Recent Collaborative Efforts: ❑ Joint monthly meetings between senior staff. ❑ Quarterly meetings of the Local Government Affordable Housing Collaborative. ❑ Development of the Greene Tract. ❑ Manufactured Home Park Closures Mitigation . ❑ Camelot Flooding and Tenant Impact Mitigation . 21 Other Potential Areas for Collaboration: Methodology for Exploring Above Areas for Additional Collaboration: Responsible Parties and Next Steps: Ques tion s ? 23 ATTACHMENT A Orange County, NC 2017 HousingOverview Proportion of Housing Cost-Burdened 93 Households by Income Level 86% ■ Owner-occupied ■Renter-occupied 13,160 households are in 76% need of affordable housing 55% Of households making less than $50,000 per 37%32% o year, 64%, or 13,160, are housing cost- 30% burdened, paying more than 30% of their 14% gross income towards housing. 2 out of 3 . 6% 4% cost-burdened households are renter households. Less than $20,000 to $35,000 to $50,000 to $75,000 or $20,000 $34,999 $49,999 $74,999 more Annual Household Income $310,000 $1,470 The median sales price in Orange County in Median rent for a 3-bedroom 2017. The average sales price is $366,187. unit in Orange County. This is a 3.3%increase over 2016. Housing Stock: There are almost 56,474 homes in Orange County, 39% of which are rented 8% 59% 7% 5% 15% 6% AAA,^200 00 00 0 0 0 0000 00 00 0 0 0In 1 00 00 Mobilehome Single-family Townhouse 2-4units 5-19units 20 or more u nits house 1-and-2-person 64% households 64% of households are 1-and-2- 1 and 2 bedrooms 38% person households,yetjust 38% of housing units are 1 and 2- 3-or-more-person bedroom units. There are households 36% limited options for those who 3 or more 62/o o want smaller homes. bedrooms ■Households IN Housing Units Pre pared January 2017.Visit www.t*cog.org/housiniz.aspx for more resources. Sources:2012-2016 American Commu nitySu rvey,Triangle Multiple ListingService's Local Market Updates, &f% Triangle J Data Works NCTriangle Rent Sum maryQ22017. NW Council of Governments Icons:Noun Project I Chanut is Industries,Setyo Ari Wibowo,BlairAdams 24 Attachment B ORANGE COUNTY HOUSING AND COMMUNITY DEVELOPMENT DEPARTMENTAL OVERVIEW Affordability Availability Accessibility Programs/Services Funding Source Gaps/Recommendations Development Development Development Affordable Housing Bond Program $2.5M • No dedicated units goals adopted Manufactured Home Park Initiative—Loan Program Up to$500,00 • Very limited funds to address rental HOME Program $401,340 rehabilitation activities Surplus Properties County Asset Value • Limited Publically-Owned Land • Dedicated Utilization of Bond Funds Preservation Preservation Preservation Local Urgent Repair $160,000 . No dedicated Code Enforcement Program NCHFA Urgent Repair $100,000 (Add within 2-4 years) Local Single-Family Rehabilitation $253,000 . Human Capital and Technology Needs NCHFA Essential Rehabilitation $175,000 HOME Program Initial Draft — 12/7/18 25 Attachment B ORANGE COUNTY HOUSING AND COMMUNITY DEVELOPMENT DEPARTMENTAL OVERVIEW Services Services Services Housing Choice Vouchers $3.4M • Human Capital and Technology Needs Risk Mitigation and Housing Displacement Fund $142,778 • Maintain Set-Aside Funding for DMAP Displacement Mitigation Assistance Program (DMAP) $285,600 • Need Recurring Funding for LRSP Local Rent Supplement Program (LRSP) $100,000 plus $114,613 in HOME Funds • Need Recurring Funding for Rapid Re- Rapid Re-Housing (HOME Program) $25,000 in HOME Funds Housing, but more importantly a strategic plan for continued funding; could be based on other new programs. Initial Draft— 12/7/18 26 Attachment C ACCOMPLISHMNETS TO DATE For 2017 — Present Vouchers • VASH 5 • Regular 623 • Local 15* • # of Landlords 195 * -Anticipated Number. New Program Not Yet Implemented. Urgent Repair • State 2 homes completed to date. Grant period ends in Feb. 2019. • Local 7 homes completed to date. Program is ongoing. • Leveraged 2 homes completed; 4 units underway. Used $8,000 of State funds per house but due to repair needs also used County funds. This brings the total units completed with State Urgent Repair funds to 8 homes. Single-Family • State 2 homes completed using SF 2014 funds. • Local 2 homes completed; 1 home being processed. Program is ongoing. • Leveraged 3 homes underway. Using $25,000 of State Essential Rehab funds per house. DMAP 3 families participated in the process and 1 family accepted assistance. Assistance is being provided to 1 additional family through a partnership with Habitat. The project is underway and should be completed by February 28, 2019. 27 SNAPSHOT OF LEVERAGING ACTIVITY AND JURISDICTIONAL INVESTMENTS Orange County Affordable Housing Bond Program & Town of Carrboro $2,529,000 1 $4,279,933* 01 *Of the. total dollars leveraged, the Town of Carrboro committed $357,208 from its Affordable Housing Special Revenue Fund to CASA's Merritt Mill - West Project. The commitment will be finalized in early 2018. Town of Chapel Hill Affordable Housing Generated with Town Resources (2013 — Present) Fiscal Investment Units Preserved Units Developed Year (Allocation) (Funded) (Funded) 2013 $ 241,730 118 0 2014 271,615 37 0 2015 549,300 46 10 2016 1,097,377 70 154 2017 747,579 32 35 2018 241,018 15 0 Total $ 3,741,174 407 199 Town of Hillsborough In 2017, the Town committed $5,000 from its Payment in Lieu Fund to the Community Empowerment Fund to provided down payment assistance to qualified renters. 28 ORANGE COUNTY NORTH CAROLINA Public Transportation ; Current Role of Orange County Oranqj5p"y 00rangeCounty29 PUBLIC TRANSPORTATION Background Orange County Public Transportation is the County's transit system, providing both urban and rural transportation, in partnership with Go Triangle and Chapel Hill Transit systems. OCPT operates within Orange County and also enters into neighboring counties. OCPT currently delivers 3 fixed routes and multiple demand response services such as Medicaid transportation, ADA (Americans with Disabilities Act), Rural Operating Assistance and Senior transportation. ORANGE COUNTY 2 NORTH CAROLINA 30 Background cont'd OCPT currently has 23 employees, and operates a fleet of 17 LTV (light transit vehicles), which are maintained byAMS (Asset Management Service) mechanics. With grant funding from TJCOG (Triangle J Council of Governments), Orange County was able to establish a TDM (Transportation Demand Management) program , purposed in reducing traffic and air pollution by promoting commute alternatives such as transit, telework, carpooling , vanpooling , biking and walking . ORANGE COUNTY 3 NORTH CAROLINA 31 Unmet needs- existing programs In 2018 Orange County partnered with Go Triangle and Nelson Nygaard consultant group to produce a Short Range Transit Plan, which included public participation and is fiscally constrained. The Plan identifies recommendations to serve unmet transit needs: providing transit service coverage to the rural areas ("Mobility on Demand" aka- micro transit), increased trip frequency and service hours for the fixed routes, and adding various transit amenities such as bus shelters, and park and ride locations. OCPT is upgrading its dispatching and scheduling system to take advantage of the latest technology in the industry to manage the various services we provide and provide an external platform for patrons to access real time ride information and schedule trips. ORANGE COUNTY 4 NORTH CAROLINA 32 OCPT has increased its budget annually over the last few fiscal years. Total in operating grant revenue since FY16: FY 16 - $4141742 FY17 - $5721881 FY18 - $8551798 FY 19 - $ 11619)044 -FY16 first fiscal year OCPT was a stand alone department -FY17, first year of OCPT with new Transit Director *Source: Munis reports ORANGE COUNTY 5 NORTH CAROLINA Funding Streams 33 In 2017 Orange County Public Transportation became aware of various "Urbanized Area" grant funds that have been apportioned to Orange County by the FTA (Federal Transit Administration), through the two MPO's (Metropolitan Planning Organizations)- DCHC (Durham Chapel Hill Carrboro) and Burlington Graham; and "Air Quality" grant funds through TARPO (Triangle Area rural Planning Organization). Listed below are the multiple funding sources available to OCPT for Operations, Administrative and Capital assistance for both the rural and urbanized areas. Federal 5307 Urbanized area grants- DCHCMPO, BGMPO apportionments 5310 Senior programs transportation- through Orange County Department on Aging 5311 CTP (Community Transportation Program)- Rural area administrative grant 5339 Bus and Bus Facilities- Capital purchases of replacement vehicles and equipment State Article 43 Tax district- includes transit sales tax proceeds and vehicle registration fees Medicaid transportation — through Orange County Department of Social Services ROAP- Rural Operating Assistance Program (EDTAP, RGP, EMPL) CMAQ- Congestion Mitigation and Air Quality grant- through TARPO ORANGE COUNTY 6 NORTH CAROLINA 00rangeCounty34 PUBLIC TRANSPORTATION Conclusion OCPT is committed to provide SAFE, CUSTOMER FOCUSED, and QUALITY Transportation services for our community, Orange County North Carolina. ORANGE COUNTY 7 NORTH CAROLINA 00rangeCounty 35 PUBLIC TRANSPORTATION Quest 'ions ORANGE COUNTY 8 NORTH CAROLINA 36 Adompt- GRANGE COUNTY NORTH CAROLINA Economic Development SWOT Analysis BOCC Annual Retreat Cedar Grove Community Center January 25, 2019 1 37 Context for Economic Development in Orange County • Social Justice Goal - Ensure Economic Self Sufficiency: Create and preserve infrastructure, policies, programs, and funding necessary for residents to provide shelter, food, clothing, and medical care for themselves and their dependents. • Strategic Goal - Implement planning and economic development policies for a balanced, dynamic local economy that promotes diversity, sustainable growth, and enhanced revenue while embracing community values. ORANGE COUNTY NORTH CAROLINA 2 38 Operational izi ng Economic Development Goals — Tax Base Growth — Environmental Preservation • Pays for Public Services and Makes Farmland Profitable to Balances the Tax Base Reduce Development Incentive — Living Wages & Housing — Criminal Justice System • Allows Economic Self Reduces Crime Associated with Sufficiency Poverty and Improve Outcomes — Transportation — Quality of Life • Reduces Single Occupancy Promotes Economic Diversity Trips and Miles Traveled and Opportunity ORANGE COUNTY NORTH CAROLINA 3 39 SWOT Analysis Process Overview . . Initial SWOT Analysis Retreat (Involved Partner Organizations) August 23, 2017 BOCC Annual Retreat Discussion January 26, 2018 Final Report February 2018 BOCC Work Session Discussion September 6, 2018 ORANGE COUNTY NORTH CAROLINA 4 40 Timmons Group Recommendations Immediate Study - • • • 1 . Enter discussions with Mebane to increase available water & sewer capacity within the 5. Align zoning in the CITAN's to be consistent with current development agreement. 2. Have the Planning Department interact with the Economic Development Department on a 6. Prioritize development of the top sites in EDD's / regular CITAN's (monthly) basis and during infrastructure planning stages. 3. Work with the Towns and revisit 7. Complete necessary due diligence to achieve Intergovernmental Agreements to make sure Tier 4 status on top sites. Example: Geotechnical, they are conducive to the needs of Economic Wetland Delineations, Topographic & ALTA Development in today's market. Boundary Surveys, etc. 4. Approach property owners about willingness 8. Consider adjusting boundaries of EDD's and to sell key properties within the Buckhorn, Efland CITAN's and the Water & Sewer Districts to and include Hillsborough EDD's / CITAN's. large tracts adjacent to these districts with low cost of development (minimal utility extensions, etc.). ORANGE COUNTY NORTH CAROLINA 5 41 Timmons Group Recommendations - - . 1111:411MIRMEW 1 . Complete a countywide water & sewer study to identify options to increase water & sewer capacities. 2. Complete a GIS Site Selection Study to identify sites with greatest development potential near or adjacent to development corridors. 3. Consider gaining "control" of properties (i.e. option agreements) with high development potential. These sites would be identified with the GIS Site Selection Study. 4. Consider advantages of developing "Ready to Go" product. Could form a Public-Private Partnership to accomplish this task. 5. Reinitiate discussions and explore developing a research park with UNC-Chapel Hill and taking advantage of the research and entrepreneurial culture of the Research Triangle Park (RTP). ORANGE COUNTY NORTH CAROLINA 6 42 BOCC's 9-6- 18 Work Session Discussed these Next Steps • Pre-Zoning Properties — Begin the process of pre-zoning land for commercial/industrial use in the Commercial-Industrial Transition Activity Nodes that is still currently zoned residential • GIS Site Selection Studv — Site Readiness Capacity Study - Identify marketable sites inside or adjacent to the EDDs and CITANs (Consultant Study) ORANGE COUNTY NORTH CAROLINA 43 Economic Development Future Pre-Zoning Agriculture/Residential Parcels in Economic Future Land Use and Zoning - Mebane/Buckhc)m/Efland Area 17 I ry Fuium Land Use Element zon ing E N 2 Ecanamic Development Transition (911.27 au) _ EDB-2 (8-99.83 ac.) C-Gd ppHR1 0 Cornmarciakindustrial Transition (1.3133.40 ac) AR' 11 r R3 w ,;,-v.ppo rrr, R1' 4RC y�Tr 1111=11=Fc I X O1RM{318. 8 ac) LC1 y o yea r,R .......I I p. aoo ' Could be 'p rerans v'. eC&.11.201 B 8 44 EDD Status and Trends Encroaching Residential Development Future Land Use and Residential Zoning - f lebanelBuol hornlEfland Area �il I I I IIII. I ql I 70 Sllf*a CurFenllw Bed Madwied for Haus" Fulura Land Use Elafirborti. nIng zaning Deani ion j__j Orange County Boundary 10 Year Trensilion AR ura I Rem(lientia I _ 213 Year Transition MPd-CZ Master Plan Development CanditionaI Zoning zoning Rural Residna ial PIPHRl Plar+rbed veveloprnent Housing - RUral Residentrdl agricultural Resbentlal R1 Rural Residential k'f pDt+RI Dityr Llmit� 443 Low a n-and rOudiu. Intensity residential _ 1R1 L 4 Low and Medium Intensity Residential I=TJ f R3 Rural MBiigl1bCmf load � - Pl4 Economic Oewelapment Transition apc�:,,'rF F-1 MF'D-EZ a x000 C,omnrerr..lal-Industrial Tr-nnsrfion r.rayl4"ln-Mpmq�l �9.P1•�416 9 45 Pre-zoning of Parcels Orange County Planning Department Comments Within Commercial Industrial Activity Node Land Use — CITAN Land Uses existed before and after Economic Development Land Uses (EDLU) were created in 1994. — Different than EDLU (which has ED zoning in place), CITAN land use left the existing residential zoning as the `base' zoning to await rezoning concurrent with a development proposal. — Staff researched that approximately 600 acres of CITAN land use have Residential-1 (R-1 ) and Agricultural Residential (AR) zoning. (Portions are underdeveloped; i.e. small old house on large acreage) ORANGE COUNTY NORTH CAROLINA 10 46 Pre-zoning of Parcels (cont. ) Orange County Plan nin jDepartment Comments — Pre-zoning is usually done with a cluster of property owners wishing to increase short term development potential. — Planning staff has discussed `pre-zoning' (e.g. R-1 or AR to Office Research Manufacturing (ORM) zoning) with several property owners with mixed interest (concerns; taxes, timing, market value, neighbors, etc.). — Staff suggests focus area meetings with property owners and EDC staff to develop consensus on development interest and potential. ORANGE COUNTY NORTH CAROLINA 11 47 Identify Economic Development District Access Constraints Orange County Planning Department Comments — Industrial Drive easterly extension under evaluation by NCRR and NCDOT for a traffic separation study (TSS) as part of Buckhorn Road expansion to US 70. — This road extension would provide long term access from undeveloped and marketed (property which includes) rail adjacency and interstate visibility. — Turner Street Extension from Mt. Willing Road westerly to industrial zoning and CITAN land use area where new sewer infrastructure is available. (200' long x 60' wide; previously a right of way abandoned in 1986). ORANGE COUNTY NORTH CAROLINA 12 48 Economic Development Future Identify Most Marketable Sites: — GIS Site Selection Study • $15,000 to $25,000 — Scope of the Analysis • Current Economic Development Districts & Commercial Industrial Transition Activity Nodes • Examine Land Outside of Economic Development Districts — Potential Boundary Adjustments • Mebane Area Planning • Implication for Joint Land Use Plan and Water & Sewer Boundary Agreement ORANGE COUNTY NORTH CAROLINA 13 Orange County Planning Dept. Update 49 EDD Infrastructure Status � Under Construction Completion Date Transfer to Mebane 10/31/2018 by 12/30/2018 '4 • million Hillsborough EDD Bid Award Construction St;,A Final Completion 06/01/2019 07/01/2019 06/30/2020 million • EDD w Amend Engineering Bid Award Date r Starting Date Completion Date . Contract& Durham 05/01/2019 07/0/2019 millionInterlocal 07/01/2020 Buckhorn EDD'4,qF No RFQ for Bid Award Dat Startin Date Phase 3Engineering/Design g Completion Date Services 04/01/2020 06/01/2020 06/01/2021 $1.51 million `� Buckhorn EDD No RFQ for Phase 4 Engineering/Design Funding for Phase 4 may be transferred to the Hillsborough Area EDD Services 77 ' /• million 14 50 Economic Development Future Questions and Discussion ORANGE COUNTY NORTH CAROLINA 15 51 Attachment 4- B Economic Development Intergovernmental Cooperation Opportunities Brief Historical Overview As a brief review of Article 46's origin in late 2011 and the intended outcomes for Orange County, recall the economic environment at that time, both nationally and at the state and local levels, which was entering a deep economic recession causing severe budget shortfalls, rising unemployment and stagnant business growth. At the Orange County level, leadership recognized an immediate need to assist our residential homeowners, who have traditionally shouldered the largest portion of the County's annual revenue contribution, by finding ways to diversify the local tax base toward greater non-residential revenue sources (such as increased retail sales taxes, and attracting the presence of more large scale commercial and light industrial property taxpaying generators). The strong recession at that time also presented real threats to Orange County's current and future educational funding commitments for public schools, and so Article 46 was also proposed to assist that area to maintain our community's strong level of annual financial support for our local school systems. New ideas began to emerge about how to stimulate entrepreneurial, home-grown technologies, further support the local agriculture and food systems character of our region, support our many small businesses, and, encourage the growth and attraction of larger corporate taxpayers. The County's long-standing economic development districts, which had existed dormant for over 25 years, without the aid of appropriate zoning, water and sewer utilities, recruitment incentives or marketing to actually aid our economy, were determined to be critical assets that should finally receive capital support and help make them become more productive drivers for the County's long-range economic vitality. A focus to finally emphasize those economic development districts and commercial transition nodes, which are all located along the rural interstate highways,became a main envisioned use of Article 46 funding to be allocated for the County's economic development program. As a result, Board of Commissioner leadership, supported by the strong endorsement of public and public agencies, the two Chambers of Commerce, and our locally elected officials, proposed to enact a supplemental "1/4 cent retail sales tax" in early 2011. Following a year-long public information campaign on the merits of the proposed '/4 cent sales tax and its' uses, Article 46 was successfully passed by Orange County voters in a November 2011 referendum. The Orange County's Board of Commissioners then adopted a Resolution in December 2011 to outline the purpose of the new"Article 46" funds. This new revenue stream was determined to equally fund both education and economic development, and, for an initial 10-year test period. The core uses of Article 46 as proposed to voters in 2011, today generally follow the same key programs that were adopted in the Resolution by Board of County Commissioners 7 years ago. The County received the initial Article 46 funds from the N. C. Department of Revenue beginning in the spring of 2012. Since that first year, annual revenues (estimated at a total of $2.5 million in 2011) are split 50150 between Education(for Orange County Schools & Chapel Hill/Carrboro City Schools) & for the County's Economic Development program, with each group receiving approx. $1.25 million for that year. By 2018, the County's total Article 46 52 revenues are higher and projected to be approximately$3.6 million total for the new fiscal year, due to the County's steady 5% - 7% annual growth rate from our local economy's rising retail sales collections. Within the Economic Development portion of Article 46 funds ($1,825,976.00 estimated for the FY 2018-2019 budget), approximately 50% - 60% of annual proceeds have historically funded long-term debt obligations for the cost to install water& sewer lines in the County's various Economic Development districts. To date, two major utility projects to install needed infrastructure in the Efland, Buckhorn Road&Mebane areas have been completed. The County's successful recruitment of the Morinaga factory was made possible by the completion of this initial utility work. Current business prospect activity is now expanding and seriously focusing on new sites that have more recently gained utility line infrastructure. Of the remaining 50% of the County's Economic Development annual Article 46 funds, a variety of successful programs have since been created and are underway to support the growth, expansion&retention of existing small businesses,promote new business recruitment, entrepreneurial incubator support, and local agriculture & food processing. These programs, to include the award winning LAUNCH incubator, the County's small business loan and grant programs, the renowned agriculture/food processing grant program, and related collaborative business networking events held with the Towns, directly benefit the local economies of Carrboro, Hillsborough & Chapel Hill by supporting their many small businesses. Special events &new programs that further enhance the County's & Towns' economy and livability are also funded by the remaining half of Article 46 funds dedicated to Economic Development, to include the annual Orange County Agriculture Summit, the new LocalFest event, a reintroduction of the annual Orange County Economic Summit, and, innovative support for the "Orange Connect" scholarship program for Orange County's students attending the Hillsborough campus of Durham Technical Community College. In conclusion, the intent of the various economic development programs funded by Article 46 is to benefit all Orange County residents by supporting a thriving local economy. The County's various economic development programs that are supported by Article 46 have been created to broadly benefit all residents by promoting non-residential economic growth. The funding program was not proposed nor structured in 2011 to serve as a cash windfall for specific towns or regions. Actual uses of Article 46 money spent thus far is a function of the location of the Economic Development Districts' more rural interstate boundaries, and due to specific instances where significant job and revenue creating programs have thrived. Local town participation in joint funding efforts has also been a factor in shaping historic Article 46 uses. Please refer to Attachment 4 - C (slides 1 — 13) for detailed examples of use, areas of notable successes, balances in the current FY2018-19 County budget, and examples of how Article 46 funding is spread throughout the County& 3 Towns according to specific uses. 53 Improving Project Collaboration Opportunities Orange County Economic Development's staff recognizes the importance of maintaining a positive &productive working relationship with our towns' professional economic developers, planners &tourism leaders in Carrboro, Hillsborough & Chapel Hill. County staff strives to a have a mutually beneficially dialog with all agencies, and, cooperation in the sharing of information, talent and participation of all groups. At the staff working level, there is good comradery and trust among the groups. There are many examples of successful joint partnerships the County's & Towns' economic development endeavors, and much of the County's level of collaboration on major projects is tied to the availability of Article 46 funding. Our mutual County&Towns efforts include the promotion of the arts, tourism, business retention and recruitment, entrepreneurial development, and agriculture/food processing. Interpersonal working relationships are considered to be positive and effective, and efforts to further strengthen the collaboration among all staff are ongoing. Please refer to Attachment 4—C (slides 14—21) for detailed examples of Orange County's economic development activity pursued in tandem with the 3 Towns, and, on behalf of all County residents. sa Adompt- GRANGE COUNTY NORTH CAROLINA Shared Funding on Projects Article 46 Update prepared by Orange County Economic Development for the Orange County Assembly of Governments January 29, 2019 1 55 Article 46: Historic Overview • A supplemental "1/4 cent retail sales tax" was passed by Orange County voters in a Nov. 2011 referendum. • Orange County Board of Commissioners adopted a Resolution in Dec. 2011 to outline the core uses of the new "Article 46" funds. • The County received the initial Article 46 funds from the N .C. Department of Revenue beginning in the Spring of 2012. • Annual revenues (estimated at $2.5 million total in 2011 ) are split 50/50 between Education (Orange County Schools & Chapel Hill/Carrboro City Schools) & Economic Development, with each group to receive approx. $1 .25 million. • By 2018, the County's total Article 46 revenues were projected to be approx. $3.6 million for the new fiscal year, due to a steady 5% - 7% annual growth rate in the local economy's retail sales collections. ORANGE COUNTY NORTH CAROLINA 56 Article 46: Historic Overview • Within the Economic Development portion of Article 46 funds ($1 ,825,976.00 estimated for the FY 2018-2019 budget), approx. 50% - 60% of annual proceeds have historically funded long-term debt obligations for the cost to install water & sewer lines in the County's various Economic Development districts. To date, 2 major utility projects to install needed infrastructure in the Efland, Buckhorn Road & Mebane areas have been completed. • The County's successful recruitment of the Morinaga factory was made possible by the completion of this initial utility work. Current business prospect activity is expanding and focusing on new sites that have more recently gained utility line infrastructure. • Of the remaining 50% of Economic Development's available Article 46 funds each year, a variety of successful programs are underway to support the growth, expansion & retention of existing small businesses, promote new business recruitment, entrepreneurial incubator support, and local agriculture & food processing. uKANGE COUNTY NORTH CAROLINA 57 Article 46: Historic Overview • These programs, to include the award winning LAUNCH incubator, the County's small business loan and grant programs, the agriculture/food processing grant program, and related collaborative business networking events held with the Towns, directly benefit the local economies of Carrboro, Hillsborough & Chapel Hill by supporting their many small businesses. • Special events & new programs that enhance the County's & Towns' economy and livability are also funded by the remaining half of Article 46 funds, to include the annual Orange County Agriculture Summit, the new LocalFest event, a reintroduction of the annual Orange County Economic Summit, and, innovative support for the "Orange Connect" scholarship program for Orange County's students attending the Hillsborough campus of Durham Technical Community College. • In conclusion, the intent of the various economic development programs funded by Article 46 is to benefit all Orange County residents by supporting a thriving local economy. ORANGE COUNTY NORTH CAROLINA 58 Orange County's Resources for Economic Development Funding for FY 20187-19 Categ^r%lr1 ' riding Source Total • - Orange County Arts $1935725.00 Hotel Occupancy Tax, Commission State & County Arts Grants Orange County $513,461 .00 Orange County General Economic Development Fund Orange County Visitors $17689,036.00 Hotel Occupancy Tax Bureau Article 46 $17825,976.00 '/4 Cent Retail Sales Tax TOTAL $492229198.00 ORANGE COUNTY NORTH CAROLINA 5 Article 46 Sales Pax Budgeted Allocations for Orange County Economic Development LocalFest Event Project Connect p $35,000 Scholarships at Projects in Orange Durham Tech Orange County $200,000 County in FY 2018-19 Economic Summit $30,000 Orange County Agricultural Summ' $5,000 Debt Service on Economic Incentive Payments Development $347,835 Districts' Utility Infrastructure $814,641 Small Business Investment Grants $150,000 Utility Service Agreement with Agricultural Grants. Mebane $50,000 $100,000 Collaborative Launch Chapel Hill J Outreach & Marketing Incubator $73,500 $20,000 ORANGE COUNTY NORTH CAROLINA 6 60 Article 46 Sales Tax — Budgeted Allocations for Economic Development Projects in Orange County in FY 2018-19 Economic Developmentof Proceeds1 • Of Total Debt Service on Economic Development Districts' Utility Infrastructure $814,641.00 44.61% Utility Service Agreement with Mebane $50,000.00 2.74% Collaborative Outreach & Marketing $20,000.00 1.10% "Launch Chapel Hill" Incubator $73,500.00 4.03% Agricultural Grants $100,000.00 5.48% Small Business Investment Grants $150,000.00 8.21% Incentive Payments $347,835.00 19.05% Agricultural Summit $5,000.00 0.27% Orange County Economic Summit $30,000.00 1.64% LocalFest Event $35,000.00 1.92% Orange County Project Connect Scholarships at Durham Tech $200,000.00 10.95% Total $1,825,976.00 100% ORANGE COUNTY NORTH CAROLINA 7 61 Article 46 Sales Tax — Total Economic Development Expenditures (2012 to present) Mebane 4% Hillsborough 12% 1 County & I Municipalities 17% • • r r,I OR, in County & $1,462,220 Municipalities County only $4,408,891 Chapel Hill 13% Carrboro $143,104 Chapel Hill $1,066,689 Hillsborough $1,029,704 Carrboro-,,"' 2% Mebane $300,000 County 52% ORANGE COUNTY NORTH CAROLINA 8 Article 46 Sales Tax - Total Economic Developmefft Expenditures (2012 to present) Expenditures County &All County Only . . Chapel Hill Hillsborough - . . Municipalities Advertising & $18,333 ■ Marketing Agricultural Investment Grants $195,128 $47,961 $125,046 $34,115 Small Business Investment Grants $24,455 $74,860 $329,228 $225,138 Consultant Studies $6,730 $75,000 Demographic Software $72,595 Orange Connect (Durham Tech $214,917 Scholarships) Entrepreneurship** $63 $307,000 Agriculture Support $176 Special Events* $108,306 $22,500 Incentives $1,041,100 Small Business Loans $47,000 $30,000 $360,000 $679,520 Utility Debt Service $4,067,308 $38,244 $300,000 Total $1,462,220 $4,408,891 $143,104 $1,066,689 $1,029,704 $334,115 *Special Events category includes the annual Orange County Agriculture Summit,Orange County Economic Summit, LocalFest,&joint Orange County&Chapel business networking events held at Carolina Inn ORANGE COUNTY **Entrepreneurship includes support for the Launch Chapel Hill incubator and Hillsborough's Piedmont Food NORTH CAROLINA 9 Processing Center food incubator 63 Article 46 Sales Tax Projections Forecast of Article 46 Revenue Growth for Economic Development Projects Compared to Water & Sewer Debt Service Obligations $2,500,000 Article 46 Revenue (growth a $2,221,579 (gth trend i t $2,136,134 5% - 7% per year) $2,053,975 $1,974,976 $2,000,000 - - $1,825,976 $1,755,746 - $1,500,000 Discretionary Spending $1,020,297 , $932,524 $940,810 $869,736 $915,042 $842,519 $1,203,610 $1,201,282 $1,000,000 $1,132,457 $1,138,933 $1,029,279 Water & Sewer Debt Service $814,936 $814,641 (historically accounts for 50% of $500,000 Article 46's annual revenues FY2017-18 FY2018-19 FY2019-20 FY2020-21 FY2021-22 FY2022-23 FY2023-24 ORANGE COUNTY NORTH CAROLINA 10 Orange County's Use of Article 46 Funding to Collaborate wig Towns on Joint Economic Development Projects Town of Chapel Hill • LAUNCH incubator: 50/50 cost sharing to co-fund the facility's lease payments (2012 to present.) County & Town of Chapel Hill each pay $73,500.00 per year. • Marketing campaign via WCHL1360 AM radio to promote Town & County-wide tourism (2013). • Co-funding of the "Urbana" consultant's property tax & urban density study for the Town, supported in partnership with the Chapel Hill/Carrboro Chamber of Commerce (2014). • LAUNCH incubator: 50/50 cost sharing to co-host 2 business networking events (2014 & 2015). • Business networking & speaker series conference events held at Carolina Inn, supported in partnership with the Town and assisted by Chapel Hill Magazine (2016 & 2017). • Joint recruitment & incentive commitment by the County & Town for Wegmans Food Markets' new 99,000 sq. ft. retail store (2016); the upcoming 5-year payment of the County's & Town's joint financial incentives to Wegmans, to be split 50/50, will not begin until approx. 2022. • Cumulative value of Article 46 funds used by the County since 2012 to approve small business grants & small business loans provided to Chapel Hill-based firms, including LAUNCH incubator tenants. ($737,189.00) ORANGE COUNTY NORTH CAROLINA Orange County's Use of Article 46 Funding to Collaborate wifib Towns on Joint Economic Development Projects Town of Hillsborough • Cumulative value of Article 46 funds used since 2012 to approve small business grants & small business loans, and agriculture grants for Hillsborough-based firms, including food processing tenants at the Piedmont Food Processing Center. ($1,029,704.00) • County has plans in 2019 — 2020 to extend sewer to serve commercial & light industrial sites within the Hillsborough Economic Development District, located at the southwest quadrant of Interstate 40 and Old N.C. 86. City of Mebane • Orange County pays a $50,000 annual "Utility Service Agreement") to Mebane to guarantee a reserve capacity of 250,000 gal/day of sewer to serve the Economic Development District sites in the Efland, Buckhorn Road & Mebane region in western Orange County. • County has previously completed one sewer line project (connecting to the factory Morinaga) to serve commercial & light industrial sites within the Buckhorn Economic Development District in western Orange County, and has recently completed Phase II of the Efland-Buckhorn-Mebane sewer line extension project. ORANGE COUNTY NORTH CAROLINA Orange County's Use of Article 46 Funding to Collaborate wig Towns on Joint Economic Development Projects Town of Carrboro • Cumulative value of Article 46 funds used since 2012 to approve small business grants & small business loans for Carrboro-based firms ($104,860.00). • Co-funding by the County & Town in 2012 to provide the 25% required co-pay for a "Community Development Block Grant" (CDBG) awarded by the N.C. Department of Commerce to repair a failing privately-owned sewer line located along Roberson Street. • Previous proposal by the Town regarding a desire to have municipal water brought to several business tracts located along N.C. 54 West, in order to create fire protection sprinkler service for those sites, and request the County's financial participation from Article 46. (2012, 2013 & 2014). • Previous proposal by the Town to have municipal water and sewer brought to a 20-acre Town- owned site located along Old N.C. 86 for the purpose of creating a business park. (2016 & 2017). • Current proposal by the Town to seek Article 46 or other funding from the County to provide for additional parking (to include construction of a desired parking deck or a parking lot) to serve the planned 203 S. Greensboro Street library & town offices project. • Current proposal by the Town to seek Article 46 or other County funding to help pay for new wayfinding signage in downtown Carrboro (up to $400,000 total cost). ORANGE COUNTY NORTH CAROLINA 67 Improving Project Collaboration Opportunities Orange County & Towns General Comments • Orange County Economic Development's staff recognizes the importance of maintaining a positive & productive working relationship with our towns' economic developers, planners & tourism professionals in Carrboro, Hillsborough & Chapel Hill, and strives to have a collaborative dialog with all agencies. • There are many examples of successful joint partnerships the County's & Towns' economic development endeavors, and much of the County's level of collaboration on major projects is tied to the availability of Article 46 funding. Our mutual efforts include the promotion of the arts, tourism, business and agriculture. • Interpersonal working relationships are considered to be positive and effective, and efforts to further strengthen the collaboration among all staff is ongoing and desired. ORANGE COUNTY NORTH CAROLINA 68 Examples of Economic Development Collaboration Between the County & Towns Small Business - retention & expansion of existing firms • Manage the County's marketing of small business Loan and Grant programs & disburse all funds — all 3 Towns. • Co-host various joint County & Chapel Hill business networking events for existing small businesses (includes LAUNCH incubator cohorts). • Co-fund the LAUNCH incubator in Chapel Hill to support the growth of emerging high-tech entrepreneurial firms. • Encourage joint County & Town visitation program with existing small businesses. • Hosted the joint County & Town participation in the U.S. Small Business Administration's recent Disaster Recovery workshop for firms impacted by Hurricane Florence. ORANGE COUNTY NORTH CAROLINA 1 5 69 Examples of Economic Development Collaboration Between the County & Towns Orange County Small Business Grant Program (total since 2014) • 125 grants provided to existing small businesses in our 3 Towns. • $653,681 .00 in total grants awarded. Orange County Agriculture Grant Program (total since 2009) 55 grants provided to existing ag & food processing businesses in our 3 Towns. $402,249.98 in total agriculture grants awarded. Orange County Small Business Loan Fund (total since 2009) • 22 loans provided to existing small businesses in our 3 Towns. • $974,848.00 in total loans awarded. Orange County Arts Commission (for FY 2018-19) 38 grants were funded to 28 artists, 21 organizations & 10 schools in our 3 Towns. • $61 ,394.00 in Orange County & NC Arts Council funds were awarded • 29% increase in applications received over the previous year vKANGE COUNTY NORTH CAROLINA 70 Examples of Economic Development Collaboration Between the County & Towns New Business Recruitment - increasing jobs & investment • County's & Towns' economic development staff routinely attend joint marketing and business development events, & invite participation. • Conduct joint marketing of County's & Town's identified real estate sites and buildings to business prospects. • Trust to share activity of leads, prospect visits & updates on overall prospect activity. • Joint presentations have been made to the State of NC's main business lead generator: Economic Development Partnership of North Carolina (EDPNC) • Ongoing partnership have been successful between the County and Towns with business development prospects, to include the successful recruitment with Chapel Hill to attract Wegmans, and with Hillsborough for the expansion of Yep Roc Records/REDEYE. ORANGE COUNTY NORTH CAROLINA 71 Examples of Economic Development Collaboration Between the County & Towns Workforce Development - examples of school collaborations • Orange County Economic Development staff meet with and advise the Career and Technical Education (CTE) curriculum planners with the Orange County Schools & Chapel Hill/Carrboro City Schools, and with staff from Durham Technical Community College — Hillsborough campus New Ideas for 2019 - building relationships among agencies • Explore closer liaison with County-wide marketing & programs & advertising • Increase the frequency of joint County & Towns' business prospect recruiting • Increase our mutual internal dialog and resources to support workforce development. ORANGE COUNTY NORTH CAROLINA 18 72 Examples of Tourism Economic Development Collaboration Between the County & Towns Tourism Promotion - County's efforts on behalf of our Towns • Visitors Bureau advertises and promotes the Towns' local festivals in the County's visitor guides and materials, and via online social media programs and newsletters. • Visitors Bureau supports local major events that bring tourists to area, including Chapel Hill's TerraVITA event and the Ackland Art Museum, The Carrboro ArtsCenter, Hillsborough's Hog Day, the northern Orange County equestrian Polo Tournament, and the Hillsborough Chamber of Commerce's annual events. • Visitors Bureau staff works with OUR STATE magazine to run feature stories on tourism happenings in Chapel Hill, Carrboro and Hillsborough. • Visitors Bureau sales staff works with the Towns' local hotels on leads, and to refer business each week to those hotels with group meeting space. ORANGE COUNTY NORTH CAROLINA 19 73 Examples of Tourism Economic Development Collaboration Between the County & Towns Tourism, continued • Visitors Center staff make daily referrals to walk-in visitors who visit each day regarding local hotels, restaurants, shopping and tourism attractions. • Produces the Orange County Visitors Guide book featuring information on all 3 towns, and distributes at RDU Airport and "Visit NC" interstate Welcome Centers. • Prepares regular public relations support of the County's major tourism events occurring in all 3 towns, and advertises through PR Newswire. • Hosts frequent travel media press visitors and gives tours of the area. • Produces the "This is Tourism" segment on WCHL1360 radio to amplify local event happenings in all 3 towns. • Orange County stakeholders, which includes representatives from all 3 towns and UNC, sit on tourism's advisory board which meets monthly and reviews tourism programming and upcoming initiatives. ORANGE COUNTY NORTH CAROLINA 20 74 Examples of Arts & Economic Development Collaboration Between the County & Towns The Orange County Arts Council actively supports artists in our Towns: • In partnership with the Hillsborough Arts Council, the Orange County Arts Council hosted the 2nd annual "Paint it Orange: Plein Air Paint-out & Wet Paint Sale", as a fundraiser for OCAC and HAC drawing artists from four states. • Served as part of leadership team in the coordination of the inaugural Orange County LocalFest, which attracted approximately 1 ,500 visitors. • Working in partnership with Orange County Department of Parks and Recreation to determine needs of new stage and event infrastructure in River Park, enabling the venue to host more large-scale events. • Sponsored the annual River Park Concert, which drew approximately 4,000 to Downtown Hillsborough. • Serving on Varsity Task Force to determine future of possibly performing arts venue in downtown Chapel Hill. ORANGE COUNTY NORTH CAROLINA