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Town of Chapel Hill
RFQ Pre-Proposal Conference
Downtown Economic Development Initiative
January 11, 2005
Presentation Overview
• 10 Reasons to Pursue this Development Opportunity
• Town of Chapel Hill
• The Pre-Development Process
• Development Sites and Building Programs
• Submittal Requirements
Ten Reasons Why Developers should Pursue this Development Opportunity
1. Critical pre-development steps have been completed.
2. Strong market demand for building uses.
3. Potential Town re-investment.
4. Community interest in implementation.
5. Town owns Phase One sites; costs of site work included in finance plan.
Ten Reasons Why Developers should Pursue this Development Opportunity
6. Lot 5 is key Franklin Street parcel.
7. Financing assumes financial assistance from Town for underground parking.
8. Town consultant on project experienced in public-private finance and development.
9. Council Committee focused solely on project.
10. Community input achieved throughout the predevelopment process.
Town of Chapel Hill
• One of the three “points” of the Triangle region, which Money magazine recently named the #1 “Best Place to Live in the South.”
• Other recent accolades:
– #1 Best Place to Live: MSN House & Home's America's Places to Live, 2003
– #2 city on A&E Channel’s “Top Ten Cities to Have It All,” 2000
– #1 Best Place to Live and Work: Employment Review, June 2003
– #3 Best Places to Reinvent Your Life, AARP, May - June 2003
Town of Chapel Hill
• Local school system considered to be one of the best in the nation.
• Home of the University of North Carolina at Chapel Hill (26,028 enrollment).
• Served by Raleigh-Durham International Airport (RDU), 20 minutes east.
• Chapel Hill Transit offers free passenger bus service throughout Chapel Hill and Carrboro.
Town’s ProcessInitial Steps
Adoption of Small Area Plan, Downtown Design
Workshops, Principles and Priorities for Lots 2 and 5,
Council Committee Formed
ERA conducted Market Demand Study
HKS explored site development opportunities
for four sites
Financial Analysis drafts completed by SPPRE
Other studies completed: Appraisals, Phase I
Environmental Assessment, Geotechnical Analysis,
Wallace Deck Structural Analysis
Public InputPublic Input
Future StepsDeveloper Short-List,
Selection, Negotiations, Town Approval Process,
Construction
Public Input
Public Input
SPPRE hired to manage process
Council authorized Developer selection
process
Council approved building program for four
sites to be included in financial analysis
Council approved uses for preliminary Building Program
Steps 1-3: Studies Completed before November 2003
• Downtown Chapel Hill Small Area Plan (A Component of the Chapel Hill Comprehensive Plan), Adopted March 2000
• Downtown Chapel Hill Design Workshop Summary Report, May 13, 2002
• Council Principles & Priorities for Use of Parking Lots 2 and 5, Adopted by Chapel Hill Town Council, February 24, 2003
Step 4: Market Demand Analysis
• ERA conducted analysis in Spring 2004
• Residential Demand 308 to 386 units over 5 years
• The affordable housing component will be easily absorbed
• Estimated minimum amount of Retail Space of 112,000 SF
Step 5: Proposed Building Program
Phase One:
Lot 5 Development– Retail Space at Street Level: 30,250 GSF– Housing: 128 Units– Pedestrian Space: 28,300 GSF– Parking Spaces: 539
Expansion of the Wallace Deck– Retail Space: 4,000 GSF– Housing 109 Units– Pedestrian Space: 12,200 GSF– Parking Spaces: 400 (80 new)
Step 5: Proposed Building Program
Phase Two:
Lot 2 Development– Housing: 68 Units– Retail Space: 20,100 sf– Pedestrian Space: 14,600 sf – Parking spaces (at Lot 2): 0– Transit Transfer Center: 43,500 sf
Town Garage (RBC Site)– Parking Spaces: 343– Retail: 8,400 sf
Step 6: Explore Site Development Opportunities
• HKS developed concepts
• Scope of project expanded to include Wallace Deck, RBC site
• Site development opportunities explored for each site
Step 7: Total Development Budgets
Phase One: Wallace Deck (Private): $19,936,247
Lot 5 (Private): $30,099,046Parking (Public) $8,950,471Total: $58,985,764
Phase Two:Lot 2 (Private): $14,558,605Transit Ctr. (Public): $2,598,716
RBC Site (Private): $0Town Garage (Public): $6,149,537Total: $23,306,858
Phase One and Phase Two (Public and Private)Total: $82,292,622
Step 8: Summary of Financial Analysis
• SPPRE completed Financial Analysis for each public and private development component.
• Financial measurements for each private development component meet the current requirements of the current capital market.
Step 10: Current Public/Private Finance Plan
Private Components:Proposed private development components should be able to be financed with traditional debt and equity.
Public Components:Other than the Town Garage at RBC, the public development components can be financed with Town-issued bonds supported solely by the non-tax income generated by the private development projects.
Two-Phase Development
Phase One: Parking Lot 5, Wallace Deck
• Two mixed-use developments totaling $59,000,000.
Phase Two: Parking Lot 2, RBC Site
• Two mixed-use projects totaling $23,300,000.
Two-Phase Development
Town is willing to consider awarding Phase Two to the developer selected for Phase One. – The award of Phase Two is dependent on
Phase One performance.– The Council reserves the right not to award
Phase Two for any or no reason.
Phase 1: Lot 5
Studies Completed at Lot 5
• Soil borings encountered bedrock across the site at varying depths
• Environmental Assessment has been performed.
• Land Appraisal and Opinion of Value Completed
Phase 1: Lot 5
Exploration of Site Development Possibilities
• Concepts:
–Significant public space
–Underground parking to increase amount of public space
–Four- and six-story buildings: street-level retail; residential above
–Improvements in Church Street right of way to make more pedestrian-friendly
Phase 1: Lot 5
Proposed Building Program
Residential-Market Rate: 128,480 sf (102 DU’s)
Residential-Affordable: 32,120 sf (26 DU’s)
R/D/E development: 30,250 sf
Open space/plaza area: 28,300 sf
FAR: 2.55 FAR
Parking spaces supplied: 539
(includes 173 replacement)
Phase 1: Wallace Deck
Studies completed at Wallace Deck
• Structural Analysis concludes that the parking garage can safely support a new 3 to 4 story light residential structure and roof.
Phase 1: Wallace Deck
Exploration of Site Development Possibilities
• Concepts:
– Public plazas
– Four-story residential building on top of deck
– Retail space at Henderson and Rosemary Street, with residential above
– Extension of Wallace Deck to Henderson Street
– Potential pedestrian bridge to BofA Plaza
Phase 1: Wallace Deck
Proposed Building Program
Residential-Market Rate: 109,120 sf (87 DU’s)Residential-Affordable: 27,280 sf (22 DU’s)R/D/E development: 4,000 sfOpen space/plaza area: 12,200 sfFAR: 2.66 FARExisting Parking: 320 spacesNew Parking: 80 spacesDemand: 172*
* Developer would construct 80 new parking spaces and lease an additional 92 spaces from the Town at RBC Garage.
Phase 2: Lot 2, RBC
Studies Completed at Lot 2
• Soil Borings report has been completed and found weathered rock at 42.5 feet and intact bedrock at 47 feet.
• Environmental Assessment has been completed.
Phase 2: Lot 2, RBC
Proposed Building Program
Residential-Market Rate: 67,840 sf (54 DU’s)
Residential-Affordable: 16,960 sf (14 DU’s)
R/D/E development: 20,100 sf
Open space/plaza area: 14,600 sf
Parking spaces supplied (RBC): 343 spaces
Parking demand: (inc 101) 203 spaces
Phase 2: Lot 2, RBC
Exploration of Site Development Possibilities
• Concepts:
–Public spaces
–Four- and six-story buildings: street-level retail with residential above
–Under-grade transit transfer station
–Potential connection to Bank of America Plaza
–Build parking deck at RBC site with pedestrian bridge across Rosemary to Lot 2 development
Required Submittal
1. Detailed Information on Developer
2. Qualifications of the Multi-disciplinary Team
3. A Detailed Description of Mixed-Use and Public/Private Partnership Experience
4. The Developer’s Assessment of Market Demand and Initial Building Program
5. The Initial Public/Private Finance Concept
6. The Proposed Conceptual Working Relationship with the Town
7. References for the Developer