The Chapel Hill-Carrboro Chamber of Commerce hosted its Orange County Development Briefing, 8-10 a.m, Tuesday, Sept. 20, 2011 at the Friday Center for Continuing Education in Chapel Hill. Commercial and residential real estate professionals, planners and economic developers presented the latest trends about the local markets, new economic development initiatives, and the status of approved projects in Orange County and its municipalities at the fifth annual event. Speakers included Mark Zimmerman of RE/MAX Winning Edge; John Morris of Morris Commercial; and Gordon Merklein, UNC’s executive director of real estate development. The event is presented by Time Warner Cable Business Class and sponsored Duke Energy, The UPS Store and the 2011 Chamber Master Sponsors.

1. Orange County
Development Briefing
Tuesday, September 20
Friday Center

2. WELCOME
Aaron Nelson
President and CEO

3. Presenting Sponsor

4. Breakfast Sponsor

5. Bronze Sponsors

6. 2011 Annual Community Champions

7. 2011 Annual Platinum Sponsors

8. 2011 Annual Gold Sponsors

9. 2011 Annual Gold Sponsors

10. Special Thanks to Our Newest
Annual Gold Sponsor

11. Welcome from Presenting Sponsor
Justin Lyle-Purdy

12. Residential Development
Update
Mark Zimmerman
RE/MAX Winning Edge

13. Orange County
Development Briefing
The Residential Real Estate Market
September 20, 2011
Mark Zimmerman
All data provided by Triangle Multiple Listing Service and
10K Research and Marketing

16. Remember the Tax Credits
• Extended through June, 2010
• Affected full market
– 1st time home buyers
– Repeat home buyers
• Market was artificially stimulated
– 3rd Qtr transactions shifted to 2nd Qtr
• 2010 Market Dislocated
– 1st Half Overstated
– 2nd Half Suffered

18. 2011 – It’s all Relative
• 1st Half – (YTD June, 2011)
– Triangle
• Sales down -17.3%
• 125 Days on Market (vs 102 YA +23.1%)
• Inventory down -13.0%
• Months Supply growing 11.4 (vs 10.2 +11.6%)
– Orange County
• Sales down -2.6%
• 124 Days on Market (vs 99 YA +25.4%)
• Inventory down -7.7%
• Months Supply up a bit 12.4 (vs 12.1 YA +2.4%)

19. What’s Happening Since Then?
• Triangle
– Sales
• July +7.5%, August +22.9%
– Days on Market
• July 130 (vs 103 +25.8%), Aug 126 (vs 110 +15.0%)
– Inventory -19.2%
• Months Supply July 11.0, August 10.3 (-4.4% YA)
• Orange County
– Sales
• July -6.3%, August +3.7%
– Days on Market
• July 125 (vs 117 +6.6%), Aug 122 (vs 129 -5.4%)
– Inventory -16.8%
• Months Supply July 11.8, August 10.6 (-10.7% YA)

20. Year Will Slowly Get Better
• YTD through August
– Triangle
• Sales -10.1%
– Orange County
• Sales -2.3%

22. Urban Orange
• Hillsborough
– Sales
• July -37.9%, August +46.7%
• YTD -4.4%
– 118 Days on Market (vs 87 YA +35.7%)
– Inventory -8.1%
• Chapel Hill/Carrboro
– Sales
• July +2.6%, August -8.3%
• YTD -2.5%
– 136 Days on Market (vs 133 YA +2.0%)
– Inventory -15.5%

23. Orange County – Aug, 2011
Price Listings % Chg v YTD Sales % Chg v Month Ave DOM
YA YA Supply
0-149 84 +9% 97 +29.3% 7 116
150-199 72 -4% 70 +34.6% 8 123
200-299 148 -8% 147 -9.3% 8 125
300-399 97 -29% 130 +4.0% 6 145
400-599 142 -10% 136 +11.5% 8 116
600-799 68 -8% 48 -7.7% 11 109
800+ 73 -14% 36 +38.5% 16 118
Total Detached 686 -10% 664 +8.0% 8
Condo 153 -21% 71 -39.3% 17 136
Townhouse 96 -11% 95 -14.4% 8 122
Total 935 -13% 830 -1.4% 9 125

24. New Construction
• Triangle – 2nd Qtr
– Sales down -27% vs YA
– Inventory down -24% vs YA
– List price down -5% vs YA
– Supply down to 5 months (same as YA)
• Framed new homes 4 month supply
– Pendings down -8% vs YA
– Showings down -9% vs 1st Qtr

25. New Construction – 2nd Qtr
Orange County
Price Listings % Chg v YA YTD Sales % Chg v YA Supply
0-149 2 n/a 2 n/a 6
150-199 6 -40% 13 +63% 3
200-299 10 -23% 2 -60% 30
300-399 18 +50% 13 +44% 8
400-599 23 +77% 8 -20% 17
600-799 6 -14% 3 -25% 12
800+ 10 -33% 2 +100% 30
Total Detached 75 -7% 43 +10% 10
Condo 52 -33% 3 -77% 104
Townhouse 10 -58% 26 +24% 2
Total 137 -20% 72 -1% 11

26. Summary
• 1st Half
– Tax Credit Relativity
• 3rd Quarter
– Positive Trend off low base
• 4th Qtr & Beyond
– ?????

28. Introduction by Joanne Fiore

29. Commercial Development
Update
Dwight Bassett
Economic Development Officer
Town of Chapel Hill

30. Development Update
Retail, Office and Flex Space in Orange County

31. Date
Center opened Leasable Vacant Rate
Glen Lennox DNR 26,032 0 0.00%
The Galleria NA 35,000 0 0.00%
University Square 1969 39,868 0 0.00%
North Hill Ctr 1963 46,000 4,953 10.77%
East 54 2009 52,575 9,819 18.68%
Orange Glenwood Square
Willow Creek
Village Plaza
1987
1983
1974
53,000
57,616
63,327
2,660
8,200
0 0.00%
4.62%
12.95%
County Churton Grove
Cole Park Plaza
Carr Mill Mall
2003
1988
1977
65,225
82,258
88,000
10,000
21,973
3,250
15.33%
26.71%
3.69%
Retail Chapel Hill North
Chatham Crossing
1998
1998
93,266
95,933
5,246
9,700
5.62%
10.11%
Meadowmont 2001 96,740 7,571 7.83%
Space Hillsborough Commons 1989 107,000 35,000 32.71%
Timberlyne 1984 112,925 0 0.00%
Ram's Plaza 1982 113,557 6,563 5.78%
Carrboro Plaza 1985 125,000 0 0.00%
Eastgate 1958 155,442 0 0.00%
University Mall 1973 366,173 41,680 11.38%
TOTAL 1,874,937 166,615 8.31%

32. Retail
Chapel Hill/Orange County
80,000 12.00%
60,000
10.00%
40,000
8.00%
20,000
0 6.00%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 1Q2011
-20,000
4.00%
-40,000
2.00%
-60,000
-80,000 0.00%
Absorption Vacancy
Data courtesy of Grubb & Ellis | Thomas Linderman Graham

33. Orange County Retail Vacancy
8.31%
32.71%
26.71%
18.68%
15.33%
12.95%
11.38%
10.77%
10.11%
7.83%
5.78%
5.62%
4.62%
3.69%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0 0.05 0.1 0.15 0.2 0.25 0.3 0.35

34. Retail

35. Class Name Total Vacant %
A East 54 113,000 43,154 38.19%
A Exchange East 60,000 16,258 27.10%
A The Exchange 135,000 2,685 1.99%
A Meadowmont Village I 73,095 2,044 2.80%
A Meadowmont Village II 35,471 4,932 13.90%
A
A
A
A
Chapel Hill 40 - Boyd
Chapel Hill 40 - Dawson
Europa Center
Franklin Park
50,518
70,516
180,000
57,000
20,057 39.70%
52,348 74.24%
50,718 28.18%
14,793 25.95%
Office Market
A Southern Village - 400 Mkt 20,000 0 0.00%
A Southern Village - 410 Mkt 48,000 0 0.00%
A Pavillion II 25,842 14,360 55.57%
A Southern Village - 300 Mkt 44,500 2,200 4.94%
A Pavillion I 26,076 1,599 6.13%
A Castalia 47,920 1,100 2.30%
A Greenbridge 36,000 24,562 68.23%
A 201 Sage Rd 37,000 0 0.00%
B 109/111 E Franklin 10,846 2,500 23.05%
B Pegasus Office 12,500 0 0.00%
B Forum 1 16,800 7,600 45.24%
B Howell Bldg 10,800 0 0.00%
B BOA Bldg 100,866 13,121 13.01%
B 151 E Rosemary 14,000 0 0.00%
B 605 Eastowne Dr 11,167 1,311 11.74%
B Chapel Hill 40 - McClamroch 43,841 0 0.00%
B East Ridge Offices 14,300 12,182 85.19%
B University Square 73,522 0 0.00%
B Carr Mill 55,000 6,884 12.52%
B 400 Roberson St 18,000 0 0.00%
B Chapel Hill Professional Village 29,500 7,184 24.35%
B Eastowne Office Pk 12,195 1,002 8.22%
Office Space 2nd qtr 2011 -
Orange County
Total Vacant %
1,483,275 302,594 20.40%

36. Office Market
200,000 25.00%
150,000
20.00%
100,000
15.00%
50,000
10.00%
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 1Q2011
5.00%
-50,000
-100,000 0.00%
Absorption Vacancy*
Data courtesy of Grubb & Ellis | Thomas Linderman Graham

37. Office Market
1,494,859
1,600,000
1,400,000
1,200,000
1,000,000
800,000
600,000
306,347
400,000
200,000
20.49%
0
Total Vacant %
Office Space 2nd qtr 2011 - Orange County

38. Orange County Flex Space
Building Rentable SF Vacant SF Vacant %
Chapel Hill Industrial 22,727 11,364 50.00%
Chapel Hill Industrial, Bldg 1 22,000 11,000 50.00%
Hillsborough Business Ctr 266,000 5,704 2.14%
The Harris Bldg 21,000 0 0.00%
505 Meadowlands Dr 15,600 9,600 61.54%
515 Meadowlands Dr 12,000 2,000 16.67%
600-610 Cornerstone Ct 24,000 0 0.00%
TOTAL 383,327 39,668 25.76%

39. Orange County Flex Space
Flex Space - Orange County % Vacant
600-610… 0%
515 Meadowlands Dr 17%
505 Meadowlands Dr 62%
The Harris Bldg 0%
Hillsborough… 2%
Chapel Hill… 50%
Chapel Hill Industrial 50%
0% 10% 20% 30% 40% 50% 60% 70%

40. Orange County - Warehouse
Leasable
Building SF Vacant SF
A Southern Season 80,000 0
532 Three Sisters Road 10,500 0
E. Washington - Mebane 383,000 0
343 Elizabeth Brady 16,200 0
TOTAL 489,700

41. Orange County - Warehouse
TOTAL
489,700
343 Elizabeth Brady 16,200
E. Washington - Mebane 383,000
532 Three Sisters Road 10,500
A Southern Season 80,000
0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 500,000
Vacant Leasable SF

42. Orange County – All Sectors
Leasable Square Feet
Retail
Office A 1,059,938
Office B 459,019
Office Office Total 1,518,957
Flex 383,327
Flex Warehouse 489,700
Retail 1,874,937
Warehouse

43. Orange County – All Sectors
Leasable Square Feet
Retail 1,874,937
Warehouse 489,700
Flex 383,327
Office Total 1,518,957
Office B 459,019
Office A 1,059,938
0 500,000 1,000,000 1,500,000 2,000,000

44. Orange County – All Sectors
Vacancy by Sector
Retail 8%
Warehouse 0%
Flex 26%
Office Total 19%
Office - Class A 23%
Office -Class B 16%
Vacancy - Flex Space
0% 5% 10% 15% 20% 25% 30%

45. The Edge
John Morris
Morris Commercial

48. Obey Creek
Ben Perry
East West Partners

49. Aerial
Location
Map

50. Concept Plan

51. Sections

52. Lloyd Property
Jack Smyre
The Design Response

53. Vicinity Map
Site
*

54. Area Map

55. Aerial Photograph

56. Vision 2020

57. “Available Commercial Projects
and Redevelopment Opportunities”
Excerpt from:
Creating Carrboro’s Economic Future
by Regional Technology Strategies, Inc.
September 2006

58. Carrboro Zoning Map

59. B-4 Zoning District
Excerpt from:
Town of Carrboro - Land Use Ordinance
Article IX Zoning District and Zoning Map

60. Argus Development Group
Representative Project Elements

61. Argus Development Group
Representative Project Elements

62. Existing Conditions
• Existing Zoning-
B-4 16.62 AC
R-10 22.51 AC
R-20 0.95 AC
• Total 40.08 AC
• Two (2) Single-
Family Detached
Residences
• Detached Garages
& Storage Buildings
• Cow Pasture
• Two Driveways on
Old Fayetteville Rd.

63. Initial Site Analysis

64. Photos of Site
Tree Stand Behind Main House Tree Stand in Front of Main House
Hardwood Stand Old Fayetteville Road at Pond
Hardwood Stand South of Power Station

65. Balanced Site Approach

66. Development / Preservation Ratio
• Approximately 24 acres (60%) developed
• Approximately 16 acres (40%) preserved

67. Development Envelopes

68. Initial Illustrative Concept Plan

69. Access & Circulation

70. Development Program
● Grocery store anchored (50-55,000 SF)
● Junior anchors (6-30,000 SF each)
● Minor retail/office space (25-30,000 SF)
● Outparcels (restaurants / pharmacy / etc.)
175,000 +/- SF of retail/office space total
(plus <10,000 SF of R-10 non-residential space)

71. Implementation of the Concept Plan
Zoning Map Amendment (R-10 to B-4-CU) for a
portion of the site
&
Conditional Use Permit

72. Carrboro Plaza & Lloyd Property

73. Carolina North and
123 W. Franklin
Gordon Merklein
University of North Carolina

74. Carolina North
and
123 West Franklin Update

75. Carolina North – Research Building
Proposed Research
Building site

76. Carolina North – Research Building

77. 123 West Franklin Project Update
• Design Process
– First public input session – October 2009
• Concept Plan Review
– Community Design Commission – October 2010
– Town Council – November 2010
• Special Use Permit
– Formal SUP submittal on 08-16-2011
– SUP Public Meeting on 09-08-2011
– SUP Town Staff meeting on 09-22-2011
• Groundbreaking
– Spring 2013?

78. 123 West Franklin Project Update

79. 123 West Franklin Project Update

80. 123 West Franklin Project Update

81. 123 West Franklin Project Update

82. 123 West Franklin Project Update
82

83. 123 West Franklin Project Update
83

84. UNC Healthway
Dan Stevens
UNC Health Care

85. The UNC Healthway
Dan Stevens DMD, PhD, MBA
Marketing Director
UNC Health Care
dpsteven@unch.unc.edu; 919-843-2462
85

86. Our Facilities

87. UNC Health Care
A Substantial Economic Impact for North Carolina
Estimated Economic Impact
UNC Health Care and SOM: ~$5B
(direct and indirect annual impact)
Direct Jobs UNC SOM
Est. $600M Annual ~$230M annual
Economic Impact Operating revenue
(non-research)
UNC SOM
~ $2 Billion in Services to Patients ~$400M annual
Research Spend
Uncompensated Care
~$320M Annual Funding
Medical Foundation
AHEC
~$70M Annual Inflows
~$45M Annual Funding

88. UNC Health Care
County-by-county Economic Impact
www.unchealthcare.org About Us UNC Health Care’s Impact Across North Carolina

89. But…

90. Redistribution of Clinical Sites
• Goal: Decompress campus-based hospitals
• Find and relocate services that do not need hospital environment
• Benefits
• Creates room in hospitals for other functions
• Increase eases of access for patients

91. Introduction of the UNC Healthway
• Significant clinical services on route 54 and beyond
• Build awareness
• Breadth of services
• Easy access

93. www.UNChealthway.org

95. Infrastructure: Water
Ed Kerwin
Orange Water and Sewer Authority

96. Orange County Development Briefing
September 20, 2011
Orange Water and Sewer Authority
A public, non-profit agency
providing water, sewer and
reclaimed water services to the
Carrboro-Chapel Hill community.

97. Service area
boundaries defined by
local governments
Public water/sewer
not to be extended
into rural buffer

98. Water Supply
University Lake
Cane Creek
Quarry Reservoir
Jordan Lake
Jones Ferry Road Water
Treatment Plant
Wastewater Management
Mason Farm Wastewater
Treatment Plant
Reclaimed Water Facility

99. Reliable Water Supply
 Effective conservation – UNC’s use of reclaimed
water
 Multiple reservoirs –
Jordan Lake is an essential
back up
 Drinking water interconnections with neighbors
 Available capacity at
water treatment plant

100. Reliable Infrastructure
 Infrastructure is in good shape, have plans to
keep it that way
 $10-13 million annual investment to renew/
replace infrastructure
 Replace about 3 miles of water pipe per year
40
 Replace/renovate about 35 CIP 1998-2026
30
25
2 miles of sewer pipe $M
20
15
10
per year 5
0

101. Service Availability (Capacity) Fees*
(October 2011)
Type Water Sewer Total
Single family home
$1,895 $3,499 $5,394
(1,701-2,400 ft2)
1” meter non-residential $8,973 $15,303 $24,276
1 ½” meter non-residential $17,945 $30,605 $48,550
2” meter non-residential $28, 712 $48,968 $77,680
3” meter non-residential $57,424 $97,936 $155,360
* does not include installation charge

102. www.owasa.org
919-968-4421
Todd Spencer, P.E.
Systems Development Engineering Manager
tspencer@owasa.org
919-537-4244

103. Infrastructure: Cell Service
Rajeev Sood
AT&T

104. Carolinas
Wireless Network
1Q 2011 Update
AT&T Proprietary and Confidential. Not for use or disclosure outside the AT&T companies except under written agreement. All future activity depicted in this presentation is being provided for
informational purposes only and is subject to change by AT&T without further notice. This document is not an offer, commitment, representation or warranty by AT&T that the above, forward-looking
activity will be undertaken by AT&T.
2011 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property.

105. AT&T Proprietary and Confidential. Not for use or disclosure outside the AT&T companies except under written agreement. All future activity depicted in this presentation is being provided for
informational purposes only and is subject to change by AT&T without further notice. This document is not an offer, commitment, representation or warranty by AT&T that the above, forward-looking
activity will be undertaken by AT&T.
2011 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property.

106. Coverage Map < Carolinas >
Before (March 2010) After (March 2011)
2G Coverage
3G Coverage

107. Coverage Map < Carolinas >
Before (March 2010) After (March 2011)
2G Coverage
3G Coverage

108. 2011 Plans
Planning to build 45 new sites
Expanding Mobile Broadband footprint over 489 existing
2G-only sites
Adding 517 additional carriers to increase 3G capacity
Adding additional RNCs of capacity for new carriers and 3G
footprint growth
Deploying backhaul to support faster speed
10
8

109. Infrastructure: Broadband
Mark Eagle
Time Warner Cable

110. Orange County Development Briefing
Time Warner Services
Mark Eagle
Director Business Class Engineering
September 20, 2011

111. Time Warner Network
Internet Traffic
Exit Point
Internet Traffic
Exit Point Map Key
- Regional Data Center (RDC)
- Key Cities around the
Regional Fiber Ring
- Regional ROADM Fiber Ring
111
111

112. Orange County Service Area
112

113. Ethernet Access Solutions ( from MEF
) website
Ethernet
Ethernet
CWDM
Fiber HFC
Carrier
Direct Fiber
Ethernet
MSO
SONET/ SDH
Ethernet User to Network Interface (UNI)
Ethernet Network to Network Interface (NNI)
Ethernet EPON
Ethernet
Ethernet
Ethernet
113

114. Residential Service Offered by Time Warner
114

115. Business Class Services Offered by Time Warner
 Metro Ethernet Transport
 EPL – Ethernet Private Line
 EVPL – Ethernet Virtual Private Line
 ELAN – Ethernet Local/Wide Area Networks
 Dedicated Internet Access (DIA)
 Primary Rate Interface (PRI) PBX Phone Service
 Multi-Line Phone Service
 TDM Transport Services (T1, DS3, OCx Services)
 Wavelength Transport Services (2.5, 10 Gig…)
 Wireless Broadband
 Managed Security/Firewall UNI
CE
 Managed Data Storage
CE UNI
 Managed Networks
UNI
 Commercial Video Transport (NTSC, ASI, SDI) CE
115

116. Campaign for Jobs &
Schools
Aaron Nelson
Chapel Hill-Carrboro Chamber

117. http://www.youtube.com/chocvb#p/a/u/0/YxBYznMD5vc

118. What is the ¼ Cent Sales Tax?
An effort to raise $2.5 million in
revenue per year for ten years
Sales Tax Revenue
Capital Needs
for Schools
50% 50% Economic
Development

119. Business Collateral Collaborative
Investment Materials Outreach
Grants 1.5% 1.5%
8%
Innovation
Center
9%
Agricultural
Economic
Development
10% Debt Service on
Infrastructure
60%
Small Business
Loan Fund
10%
Uses of Economic Development Portion

120. The Potential – Buckhorn EDD

121. The Potential – Buckhorn EDD

122. The Potential – Buckhorn EDD

123. The Potential – Buckhorn EDD

124. Important Dates and Locations
• Early Voting Begins October 20th
- Orange County Board of Elections
- Carrboro Town Hall
- University Square, Suite 133-G
- Seymour Senior Center
• Election Day: November 8th

125. Get Involved in the Campaign
For more Like the Campaign on
information, visit Facebook:
online:
facebook.com/jobsandschools
Follow the Campaign
on Twitter:
co.orange.nc.us/salestax/
twitter.com/jobsandschools

126. Thanks again to our sponsors.

127. Presenting Sponsor

128. Breakfast Sponsor

129. Bronze Sponsors

130. 2011 Annual Community Champions

131. 2011 Annual Platinum Sponsors

132. 2011 Annual Gold Sponsors

133. 2011 Annual Master Gold Sponsors