TCC "in the KNOW" May 2016

North Carolina:

  • The House scheduled more debates before the second of two required votes on the $22.2 billion state government spending plan. All but 12 of the 115 House members voting gave initial approval to the measure, which gives teachers and state employees raises and income tax filers’ tax breaks by slowly raising the standard deduction over the next four years. After the final vote the debate officially moves to the Senate. House and Senate negotiators ultimately want to get a final plan to Gov. Pat McCrory's desk before July 1.
  • Both the House and the Senate want to cut personal income taxes, but the Senate wants to make cuts over two years, compared with a four-year schedule in the state House budget. "This is a targeted tax cut for the middle-class," Sen. Bob Rucho, R-Mecklenburg. Rucho's bill, Senate Bill 818, would expand the state's personal income tax exemption – what some people call the zero bracket – in two steps over the next two years. For a couple married and filing jointly, they would pay no income tax on the first $16,500 of their income for 2016.
    In 2017, a married couple would have the first $17,500 of their taxes exempted from their income. Other taxpayers would also have a larger part of their income exempted from taxes.
  • North Carolina has been voted the #3 best state for business for the second year in a row, according to an annual survey of CEOs conducted by Chief Executive Magazine. State officials point to the newly released rankings as demonstrating that leaders of businesses favor states with pro-growth tax and regulatory policies. “We have modernized our tax code saving hardworking families and business owners $4.4 billion, fixed our broken unemployment insurance system and championed an economic development strategy to put more people back to work,” said Governor McCrory in a press release. “It’s no surprise that these reforms, and more, have positioned North Carolina as one of the most attractive states for business in the country.” According to the Governor's office, North Carolina has had the fastest growing economy in the country. The state added over 275,000 new private-sector jobs since 2013.
  • Senate Bill 843 would require 1.5-mile safety buffer for wind, solar farms. Co-sponsor says renewable energy poses environmental risks. Bill includes protections for bats, birds, landowners and military flight paths.
  • NAHB Economics estimates that 14 million American households are priced out of the market for a new home by government regulations that, on average, increase the new home price by 24.3%. Households become “priced out” when they no longer qualify for a new home mortgage because of higher prices.  For more information on this article visit http://eyeonhousing.org/2016/05/14-million-households-priced-out-by-government-regulation/?utm_source=newsletter&utm_medium=email&utm_campaign=eoe0519
  • New NAHB estimates based on the latest data show that, on average, regulations imposed by government at all levels account for 24.3 percent of the final price of a new single-family home built for sale. 
    This report is available to the public as a courtesy of HousingEconomics.com at http://www.nahbclassic.org/generic.aspx?sectionID=734&genericContentID=250611&channelID=311&_ga=1.50620009.1344555949.1464003430

Regional:

  • The Raleigh-Durham area ranks as one of the best value propositions for investors of commercial real estate in the U.S., according to the latest Situs RERC Value vs. Price Index, especially for office, industrial and apartment properties. The Situs report for the first quarter ranks Raleigh at No. 1 for industrial property value among the 26 secondary markets surveyed for the report. The Triangle also ranked at No. 2 for office property value, No. 3 for apartment property value and No. 11 for retail property value. The region bested Charlotte, Atlanta, Austin and Nashville in every category except retail.
  • The Department of Environmental Quality tried a new way to address the pollution in Jordan Lake, which is also a source of drinking water for hundreds of thousands of people. The devices are called SolarBees, and about three dozen of them have been floating on the lake for just under two years. The secretary of the DEQ is suspending the project after a report shows the SolarBees provided “no significant change in water quality.” Now that the SolarBee project is ending, environmental groups are calling on DEQ to better address the problem.


Wake County:

  • Wake County Manager Jim Hartmann presented his $1.2 billion recommended budget for Fiscal Year 2017 to the Wake County Board of Commissioners during its regular meeting. His proposal – a $56.8 million increase over the county's FY2016 budget – will help address the increasing demands placed on county services as the population continues to grow on average by 64 people each day. A key component of the recommended budget is a 1.35-cent property tax increase above the revenue neutral rate of 58.7 cents, which would generate nearly $18.8 million in new revenue. At the new rate of 60.05 cents on the average home value of $268,600, the additional tax over the revenue neutral rate would be $36 annually. 

Apex:

  • Construction began on a new Triangle Expressway interchange April 4. It will provide access to Old Holly Springs-Apex Road. It will encourage more residential and commercial development in southern Apex and western Holly Springs.
  • The top spot in Apex will be filled by a familiar face. At their May 3rd meeting, the Town Council appointed Drew Havens as the Apex Town Manager. Havens had been serving in an interim role for the last four months.
  • NOTICE OF PUBLIC HEARING AMENDMENTS TO THE UNIFIED DEVELOPMENT ORDINANCE (UDO) Notice is hereby given of a public hearing before the Apex Town Council for the purpose of soliciting comments relative to the following amendments to the Unified Development Ordinance, Meeting Location: Apex Town Hall 73 Hunter Street Council Chamber, 2nd Floor Meeting Date and Time: June 7, 2016 7:00 P.M.:

1.      An amendment to Sec. 2.3.4(F)(1)(a)(ii) to refer to the 2030 Land Use Map for requirements of Planned Unit Developments (PUDs) in Mixed Use areas.

2.      An amendment to Secs. 2.3.4(F)(2)(a)(xv) and 2.3.4(F)(2)(b)(ii) to refer to the 2030 Land Use Map for requirements in Traditional Neighborhood Districts (TNDs) in Mixed Use areas.

3.      An amendment to Sec. 2.3.4(F)(3)(a)(iii)(a) to refer to the 2030 Land Use Map for requirements of Major Employment Centers (MECs) in Mixed Use areas.

4.      An amendment to Sec. 3.3.1(I) MORR Mixed Office-Residential-Retail District to add a reference to the 2030 Land Use Map.

5.      An amendment to Sec. 3.3.3(A)(1) MEC-CZ Major Employment Center District to add a reference to the 2030 Land Use Map.

6.      An amendment to Sec. 3.3.3(B) TND-CZ Traditional Neighborhood District to add a reference to the 2030 Land Use Map

7.      An amendment to Sec. 3.3.3(C)(1) PUD-CZ Planned Unit Development District to add a reference to the 2030 Land Use Map.

Cary:

  • Annual Budget Proposal: $319 Million, $227.8 million operating plan and dedicates another $91.4 million to support capital improvements. The combined monthly garbage, recycling and yard waste fee would remain unchanged at $16 per month; Cary utility customers would see a 3.8 percent increase in water and sewer rates—or about $2.85 more per month for residents using 5,000 gallons of water. Other notable fee changes include increases in several fees associated with reviewing development plans to help the Town recover approximately 60-percent of the actual cost of service; Interim Manager Bajorek is also recommending creating new fees for residential and commercial encroachment permits on the Town rights-of-way to offset the rising costs of reviewing permit applications for gigabit fiber installation throughout town. As for property taxes, Bajorek’s plan lowers the Town’s property tax rate by two cents -- from 37 cents to 35 cents per $100 valuation.  If approved by Town Council, the tax rate is expected to remain the lowest in Wake County and result in a tax bill of $750 for a $200,000 home.
  • As Cary continues its plan for the next era in the town’s future, the next phase of Imagine Cary will soon be asking community members for their feedback when it comes to changes in the way Cary redevelops its land. 

Cary-Morrisville Joint Issues Committee:

  • Here are some of the notable items from the last meeting:
    • The NC54 corridor study from Maynard Road to I-540 has been completed by DOT. Staff has not heard the results of this study. Funding for the portion from Morrisville to I-540 has been approved by the state. There is currently no funding for the Maynard Road to Cary Parkway portion.
    • The Western Corners development will be held to partial CO’s until all road improvements have been completed.
    • Schools and public private partnerships were discussed. Morrisville should get state approval for a Charter High School soon. This will open in 2017 and will be a Montessori-type high school.
    • The Wake Transit Plan will be presented to the county commissioners in June for a vote. It is anticipated this will be on the ballot for voter approval in the fall.
    • Morrisville is working with the county to get a community library.
    • Morrisville 911 calls go to Raleigh for dispatching. This is slowing their response times. Staffs are investigating having them use the Cary 911 center.
    • A proposal for 70 homes on Morrisville-Carpenter road is being considered. A discussion was held on potential developments on that road and the impact. It was decided that staff should present a comprehensive look at all east-to-west connectors at our next meeting.
    • Morrisville expressed concern about the Kellogg expansion. To date the expansion is planned to be capital improvements which will not add more employees and create more traffic.
  • Construction and activity report for April. Here are some of the items of interest:
    • Town staff approved 57 townhomes, 167 single family dwellings, and about 50,000 square feet of non-residential.
    • A sketch plan for the Cary Town Center was approved.
    • Permits were issued for 2 multi-family units, 146 single family dwellings, and 53 non-residential.
    • The average single family dwelling was 3773 square feet as compared to 3215 square feet in 2012.
    • Cary accounted for 14.6% of all permits issued in Wake County, second only to Raleigh.
    • CO’s were issued for 71 multi-family units, 62 single family dwellings, and over 245,000 square feet of non-residential. 

Chapel Hill:

  • Town Manager Roger Stancil presented to the Council his recommended budget for Fiscal Year 2016-2017. For the third consecutive year, the budget calls for no tax increase, thanks to modest increase in overall revenues and prudent financial planning. Property taxes now are projected to make up just less than half the Town budget revenues – at 49 percent.  And sales tax revenues are increasing – about a six percent increase. There is a 21 percent increase in State Shared Revenues, which includes a growth in utility sales taxes due to a change in the state's distribution formula. Under the spending plan, tax amounts supporting the Town remain unchanged and total 52.4 cents per $100 assessed value. The Town tax bill for the owner of a property valued at $350,000 would remain at $1,834. The total amount Chapel Hill residents pay in property taxes also depends on the actions of the Board of Orange County Commissioners, which set the county tax rate and the special schools tax for Chapel Hill-Carrboro City Schools. The property tax bill that Chapel Hill residents pay is divided among Chapel Hill-Carrboro City Schools (54 percent), the Town of Chapel Hill (33 percent), and Orange County (13 percent). Residents who live in the Durham County portion of Chapel Hill see slightly different tax bills due to the actions of the Durham County Commissioners. 

Durham (City/County):

  • Mark your Calendars- Upcoming Coffee Chat with City of Durham Elected Officials and Staff on Wednesday, June 15 at 8:30 a.m. RSVP to Charlenel@tricc.org.
  • Public Input Session on Future Design and Use of North Mangum Street Open Space in Downtown Durham, When: Thursday, June 2, 2016, at 6:30 p.m. Where: Temple Building 302 West Main Street Durham, N.C. 27701 The Durham City/County Planning Department and City of Durham General Services Department are hosting a public input session for residents and stakeholders regarding the future design and use of City-owned public open spaces along North Mangum Street in downtown Durham. This meeting will focus primarily on the open space on three parcels along North Mangum Street between West Parrish and West Main streets known colloquially as “Chickenbone Park.” Meeting participants will engage in interactive activities to provide input on uses and the future of this space.
  • City Manager Tom Bonfield proposed a 1.66 cent tax rate increase above the City’s revenue-neutral rate of 54.41 cents per $100 of assessed value, following Durham’s most recent revaluation of real property. The new proposed tax rate would be 56.07 cents per $100 of assessed value, reflecting a decrease of 3.05 cents from the current tax rate of 59.12 cents. Bonfield recommends a total preliminary budget for FY 2016-17 of $403.7 million, a nearly 4 percent increase from last year, and includes a $180.9 million budget for services covered by the general fund, a little more than 5 percent increase from last year. 

Fuquay-Varina:

  • A mixed use development at a key entrance to Fuquay-Varina is on the way, and the site is likely to include a new supermarket for the growing community. Kenney Development wants to build a $50 million mixed-used development in Fuquay-Varina on 50 acres at the intersection of N.C. 55, also known as North Broad Street, and Old Powell Road. Tentatively named Powell Square, the development would have about 265 luxury apartments as well as retail and office space.

Garner:

  • Garner on May 24 held the kickoff for its comprehensive growth plan update. A 14-member steering committee made up of citizens and elected officials will inform, guide and provide feedback to the technical staff working on the project, which is expected to be completed in spring 2017. The Town will use a variety of means to engage citizens during the process. The objective is to craft a 10- to 15-year land-use and transportation plan for the Town. For more information, contact Planning Director Brad Bass atbbass@garnernc.gov.
  • Wake County Public Schools held a groundbreaking earlier in May for Bryan Road Elementary School (8317 Bryan Road), slated to open in August 2017. The 109,400-square-foot school in south Garner is designed to accommodate a core capacity of 800 students. 
  • The Town Council on May 2 approved a 41-lot, single-family-home subdivision at Garner and Vandora Springs Roads. The 18-acre subdivision, to be called Kelly’s Crossing, will have price points over $200,000, according to the developer, Hopper Communities.

Holly Springs:

  • Town Manager Chuck Simmons is recommending an increase to water and sewer monthly access fees totaling $2 per month, or $24 per year. There would be no change in utility user rates. As part of a $46.2 million budget, Simmons also is recommending a revenue neutral property tax rate of 43.25 cents per $100 valuation – a decrease from this year’s 43.5 cent tax rate. 

Raleigh:

  • North Hills developer John Kane has announced details of a joint-venture project with Williams Realty & Building Co. to build a $100 million, mixed-use, multi-family building project in downtown Raleigh that could also bring the first grocery store to the downtown district. Neither Kane nor Williams are detailing tenant plans for the retail portion of the project, but Kane says the new building campus at the corner of Peace and West streets, near the intersection of Capital Boulevard, will include more than 400 new residential rental units, covered parking and complementary retail.
  • The proposed total City budget for FY17 is approximately $858.6 million, an increase of 3 percent from the FY16 total City budget of $832.5 million. The General Fund total operating budget comes to approximately $465.9 million. The proposed five-year Capital Improvement Plan (CIP) budget totals $1.25 billion. The budget proposal would lower the property tax rate by 0.27 cents from the current 42.10 cents, down to 41.83 cents. By not lowering the property tax rate to the revenue neutral rate of 39.83 cents, 1 cent of tax revenue, or $5.7 million, would be allocated to expand the City’s affordable housing program and 1 cent of revenue, $5.7 million, would be allocated to fund the debt service on the Dorothea Dix property acquisition. A public hearing on the proposed budget and CIP will be held June 7 at 7 p.m. in the City Council chamber on the second floor of the Avery C. Upchurch Government Complex, 222 W. Hargett St. The City Council will conduct budget deliberation sessions on June 6, June 13, June 20, and June 27, if needed. All sessions will be held at 4 p.m. in the Council Chamber. They will be carried live on RTN11 (97.5) and video-streamed on the City of Raleigh’s website, www.raleighnc.gov.
  • Comprehensive Plan Text Amendments:

 TCC News:  Our Luncheon Learn Series covers the hottest topics
surrounding real estate, development, and growth in the Triangle.

Housing Affordability Part Deux -
With a Better Understanding of the Need,
Let’s Explore Collaborative Ways to Address it!

Last month we gathered local experts to discuss housing affordability
and the challenges the Triangle is facing and what some of the local
governments are working on.  As part II of the series of Housing Affordability, the Triangle Community Coalition has brought together another group of experts  who are ready to discuss market approach solutions to Housing Affordability. 


Keynote Speakers:
Jim Anthony, Colliers International
Ted Van Dyk, New City Design Group
Representative Mike Hager, NC House of Rep. D112
Robert Dietz,
Chief Economist, National Association of Home Builders

On-line Registration

 A Special Thank You to Our 2016 Members and Sponsors!

Strategic Members:  Raleigh Regional Association of REALTORS® &  HBA Raleigh-Wake County
Partner Members:     Smith Moore Leatherwood   Colliers International   Smith AndersonTaylor Wiseman & Taylor   Triangle Apartment Association

Business Members:   Bass Nixon & Kennedy   Bohler Engineering   CalAtlantic   Community Properties   Duke Energy   Fern Hill Properties   Fonville Morisey Barefoot   Gaines & Co.  Grubb Ventures   JPM South Development   Kane Realty   K&L Gates   Kimley-Horn & AssociatesLennar   M/I Homes   McAdams   Morningstar Law Group  Paragon Commercial BankPulte Group   Robuck Homes   Sepi Engineering   SheetzWilliams Property Group  Withers & Ravenel   Woodfield Investments, LLC

Chamber/Gov:  Cary Chamber of Commerce   Morrisville Chamber of Commerce  Raleigh Chamber of Commerce   Midtown Raleigh Alliance     

 Sponsors:  Allen Tate Companies