
This is not a new article but I still found it informative. See below to contact the authors.
The Winmore partners, Phil Szostak, Herman Green and Bob Chapman approached the University to sell them the Horace Williams satellite tract for traditional neighborhood development. Their proposal notes the shortage of appropriately priced, quality housing in the Carrboro/Chapel Hill area, making it difficult for the University to attract and retain faculty and staff. Winmore wants to combine the two parcels into a larger joint development would optimize the “new urban” design concept, increase the availability of economical housing, and create a more walkable and integrated community. In preliminary discussions with these developers, Town of Carrboro officials welcomed the idea of a housing development with affordable housing components.
Members of the UNC-Chapel Hill Board of Trustees agreed to consider the idea, but only with a greater allowance made for affordable and reasonably priced housing for University staff. The Board insisted on controlling some land in perpetuity on which it would build 96 apartments that would meet the legal definition of affordable rental housing. (Under this definition, a worker would not spend more than 30% of their income on rent, meaning a worker making $18,000 a year could only spend between $400-500 a month on rent.) The UNC-Chapel Hill Board of Trustees was also interested in negotiating a deal stipulating additional reasonably priced housing, with at least 50-60 of the for-sale units priced at $175,000 or less, and set aside for University and Healthcare System Employees or Town of Carrboro staff.
The Winmore partners must go through the process of obtaining approvals with the Town of Carrboro, dealing with traffic flows, school overcrowding and environmental impact studies. This arrangement keeps the University out of the real estate business, while providing a way to increase the supply of affordable housing opportunities for lower paid Employees.
In return for our land, UNC would receive a $1,250,000 purchase money mortgage at seven percent interest. Also, UNC would participate in 30 percent of any gross revenue over $15 million on total lot sales for the entire 129-acre development, not just the Horace Williams satellite.
The proposal for the development calls for 398 residential units as follows:
- Single Family Units 192
- Town Houses 110
- Apartments 96
The proposal also specifies approximately 50 acres of open green space will be preserved, and offered as a gift to UNC. Additional sites may be available to the University or Hospital for uses such as a child care center or healthcare clinic.There are 7,500 staff Employees on campus, many of whom make less than $30,000 a year. Why didn’t you get more affordable housing units in the deal?
The Town of Carrboro has zoning regulations that limit the number of housing units that can be built in this neighborhood. Also, Town regulations call for 40 percent of the land to be kept as open green space. And the Winmore partners are private developers whose profits are based on the price of the houses sold in the neighborhood. These factors combine to limit the amount of affordable units that can be built. The Town of Chapel Hill has similar zoning regulations, and that’s partly why houses are so expensive here!Remember, this project is only a pilot project for the University. It does not represent the only effort that the University will make to help employees find affordable housing. But when the Winmore developers presented the idea, it looked like a good way to get started.
The 50-60 reasonably priced houses will cost $175,000 or less. This figure is large, but still not as much as the $300,000 average that houses cost in Chapel Hill. And, again the University has stipulated that Winmore would include 96 affordable apartments, all for Town and University staff. So, it’s a beginning, and we’re hoping that it will bode well for future affordable housing projects.Why didn’t you sell the property for more money?
We could have gotten more money for the property if we sold it to developers that would build only expensive houses on the site, but we felt it an important point to try to increase the supply of affordable housing available for University staff in the area.Also, the Winmore partners took on important restrictions with this purchase, and that established an upper limit on how much they were willing to pay for the property.Which department gets the money from the sale?
Horace Williams was a professor in the Philosophy department. His will stipulated that all the property he owned should be used to provide income for fellowships in the Philosophy department. This includes the main 1,000-acre Horace Williams tract.
Also, an April 1999 Memorandum of Agreement between the University and the Philosophy Department called for the University to list for sale the satellite property (the 63-acre tract of land north of Homestead Road). The proceeds from the sale are to be added to two trust funds for fellowships in Philosophy.How will the University select who gets one of the units?
This process has not yet been determined.Does the University have to provide access to water and sewer for the project, or will the builder assume this cost?
Right now there is only dirt, rocks and trees on this property. The Winmore partners must handle all zoning issues and water and sewer hookup and access to all other utilities. They also have to develop all the roads in and around the development.What happens next with the project?
As I understand it, the Winmore partners will present their plans to the Carrboro Board of Aldermen in the summer or fall of 2002. If they get all the necessary zoning approvals, the University will sell them the Horace Williams satellite tract, and they can begin building perhaps early in 2003.
One important thing to remember is that there will be a mix of affordable apartments, reasonably priced houses and more expensive houses all over the entire 129-acre development. The lower priced units won’t all be concentrated just on the land formerly owned by the University.
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