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Employee housing proposed for 440 W. Franklin Street


A consultant working with the University, the UNC Health Care System and the Town of Chapel Hill has proposed a series of downtown development moves that would provide housing along W. Franklin Street for their employees.

The consultant, UniDev real estate development company, calls for making that happen by eliminating or reducing the University's use of its administrative support facility and parking lots at 440 W. Franklin St.

The consultant's proposal -- which is still very much in the conceptual stage -- outlines two scenarios for the facility.

The first would have the building demolished with retail shops and housing units built in its place. Some of the spaces in the two parking lots that now serve the building would continue to serve that function while some of the space would be converted to housing. UniDev says this scenario is the more likely of the two.

The other would have the building completely rehabilitated for office and retail space, with one of the existing parking lots turned into a parking structure and the other into housing with some parking.

Under the first scenario, University services now located at 440 W. Franklin St. would possibly be moved to a new building that would be built on a site now occupied by the Town of Chapel Hill's "Parking Lot 5" at West Franklin and Church streets. The new building also would have retail and other office space.

Under the second scenario, some University services would remain at 440 W. Franklin St. as tenants of the building.

With either scenario, faculty and staff members from the University, UNC Health Care System and town could live in the housing units.

Bruce Runberg, associate vice chancellor for Facilities Services at Carolina, belongs to an Employee/Employer Housing Study Group of campus and town officials. He said a major benefit of the proposal from the University's vantage point would be that it would mean employees would be able to live near where they work.

Runberg said another key benefit would be that Carolina employees now working in the 440 West Franklin St. building, which has long been in need of major renovations, would either be moved to a new facility or work in a rehabilitated building.

The proposal calls for the building projects to be built by a nonprofit organization established by the campus and town. Housing prices would be kept down through a combination of shared land leases and controlled resale prices.

Much of the impetus for the proposal comes from Chapel Hill Mayor Rosemary Waldorf, who in January 2000 began looking into the possibility of affordable downtown housing for state and town employees who otherwise couldn't afford to live in Chapel Hill.

"Mayor Waldorf has been instrumental in moving this project forward," Runberg said.

Carolina Chancellor James Moeser also has voiced his support for the project.

"We think this is an important step forward for our staff and faculty in recruitment and retention," he said at an Employee Forum meeting earlier this month.

UniDev's proposal comes with the backdrop of its research that included gauging whether University, UNC Health Care System and town employees would be interested in living in downtown Chapel Hill.

A survey showed that 20 percent of the employees at each of the three institutions -- a total of about 3,200 people -- would consider buying a moderately sized and priced house downtown in the next five years.

A focus group discussion indicated that affordability would be an issue for employees as well as the need for adequate parking and services such as grocery and hardware stores that would cater to residents rather than students.

Runberg stressed that the downtown development proposal still is just that -- a proposal.

"It's still a very conceptual plan and will require a lot of additional planning and support," he said.


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