Chapel Hill Town Council Meeting - April 23, 2025

The Chapel Hill Town Council met on April 23, 2025, at 6:00 PM in the Council Chamber. The meeting included proclamations, a public comment opportunity on the FY26 budget, consideration of two conditional zoning applications, approval of the Affordable Housing Funding Program, and a concept plan review. The council approved a rezoning for a 53-unit affordable senior housing project (Maddry Meadows) and approved $2.46 million in local housing funds leveraging $16 million in external funding. Another zoning application for converting vacant retail into six affordable units at 1701 MLK Jr. Blvd was continued to May 7.

Consent Calendar

• The Council unanimously adopted the consent agenda, which included: amending Chapter 7 of the Fire Prevention and Protection Code; calling a hearing on Land Use Management Ordinance text amendments for Historic Rogers Road Subdistricts; and approving minutes from multiple meetings in January–March 2025.

Public Comments & Testimony

• Laurie Paolicelli, Executive Director of the Chapel Hill/Orange County Visitors Bureau, expressed gratitude to the Town for keeping the bureau in the budget and highlighted upcoming events, including hosting the Mexican National Football League mascot Keen and a book project for America’s 250th birthday. She noted cost-cutting measures and pride in Chapel Hill’s growing tourism status.
• Deloris Bailey, Executive Director of EmPOWERment, Inc., expressed appreciation for CDBG funding and the affordable housing funding program, specifically for four units at Creekside Trail. She highlighted the importance of preserving affordability in the formerly University Gardens community.
• No public comment was offered on items 8 (2510 Homestead Road) or 11 (Concept Plan).

Discussion Items

• FY26 Town Budget (Item 7): Interim Town Manager Mary Jane Nirdlinger presented the budget outlook, noting a budget gap due to rising costs, slower sales tax growth, and existing commitments. The current property tax rate is 59.2 cents per $100 assessed value, while the revenue-neutral rate after the 2025 revaluation is 44.2 cents – a 15-cent difference (vs. 5 cents in the last revaluation). An average residential property valued at $640,000 would see a revenue-neutral tax bill increase of about $360/year, with each additional penny adding $64/year. Commercial properties (including multifamily) saw smaller value increases. The Manager’s Recommended Budget will be presented on May 7, with a public hearing on May 21 and final adoption by June 11. Mayor Anderson noted multiple opportunities for public input via meetings, videos, and email.
• Conditional Zoning – 2510 Homestead Road (Maddry Meadows) (Item 8): Patrick Nerz (DHIC) proposed a 53-unit age-restricted (55+) affordable rental community at 60% AMI. The project includes a mix of studio, one-bed, and two-bed apartments in a split-level building, a multi-use path connecting to the North-South Greenway, and preservation of Resource Conservation District (RCD) land. Council discussed: a public access easement for the path if not built by developer (confirmed that easement would be granted regardless of permit issues); elevator reliability; parking reduction (staff noted parking location dictated by site constraints); and addition of e-bike charging, native plantings, and reduced turf. Planning Commission and staff recommended approval. The Council unanimously approved the rezoning (R-4) and enacted the ordinance (O-2).
• Affordable Housing Funding Program (Item 9): Housing Manager Emily Holt presented the recommended FY2025 funding plan: $2,459,677 in local funds for 53 new units at Maddry Meadows and rehabilitation of 4 units at Creekside Trail (EmPOWERment). The plan leverages about $16 million in external funding. Priorities included rental housing for ≤50% AMI, high-impact, shovel-ready projects, transit proximity, high leverage, and sustainable design. Staff reviewed 14 applications, recommending two. Council Member Miller-Foushee recused herself due to her position on the EmPOWERment board. The Council adopted Resolution R-6 (7-0, with Miller-Foushee recused).
• Conditional Zoning – 1701 MLK Jr. Blvd (Item 10): Spencer Peterson (Zimmer Development) requested rezoning to convert 5,176 sq ft of long-vacant retail into six 1-bedroom affordable units (60% AMI) for 15 years. The 154-unit existing project is 97% occupied. Council discussed the 15-year affordability term (lender constraints) and requested a 30-year commitment. Planning Commission and staff recommended approval. The Council opened the hearing, received no public comment, and unanimously voted to continue the hearing to May 7, 2025.
• Concept Plan – 216 E. Rosemary St / Pi Kappa Phi (Item 11): Architect Mark Krittenbrink presented a renovation and addition to the fraternity house, maintaining 30 resident beds but improving room sizes, ADA accessibility, and meeting spaces. Parking would be reduced from 14 to 3 on-site, with auxiliary off-site parking secured. Tree canopy would increase from 30% to 40%. Council expressed support and encouraged e-bike charging and priority for car-free residents. The Council adopted Resolution R-7 to transmit comments to the applicant.

Key Outcomes

• The Council unanimously approved the consent agenda and all routine items.
• The conditional rezoning for 2510 Homestead Road (Maddry Meadows) was approved, allowing a 53-unit affordable senior housing development.
• The Affordable Housing Funding Plan for FY2025 was approved, allocating $2.46 million for Maddry Meadows and Creekside Trail.
• The public hearing for 1701 MLK Jr. Blvd conditional zoning was opened and continued to May 7, 2025, for further consideration.
• The Council transmitted favorable comments on the Pi Kappa Phi concept plan via Resolution R-7.
• Upcoming budget schedule: Manager’s Recommended Budget on May 7, work session May 14, public hearing May 21, final vote June 11.