Chapel Hill Town Council Meeting - May 7, 2025

The Chapel Hill Town Council met on Wednesday, May 7, 2025 at 6:00 PM in the Council Chamber. Councilmember Adam Searing was excused; eight members were present. The meeting began with proclamations declaring May 2025 as National Disability Awareness Month, Historic Preservation Month, and Bike Month. Council members made announcements including a report on a successful Washington D.C. trip to discuss funding for the North-South Bus Rapid Transit Project, upcoming Rosemary Street Front Porch events, and a schedule for future meetings.

Public Comments & Testimony

• Linda Carver (Chapel Hill resident) raised safety concerns on South Merritt Mill Road, including fast traffic, lack of crosswalks, a dilapidated bus stop bench, and drug-related issues. She suggested turning Park Anderson Park into a homeless shelter. The matter was received and filed.
• Salima Smith, Miranda Riggsbee, Betty Curry, and Laila Bradford (residents of Elliott Woods Apartments) described severe neglect at the property, including mold, leaking ceilings, lack of repairs, and inability to contact the landlord. They expressed fear of displacement due to rumored sale of the property. The matter was received and filed; staff offered to follow up.
• Asheton Medlin (UNC student), Lindsay Watson (UNC graduate student), and several downtown business owners/managers (Bill Brooks, Melissa Pate, Melissa Nobling, Stacey Bailey, Jim Kitchen, Gammon Hall) described escalating harassment, threats, and unsafe conditions on Franklin Street from individuals experiencing homelessness or engaging in drug activity. They called for increased police presence, enforcement of existing laws, and a sustained public safety strategy.
• Vivian Garcia Brooks (Franklin Street store owner) read a petition signed by students, residents, and business owners urging immediate action to address homelessness and safety around UNC campus and downtown. The petition was received and referred to the Mayor and Town Manager by a unanimous vote (8-0).
• George Barrett (Executive Director, Marian Cheek Jackson Center) urged maintaining and expanding affordable housing funding, citing a 32% decline in Black homeownership since 2010 and a 50% increase in property valuations in historically Black neighborhoods.
• Kristina Smith (UNC student) argued that funding affordable housing is a more effective solution to homelessness and public safety issues than increased policing, noting that Orange County residents must earn four times the minimum wage to afford a modest two-bedroom apartment.
• Jackie Jenks (Executive Director, InterFaith Council) stated that flat funding for community programs is demoralizing given rising need and federal cuts, and called for increased investment in shelter and housing services.

Discussion Items

• Presentation: Recommended Budget for FY 2025-26 Interim Town Manager Mary Jane Nirdlinger presented a total recommended budget of $163,672,372, including a General Fund of $94.9 million (a 4% increase over FY2025). The proposed property tax rate is 50.0 cents per $100 valuation, which is 5.8 cents above the revenue-neutral rate (5.5 cents for the General Fund and 0.3 cents for transit). Key components include a 5% pay increase for all employees, $1,517,000 for operating budget focus areas, funding for affordable housing partners ($5,023,818), the Climate Action Plan, greenways, and performance agreements. The budget also addresses significant sales tax revenue decline, increased transit costs, and a $150,000 allocation for deferred maintenance and street resurfacing. Council members discussed the impact of the tax increase on homeowners (with examples showing increases ranging from 4.9% to 88% depending on property valuation changes), the need to balance sustainable staffing with taxpayer burden, and the importance of funding for affordable housing and social services. Councilmember Nollert proposed a 0.5-cent transit increase (rather than 0.3) to fully support transit operations. Councilmember Sharp and others emphasized the need for an efficiency audit to ensure costs are justified. The matter was received and filed; further budget discussions will continue at a work session on May 14.

• Close the Hearing and Consider a Conditional Zoning Application for 1701 Martin Luther King, Jr. Blvd Senior Planner Corey Liles presented the application to convert unused retail space into six affordable apartments. The Planning Commission and staff recommended approval. Council closed the public hearing and adopted Resolution R-4 and Ordinance O-1 approving the application. The vote was 8-0 (with Councilmember Searing excused).

• Open the Hearing and Consider Action on a Community Priority Rezoning Application for Hillside Trace at 607-617 Martin Luther King Jr. Blvd Nate Broman-Fulks (Vice President of Development, Taft Mills Group) presented a proposal for approximately 190 affordable housing units (100% affordable, serving households at or below 60% of area median income) on a 3-acre site along the future NSBRT corridor. The project includes a mix of 1-, 2-, and 3-bedroom units, structured parking, and amenities. Senior Planner Katherine Shor stated the application is consistent with Complete Community goals and the Comprehensive Plan; the Planning Commission recommended approval with a condition to continue working with the town's urban designer. Public comment from Dane Schuckman (resident at 620 MLK Blvd) asked the Council to be mindful of impacts on neighbors, including noise, trash, and traffic. Council members asked about tenant qualifications (not primarily students due to tax credit rules), bike parking (including e-bike charging), and the affordability period (at least 30 years). The Council closed the public hearing, adopted Resolution R-6, and enacted Ordinance O-2 approving the rezoning. The vote was 8-0.

Key Outcomes

• Consent Agenda: Approved unanimously (8-0), including: 1) approval of routine items, 2) award of a contract for FY2024-25 audit services to Mauldin & Jenkins for $59,000 (exercising the first of four one-year options), and 3) authorization of $13,830,000 in general obligation bonds for Public Facilities, Affordable Housing, Streets & Sidewalks, Parks & Recreation, and Stormwater.
• Petition Referral: The petition from Vivian Garcia Brooks regarding homelessness and safety was received and referred to the Mayor and Town Manager by a unanimous vote.
• Special Meetings Called: Two special meetings were scheduled by unanimous vote: May 13 at 5:00 PM at Chapel Hill Public Library (Council/Manager form of government discussion) and May 16 at 2:30 PM closed session (Town Manager hiring process).
• Budget Next Steps: The FY2025-26 Recommended Budget was received and filed. Council will hold a work session on May 14 and a public hearing on May 21 to finalize decisions.
• 1701 MLK Blvd Conditional Zoning: Approved (8-0) – conversion of retail space to six affordable apartments.
• Hillside Trace Rezoning: Approved (8-0) – rezoning to Residential-Community-Priority Conditional Zoning District for up to 200 affordable housing units.