Chapel Hill Town Council Meeting June 25, 2025: Budget, Zoning, and New Manager

The Chapel Hill Town Council met at 6:00 PM on June 25, 2025, in Council Chamber, Town Hall. The meeting included proclamations, public comments, discussion on a conditional zoning application, approval of funding for the Orange County Partnership to End Homelessness, appointment of a new Town Manager, and a resolution of appreciation for outgoing Council Member Karen Stegman. The meeting adjourned at 7:29 PM.

Proclamation

• Parks and Recreation Month: Mayor pro tem Ryan proclaimed July 2025 as Parks and Recreation Month in Chapel Hill, highlighting the national theme "Build Together, Play Together." The proclamation recognized parks and recreation staff for their service.

Announcements

• IotaComm Relocation: Mayor Anderson announced that IotaComm Inc., a wireless communication and data services company, is relocating its corporate headquarters to downtown Chapel Hill.
• Open Chapel Hill Day: Scheduled for Saturday, June 28, 2025, from 10:00 AM to 2:00 PM, offering tours of seven town facilities and the OWASA water treatment plant, with transportation provided by Chapel Hill Transit.
• Fourth of July Celebration: Fireworks at Southern Community Park; details on the town website.

Consent Calendar

• Council unanimously approved the Consent Agenda (R-1), which included approval of minutes, budget amendments, a construction contract increase for the Homestead Park Skatepark Reconstruction Project (up to $709,750, an increase of $100,000), a bid award to Sunrock Industries LLC for street patching/milling/resurfacing/re-striping, and other routine items.
• Human Services Funding Program (Item 9): Council Member Miller-Foushee was recused from voting due to a conflict of interest (she serves on the board of the Marian Cheek Jackson Center, a funding recipient). The funding plan for FY 2026 was approved 8-0.

Public Comments & Testimony

• Hillmont Development Safety Concerns: Four community members (Gayle Roberts, Jennifer Layton, Craig Nishimoto, Jeffrey Brown) from Littlejohn Road and Sherwood Forest expressed fear and frustration over falling trees from the adjacent Hillmont construction project. Residents reported that a 60-foot tree had fallen on Jeffrey Brown’s house, damaging a nursery room window. Arborist Craig Nishimoto testified that the developer violated the town’s tree ordinance by placing silt fencing within critical root zones of protected trees, leading to root damage and instability. He stated that three large trees had fallen in eight weeks within a 20-foot span, and others were leaning dangerously. They requested the Council hold the developer accountable and conduct a thorough investigation. The matter was received and filed.
• Town Budget Comments: Anna Lynch, leader of UNC’s Urban Planning and Local Policy Club, suggested alternative revenue sources to property tax increases, such as a student parking program at the new Rosemary Street Parking Deck. She noted that the town owns underdeveloped land on Franklin Street valued at $10 million and has many empty parking spaces that could be leased to students.
• Petition for Middle/Workforce Housing: Mayor pro tem Ryan presented a petition, co-signed by five council members, asking the Town Manager to accelerate planning for missing-middle and workforce housing in Southern Chapel Hill, following the 2023 expansion of the Urban Services Boundary. Council Member Berry expressed confusion over the sudden prioritization and lack of open discussion. Mayor pro tem Ryan clarified the petition was a procedural tool to initiate conversation, not to give direction. The petition was received and referred to the Mayor and Manager by a 7-2 vote (Council Members Berry and Searing dissenting).

Discussion Items

• Funding for Orange County Partnership to End Homelessness: Council Member Stegman proposed allocating $61,109 from the $100,000 set aside in the FY 2025-26 budget to fill a gap in the Partnership’s funding, ensuring no staff cuts to the Street Outreach, Harm Reduction and Deflection (SOHRAD) program. The other partners (Carrboro, Hillsborough, Orange County) had already fully funded their shares. The interim Town Manager noted that staff had not yet recommended how to allocate the $100,000, and there were competing requests. Council Member Searing expressed reluctance, preferring to consider other initiatives that provide housing units. After debate, the motion passed 8-1 (Council Member Searing opposed).
• Conditional Zoning for 200 South Elliott Road: The Council reopened a public hearing on a conditional zoning application for a six-story apartment building at 200 South Elliott Road. The original approval on April 9, 2025, did not take effect because the property owner did not consent to conditions. The applicant, Rockwood Development, presented a modified site plan and offered either 10% of units at 80% Area Median Income (AMI) or a $1.5 million payment-in-lieu for affordable housing. The Council had previously raised the payment to $2 million, but the developer stated that was not financially feasible. Land planner Jessie Hardesty explained changes: relocating amenity space and loading areas, and potentially moving stormwater under the parking deck to open more amenity space. In public comment, Eric Clayton, operations manager at Extraordinary Ventures (which operates on the site), passionately urged Council to prioritize helping the disabled employees and nursing home residents affected by the development. Susanna Dancy of Rockwood Development stated they are working with Extraordinary Ventures to find a new location. Council members expressed disappointment at the lower affordable housing offer but many supported the $1.5 million payment, noting it could fund deeper affordability (e.g., 30-50% AMI) through Low-Income Housing Tax Credit projects. The Council closed the public hearing, approved the resolution of consistency (R-7), and approved an amended ordinance (O-9) requiring the $1.5 million payment-in-lieu at final zoning inspection (estimated three years from now). Vote: 8-1 (Council Member Berry opposed).
• Appointment of New Town Manager: Mayor Anderson announced that after a national search, the Council appointed Ted Voorhees as the new Town Manager, effective August 11, 2025. Voorhees, currently County Administrator of Orange County, Virginia, has 20 years of local government experience in North Carolina. He pledged to serve with empathy and listen to the community. The Council approved the employment contract (R-9) unanimously.
• Resolution of Appreciation for Council Member Karen Stegman: Council Member Miller-Foushee read a resolution honoring Karen Stegman for eight years of service, highlighting her leadership on affordable housing, community safety reforms, climate action, and social justice. Stegman expressed gratitude to family, colleagues, staff, and the community. The resolution (R-10) was adopted unanimously.

Key Outcomes

• Consent Agenda: Approved unanimously, including budget ordinances, street resurfacing contract, skatepark contract increase, and minutes.
• Human Services Funding: Approved 8-0, with Council Member Miller-Foushee recused.
• Petition on Housing: Received and referred to Mayor and Manager (7-2).
• Homelessness Funding: $61,109 allocated to Orange County Partnership to End Homelessness (8-1).
• 200 South Elliott Road Conditional Zoning: Approved with a $1.5 million payment-in-lieu for affordable housing (8-1).
• Town Manager Appointment: Ted Voorhees appointed unanimously, effective August 11, 2025.
• Resolution for Council Member Stegman: Adopted unanimously.
• Meeting Adjourned: 7:29 PM.