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Study: Carolina North Could Yield Deficit
03/04/09 04:30PM

UNC has released the results of a fiscal impact study for the first phase of Carolina North’s construction. The results show that the 250-acre mixed-use academic campus will result in a net deficit of about $12 million total for Chapel Hill, Carrboro and Orange County.  Most of that deficit is because a new fire station would need to be built.  

The study was prepared by Maryland-based fiscal, economic and planning consultants TischlerBise. Jack Evans, executive director of Carolina North, said the study does not include any changes to the transit system planned by Chapel Hill, Carrboro or the University. The study assumes that U-N-C provides that police protection and trash removal at the satellite campus, but that it relies on the Chapel Hill fire department for service as the main campus does now.

The study, which examines 15 years, shows that Chapel Hill could face a $3 million deficit in about the 9th year of construction because of the fire station. Evans said that when the fire station will need to be built depends on the level of development and that the 9th year is just an estimate. Eighty-five percent of the total net deficit is related to the fire station costs.

The analysis shows Orange County facing mostly positive fiscal impacts.  The town of Carrboro will start to see mostly positive net fiscal impacts after the 6th year.

The satellite campus, which is expected to take 50 years to complete, will include university buildings, private office space, retail and housing. Evans said that Wednesday's Carolina North forum did not directly address the study, but that a future meeting will.

That meeting is scheduled for Wednesday, March 11. This is one of three foundation studies that the University agreed to two and a half years ago. To see the full study results, visit the Carolina North Web site at cn.unc.edu.


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