But the Chapel Hill contractor does not plan to withdraw entirely from local politics.
At the 10 a.m. press conference held outside the Franklin Street post office, Hill announced the formation of Chapel Hill First, a lobbying group that will support politicians who limit development in the area.
"I feel like I've become involved and I'll stay involved," he said.
Hill said he is stepping out of the race to support fellow candidate Kevin Foy, who Hill said shares his values. "Kevin and I have more ideas in common than different," he said. "I'm urging my supporters to vote for him."
Hill also said he believes his resignation will decrease the chances of Chapel Hill Town Council member and mayoral candidate Lee Pavao winning the election. "I am alarmed at the thought of Lee Pavao being elected," Hill said.
Foy, who attended the press conference, said he was thankful for Hill's support."I'm very happy to have him as a supporter," Foy said. "I respect him for the issues he's raised."
Pavao said he doesn't know how Hill's withdrawal will impact the election but said he respects his decision. "If (Hill) feels (by dropping out of the race) he would do the voters more good, I certainly respect him. It's what he's entitled to do."
To further one issue he emphasized during his campaign, Hill said he created Chapel Hill First as a resident group developed to back politicians who oppose UNC's extensive growth. He said the group will resist the expansion of UNC that he said results in negative impacts on the town, such as traffic problems and increased likelihood of flooding problems. "Chapel Hill First is being formed to support politicians who put residents ahead of the University," Hill said.
Hill said he feels the problem is that UNC officials pay little attention to Chapel Hill politics. "The University has shown complete lack of concern for town government," he said.