"It isn't a good environment when people are stealing signs out of stores and smoking marijuana on the sidewalk," he said.
He also said that panhandling outside businesses has gotten worse in the last five years and that moving the shelter could reduce that problem.
House, the former chairman of the Downtown Commission, said that business downtown hasn't changed much in the last few years, but that moving the homeless shelter could be a positive thing nonetheless.
"Moving the homeless shelter wouldn't eliminate things like panhandling," he said. "It would help the perception of the problem."
He added that anything the town can do to help change people's perceptions about downtown would be a plus.
"Chapel Hill is a safe place, or it is at least safer than downtown Durham," House said.
Bunnie Coudriet, one of the owners of Jersey Mike's Subs, said the restaurant, which is about a block away from the shelter, hasn't faced any adverse effects from residents.
"There were a lot of homeless people around the restaurant during the summer, but it didn't bother us," she said. "I usually work every night, too, and I have never felt in danger - no more so than any other place."
Chapel Hill police spokeswoman Jane Cousins said it is hard to tell how many crimes could be connected with shelter residents based on the department's reports.
She said the department has arrested 13 different people for 19 panhandling offenses since Jan. 1.
Of those 13 people, one gave a Chapel Hill address, one address is unknown based on the police report, two people used the address of the homeless shelter and the remaining nine gave no address.
Capt. Brian Curran said the statistics could be skewed because there is no guarantee that panhandlers are giving police their real address.
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Cousins said panhandling arrests also have decreased since the council banned panhandling after sundown last year.
She said that the first quarter of the 2003-04 fiscal year produced 12 arrests for panhandling and that the first quarter of the 2004-05 fiscal year produced only four arrests.
But Mayor Kevin Foy said the idea that crime is linked with the homeless hasn't been the main problem affecting downtown business.
He said the national economy and new competition from major retail markets such as Meadowmont, Southern Village and University Mall are responsible for downtown's woes.
"Where the homeless shelter is located doesn't matter," Foy said. "It just needs to have a more suitable facility, which the town is working on."
The IFC announced earlier this year its intentions to relocate its men's shelter.
Natalie Ammarell, IFC president, said the negative perception the shelter receives is damaging to the entire community.
"I think that everybody could work a little harder to see who the shelter serves," she said. "We have facts supporting our view that it is not primarily our clientele causing the problems downtown."
Contact the City Editor at citydesk@unc.edu.