Permanent residents sought

Town officials and retailers have tried for decades to pump new life into the downtown area.

For an equally long time, those with a stake in the area’s success have suggested that increasing the number of permanent residents would help provide that boost.

Unspoken in that idea is another one bubbling below the surface: Getting rid of rental units downtown will also decrease the number of students who live there.

But it might not be an insidious idea. Local leaders say downtown just needs people who will be around — especially during summer.

“You need people who can easily patronize the establishments other than T-shirt shops in the area,” said Joe Patterson of his reason for pursuing more long-term residents.

Patterson is a partner in the 35-unit Village Apartments complex at 213 E. Franklin St.

The Chapel Hill Town Council approved a project Monday night that will convert the complex, now dominated by student renters, into eight high-end condominiums.

A significant part of the town’s residential base is derived from the University’s student population, which often vacates the community when school is not in session.

According to an Economics Research Associates report, only 7,024 students — or 27 percent of the student body — enrolled in fall 2002 lived in residence halls.

That left 19,004 students living off campus, including 703 students living in fraternity or sorority housing, the report states. The University’s enrollment has grown by more than 500 students since then.

And about 54 percent of total housing in Chapel Hill was renter-occupied in 2000, according to the 2004 Chapel Hill Data Book.

“It is critically important to increase the number of permanent residents in the downtown area and to establish locations where permanent residents can live, work and play,” said Nick Didow, interim executive director of the Downtown Economic Development Corporation — a group charged with revitalizing downtown.

The corporation endorsed the Village Apartments project because it has the potential to generate more permanent residents downtown.

Another downtown development aimed at the same goal is already under construction and is leasing residential units.

Rosemary Village, at 400 W. Rosemary St., is a mixed-use complex that will have 38 residential dwellings and seven retail units.

Co-owner Chris Ehrenfeld said having people living year-round near the shops will help rejuvenate the area economy.

“The project itself will lead to other projects like it,” he said.

“It will have a snowball effect.”

Town plans to build mixed-use facilities on parking lots 2 and 5 also will bring more residential units to the heart of downtown.

Lot 2 is located behind Spanky’s Restaurant, and Lot 5 sits across from University Square.

Officials plan for the mixed-use facilities to infuse the downtown with both retail and low-income housing units.

A luxury hotel is also in the works to encourage new patrons to browse downtown and provide constant economic activity.

Located at the site of the old Greyhound bus station on West Franklin Street, the Franklin hotel is expected to open next spring with 66 boutique-style rooms.

“It’ll bring more walking traffic, people from out of town; it’ll give them a good introduction to what downtown Chapel Hill is,” said Josh Gurlitz, partner of hotel designer GGA Architects.

“Anything that brings more people downtown more of the time will help the economy.”

Contact the City Editor at citydesk@unc.edu.