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Orange County to pursue 10‑year ground lease, design study for Homestead Road day center and cold‑weather cots
Summary
The Board authorized staff to negotiate a ground lease with UNC for 2700 Homestead Road and to prepare a $16,000 compliance and design study so the site can host cold‑weather cots this winter and be evaluated for a future integrated day center opening by mid‑2027.
Sept. 16, 2025 — The Orange County Board of Commissioners authorized staff on Sept. 16 to enter negotiations with the University of North Carolina for a ground lease of 2700 Homestead Road and to prepare a compliance and design study to assess the site for emergency cold‑weather cots and a future integrated day center.
The county will pursue a 10‑year ground lease with UNC for the 1‑story former Duke Power building, which county staff say totals roughly 24,000 square feet and sits near the IFC Community House and the former Chapel Hill police station on M.L.K. Boulevard. Staff recommended spending $16,000 in the current fiscal year for a design and compliance study to scope required renovations and code items if the facility is used as a county‑operated day center and temporary shelter.
Why it matters: County and nonprofit leaders said the site could provide daytime services, intake and coordinated housing referrals, laundry and restroom facilities, and other wraparound supports that are difficult to provide at dispersed locations. Commissioners also instructed staff to ready the county’s cold‑weather cot program for the coming winter at a different temporary location (the former Chapel Hill police department) while they pursue the Homestead lease and longer‑term renovations.
County housing director Blake Rosser described a phased plan: a small, near‑term investment this fiscal year for design and code compliance; modest renovations and a fire‑alarm upgrade in fiscal 2026‑27 to make a portion of the building usable for cold‑weather cots; and a more substantial capital project in fiscal 2026‑27 for a full integrated day center that would include HVAC upgrades, interior renovations and a roof replacement within several years. The facility could host outreach and housing intake staff, behavioral‑health partners and mobile clinic partners, county officials said.
UNC’s director of local relations, Ivy Taylor, told the board the university supports the proposed arrangement and is willing to offer a ground lease for the building with no rent charged; the university asked only that the county cover improvements, maintenance and operations.
Community organizations and residents spoke in favor. Alicia Hinton, who leads the Activate program at IFC, called for solutions that center dignity and alternatives to criminalizing sleeping in public. A resident with lived experience, Darren Campbell, described past winters and told commissioners a day center with showers and laundry could provide immediate, practical relief.
The board approved a motion to authorize staff to negotiate the lease and directed staff to prepare a budget amendment to fund the $16,000 design/compliance study. Commissioners indicated they want the design work completed quickly so the county can confirm scope and costs for larger renovations and an expected target opening for a full integrated day center of July 1, 2027.
Ending: County staff will return with a lease proposal and the design‑study results for the board’s review and for inclusion in the 2026‑27 capital budget process.
