Developer plugs for middle class

The Chapel Hill Town Council wants more affordable housing included in development plans, a goal that one prominent local developer says could have the effect of pushing out the middle class.

Scott Kovens, president of Capkov Ventures Inc., said the mission of his development group since 1973 has been to build houses for the working middle class of Chapel Hill, especially University employees.

"(Capkov) and the town have similar goals about affordable housing," he said. "But we are just guys that make houses, and there is only so much we can do sometimes."

The development and building company is planning major area projects such as Winmore Village in Carrboro and the Chancellor's View subdivision in Chapel Hill on Lystra Road. The company also is trying to get a site at Obey's Creek, off U.S. 15-501 South, approved for another mixed-use development.

"This is the most we can do for our community," he said. "There are new buildings coming in at the hospital, and employees at the University are praying for housing like this."

While Obey's Creek and Chancellor's View are going through various approval stages, the group only recently acquired the rights to develop Winmore Village.

Capkov bought the land for Winmore Village from the Winmore Land Management LLC partners last week after the partners worked for almost four years to get the controversial site approved.

Phil Szostak, one of the partners, and Kovens confirmed the purchase last Wednesday.

"We just ran out of time and had to make a decision on the land," Szostak said.

Winmore's development had been slowed by a lawsuit a county resident brought against the developer. The lawsuit was ruled in favor of Szostak in November 2003.

Although the projects span two towns and many miles, Kovens said Capkov projects share one constant.

Capkov builds houses that serve the "workforce of the town, which is essentially UNC," he said.

Kovens said the council isn't trying to help that workforce.

"The council is honest in its goals, but they can't fix generations of economic inefficiencies in one industry," he said. "We serve the entire market, but our clientele is the middle class."

He said houses typically sell for between $175,000 and $500,000.

Chapel Hill Planning Director Roger Waldon said the town and developers often might conflict on issues such as affordable housing.

"The council asks for 15 percent affordable housing in a development," he said. "And if the group asks for greater intensity, the council asks for greater affordable housing opportunities."

He said Capkov and the council are discussing rezoning Obey's Creek to lower intensity.

Although the group and the town might conflict in their vision for the area at times, Eric Chupp, Capkov's development coordinator, said his group is not leaving the area. "The projects we have coming up will keep us busy for the next five to 10 years."

Contact the City Editor at citydesk@unc.edu.