University Square fate in air

Business owners and UNC officials are unsure about the future of a downtown shopping center set for University purchase by July.

UNC representatives say no definitive plans have been created concerning the University Square property which is home to businesses offices and Granville Towers.

The UNC-Chapel Hill Foundation revealed its intent to purchase the property in June 2008. The Foundation a private organization that handles gifts and contributions for the University will pay $45.75 million.

The University is continuing to sign leases for up to three years for the property while it finalizes plans.

Dick Mann vice chancellor of finance and administration said UNC will be doing a series of studies and consulting to see what if any" action should be taken for the development.

""It's probably going to be a couple of years before we see any activity over there. We don't really know what we're going to do there yet.""

Gordon Merklein" executive director of real estate development for UNC said that the three major options for the property include keeping it as is" redevelopment or taking a start from scratch approach.

But business owners are unsure of the impact the University's plans could have on them.

""Nobody knows anything"" said Mike Meyer, the manager of Franklin Sweets. He says that his store's operations won't change until definite plans force them to.

We're going to do business as usual"" he said.

Other business owners said, while communication between University officials and the tenants has occurred, few plans were cemented.

They told us that they would let us stay here for three years"" said Cynthia Lennon, owner of Cynthia's Tailor Shop. Lennon said the tenants had a meeting with Mann, who told them that nothing would change in the immediate future.

Merklein confirmed the University is using a 3-year timeline as a general guide for decisions about leases and tenant relocation.

After the property changes hands, UNC must honor tenants' leases.

The University purchased a legal contract when they purchased the building" Merklein said.

He said the change in ownership shouldn't lead to any change in operation for the time being. He said he hoped to work with the tenants throughout any redevelopment that may occur.

We plan on keeping them as long as the buildings" Merklein said.

Mann said once plans are formed, the tenants will be promptly informed. How long that could take, however, is unknown.

It's the kind of thing that's not decided overnight"" he said. We don't have any fixed ideas.""


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