David Putnam, Economic Development Director, Town of Chapel Hill

Invest: spoke with David Putnam, economic development director for the Town of Chapel Hill, about the town’s development posture, priorities for a stronger commercial tax base, and the infrastructure and partnerships shaping its next chapter. “Quality of life here is our crown jewel,” Putnam said. He described a focus on predictability and agility that aims to make Chapel Hill easier to invest in while protecting the character that makes the town distinctive.

How would you describe the economic climate in Chapel Hill, and what changes over the past year have most influenced your department’s priorities?

Chapel Hill’s economic environment feels like the land of opportunity right now. For a long time, Chapel Hill was seen as a hard place to develop, and we’ve made important progress toward changing that.

Our focus comes down to two words: predictability and agility. We want to be fast, and we want people to understand what’s coming at them through the process, without surprises. Over the past year, the council has taken a hard look at our land use management ordinance and evaluated what policy-level changes are needed so the town can be more predictable and more agile. Some of those changes were adopted recently, and I think we’re on the right path to becoming a more exciting market to invest in and do business in.

How does a mindset of predictability and agility show up in your day-to-day economic development work?

It shows up in how we work with developers and other stakeholders, especially in setting expectations. With the direction the council has provided, we can communicate more clearly: this is what you can expect as you go through our development process, and this is how quickly you can move when a project is well prepared.

That clarity matters right now because borrowing money is expensive. Investors want to know that their time and capital are protected. Predictability reduces risk, and agility reduces carrying costs. It also helps us compete for projects that could otherwise go elsewhere.

How are you thinking about balancing growth while preserving the character and livability that make the town attractive?

Quality of life here is our crown jewel, and it’s what we sell as a town. We’re not talking about growth in a way that competes with that quality of life. You don’t have to sacrifice one for the other. You can develop in a smart, organic, thoughtful way that actually enhances the day-to-day experience of living and working here.

Council has emphasized a complete community approach, including the idea of 15-minute nodes. The goal is for residents and workers to have more of what they need within a short walk: services, daily conveniences, and places to gather. That supports livability while also strengthening the local economy through year-round activity.

We also protect character through intentional design. We have a community design commission that advises on fit and context, and our planning staff does strong work here. We’re also one of the only jurisdictions with an urban architect on staff. When a developer calls and says they’re interested in Chapel Hill, I pull together a go team: a planner and our urban architect. We talk through feasibility and the vision aspects of a project early, which helps protect the spirit of Chapel Hill while still moving development forward.How do partnerships with UNC and community organizations shape your approach to economic development?

Economic development is the ultimate team sport. We depend on the council for policy direction, planners for the technical work, and many other departments for pieces like infrastructure and service delivery. If we want to realize our vision for investment, we have to work together.

UNC plays a major role. Carolina North is a good example, a site the university owns just north of downtown. The university has been public about its interest in doing something with that land, and we see it as an opportunity where collaboration matters. Our job is to help maximize outcomes for the town and make sure any progress works for multiple stakeholders.

Community-based groups also matter because they help us stay grounded in what will work in downtown areas and in neighborhoods. We seek feedback so we can uphold the quality of life, character, and spirit that define Chapel Hill.

What role do downtown redevelopment and the emerging Innovation District play in your vision for retaining talent and building year-round activity?

Year-round economic activity is a big goal, especially downtown. There’s an expression in the field: no product, no project. If you don’t have the product, the building, the site, or the space, you won’t get the project.

Right now, a lot of our emerging product and high-yield opportunity is clustered in downtown. That creates momentum, but it also raises the bar for doing things smartly and sensitively. When downtown development moves forward well, it supports a stronger 12-month economy, with new jobs, new housing, and more reasons for people to spend time here beyond peak seasons.

That momentum can also support an innovation district. It creates more opportunities for collaboration with the university and helps form an ecosystem where new companies can start, recruit talent, and stay.

How is Chapel Hill supporting small businesses and entrepreneurs?

Existing business and industry support is the most important thing we do. Our department works across five focus areas: product and posture, community partnership, access to opportunities, active real estate projects, and business vitality. Business vitality is so important that we dedicate a staff member exclusively to it.

We have a business vitality manager focused on supporting local businesses and helping entrepreneurs start and grow here. We also work closely with our local chamber of commerce, which is an important partner in keeping businesses connected and supported.

We also contribute financially to Launch Chapel Hill, a local incubator that has operated for about a decade. It has supported local entrepreneurs, and it has expanded through partnerships with KPMG and the university. Launch, Powered by KPMG, is a 10-week accelerator for deep tech and biotech companies, while Launch Local remains focused on small, locally rooted businesses and entrepreneurs. Together, those efforts strengthen the pipeline for new business formation and long-term vitality.

What types of investments matter most right now to strengthen the economy and expand the commercial tax base?

I think about it in two buckets: housing and employment. We need more housing in Chapel Hill, and we also need places for people to work. If we want a complete community, we have to offer both.

We want high-quality options, but we also recognize the need for missing middle housing and affordable housing. On employment, we need jobs across education and skill levels. We need blue-collar jobs, white-collar jobs, and everything in between. Those investments help expand the commercial tax base and strengthen resilience.

Over the next three to five years, what are your top priorities to ensure Chapel Hill’s economic resilience?

We want to keep collaborating with UNC, community partners, and other departments, and we want to be exceptional stewards of public dollars. We also want to keep drawing capital investment by reminding people that we’re open for business and excited for the right development.

We’re focused on supporting businesses that are already here so they can keep expanding without feeling like they’ve outgrown Chapel Hill or the Triangle. We also want to keep improving speed and predictability through ongoing policy improvements that encourage responsible development. We don’t want to be the place that demonizes the villain. We want to partner so we can deliver outcomes the community is proud of.

How does transit play a part in the current growth and development in Chapel Hill?

One more major piece is the momentum behind our north-south bus rapid transit system. We’ve secured key approvals and commitments for a corridor running from north Chapel Hill to south Chapel Hill. It’s a transportation improvement, but it’s also an investment opportunity. If you’re on that corridor, it reinforces that there is no better time than the present to invest and develop in Chapel Hill.