HILLSBOROUGH - Hillsborough has a history of being a transportation hub, from the Indian trading path to the antebellum trains whose tracks still criss-cross Orange County.

That was the word from town leaders Wednesday night, as they offered early plans for a development anchored by an Amtrak rail stop and featuring a mix of commercial, residential and civic uses, including a police substation and new fire station.

Local residents were enthusiastic, wanting to know how soon the rail stop could be up and running, but wary about the cost and how the town will pay for it.

Officials said that is still being worked out. Right now, the Rail Station Small Area Plan Task Force is looking for ideas, especially from people with development expertise. The task force could take its final plan to the Town Board next month.

"The challenge here was to develop a plan that went beyond just placing a station somewhere along the track," said Thomas Campanella, who drew up the preliminary plan. "Instead, we envisioned this and the Collins parcel as a future growth and development zone that will take Hillsborough into the future."

Campanella, an associate professor in UNC's Department of City and Regional Planning, said the development is designed to enhance Hillsborough's character, while making it more pedestrian-friendly with walkways and sidewalks. Weaver Street Market and most of downtown will be a 10- to 15-minute stroll from the rail station, he said.

The rail station plans started taking shape two years ago, when the first task force met to select a site. That group chose a 20-acre parcel that the town bought in 2008 near the intersection of Churton Street and Orange Grove Road.

In June, the Town Board appointed a second task force to come up with a list of uses for the land, which shares a northern border with the east/west N.C. Railroad line. CBS Car Sales and Cardinal State Bank lie to the west.

Planned uses

In addition to a new Orange Rural Fire Station, the plan suggests a cultural center, retail and multi-family homes. It could include Class A office space, too, which officials hope will attract small companies that typically look at Research Triangle Park.

The task force also outlined long-term plans for the 134-acre Collins tract, stretching south behind the Daniel Boone shopping area to Interstate 85. That property is part of a long-range plan to add retail, preservation and single- and multi-family residential areas.

In the meantime, the town wants to develop the property it already owns in three phases over at least 25 years.

The first phase - moving two existing community T-ball fields south and building a train station platform along the rail line - could happen within five years, Campanella said.

Everything else is subject to change.

Town officials expect the rail platform and a 500-square-foot enclosure to cost about $1 million, and they are working with Rep. David Price, D-4th District, and the state Department of Transportation to find funding.

Town officials applied but did not receive part of the $545 million in stimulus funds that the state got last month through the 2009 American Reinvestment and Recovery Act. Currently, the town is trying to secure $445,000 for design and engineering work.

Among the suggested financing options is using the commercial part of the project to pay for the civic facilities, either through a deal with developers or by selling that part of the land. Others suggested using a bond referendum or asking the county for help.

Economic realities

Michael Flannelly, a developer and Hillsborough resident, said a public-private partnership is a great idea, but developers are looking for a solid deal in this economy.

"No developer is going to be interested unless it's for sure that the station is going to happen and the funding is in place for that," Flannelly said.

"Property values will definitely go way up once it's known, but especially in this economy, you need to ... get it confirmed that you can actually build the station," he said.

Meanwhile, Orange County Commissioner Barry Jacobs said the county won't join the discussion until the town asks them to get involved.

Jacobs said he sees the ideal plan as a network of transportation options. There is a rail spur from University Station in eastern Orange County that ends at UNC's coal plant, but getting a regular train to Chapel Hill will take some time. Right now, the more feasible option is to expand the existing bus system with a stop at Hillsborough's station, he said.

Jacobs said that once UNC's Carolina North campus takes off, there will be a need for more and better transportation options, making for a stronger case for federal funding.

"The county can make more of an appeal if it's a countywide system," he said.

Down the line

In 2007, an Amtrak feasibility study found that about 2,600 passengers a year would use the Hillsborough rail station. A full commuter system is still many years away, town officials said, although electronic signals and a second track will speed up the process.

Two Amtrak passenger trains pass through Hillsborough now: The Carolinian, from Charlotte to New York City, and the Piedmont, from Charlotte to Raleigh. DOT also announced Wednesday that a third rail line will provide midday service between Raleigh and Charlotte beginning in June. Amtrak plans to add a fourth route in 2012.