AGENDA#4c

 

MEMORANDUM

 

TO:                  Roger L. Stancil, Town Manager

 

FROM:            Kathryn Spatz, Director of Parks & Recreation

                        Bill Webster, Assistant Director of Parks and Recreation

 

SUBJECT:      Proposal to Lease a Portion of the Hargraves Recreation Center to Holmes Day Care Center, Inc.

 

DATE:                        October 23, 2006

 

 

PURPOSE

 

The attached resolution would authorize the Manager to execute on behalf of the Town a two-year lease agreement with the Holmes Day Care Center, Inc. for approximately 3,850 square feet of space in the basement of the Hargraves Recreation Center, 216 N. Roberson Street.

 

BACKGROUND

 

The Holmes Child Care Center has operated in the Hargraves Recreation Center for approximately 36 years. The lease, which will expire on December 31, 2006, was approved by the Council in November 2001.

 

DISCUSSION

 

North Carolina General Statute 160A-272 states that public property may be rented or leased by a municipality pursuant to a resolution of the Council authorizing the execution of the lease, adopted at a regular meeting, and upon 10 days’ public notice. We published such notice in the Chapel Hill News on October 1 and 8, 2006.

 

The proposed lease agreement would be substantially the same as the current agreement including:

  1. At least 60 percent of the children attending the day care program must be residents of Chapel Hill.
  2. The Town would require Holmes Day Care Center, Inc. to cease operations for one week per year for the purpose of performing annual maintenance operations. The Town would agree to work with the center to determine the best possible time for the annual shutdown of the facility.
  3. In the event that the facility requires extraordinary maintenance, the Town may require Holmes Day Care Center, Inc. to cease operations for the time period needed to perform the maintenance operations. The Town would give as much notice as possible.

Changes proposed in this lease agreement include:

  1. Monthly lease payments would increase from $225 per month to $250 per month beginning in January 2007.
  2. The term of the lease would be reduced from five years to two years. The shorter lease term would allow more frequent review of issues and policies.

 

RECOMMENDATION

 

Recommendation: That the Council adopt the attached resolution authorizing the Manager to execute a lease with Holmes Day Care Center Inc. for operation of a child care center at the Hargraves Recreation Center from January 1, 2007 until December 31, 2008.