ATTACHMENT 5

Excerpt from Draft Chapel Hill Town Council Minutes of March 22, 2004:

Item 2.1a - Public Forum on Market Analysis Report for

Proposed Development of Town Parking Lots 2 and 5

Town Manager Cal Horton stated that the purpose of tonight's public forum was to receive comments on a market analysis report that the Council had commissioned as part of its consideration of the future development of Parking Lots 2 and 5 in Downtown Chapel Hill.  He introduced Consultant John Stainback, of Stainback Public/Private Real Estate LLC (SPPRE) to summarize key items in a report prepared by subcontractor Economics Research Associates (ERA).

Mr. Stainback outlined various steps in the predevelopment process, from completing the market development demand analysis to beginning construction.  He told Council members that SPPRE would solicit the developer, negotiate the agreement, and serve as the Town's representative during construction.  Mr. Stainback explained that the SPPRE team included ERA, HKS Architects, DesignVision, Inc., and a local construction company that would help with cost estimating. 

Shuprotim Bhaumik, representing ERA, stated that the five-part scope of work would include project orientation and data gathering, market overview, market analysis, case studies, and challenges that the Downtown faces.  The data sources include a mix of national and local resources, he said. Citing the ERA report, Mr. Bhaumik noted a strong demand for 300 to 500 downtown rental apartments over the next five years.  He said there would also be demand for up to 112,000 SF of overall retail space.  With improvements, Mr. Bhaumik said, the Downtown Carrboro-Chapel Hill area could accommodate up to 666,000 SF of retail.  He said that demand was concentrated in goods such as general apparel and home furnishings.

Mr. Bhaumik noted that the condo market was very active in the area due to the proximity of UNC and the low interest rates.  There might be opportunities to create student housing, he said, adding that such housing would be geared toward students alone and would not be something that could be converted for other users later on.  Mr. Bhaumik mentioned an opportunity for a small-scale food and convenience store.  But there was not enough supportable demand for a large grocery store, he said.  Restaurants and bars already were over-represented, he remarked, adding that under-performing tenants should be replaced. 

Population and spending projections indicate that the Downtown could support another movie screen, Mr. Bhaumik said, but there was no demand at the moment.  He described the UNC Arts Common as a very ambitious project, and proposed smaller ones in Lots 2 and 5, which might include private galleries and design studios, for example.  Mr. Bhaumik pointed out that parking would be critical to Downtown revitalization.  He suggested ways to add parking that had worked in other towns.  There was no real demand for office space over the next five years, he said.  Mr. Bhaumik concluded his presentation with case studies of towns similar to Chapel Hill and listed various lessons learned.

Mr. Stainback outlined the following next steps in the process: 

· Prepare building program.

· Complete urban design plans.

· Develop budget/finance models.

· Complete developer solicitation process.

· Negotiate development agreement.

Mr. Stainback noted that the Council would have flexibility at each stage to end negotiations.  He described the process as a very systematic one that allows the Council much power and control over it.

Jan Sassaman, speaking on behalf of the Trustees of University United Methodist Church, expressed concern that the Town might embark on an action that would reduce the availability of public parking Downtown.  He noted the many services that churches provide and pointed out that these activities require parking.  Mr. Sassaman said that ERA had ignored the needs of Downtown church communities in its report.  The Trustees were asking for assurance that redevelopment activities would not reduce the net proportion of parking spaces available for these public activities, he said.  Mr. Sassaman also requested that at least one representative of the Downtown churches be invited to participate with other stakeholders in future discussions.

Transportation Board Member Robert Koontz stated that there were many examples throughout the country of successful downtown revitalization efforts.  Those all have downtown housing and a pedestrian-friendly traffic and transportation system, he said, noting that the latter had not been emphasized enough in ERA's report.  Mr. Koontz listed features that the Downtown should include, and stressed the need for a transportation transfer station. If designed properly, with some of the affirmation stores and shops, a transfer station would keep bus riders Downtown, he said.  Mr. Koontz emphasized that a Downtown transfer station could substantially add to the common goal of a thriving Downtown.

Transportation Board Member George Cianciolo praised the idea of having condos Downtown.  But he did not think that condos would provide enough residents to support the retail necessary for Downtown revitalization, he said.  Mr. Cianciolo suggested that the Downtown become a destination for residents of Chapel Hill and surrounding communities, and he cautioned the Council to make sure there is adequate parking.  He suggested increasing transit service and agreed with the Transportation Board's idea of having a centrally located transfer center.  Mr. Cianciolo thanked the Town Council for putting the master transit plan and transfer center high on their priority list.  He encouraged them to include studies of both in as much Downtown planning as possible.

Transportation Board Member Eleanor Howe recommended that Council members think in terms of transit growth when planning the future of the Downtown.  People will ride the bus when it is not an unpleasant experienced, she said.  Ms. Howe added that this would include having a transfer station where one can get out of the rain and snow, use the restroom, and get something to eat.  She noted that a transfer facility would not have to be ugly.  It could even be a draw in itself, Ms. Howe said, adding that it could have "incredible public art."

Vivian Olken, owner of The Inside Scoop, explained that she had moved to Chapel Hill from Palo Alto, California which does not have a downtown movie theater.  Ms. Olken said that she felt fortunate that Chapel Hill had two Downtown theaters, and noted that a third one might put the other two out of business.  Ms. Olken suggested working instead to update the art theaters that the Town already has.

Ms. Olken explained that Palo Alto has free parking.  And if people go overtime they get a ticket, she said.  She stated that Stanford University has one of the most beautiful parking structures she had ever seen.  There is no reason why a parking structure needs to be ugly, Ms. Olken pointed out.  She also recommended that the Town develop a place where teens, particularly boys, could come together and hang out.  Ms. Olken asked Council members not to price the Town so that goods and services will be too high for most of the populace.

Virginia Knapp, Associate Director of the Chapel Hill-Carrboro Chamber of Commerce, said that Chapel Hill had been doing things right regarding the Downtown and that continued success would depend on the Town, University and business community working together.  The Chamber applauded the Council for making Downtown revitalization a high priority, she said, and encouraged the Council to act quickly on these recommendations, recognizing that it will require additional parking.  In the meantime, said Ms. Knapp, the Council should improve signage in existing lots and decks.  She urged Council members to consider local developers, noting that many had been nationally recognized for the environmentally sensitive projects they have completed in Chapel Hill and elsewhere.

Andrew Ross, representing the Chapel Hill Public Arts Commission, recommended creating world class architecture and public art at the transit center, and at other mixed-use structures around Town. One way to make Downtown a family destination, and not just for students, would be to make it a destination for the arts, he said.  Mr. Ross noted that this means looking at publicly supported art venues, such as a public gallery and a public performing arts space.  Lots 2 and 5 were the perfect for this, he said, adding that both would bring people Downtown.  Mr. Ross pointed out that the Public Arts Commission did not have a good space for to hold its events and projects.

Lynne Kane expressed interest in seeing the Town expand its tax base.  This project, in particular, would help with the cost of living in Chapel Hill and would contribute to affordable housing, she said. Ms. Kane agreed that having a covered transfer station with indoor space would be appealing.  Incorporating a coffee shop, book store, and retail shops would be useful and sounds like a good alternative to the village green idea that had previously been discussed, she said.  She cautioned the Town not to try and replicate the Weaver Street area in Carrboro, since that was so close by.  Ms. Kane agreed with others that the existing theaters should be supported, and she stressed the need for adequate parking.

Dale Bailey noted that UNC had begun closing the gates to many of its parking lots during the night.  He suggested that the Town and University reach a cooperative agreement on sharing parking in the evening.  That would keep visitors from feeling so clocked that they have a negative experience, Mr. Bailey said.

James Kelley said that living Downtown had been easier for him in 1990 when there were two grocery stores.  It would help the environment, no matter how you looked it, if people who live Downtown could walk to a grocery store, he said.  Mr. Kelley proposed that nothing was more important than providing a grocery store to Downtown residents.  A bus transfer station would also be accommodating, he said.            

Mayor Foy pointed out that six Council members had met with Mr. Stainback for a couple of hours prior to this meeting.  So the Council might already have asked all their questions, he said.

MAYOR PRO TEM WIGGINS MOVED, SECONDED BY COUNCIL MEMBER WARD, TO RECEIVE AND REFER COMMENTS TO THE COMMITTEE, MANAGER AND ATTORNEY.  THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).