AGENDA #7b
MEMORANDUM
TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manager
SUBJECT: Development of Town Parking Lots 2 and 5: Authorization to Proceed with the Project; Consideration of Uses for Conceptual Master Plans
DATE: April 14, 2004
The attached Resolution A would authorize proceeding with the Parking Lots 2 and 5 development initiative as outlined in the Town’s contract with Stainback Public-Private Real Estate, the consulting firm managing the process.
Resolution B would identify the uses the Town Council wishes to include in the next stage of the process – the development of conceptual master plans for the two sites.
The accompanying memorandum from John Stainback, managing partner with Stainback Public-Private Real Estate, describes a recommended building program for the Council’s consideration. The recommendations are based on findings in the Market Analysis Report by Economics Research Associates, previously distributed to Council on March 22. A copy of the Executive Summary of the Report is attached (please see Attachment 1).
The Downtown Chapel Hill Small Area Plan, adopted by the Council in 2000, identifies as development “opportunity areas” two Town-owned downtown parcels: Town Parking Lot 2, at East Rosemary and South Columbia Streets, and Town Parking Lot 5, on West Franklin and Church Streets.
In February and March 2002, the Town held the Downtown Design Workshop to provide the public the opportunity to sketch their ideas for key downtown sites, including Lots 2 and 5. At a Council Work Session on June 10, 2002, the Town Council reviewed concepts for Parking Lots 2 and 5, as described in the Summary Report on the workshop and depicted in three-dimensional computer images developed by a consultant.
On June 10, 2002, the Council formed the Council Committee on Lots 2 and 5 to review in greater detail options for proceeding with a project to develop the two parking lots. Council members serving on the Committee include Sally Greene, Ed Harrison, Mark Kleinschmidt, Bill Strom, Dorothy Verkerk, and Jim Ward. Council Member Sally Greene replaced former Council Member Pat Evans on the Committee in December 2003.
On February 24, 2003, the Town Council adopted Principles and Priorities recommended by the Council Committee on Lots 2 and 5 (please see Attachment 2). In addition, the Council adopted a resolution directing the Town Manager to seek proposals for an economic development consultant to work with the Council and Staff in soliciting and analyzing developer proposals and negotiating and executing a development agreement.
After a consultant selection process involving 11 firms that responded to the Town’s Request for Qualifications, the Council Committee on Lots 2 and 5 in August 2003 recommended that the Council negotiate a contract with Stainback Public/Private Real Estate LLC to manage the process. On October 27, 2003, the Council authorized the Manager to contract with Stainback Public/Private Real Estate.
In an initial meeting with the public on November 20, 2003, the consultant presented an overview of the steps of the pre-development process (please see Attachment 3).
The Council has budgeted $140,000 for the first two phases of the project as outlined in the contract scope of work – the development of a market demand study followed by the development of conceptual master plans. After completion of the master plans, the next step would be a financial feasibility analysis of the concepts, completed by Stainback Public/Private Real Estate. (An excerpt from the Work Statement describing the first three parts of the project is included as Attachment 4). The Council has the option of deciding whether to proceed after each phase.
In March 2004, Economics Research Associates (ERA) submitted to the Council a market analysis report which was commissioned to determine whether there is sufficient market demand for specific types of uses the Council could consider including in the development of Parking Lots 2 and 5. Economics Research Associates, which worked as a subcontractor of Stainback Public/Private Real Estate, developed the Market Demand Analysis Report with input from the Council Committee on Lots 2 and 5 and the public.
The Council Committee held several meetings from December 2003 through March 2004 to review earlier drafts and make comments and recommendations as to the content of the report. These meetings were attended by downtown business owners, representatives from the Chamber of Commerce and the University, and other interested citizens.
On March 22, 2004, the Council held a public forum on the findings of the Market Analysis Report. The forum followed a Council Committee meeting that afternoon in which the Committee and citizens had the opportunity to review the report with the consultants, as well as provide input on uses they wanted to be considered for the land, building and infrastructure program.
Following are key issues raised at the Council’s March 22, 2004 Public Forum on the Market Analysis Report and the Council Committee on Lots 2 and 5 meeting that afternoon in which the Committee met with the consultants to review the Report.
Key issues discussed by the Council Committee on March 22 include:
Staff Comment: Architecture would not be addressed in the conceptual master plan stage; the Town would retain design approval rights over the final design of a project to preserve control over design.
Other specific uses suggested by Committee members included: performance space for music; a “new product bookstore/coffee shop;” a small grocery store; a “transit piazza” that is an attraction for transit riders; uses that generate nighttime foot traffic; and space for the arts, and non-profits.
Following are highlights of citizen comments made at the public forum (please see Attachment 5 for the minutes of the forum).
§ Public parking needs to be maintained.
§ The transit center concept should be considered in a central location downtown, in proximity to Lots 2 and 5.
§ Make downtown a destination for the arts and for families.
§ Consider providing space for public events such as arts exhibits.
§ Provide a grocery store downtown.
Additional citizen comments received by e-mail are contained in Attachment 6.
DISCUSSION
The first question for the Council’s consideration is whether to proceed with the next phase of the project, the development of conceptual master plans for the sites.
The Market Analysis Report suggests that there would be market demand to support retail and housing space in mixed-use development projects on both sites. The Report identified strong market demand for rental housing, totaling 300 to 400 units, and demand for retail space of at least 112,000 square feet, in the Chapel Hill-Carrboro area.
The Report also recommended that the Town consider including arts and entertainment uses complementary to the University’s Arts Common project such as art galleries, artist studios, and performance arts space. Another potential market-supportable use identified in the Report is a cinema house with up to three screens.
Should the Council decide to proceed with the project, the next issue for the Council will be the consideration of a recommended building program for developing the conceptual master plans.
The accompanying memorandum from John Stainback includes his recommended building program to be used as a basis for developing conceptual master plans for developing Lots 2 and 5. The master plans, which would be developed by HKS Architects, would show the potential configuration on Lots 2 and 5 of buildings, parking and other infrastructure and public space.
Resolution B would identify for HKS Architects a list of uses and a range of space, in terms of square feet, that would reflect the Council’s priorities for developing the sites. The resolution gives the Council’s authorization to proceed based on a recommended program, but the specific numbers could change as the building program is refined based on site constraints, regulatory requirements and other factors.
Mr. Stainback’s recommended building program for Lot 2 includes the following (please see accompanying memorandum in part A of this agenda item):
|
Potential Uses |
Square Feet (Option 1) |
Square Feet (Option 2) |
|
Retail Space |
20,000 |
30,000 |
|
Market-Rate Housing |
75,000 |
65,000 |
|
Affordable Housing |
11,250 |
9,750 |
|
Art Gallery |
1,500 |
2,500 |
|
Pedestrian/Public Space |
1,000 |
2,000 |
|
Total: |
108,750 |
109,250 |
|
|
|
|
|
Replacement Parking |
104 spaces |
104 spaces |
|
Additional Parking Based on Building Program |
149 spaces |
149 spaces |
|
Total Parking: |
253 spaces |
253 spaces |
A total of 149 parking spaces would be required for this building program under the current parking requirements; a total of 253 spaces would be needed to provide the required parking and replace the existing 104 surface parking spaces in Lot 2.
The exterior pedestrian space is similar in scale to the Columbia Street plaza depicted in the concept for Lot 2 developed in the Downtown Chapel Hill Design Workshop (see Attachment 7). That concept also included a pedestrian mall extending through the site from the pedestrian alley on Franklin Street, as well as a raised walkway on Rosemary Street connecting the Bank of America plaza, a total of about 5,000 square feet. We suggest in resolution B for Council’s consideration a range of Pedestrian/Public Space from 1000 to 5000 square feet, including both interior and exterior space.
Mr. Stainback’s recommended building program for Lot 5 includes the following (please see accompanying memorandum in part A of this agenda item):
|
Potential Uses |
Square Feet: Option 1 |
Square Feet: Option 2 |
|
Retail Space |
30,000 |
50,000 |
|
Market-Rate Housing |
122,000 |
101,000 |
|
Affordable Housing |
18,300 |
15,150 |
|
Art Gallery |
3,500 |
4,500 |
|
Pedestrian/Public Space |
3,500 |
8,000 |
|
Specialty Grocery Store |
2,000 |
3,500 |
|
Total: |
179,300 |
182,150 |
|
|
|
|
|
Replacement Parking |
170 spaces |
170 spaces |
Additional Parking Based on Building Program |
258 spaces |
258 spaces |
|
Total Parking: |
428 spaces |
428 spaces |
The parking required for these uses, based on the current parking ratio in the Land Use Management Ordinance, totals 258. A parking deck with approximately 430 spaces would be needed to meet the new parking demand and replace the existing 170 spaces in Lot 5.
The amount of public space in the recommended program includes indoor space (up to 4000 square feet), such as an atrium, and outdoor space. The high range of outdoor space, an additional 4,000 square feet, is less than half of the size of the public space shown in the Downtown Chapel Hill Design Workshop Concept 5D (see Attachment 8). We suggest in resolution B for Council’s consideration a range of Pedestrian/Public Space from 3,500 to 10,000 square feet, including both interior and exterior space.
The building program does not take into account a potential transit transfer center located adjacent to Lots 2 and 5. One option discussed by the Council Committee that could be explored in the development of conceptual master plans is the use of the Franklin Street or Church Street and Columbia Street rights-of-way for on-street transit facilities consisting, for example, of aesthetically pleasing shelters, integrated with the public spaces, sidewalks, and street-level uses. Resolution B would include consideration of options for design of a transit transfer center in the conceptual master planning process. We anticipate the process will include consultation with our Transportation Department concerning operational considerations.
We recommend that the Council adopt Resolution A authorizing the consultant to proceed with Part 1B, the development of conceptual master plans, as outlined in the Town’s contract with Stainback Public/Private Real Estate authorized by the Council on October 27, 2003. HKS Architects, based in Dallas, would develop the master plan sketches under contract to Mr. Stainback in consultation with the Council Committee on Lot 2 and 5.
We also recommend that the Council adopt Resolution B, identifying the specific uses and range of square footage per use to be used as a guide in the development of conceptual master plans, the next phase of the project.
RESOLUTION A
A RESOLUTION AUTHORIZING PROCEEDING WITH PART 1B, DEVELOPMENT OF MASTER PLANS, FOR PARKING LOTS 2 AND 5 (2004-04-14/R-13a)
WHEREAS, the Comprehensive Plan and Downtown Small Area Plan identify Town Parking Lots 2 and 5 as key redevelopment sites; and
WHEREAS, the Town Council has established principles and priorities for development of Town Parking Lots 2 and 5; and
WHEREAS, the Council on February 24, 2003, authorized the Town Manager to develop a request for proposals for economic development consultant services to help plan and manage the options for proceeding with the development of Town Parking Lots 2 and 5 and help represent the Town’s interests in any development agreement; and
WHEREAS, on April 28, 2003, the Council authorized proceeding with a Request for Qualifications/Request for Proposals selection program; and
WHEREAS, the Council Committee on Lots 2 and 5 in August 2003, voted unanimously to continue discussions with Stainback Public/Private Real Estate LLC of Malvern, Pennsylvania, on a consulting contract after interviewing representatives from four prospective consulting firms; and
WHEREAS, the Council on October 27, 2003 authorized the Town Manager to execute e a contract with Stainback Public/Private Real Estate; and
WHEREAS, the Consultant has completed Part 1A of the contract, completion of a Market Analysis Study, and has recommended a program of uses to the Council based on the economic feasibility of the results of the Study;
NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council authorizes the Town Manager to initiate work on the next phase 1B of the contract with Stainback Public/Private Real Estate, Development of Master Plans for Both Sites, based substantially on the terms in the attached Work Statement from Contract for Consultant Services authorized by the Council on October 27, 2003.
This the 14th day of April, 2004.
RESOLUTION B
A RESOLUTION AUTHORIZING A PROGRAM OF USES FOR DEVELOPMENT OF MASTER PLANS FOR THE SITES (2004-04-14/R-13b)
WHEREAS, the Consultant, Stainback Public/Private Real Estate, has commissioned a Market Analysis Study conducted by Economics Research Associates, Inc.; and
WHEREAS, the Council has held a public forum on March 22, 2004 to hear citizen comment on the proposal;
NOW, THEREFORE BE IT RESOLVED by the Council that the Council authorizes consideration of the following uses and range of square footage in the preparation of a land, building, and infrastructure program for Lots 2 and 5 as part of the next stage of development of conceptual Master Plans for both sites:
Retail Space 20,000 – 30,000
Market-Rate Housing 65,000 – 75,000
Affordable Housing 9,750 - 11,250
Art Gallery 1,500 – 2,500
Pedestrian/Public Space 1,000 – 5,000
Parking:
Replacement Parking 104 spaces
Additional Parking 149 spaces
Total 253 spaces
Parking Lot 5 Uses: Range in Square Feet
Retail Space 30,000 – 50,000
Market-Rate Housing 101,000 – 122,000
Affordable Housing 15,150 - 18,300
Art Gallery 3,500 – 4,500
Pedestrian/Public Space 3,500 – 10,000
Specialty Grocery Store 2,000 – 3,500
Parking:
Replacement Parking 170 spaces
Additional Parking 258 spaces
Total 430 spaces
BE IT FURTHER RESOLVED that the Council authorizes consideration of design options for a transit transfer center in conjunction with the development of Parking Lots 2 and 5 as part of the next stage of developing conceptual master plans for the sites; and
BE IT FURTHER RESOLVED that the Council reserves the right to make adjustments to the uses and the ranges based on additional information that may become available during the design stage of the project in developing conceptual Master Plans for both sites.
This the 14th day of April, 2004.