A RESOLUTION AUTHORIZING THE MANAGER TO EXECUTE A LEASE AGREEMENT FOR THE APPROXIMATELY 6,000 SQUARE-FOOT BUILDING LOCATED AT 2200 HOMESTEAD ROAD FROM JANUARY 1, 2007 UNTIL DECEMBER 31, 2008 (2006-10-23/R-5)

WHEREAS, Sport Art Gymnastics LLC currently operates a gymnastics school in a building owned by the Town of Chapel Hill; and

WHEREAS, the Town desires that the services of the gymnastic school continue to be offered to the citizens of Chapel Hill; and

WHEREAS, the Town has published a public notice of the Council’s intent to enter into a lease agreement with Sport Art Gymnastics LLC; and

WHEREAS, no other party has requested to lease said premises;

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council authorizes the Manager to execute a two year lease agreement, with a proviso in the lease that the Manager may shorten the lease, or some portion thereof, if some or all of the structure is needed for other Town recreational purposes, specifically for use for the Town’s pottery making program presently housed at Lincoln Center beginning on January 1, 2007, on behalf of the Town with Sport Art Gymnastics LLC or its successors in interest, for an approximately 6,000 square-foot building at 2200 Homestead Road for the operation of a gymnastics school, said lease containing conditions substantially as the existing lease executed by Sport Art Gymnastics on December 16, 2004.

This the 23^rd day of October, 2006.