AGENDA #2
MEMORANDUM
TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manager
SUBJECT: Proposed Changes to Downtown Service District Boundaries
DATE: June 26, 2006
The purpose of tonight’s continuation of the public hearings begun on May 22 is to receive citizen comments on the proposals to change boundaries for the Downtown Service District. Resolutions R-1a and R- 1b would adjust the boundaries of the Downtown Service District.
BACKGROUND
Downtown Service District boundaries were last changed in 2003. In the past, the Downtown Service District boundaries were designed to include properties that were predominantly commercial and to exclude properties that were predominantly residential. This year we recommend that the Council consider adding some properties and deleting others from the service district. Extension of service district boundaries is addressed by N.C.G.S. 160A-538 and reduction of service district boundaries is addressed in 160A-538.1. As a result, the Council held two public hearings on May 22, 2006 (see Attachment 1). Both hearings were recessed to June 26, 2006 to allow further public comment before Council action.
DISCUSSION
Public Hearing on Extension of Downtown Service District
No comments were received on the proposal to extend the Downtown Service District boundaries.
We believe that properties which face primary business streets in the downtown are appropriate for inclusion within the service district and for receipt of the services provided by the District tax, with the exception of properties designed and used for single family or duplex residential use.
Establishing this principle would result in the addition of mixed use developments and residential multi-unit developments.
We also recommend that the Council consider altering the District boundaries to add to the district all of the single lots which are now only partially included within the District, where the property is used for a single purpose. For example, the District currently includes parcels with buildings and parking within a single lot, but only portions of these parcels are included in the Downtown Service District.
The area to be added is contiguous with the current Downtown Service District boundaries. At least one eighth of the area’s aggregate external boundary is coincident with the existing boundary of the District. The Downtown Service District provides services promoting the Downtown District and meeting unique service needs of District property owners. Through the Downtown Partnership, the Downtown Service District receives services to create a cleaner and safer environment, to promote businesses and special events, to rehabilitate historic structures and to offer other services of value to the Downtown District. The area to be annexed requires the services of the district.
District services would be extended to newly added properties as of July 1, 2006 for properties of record as of January 1, 2006. As of July 1, 2006, newly added properties would receive the services of the Downtown Service District.
We believe that the properties proposed for inclusion within the extended service district boundaries meet the standards of N.C.G.S. Sec. 160A-538 (a) which provides:
§ 160A‑538. Extension of service districts.
(a) Standards. – The city council may by resolution annex territory to any service district upon finding that:
(1) The area to be annexed is contiguous to the district, with at least one eighth of the area’s aggregate external boundary coincident with the existing boundary of the district;
(2) That the area to be annexed requires the services of the district.
Pursuant to N.C.G.S. Section 160A-538, letters were sent April 24, 2006 to the individual property owners who would be affected by the proposed changes, four weeks before the public hearing (Attachment 5); public notice of the hearing was made in the Chapel Hill News on May 14, more than a week before the public hearing (Attachment 4); and a report was prepared and made available for public inspection in the office of the Town Clerk on May 9, two weeks before the date of the public hearing (Attachment 3). In addition, we have attached a listing of properties that are currently not in the Downtown Service District which we are recommending for inclusion in the amended District (Attachment 6).
Public Hearing on Reduction of Downtown Service District
Our preliminary recommendation at the May 22, 2006 hearing was to reduce the boundaries of the Downtown Service District to exclude University of North Carolina property that was previously zoned TC-1, but now is zoned OI-4. The property is located on the south side of East Franklin Street, just west of the University Methodist Church. Notice of the proposed reduction of the service district was published pursuant to N.C.G.S. Section 160A-538.1.
At the hearing on May 22nd, the Downtown Partnership recommended altering the proposal for deleting certain properties from the Downtown Service District. A representative of the University requested time for consideration of the proposal and later reported that the University agrees with the recommendation of the Partnership to continue inclusion of the traditional commercial buildings facing Franklin Street in the Downtown Service District. The University does not pay taxes, so the designation in the District is primarily for the continuity of the District. We have revised the proposed District boundaries to include the University-owned buildings that have frontage on Franklin Street. We recommend that the buildings facing the campus, behind the commercial buildings on Franklin Street, be removed from the Downtown District.
Pursuant to the provisions of N.C.G.S. 160A-538.1, we believe the Council can make the determination that the University’s property facing Franklin Street remain in the Downtown Service District and that the buildings facing the campus behind the Franklin Street buildings be removed from the District.
RECOMMENDATION
We recommend that the Council adopt the two attached resolutions extending and reducing the boundaries of the Downtown Service District.
ATTACHMENTS
