AGENDA #4d

 

MEMORANDUM

 

TO:                  Roger L. Stancil, Town Manager

 

FROM:            Kathryn Spatz, Director of Parks & Recreation

                        Bill Webster, Assistant Director of Parks and Recreation

 

SUBJECT:     Proposed Extension of a Lease of a Building on Homestead Road to Sport Art Gymnastics, LLC

 

DATE:            October 23, 2006

 

PURPOSE

 

The attached resolution would authorize the Manager to execute a two-year lease agreement with Sport Art Gymnastics that would allow the existing gymnastics school to continue to operate in a Town-owned building until the end of 2008.

 

BACKGROUND

 

The Homestead Road building was constructed as a private gymnasium in 1974.

 

On June 25, 2001, the Council approved a Special Use Permit application for the Vineyard Square development that included a requirement that the developer deed a 14.91-acre recreation area to the Town. The recreation area includes the 6,000 square-foot building currently being used by Sport Art Gymnastics. Ownership of the land and building was transferred to the Town on December 23, 2002.

 

The Council has leased the building for the purpose of running a gymnastics school since the Town has assumed ownership of the building in 2002. On November 22, 2004 the Council authorized an extension of the lease until December 31, 2006.

 

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 extension of the lease agreement would contain the following main points:

  1. Use of Premises: The leased Premises would be used solely for a gymnastics school.
  2. Term of Lease: The term of this lease would be from January 1, 2006, and until December 31, 2008. 
  3. Right to Renew: Sport Art Gymnastics would have the right to renew this lease, subject to possible revision of the terms of the new lease by the Town and approval by the Council.
  4. Payments: Sport Art Gymnastics would make monthly payments of $1,150.
  5. Staffing and Supervision: Sport Art Gymnastics would be responsible for all necessary staffing, programming, and operations of the leased premises.
  6. Maintenance and Janitorial Services: Sport Art Gymnastics would, at its own expense, provide regular janitorial service; mow and maintain the lawn area; clean rain gutters; maintain all interior walls, ceilings, and floors; and repair items damaged as a result of misuse or neglect by Sport Art Gymnastics. The Town will make all repairs due to normal wear and tear.
  7. Utilities: Sport Art Gymnastics would provide, at its expense, all necessary utilities.

RECOMMENDATION

 

Manager’s Recommendation: That the Council adopt the attached resolution authorizing the Manager to execute a lease with Sport Art Gymnastics for operation of a gymnastics school at 2200 Homestead Road from January 1, 2007 until December 31, 2008.