AGENDA #3a(1)

November 30, 2006

Mr. Kevin Foy, Mayor

Mr. Roger Stancil, Town Manager

Town of Chapel Hill

405 Martin Luther King, Jr. Blvd.

Chapel Hill, NC  27514

Dear Mayor Foy and Mr. Stancil:

June 30, 2007 will mark the end of the initial three-year agreement with the Town and the University to fund the Chapel Hill Downtown Partnership. In reviewing our work over the past year, our board of directors feels confident that our approach and action steps are effectively strengthening the environment that will support existing businesses and new investment, yet there is still much work to be done in downtown Chapel Hill and successful revitalization is a long-term, incremental process.

We request that at the December 4^th Town Council meeting, you authorize the appropriate representatives to meet with our Executive Committee to discuss the terms of our agreement to be renewed and ask that you take action on this agreement in January, 2007 in an effort for our organization to plan accordingly.

We recommend that we review the length of the next phase of our agreement, the level of funding based upon the expectations of the work to be completed and the operational needs of the organization.

Thank you for your assistance in this matter and thank you for your partnership in improving downtown.

Sincerely yours,

Tom Tucker,

Chair