AGENDA #7

MEMORANDUM

TO:	Roger L. Stancil, Town Manager

FROM:	J.B. Culpepper, Planning Director
	Gene Poveromo, Development Coordinator

SUBJECT:	Development Plan Modification No. 3 – University of North Carolina at Chapel Hill

DATE:	February 12, 2007

PURPOSE

Tonight the Council continues the Public Hearing from December 4, 2006, regarding an application from the University of North Carolina at Chapel Hill, requesting approval of a Modification of a Development Plan for the central campus. On December 4, 2006 the Council adopted a resolution approving a portion of the Development Plan Modification No. 3. However in response to a request by a Council member, the Council and the University agreed to continue the Public Hearing to February 12, 2007 for consideration of a proposal to expand the Carolina Inn.

Adoption of revised Resolution A would amend the December 4, 2006 Development Plan Modification No. 3 approval to include the proposed addition to the Carolina Inn. Adoption of Resolution B would deny the request to expand the Carolina Inn.

BACKGROUND

April 19, 2006	The Council conducted a public meeting at which the University presented a Concept Plan for the proposed Development Plan Modification No. 3.

June 8, 2006	The University applied for approval of a modification to the June 2004 Development Plan Modification No. 2. The proposal includes the addition of approximately 1.2 million square feet of new floor area.

November 13, 2006	The Council held a Public Hearing on the Development Plan Modification No. 3. The hearing was recessed to December 4, 2006.

December 4, 2006	The Council continued the Public Hearing on the Development Plan Modification No. 3 and adopted a resolution approving a portion of the proposed Development Plan, except for the addition to the Carolina Inn. The Council and University agreed to continue the public hearing to February 12, 2007.

DISCUSSION

During the December 4 Public Hearing, a Council member asked the University to return on February 12 with additional information on the Carolina Inn. The Council member asked the University to address the following concerns:

Fiscal equity: A Council member stated that the proposed improvements to the Carolina Inn appear be in direct competition with other hotels in Town. With respect to the University’s verbal promise to work with the Town on addressing fiscal equity issues, the Council member asked the University to address how the proposed improvement, and its potential to negatively impact similar businesses in Town, advances the discussion on fiscal equity.
Property Tax Payments-in-Lieu: A Council member suggested that the approval of the addition to the Carolina Inn should include a stipulation that required a payment-in-lieu for property tax.

Comment: In response to the above concerns the University submitted a letter (Attachment 1).

RECOMMENDATIONS

Staff Recommendation: We recommend that the Council approve this application with conditions, with adoption of Resolution A. Revised Resolution A would amend the Development Plan No. 3, as approved on December 4, 2006, and authorize a 15,000 square-foot addition connecting the existing wing of the Carolina Inn to a renovated Whitehead Hall.

Resolution B would deny the request to expand the Carolina Inn.

ATTACHMENTS

January 29, 2007 Response letter from the applicant (p. 8).