AGENDA #3a(2)

To: Mr. Roger Stancil, Town Manager

From:  Ted Parrish, President, Pines Community Center, Inc.

Date: September 26, 2007

I learned today that the action last taken by the town to defer to a “future date” consideration of the Town’s claim of $54,250 against Pines Community Center, Inc. (PCC) may prevent a Boys & Girls Club from materializing in Orange County. If quick action is not taken, the Boys & Girls Club of Greater Orange will lose its opportunity to receive a charter, something it has been seeking for three years.  A simple statement saying that “PCC owes no money to the Town and the Town is working to resolve this matter” would satisfy the closing attorney and the lending bank.  This one sentence would allow PCC to gift two lots to the Boys & Girls Club of Greater Orange and raise about $100,000 toward its first year’s operating expenses.

There is a lot of history on this matter.  From our perspective, the bottom line is that PCC disputes the claim that it owes any money to the Town.  There are two reasons: (1) PCC was denied the right to manage the money paid for six acres of its land sold to build First Baptist Manley Estates, resulting in a loss of about $50,000.00 that it was owed from the land sale. (2) PCC should not have to repay the Town for that portion of the Town’s loan that helped buy six acres that finally went to First Baptist Manley Estates.  If these factors were considered by the Town, clearly PCC would not be facing a lien against its three acres on Merritt Mill Rd.

During its last board meeting, PCC passed a resolution leasing its center at 107 Johnson St. to the Boys and Girls Club of Greater Orange for $1.00/month to begin operations in Orange County.  PCC not only strives to help start the Club by providing a facility, but also it wants to donate two lots to auction in order to raise 50% of the Club’s first year’s operating expenses.  Once a professional CEO is hired, the Club will move forward quickly.  PCC can not donate the land unless it is able to build a sanitary sewer line for the two lots.  It planned to do this out of a $127,000.00 line of credit which has been approved and for which the closing is set for 3:30 pm on October 2, 2007 in attorney Kendall Page’s Office.  PCC is using as collateral its latest renovated house at 106 Park Rd. for which it just received a COO from the Town’s Housing Inspection Department.

The Town and PCC are in a position to partner to solve a major problem facing town residents.  This Club will eventually serve hundreds of the children who now get many of their socializing lessons from the streets. These are youth who can not afford the YMCA and are not enrolled in after school programs.  The citizens of Chapel Hill pay the price when many of these youth learn to snatch purses, sell drugs, have unplanned babies, break into people’s houses or steal cars.  A Club will counter much of this.

Won’t you use all the powers at your disposal to resolve this matter quickly?  I can be reached at 593-1478.  Thank you