AGENDA #4e

MEMORANDUM

TO:	Roger L. Stancil, Town Manager
FROM:	Ray L. “Butch” Kisiah, Director of Parks and Recreation
	Bill Webster, Assistant Director of Parks and Recreation
SUBJECT:	Extension of a Short-Term Lease of Town-Owned Parking Spaces to the Siena Hotel
DATE:	January 28, 2008

PURPOSE

The attached resolution would authorize the Manager to extend the short-term lease of Town-owned parking spaces to the Siena Hotel on a month-to-month basis until January 10, 2009, or until such time as the site is needed for construction of the Chapel Hill Library.

BACKGROUND

On November 27, 2000, the Council adopted the Report of the Pritchard Park Conceptual Plan Committee. At the same time the Council authorized the Manager to execute a lease agreement with the Siena Hotel to lease parking spaces on Town property to the hotel.

On May 29, 2002, the Council authorized the Manager to extend the lease of parking spaces on Pritchard Park on a month-to-month basis.

DISCUSSION

North Carolina General Statute 160A-272 states that 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.

The month-to-month lease will expire on February 10, 2008 and would require Council reauthorization if we are to continue to allow the Siena Hotel to use Town property. We believe that the arrangement has worked well for both parties. If the Council agrees we would renegotiate a lease on the following terms:

• The lease would continue on a month to month basis until January 10, 2009. The lease would have to be reauthorized by the Council after that date.
• The lease amount would be $65 per space per month. If the Council raises the fees for downtown off-street parking spaces the fee for the Pritchard Park spaces would increase by a proportional amount.
• The Siena Hotel would continue to be responsible for all costs associated with insurance, maintenance, security, and lighting of the parking area.

Proposed Rates: We propose no increases in fees at this time. The current fee is $65 per space or $1,625 per month. We propose that the lease contain language that would require a fee increase if the rates for downtown, off-street parking spaces are increased by the Council.

Potential Use of the Property for the Chapel Hill Library/Pritchard Park Project: The month-to-month lease provision would allow the Town to assume control of the property upon 30 days notice if the property is needed for a staging area for library construction, temporary or permanent parking, or any other permitted use. At this time we anticipate that the property will be needed for library related construction activities in the fall of 2008.

RECOMMENDATION

Staff Recommendation: That the Council adopt the attached resolution that would authorize the Manager to execute a short-term lease of Town-owned parking spaces at the rate of $65 per space per month to the Siena Hotel until January 10, 2009, or until such time that the site is needed for construction of the Chapel Hill Public Library.