memorandum

to:                  Roger L. Stancil, Town Manager

from:            Ray (Butch) Kisiah, Parks and Recreation Director

Bill Webster, Assistant Parks and Recreation Director

subject:      Proposal to Extend a Lease for a Portion of the Hargraves Recreation Center to Holmes Child Care, Inc.

date:            October 27, 2008

PURPOSE

The attached resolution would authorize the Manager to execute a two-year lease extension agreement with Holmes Child Care, Inc. for approximately 3,850 square feet of space in the basement of the Hargraves Recreation Center, 216 N. Roberson Street.

BACKGROUND

Holmes Child Care, Inc. has operated in the Hargraves Recreation Center for approximately 38 years. The current lease will expire on December 31, 2008.

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 12, 2008.

The proposed lease agreement would be substantially the same as the current agreement including:

  1. At least 60 percent of the children attending the day care program must be residents of Chapel Hill.

  2. The Town would require Holmes Child Care, Inc. to cease operations for one week per year for the purpose of performing annual maintenance operations. The Town would agree to work with the center to determine the best possible time for the annual shutdown of the facility.

  3. In the event that the facility requires extraordinary maintenance, the Town may require Holmes Child Care, Inc. to cease operations for the time period needed to perform the maintenance operations. The Town would give as much notice as possible.

RECOMMENDATION

That the Council adopt the attached resolution authorizing the Manager to execute a lease extension with Holmes Child Care, Inc. for operation of a child care center at the Hargraves Recreation Center from January 1, 2009 until December 31, 2010.