AGENDA #10.1(b)
MEMORANDUM
TO: Mayor and Town Council
FROM: Bill Strom, Chair, Council Committee on Lots 2 and 5
SUBJECT: Downtown Economic Development Initiative: Budget Ordinance Amendment for Market Study
DATE: November 24, 2003
The attached budget ordinance amendment totaling $20,000 would provide additional funding from the General Fund balance needed to complete extra tasks in the scope of work for a Market Demand Study as recommended by the Council Committee on Lots 2 and 5.
BACKGROUND
On October 27, 2003, the Town Council authorized the Manager to contract with Stainback Public/Private Real Estate LLC of Malvern, Pennsylvania, to provide economic development consultant services for the development of Parking Lots 2 and 5. At that time, the Council budgeted $120,000 for this work, including $35,000 for a Market Demand Study to be conducted by Economics Research Associates (ERA) as a subcontractor of Stainback Public/Private Real Estate.
The results of the market analysis are intended to put the Council in the position to determine whether market conditions warrant proceeding with the next step in the process – development of master concept plans for the two sites.
DISCUSSION
On November 21, 2003, the Council Committee on Lots 2 and 5 met with John Stainback, managing partner of Stainback Public/Private Real Estate, and reviewed a draft Scope of Work for the Market Demand Study, which will determine the market demand for various categories of uses at the two sites (please see Attachment 1). The $35,000 base fee would be sufficient to examine market demand for housing, retail and office uses.
The Council Committee also reviewed two potential add-ons to the Scope of Work proposed by the consultant: evaluating the market demand for cinema and conducting an assessment of the downtown overall.
The Committee decided to make the following changes to the proposed Scope of Work:
· Evaluate market demand for various entertainment uses such as books, tour arts galleries, reviews for music, food, drink, gathering place, and performance space/theatre, rather than cinema by itself. Mr. Stainback said this element as revised would cost about $10,000 (see Section 3.E).
· Add the downtown assessment, eliminating the “briefing package” task, which Mr. Stainback estimated would reduce the cost to about $9,500 (see Section 4).
The original Scope of Work was to take about eight weeks to complete. Mr. Stainback estimated that the additional tasks would add two to four weeks to the time required to complete the analysis. The Council Committee will meet with Economics Research Associates in December to discuss input into the Market Demand Study; the date has not been set.
RECOMMENDATION
That the Council enact the attached budget ordinance to authorize up to an additional $20,000 for Market Demand Study elements as described in this memorandum.
ATTACHMENT
AN ORDINANCE TO AMEND “THE ORDINANCE CONCERNING APPROPRIATIONS AND THE RAISING OF REVENUE FOR THE FISCAL YEAR BEGINNING JULY 1, 2003 (2003-11-24/O-11)
BE IT ORDAINED by the Council of the Town of Chapel Hill that the Budget Ordinance entitled “An Ordinance Concerning Appropriations and the Raising of Revenue for the Fiscal Year Beginning July 1, 2003” as duly adopted on June 9, 2003, be and the same is hereby amended as follows:
ARTICLE I
Current Revised
APPROPRIATIONS Budget Increase Decrease Budget
GENERAL FUND
Planning 1,186,507 20,000 1,206,507
ARTICLE II
Current Revised
REVENUES Budget Increase Decrease Budget
GENERAL FUND
Fund Balance 2,556,168 20,000 2,576,168
This the 24th day of November, 2003.