AGENDA #12

 

MEMORANDUM

 

TO:                  Mayor and Town Council

                       

FROM:            W. Calvin Horton, Town Manager

 

SUBJECT:       Establishment of New Downtown Economic Development Organization

 

DATE:             April 14, 2004

 

 

The purpose this memorandum is to propose establishment of a new downtown economic development organization as recommended by the Chapel Hill Downtown Steering Committee.  Adoption of the attached resolution would:

 

• authorize the Town Attorney to provide legal services necessary for establishment of the new organization;
• instruct the Manager to include an allocation of $70,000 in the 2004-05 General Fund budget proposal and $70,000 in the 2004-05 Downtown Service District Fund budget proposal; and,
• set a schedule for appointment of a board of directors to lead the new organization. 

 

Establishment of the corporation, enactment of the 2004-05 Budget Ordinance by the Council, and appointment of a Board of Directors for the corporation would allow the new organization to begin operations by July 1, 2004.

 

BACKGROUND

 

The Council received and discussed a report from the Mayor’s Downtown Task Force on October 8, 2002.  Following discussion, the Council authorized the appointment of a Chapel Hill Downtown Steering Committee, composed of members from the Town and the University and downtown representatives, to further explore creation of a new downtown economic development organization.  Mayor Foy and Town Manager Horton were designated by the Council to represent the Town; the University subsequently appointed Vice Chancellor for Finance and Administration Nancy Suttenfield and University Trustee Roger Perry; Charles House, Betty Kenan, and Dana McMahan represented the Downtown Commission.

 

The Committee conducted a series of meetings beginning in November 2003 and concluding in March 2004.  David M. Lawrence and Leslie Anderson, of the School of Government, provided consulting assistance to the Committee through arrangements made by Vice Chancellor Suttenfield.   Mr. Lawrence and Ms. Anderson summarized the decisions of the Committee in the attached documents: (1) Chapel Hill Downtown Steering Committee: Summary of Final Decisions, (2) Downtown Chapel Hill: Foundational Elements (Revised) and (3) Draft Downtown Chapel Hill Unified 501(c)3 Organization.

DISCUSSION

 

The Steering Committee’s recommendations are well stated in the report from Mr. Lawrence and Ms. Anderson.  Below I note only key points:

 

• The new downtown economic development organization would be a non-profit corporation with a board of seven members.  The Council would appoint four members, the University would appoint two members, and those six members would appoint a seventh.
• At least one of the Town’s appointees would be an owner of downtown property, and at least one would be an owner of a business located in the downtown.
• The organization would be funded by appropriations from the Town and the University.  The Town would provide two-thirds of the funding and the University one-third. The Town’s share of funding would consist of an allocation from the Downtown Service District Fund and an allocation from other Town funds.  The allocation from the Downtown Service District Fund is expected to be $70,000 in each of the next three fiscal years, with a matching amount from other Town funds.  The University is expected to allocate $70,000 in each of the next three years.
• The University has agreed to provide staffing to the new organization for the first year of its existence, to allow the organization’s board of directors to do an appropriate search for permanent staff.
• The mission of the new organization would be to bring the resources of the Town, University, and downtown community together to maintain, enhance, and promote downtown as the social, cultural, and spiritual center of Chapel Hill through economic development.

 

RECOMMENDATION

 

The need for a new approach to promotion of economic development in downtown Chapel Hill is well established, and the importance of the downtown as “the social, cultural and spiritual center of Chapel Hill” is highlighted in the Town’s Comprehensive Plan.

 

I recommend that the Council adopt the attached resolution that would: authorize the Town Attorney to provide legal services necessary for establishment of the new organization; instruct the Manager to include an allocation of $70,000 in the 2004-05 General Fund budget proposal and $70,000 in the Downtown Service District Fund 2004-05 budget proposal for the new organization; and, set a schedule for appointment of a board of directors to lead the new organization.

 

 

ATTACHMENTS

 

1.         Chapel Hill Downtown Steering Committee: Summary of Final Decisions (p. 4).

2.         Downtown Chapel Hill: Foundational Elements (Revised) (p. 7).

3.         Draft Downtown Chapel Hill Unified 501(c)3 Organization. (p. 10).

 

A RESOLUTION AUTHORIZING ACTIONS NECESSARY TO ESTABLISH A NEW DOWNTOWN ECONOMIC DEVELOPMENT ORGANIZATION (2004-04-14/R-17)

 

WHEREAS, The Town Council of the Town of Chapel Hill received and discussed a report from the Mayor’s Downtown Task Force on October 8, 2003; and

 

WHEREAS, following discussion, the Council authorized the appointment of a Chapel Hill Downtown Steering Committee, composed of members from the Town and the University and downtown representatives, to further explore creation of a new downtown economic development organization; and

 

WHEREAS, the Committee conducted a series of meetings beginning in November, 2003 and concluding in March 2004; and

 

WHEREAS, the recommendations of the Committee are summarized in Attachments 1, 2, and 3 of the memorandum to the Council dated April 14, 2004: (1) Chapel Hill Downtown Steering Committee: Summary of Final Decisions; (2) Downtown Chapel Hill: Foundational Elements (Revised); and (3) Draft Downtown Chapel Hill Unified 501(c)3 Organization; and

 

WHEREAS, the Council wishes to proceed with the establishment of the new downtown economic development organization; and

 

WHEREAS, the Council wishes to receive further citizen comment on the proposed organization as a part of its budget development process;

 

NOW, THEREFORE, BE IT RESOLVED by the Town Council of the Town of Chapel Hill, North Carolina that:

 

• the Town Attorney is authorized to provide legal services necessary for establishment of the new organization;
• the Manager is instructed to include an allocation of $70,000 in the 2004-05 General Fund budget proposal and $70,000 in the 2004-05 Downtown Service District Fund budget proposal for the new organization;
• the Town Clerk is directed to advertise the Council’s intent to make its appointments to the Board of Directors of the new organization on the following schedule:

¨        Advertisement placed in local newspapers beginning April 18 through May 16.

¨        Nominations placed on Council’s agenda for May 24.

¨        Appointments placed on Council’s agenda for June 14.

 

BE IT FURTHER RESOLVED that the Council requests that Chancellor Moeser appoint the University’s representatives on the Board of Directors and take such other actions as are necessary for the University to participate in the new organization so that operations may begin by July 1, 2004.

 

This the 14^th day of April, 2004.