AGENDA #4y

 

MEMORANDUM

 

TO:                Mayor and Town Council

 

FROM:          W. Calvin Horton, Town Manager

 

SUBJECT:     Downtown Economic Development Initiative: Contract Amendments

 

DATE:           June 30, 2004

 

 

The attached resolution would authorize the Manager to execute amendments to the Town’s contract with Stainback Public/Private Real Estate, a consulting firm that is managing the process for developing Town Parking Lots 2 and 5 and other sites.  The amendments would revise the scope of work as described below and reflect the Council’s previously approved budget ordinance amendments related to the project.

 

The project budget is sufficient to pay for the additional work in the revised scope of work as proposed, so no budget ordinance amendment is needed at this time.

 

BACKGROUND

 

On October 27, 2003, the Town Council authorized the Manager to contract with Stainback Public/Private Real Estate, LLC of Houston, Texas, to provide economic development consultant services for the development of Parking Lots 2 and 5.  The first two phases of the project, development of a market demand study and development of conceptual master plans, have been completed.

 

Since the contract was executed in November 2003, the Council has approved two budget ordinance amendments increasing the project budget to pay for expanding the scope of work.  On November 24, 2003, the Council approved increasing the budget for the market demand study by $20,000, to $55,000, in order to pay Economics Research Associates for additional work as requested by the Council Committee on Lots 2 and 5.

 

On May 24, 2004, the Council approved increasing the conceptual master plan budget by $8,000, plus up to $1,000, for the cost of additional materials, to pay HKS, Inc. to develop additional concepts for developing the space atop the Wallace parking deck and the adjoining site.  During the conceptual master plan phase, the project area was expanded to include the potential addition of a parking deck on the RBC-Centura Bank site at Rosemary and Columbia Streets.

 

On June 14, 2004, Council approved conceptual master plans and a building program for Town Parking Lots 2 and 5, the RBC-Centura site, and the Wallace parking deck and adjacent property, that included a mix of housing, retail and above-grade and underground parking garages.  The building program included the development of an under-grade transit transfer station on Parking Lot 2.

On June 14, the Council also authorized proceeding with the current step, cost estimation and financial analysis of the building program, which is to be competed over the summer.

 

DISCUSSION

John Stainback, managing partner of Stainback Public/Private Real Estate, has submitted a proposal to expand the original scope of work to cover tasks added since the original contract was signed (please see Attachment 1).  The proposal includes two new tasks:

 

A)    Development of two detailed development phasing plans and schedules, $4,800.  This would be additional work for analyzing phasing related to the addition of the RBC property and Wallace parking deck sites in the master plans approved by the Council.

 

B)     Identification and analysis of sources of financing for Transit-Oriented Development Projects, $6,000.  The analysis also would include analysis of financing sources related to environmental mitigation such as Brownfields funding.

 

The total cost of these tasks is $11,826, including allocated costs of $1,026.

 

After reviewing the conceptual master plans developed by HKS, we recommend deleting $9,300 of work planned for the development of computer modeling by Design Vision.  This work no longer is needed.

 

Accounting for the changes to the contract, sufficient funds are available in Fiscal Year 2004-05. No budget amendment is needed.

 

Mr. Stainback has also advised it may be desirable to do appraisals of land value, environmental assessments and test borings on Lots 2 and 5.  We will be assessing whether to proceed with these tasks over the summer.  If we proceed, this would be paid out of the existing budget for direct expenses.

 

RECOMMENDATION

 

That the Council adopt the attached resolution authorizing the Manager to execute a contract amendment for the project incorporating the changes described in this memorandum. We also recommend the contract amendment incorporate previously approved budget amendments and schedule changes related to the project.

 

ATTACHMENT

 

1. June 25, 2004 Letter from Stainback Public/Private Real Estate (p. 4).

A RESOLUTION AUTHORIZING A CONTRACT AMENDMENT FOR CONSULTING SERVICES With Stainback Public/Private Real Estate (2004-06-30/R-15.2)

 

WHEREAS, the Comprehensive Plan and Downtown Small Area Plan identify Town Parking Lots 2 and 5 as key redevelopment sites; and

 

WHEREAS, on October 27, 2003, the Council authorized the Town Manager to execute  a contract with Stainback Public/Private Real Estate to provide economic development consulting services for the future development of Parking Lots 2 and 5 in downtown Chapel Hill; and

 

WHEREAS, on June 14, 2004, the Council authorized proceeding with financial analysis of Master Plans for Lots 2 and 5 and the Wallace Parking Deck, with options including consideration of a Transit Transfer Center on Lot 2 and a parking structure on the privately-owned RBC Centura property; and

 

WHEREAS, the consultant has requested additional funds to cover costs associated with consideration of options for the Wallace Parking Deck, the Transit Transfer Center on Lot 2, and a parking structure on the privately-owned RBC Centura property;

 

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council authorizes the Town Manager to execute a contract amendment with Stainback Public/Private Real Estate based substantially on the terms described in the attached memorandum of June 30, 2004 to include in Part 1C, Financial Analysis, the following work:

 

·         Two detailed phasing plans and schedules, $4,800

·         Sources of financing related to the transit center and environmental mitigation, $6,000

·         Allocated expenses, $1,026

 

BE IT FURTHER RESOLVED that the Council authorizes the Manager to incorporate in the contract amendment previously approved budget amendments by the Town Council for this project on November 24, 2003 and May 24, 2004, and the April 14, 2004 project schedule adopted by the Council Committee on Parking Lots 2 and 5.

 

This the 30^th day of June, 2004.