AGENDA #4f

 

MEMORANDUM

 

 

TO:                  Mayor and Town Council

 

FROM:            W. Calvin Horton, Town Manager

 

SUBJECT:       Proposed Extension of a Lease of a Building on Homestead Road to Sport Art Gymnastics, LLC

 

DATE:             November 22, 2004

 

 

The attached resolution would authorize the Manager to execute a two-year lease agreement with Sport Art Gymnastics that would allow the existing gymnastics school to continue to operate in the building until the end of 2006.

 

BACKGROUND

 

The Homestead Road building was constructed as a private gymnasium in 1974. Carolina Sport Art operated in the building for approximately 23 years.

 

On June 25, 2001, the Council approved a Special Use Permit application for the Vineyard Square development that included a requirement that the developer deed a 14.91-acre recreation area to the Town. The recreation area includes the 6,000 square foot building currently being used by Sport Art Gymnastics. Ownership of the land and building was transferred to the Town on December 23, 2002.

 

On January 13, 2003, the Council authorized the Manager to execute a lease agreement of the building with Carolina Sport Art for the purpose of running a gymnastics school.

 

In July 2004, the ownership of the school changed and the business was renamed Sport Art Gymnastics. The lease was amended to allow Sport Art Gymnastics to assume the lease until the end of the lease period in December 2004.

 

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 November 10, 2004.

 

The proposed extension of the lease agreement would continue to contain the following main points:

 

  1. Use of Premises: The leased Premises would be used solely for a gymnastics school.

 

  1. Term of Lease:  The term of this lease would commence on January 1, 2005, and continue until December 31, 2006. 

 

  1. Right to Renew: Sport Art Gymnastics would have the right to renew this lease, subject to possible revision of the terms of the new lease by the Town and approval by the Council.

 

  1. Payments: Sport Art Gymnastics would make monthly payments of $1,150.

 

  1. Staffing and Supervision: Sport Art Gymnastics would be responsible for all necessary staffing, programming, and operations of the leased Premises.

 

  1. Maintenance and Janitorial Services: Sport Art Gymnastics would, at its own expense, provide regular janitorial service; mow and maintain the lawn area; clean rain gutters; maintain all interior walls, ceilings, and floors; and repair items damaged as a result of misuse or neglect by Sport Art Gymnastics. The Town will make all repairs due to normal wear and tear.

 

  1. Utilities: Sport Art Gymnastics would provide, at its expense, all necessary utilities.

 

RECOMMENDATION

 

Manager’s Recommendation: That the Council adopt the attached resolution authorizing the Manager to execute a lease with Sport Art Gymnastics for operation of a gymnastics school at 2200 Homestead Road from January 1, 2005 until December 31, 2006.

 

 

 

A RESOLUTION AUTHORIZING THE MANAGER TO EXECUTE A LEASE AGREEMENT FOR THE APPROXIMATELY 6,000 SQUARE FOOT BUILDING LOCATED AT 2200 HOMESTEAD ROAD FROM JANUARY 1, 2005 UNTIL DECEMBER 31, 2006 (2003-11-22/R-7)

 

WHEREAS, Sport Art Gymnastics LLC currently operates a gymnastics school in a building owned by the Town of Chapel Hill; and

 

WHEREAS, the Town desires that the services of the gymnastics school continue to be offered to the citizens of Chapel Hill; and

 

WHEREAS, the Town has published a public notice of the Council’s intent to enter into a lease agreement with Sport Art Gymnastics LLC; and

 

WHEREAS, no other party has requested to lease said premises;

 

NOW THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council authorizes the Manager to execute a lease agreement on behalf of the Town with Sport Art Gymnastics, LLC or its successors in interest, for an approximately 6,000 square feet building at 2200 Homestead Road for the operation of a gymnastics school, said lease containing conditions substantially as the existing lease executed by Sport Art Gymnastics on June 14, 2004.

 

This the 22nd day of November, 2004.