AGENDA #4d
MEMORANDUM
TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manager
SUBJECT: Extension of the Siena Hotel’s Lease of Town-Owned Parking Spaces
DATE: April 5, 2005
The attached resolution would authorize the Manager to extend the short-term lease of Town-owned parking spaces to the Siena Hotel on a month-to-month basis until March 5, 2006.
In 1996, the Town began the planning process to develop the Pritchard Park program. The process was halted in April 1996, when the owner of the Siena Hotel petitioned the Council to consider leasing or selling a portion of the park property to the Hotel. In 1997, the Council decided to postpone a decision until after completion of a concept plan for the park.
A Pritchard Park Conceptual Plan Committee was formed. On November 27, 2000, the Council adopted the Report of the Pritchard Park Conceptual Plan Committee. At that time the Council authorized the Manager to complete a plan for development of an art garden and to involve the Chapel Hill Public Arts Commission, the Library Board, and the Parks and Recreation Commission. At the same time the Council authorized the Manager to execute a lease agreement with the Siena Hotel to lease parking spaces on Town property to the hotel.
On May 29, 2002, the Council authorized the Manager to extend the lease of parking spaces on Pritchard Park on a month to month basis.
On November 25, 2002, the Council adopted the Report of the Pritchard Park Art Garden Committee. The Committee voted unanimously (6-0) to recommend that the Town partner with the Siena Hotel in a manner that would allow a seamless transition between the designs of the two properties, provide funding for the Town’s park and art project, and allow the Siena Hotel to address its parking needs.
On March 22, 2004, the manager of the Siena Hotel petitioned the Council requesting further discussions concerning a proposed public-private partnership for development of Pritchard Park and the Siena Hotel.
On April 14, 2004, the Council responded by authorizing the Town Manager to enter into further discussions with the management of the Siena Hotel and formed a new Pritchard Park Art Garden Committee consisting of two members each of the Public Arts Commission, the Library Board, and the Parks and Recreation Commission.
On November 22, 2004, the Council adopted the Report of the Second Pritchard Park Art Garden Committee and authorized the Town Manager to take a number of actions to begin implementation of the plan including investigation of the process that would be required to allow the Town to sell land to the Siena Hotel with conditions. The Council also directed the Town Manager to include an item in the Town’s capital improvements program budget for FY 2005-06, that, if enacted, would earmark parking lot lease funds on Pritchard Park to the Pritchard Park project.
On February 14, 2005, the Council designated approximately 1.2 acres of the Town’s Pritchard Park property an economic development area and authorized the Manager to schedule a Public Hearing to hear comments on a proposal to sell the property to the Siena Hotel.
On March 7, the Council held a Public Hearing for the purpose of hearing comments on the proposal to sell approximately 1.1 acres of Pritchard Park to the Siena Hotel under the provisions of North Carolina General Statute 158-7.1. The Council then authorized the Manager to execute an agreement to sell to Siena Limited Partnership (the Siena Hotel) approximately 1.1 acres of the Town’s Pritchard Park property pursuant to the provisions of North Carolina General Statute 158-7.1. Issues related to the location of the Resource Conservation District and proposed hotel improvements will be addressed during negotiations with the management of the hotel.
North Carolina General Statute 160A-372 states that 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.
The month to month lease has expired and requires Council reauthorization if we are to continue to allow the Siena Hotel to use Town property. We believe that the arrangement has worked well for both parties. If the Council agrees we would renegotiate a lease on the following terms:
This extension would address the hotel’s parking needs in the short-term until such time as the Siena Hotel can secure a Special Use Permit and purchase the property under the terms of the March 7 Council action.
Proposed Rates: We propose no increases in fees at this time. The initial cost to the Siena Hotel was $55 per month for each space which totaled $1,375 per month. In 2002, the fee was raised to $65 per space or $1,625 per month. This increase was based on a proportional raise in the fees for downtown, off-street parking rates. Since that time downtown rates have remained stable. However, we propose that the lease contain language that would require a fee increase if the rates for downtown, off-street parking spaces are increased by the Council.
Manager’s Recommendation: That the Council adopt the attached resolution that would authorize the Manager to execute a short-term lease of Town-owned parking spaces at the rate of $65 per space per month to the Siena Hotel until March 5, 2006.
A RESOLUTION AUTHORIZING THE MANAGER TO EXTEND THE LEASE OF TOWN PARKING SPACES ON THE PRITCHARD PARK PROPERTY TO THE SIENA HOTEL (2005-04-05/R-4)
WHEREAS, on November 27, 2000, the Council authorized the Manager to lease parking spaces to the Siena Hotel; and
WHEREAS, on May 29, 2002, the Council reauthorized the lease of parking spaces to the Siena Hotel; and
WHEREAS, on March 7, 2005, the Council authorized the Manager to execute an agreement with the Siena Hotel that may result in the sale of 1.1 acres of Pritchard Park property to the Siena Hotel;
NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council authorizes the Manager execute an agreement for the lease of parking spaces on the Pritchard Park property to the Siena Hotel at the rate of $65 per parking space per month until March 5, 2006.
This the 5th day of April, 2005.