AGENDA #4f

MEMORANDUM

To:                   Mayor and Town Council

From:               W. Calvin Horton, Town Manager

Subject:            Agreement with Consultant for Employer-Employee Housing Study

Date:                April 10, 2000

The purpose of this memorandum is to recommend that the Council adopt the attached Resolution and Ordinance authorizing the Manager to execute an agreement with UniDev, L.L.C., for the provision of certain consulting services in connection with strategic planning for the development of employer-employee housing and associated retail and parking facilities.

BACKGROUND

The Council conducted a work session on February 7, 2000 on the subject of developing employer-employee housing in the downtown on property owned by the Town and the University on Rosemary Street.

Mr. Myron P. Curzan, Chief Executive Officer of UniDev, L.L.C., and Mr. Bill Quinby, Senior Managing Director of Julien J. Studley, Inc., outlined the services that they could provide, as described in the attached minutes of the Council’s meeting.  The Council directed the Manager to negotiate an agreement with the consultants to prepare a strategic plan for the development of employer-employee housing and associated retail and parking facilities. 

Employer-employee housing is housing that would be made available to and affordable to lower-paid Town, University and Hospital employees. 

DISCUSSION

We have negotiated an agreement for services with UniDev, as directed by the Council.  (Please see Attachment .) Services to be provided are fully described in the agreement and include:

• Establish preliminary assessment of market demand for employer-employee housing.
• Identify Town and University owned land and buildings available for development or re-development.
• Determine options for creating employer-employee housing and associated services such as retail and parking.
• Recommend alternative ways to generate income from land development process.
• Conduct preliminary legal analyses of development options.
• Identify alternative and advantageous financing structures.
• Identify strategic approaches through which the Town and the University can develop and hold properties.
• Establish preferred financing, development and ownership structures
• Analyze approaches to owning and renting housing units with appropriate subsidy models as well as approaches to retail and parking.

The cost of services would be $98,000 payable in phases as work is completed.  Both the University and UNC Hospitals have agreed to contribute $33,000 each to help pay the cost.  (Please see the attached letters.)  The remaining $32,000 of the consultant’s fee would be paid by the Town.  The attached budget ordinance also would allow for up to $2,000 of incidental costs in addition to the consultant’s fee.

RECOMMENDATION

We recommend that the Council adopt the attached Resolution authorizing the Manager to execute the proposed agreement with UniDev and the attached Ordinance establishing a budget for the employer-employee housing study.

ATTACHMENTS

1. Proposed agreement with UniDev.
2. Minutes of the February 7, 2000 Council work session.
3. Letter from John P. Evans, University of North Carolina
4. Letter from Eric B. Munson, UNC Hospitals

RESOLUTION AUTHORIZING THE MANAGER TO EXECUTE AN AGREEMENT WITH UniDev, L.L.C., FOR THE PROVISION OF CERTAIN CONSULTING SERVICES (2000-04-10/R- 7)

BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council hereby authorizes the Town Manager to execute on behalf of the Town an agreement with UniDev, L.L.C., for the provision of certain consulting services in connection with strategic planning for the development of employer-employee housing and associated retail and parking facilities.

This the 10^th day of April, 2000.

AN ORDINANCE TO AMEND “THE ORDINANCE CONCERNING APPROPRIATIONS AND THE RAISING OF REVENUE FOR THE FISCAL YEAR BEGINNING JULY 1, 1999 (2000-04-10/O-1)

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, 1999” as duly adopted on June 14, 1999 be and the same is hereby amended as follows:

ARTICLE I

                                                  Current                                                                       Revised

APPROPRIATIONS                  Budget                Increase           Decrease                  Budget

GENERAL FUND

            Non-Departmental                                                                          

                Housing Project                   0                100,000                                         100,000

ARTICLE II

                                                  Current                                                                       Revised

REVENUES                               Budget                Increase           Decrease                  Budget

GENERAL FUND                                                            

            Grants                           801,365                  66,000                                         867,365

            Fund Balance             1,685,630                 34,000                                      1,719,630

Annexation Ordinance for
Area 2 (UNC Property in Durham County)