AGENDA #12

 

MEMORANDUM

 

TO:                  Mayor and Town Council

 

FROM             Committee on the Old Post Office

                        Council Member Kevin Foy, Chair

                        Mayor pro tem Lee Pavao

                        Council Member Joyce Brown

                        Council Member Pat Evans

 

SUBJECT:       Report on Preservation and Use of the Old Post Office Building

 

DATE:             December 11, 2000

 

The purpose of this report is to present proposals for the preservation and future use of the Old Post Office building at the corner of East Franklin and Henderson Streets.

 

RECOMMENDATIONS

 

We recommend that the Council adopt the attached Resolution, specific provisions of which would:

 

 

 

 

 

 

 

 

BACKGROUND

 

The Committee on the Old Post Office was appointed by the Town Council to develop proposals for the preservation, enhancement and future use of the building.  In conducting its work, the Committee has reviewed the site, met with representatives of the District Court of the State of North Carolina, the U. S. Postal Service, and the Franklin Street Teen Center, and reviewed relevant records and reports. 

 

The Old Post Office building at the corner of East Franklin and Henderson Streets was constructed in 1937.  It is a 17,700 gross square foot, two-story structure with brick and limestone walls set on a concrete foundation.

 

The building served as the main Chapel Hill Post Office until 1979, when it was acquired by the Town for a payment of $250,000 and a 25-year no-cost lease to the Postal Service of about 3,000 square feet of space and a limited area for vehicle access and parking.

 

The main-floor area leased to the Postal Service has been in continuous use for retail customer service since 1979.  The District Court of the State of North Carolina has made continuous use of the main-floor courtroom and related office and work facilities since 1979.  The District Attorney occupied offices on the lower floor until this past year when he relinquished the area, because it no longer was needed.  The Franklin Street Teen Center first obtained permission to use an area on the lower floor in 1984 and has operated programs in the space continuously since that date.  The Town uses areas on the lower floor for storage of records.

 

The small plaza in front of the Old Post Office is a traditional gathering place for citizens, a site used for peaceful assembly in support of or in opposition to a multitude of causes and issues.  The rear of the building now is utilized for vehicle access, parking, and, refuse collection equipment; there also is a small lawn with a magnolia tree.

 

Sketches are attached that show the layout of the building space, the plaza and the rear of the building.

 

As a part of the 2000-2005 Capital Improvement Program adopted last spring, the Council authorized ten-year installment financing for several renovation projects, including limited repairs of the Old Post Office.  A total of $240,000 (engineering, construction, construction management, and interest costs) is allocated for repairs to the exterior of the building, including roof replacement and repair of windows and masonry.  The Manager expects that this work will be undertaken this fiscal year.

 

The funds available would address only the most critical exterior repair needs.  Total building repairs needed on the exterior and interior, based on continuing present uses, would cost about $1,130,000 for construction (not including engineering, construction management and interest costs).

 

DISCUSSION OF KEY ISSUES

 

We believe that the Old Post Office building and site is a valuable asset that should be preserved and enhanced as a community gathering place and as a useful community facility.

 

Postal Service: The Post Office in the building serves many citizens and businesses with postal boxes and other retail postal services.   It is a successful business site for the Postal Service.  We believe that having a post office in the downtown will continue to be a valuable service for the community in the future.

 

The present lease of space to the Postal Service will expire on August 14, 2004 (please see the attached lease).   Chapel Hill Postmaster Robin Lockhart has stated that the Postal Service is interested in obtaining another long-term lease.  The present lease requires the Town to provide utilities, maintenance and custodial services at no cost to the Postal Service.  No lease payment is required.  We believe that a lease more favorable to the Town and still acceptable to the Postal Service could be agreed upon, and that an initial term of at least 10 years would be in the Town’s best interests. 

 

We recommend that the Council direct the Manager to negotiate a long-term lease for consideration by the Council.

 

District Court:  Chief District Court Judge Joseph Moody Buckner reports that the court room and other facilities provided at the Old Post Office building continue to be of value to the Courts.  (Please see the attached letter.)  Cases regularly scheduled in Chapel Hill include traffic offenses, minor crimes, small claims, domestic disputes, and civil arbitrations.  We believe that having court operations in Chapel Hill is convenient for Chapel Hill citizens and for all those who have business with the courts, including our police officers and local attorneys.

 

We understand that according to North Carolina General Statutes, counties have primary responsibility for providing courtrooms and related judicial facilities.  A municipality may provide court facilities with the approval of the Administrative Office of the Courts, after consultation with county officials.  Where a municipality provides facilities, a part of the cost of court is remitted to the municipality.

 

Consistent with state law, the Town receives court fees each year, in recognition of the Town’s provision of court facilities. Revenues from this source were about $32,000 in the last fiscal year.  We note however, that fees received clearly are not sufficient to pay the fair share of costs for utilities, custodial service and capital maintenance of the property.

 

There is no lease agreement for the court facilities, nor is there any agreed-upon long-term plan for the use of the facilities.  We believe that both a lease and a long-term use plan would be of value to the Courts, the Town, and to Orange County.  In our discussions, we observed that development of a long-term use plan might make it possible to agree on renovations and improvements that would benefit all the parties, especially if there is agreement on a funding plan. 

 

We also noted the possibility that a long-term plan for court use of the site might include the possibility of development at the rear of the building.  As we understand it, contemporary court facilities do not rely so much on large courtrooms, such as the one at the Old Post Office, but more on a larger number of smaller facilities.  We believe it might be possible to develop such facilities and related offices at the rear of the site.  In addition, we note the possibility that the portion of the parking deck plaza that is designed to accommodate a small building might also be suitable for court use.  Advantages and disadvantages of such development would have to be weighed by the Council, of course.

 

We recommend that the Council adopt the attached Resolution requesting that the Orange County Board of Commissioners and appropriate Court officials, in consultation with the Council, develop a long-term use plan for court facilities at the Old Post Office site.  We further recommend that the Committee be authorized to present the Resolution to the County Commissioners and to the Chief District Court Judge as a petition of the Council.

 

District Attorney:  The District Attorney no longer uses offices formerly reserved for him and his staff on the lower floor of the building, and expects no need for offices at the site in the foreseeable future.  However, the needs of the District Attorney might change if the use of the building by the Court changes.

 

We recommend that the Manager determine an appropriate use for the space formerly occupied by the District Attorney, with the understanding that long-term use of the space might revert to the Court or the District Attorney in the future.

 

Teen Center:  The Franklin Street Teen Center lease will expire on December 31, 2000; but the Council has authorized the Manager to make annual renewals, so long as renewal would be consistent with the Town’s needs and interests.  (Please see the attached lease.)  The Manager expects to renew the lease for another year in January.

 

The Teen Center pays no rent, but provides its own custodial services.

 

Like all social services programs, the benefits of the Teen Center are difficult to quantify.  The Teen Center provides an environment free from drugs and alcohol where Chapel Hill teenagers can engage in more wholesome pastimes than might otherwise be available to this age group.

 

Consistent with the Council’s past practice, we recommend that the Council continue to provide space to the Franklin Street Teen Center unless the Council determines in the future that a more compelling community need requires the use of the space.

 

Welcome Center and Downtown Commission Office:  The Downtown Commission has been seeking a good location for a Welcome Center and office since it was forced to move from its quarters by the deconstruction of the former Hudson-McDade House, once located in the first block of West Franklin Street.  They recently were displaced from their location in the Bank of America building and now are temporarily located in an office on the lower floor of the Old Post Office, where the District Attorney formerly had offices.  (This arrangement was authorized by the Manager as a temporary use so that the Welcome Center operation would be able to continue.)

 

The Downtown Commission earlier attempted to work out an arrangement that would have resulted in a small Welcome Center in the lobby of the Old Post Office.  Objections about the insertion of such a facility in the lobby area ultimately led the Commission to search for other options.

 

We believe that it is desirable to have a Welcome Center in the downtown to serve visitors to our community and that the Old Post Office would be a good location for such a center.  In our inspection of the building, we determined that it would be possible to locate a Welcome Center in an area now used by the Postal Service as a break room for employees.  The break room could be replaced by space now designated as a Court conference room, with minimal modifications.   The Court conference room space could be replaced by a minor reconfiguration of space behind the courtroom.

 

At our request, the Manager discussed this possibility with Chief District Judge Buckner and Postmaster Lockhart.  Both agreed that the arrangement was feasible and stated that they would have no objection.  We believe that such an arrangement would provide a community benefit at minimal cost.  We understand that the Downtown Commission has funds that could be used to pay for the modifications.

 

We recommend that the Manager be authorized to negotiate necessary agreements with the Court, the Postal Service, and the Downtown Commission to allow installation of a Welcome Center at the Old Post Office, with final design details and other terms subject to approval by the Council.  We also recommend that the Council direct the Manager to negotiate a lease with the Downtown Commission for consideration by the Council.

 

CONCLUSION

 

The Town is fortunate to own the Old Post Office, a building and site of great value to our community.  We believe that the building should be preserved and enhanced as a community facility and gathering place.  Cooperation among the Town Council, the County Commission, the District Court, the Postal Service, the Downtown Commission, the Teen Center and all those who have an interest in this valuable public asset is needed to develop a long-range use plan for the facility. 

 

RECOMMENDATION

 

We recommend that the Council adopt the attached resolution.

 

 

ATTACHMENTS

 

1.      Sketch of main floor of Old Post Office (p. 8).

  1. Sketch of lower floor of Old Post Office (p. 9).
  2. Sketch showing Franklin street plaza and rear of Old Post Office (p.10).
  3. Lease with U. S. Postal Service (p. 11).
  4. Letter from Chief District Court Judge Buckner (p. 18).
  5. Lease with Franklin Street Teen Center (p. 20).

 

 


A RESOLUTION REGARDING PRESERVATION AND FUTURE USE OF THE OLD POST OFFICE (2000-12-11/R-17)

 

WHEREAS, the building and site at the northwest corner of East Franklin and Henderson Streets in downtown Chapel Hill is a valuable community facility and gathering place; and

 

WHEREAS, the Council of the Town of Chapel Hill desires to preserve, enhance and plan for the future use of this public asset;

 

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

 

 

 

 

 

 

 

 

This the 11th day of December, 2000.