MEMORANDUM OF UNDERSTANDING

PERTAINING TO THE SHARING OF COSTS AND FINANCIAL RESPONSIBILITY AND OTHER MATTERS OF FISCAL EQUITY

BETWEEN THE TOWN OF CHAPEL HILL AND

THE UNIVERSITY OF NORTH CAROLINA AT CHAPEL HILL

 

 

               This Memorandum of Understanding is entered into this the ______ day of ________________, 2001, by and between the Town of Chapel Hill and the University of North Carolina at Chapel Hill.

 

WITNESSETH:

 

WHEREAS, the University of North Carolina at Chapel Hill (the University) has adopted and submitted to the Town of Chapel Hill (the Town) a Development Plan proposing major new development on the main campus of the University; and,

 

WHEREAS, the new development  proposed in this Development Plan calls for construction of new facilities, expansion and  renovation of existing facilities, construction of new roads and infrastructure, addition of parking areas, hiring of new employees, expansion of student enrollment and other changes that will increase demand for Town services, and will have significant and substantial financial and other impacts on the Town and its ability to provide public services in and around the University and in the Town in general; and,

 

WHEREAS, the Town and the University, recognizing the nature of the proposed expansion included in the Development Plan and the need to maintain the quality of life on the campus of the University and in the surrounding greater Chapel Hill community, desire to establish a reasonable and equitable understanding and arrangement of the responsibilities of the University for various matters pertaining to demands and effects associated with the University’s Development Plan;    

 

NOW, THEREFORE, the Town of Chapel Hill and the University of North Carolina at Chapel Hill hereby agree to the following terms and enter into this Memorandum of Understanding.

 

  1. The University’s proposed Development Plan will include specific plans for the avoidance or mitigation of adverse impacts from the proposed development, consistent with the requirements of the Office-Institutional 4 zoning district; and, the University will be responsible for the costs of necessary mitigation efforts.

 

  1. (a) Improvements on the Main Campus, the Mason Farm Property, or the Horace Williams Tract that are developed for non-governmental use will pay property taxes or an equivalent payment in lieu of taxes based on the value of the improvements.

 

(b) Further, the owner or occupant of such improvements will make a payment in lieu of taxes equivalent to the amount of property tax that would be assessed against the land used if the land were taxable.

 

  1. (a) The University will develop a plan to dispose of certain off-campus properties, subject to donor restrictions and approval of the Board of Trustees and State authorities, including some or all of its properties on Franklin Street, so that they will be restored to the tax base.  Work on this plan is currently underway.

 

(b) The Town acknowledges that the University intends to acquire properties north of Mason Farm Road adjacent to the South Campus in order to develop these properties into apartment style student family housing.  Additionally, the Town acknowledges that the University intends to acquire properties over time in the triangular areas east of Oteys Road.

 

  1. The University will accept financial responsibility (estimated at $7 million in 2001 dollars) for the clean-up of the former landfill at the Horace Williams tract that was used for many years by the Town and the University.

 

  1. The University will continue to engage private contractors to collect, transport and dispose of solid waste generated at its existing facilities and at any new facilities.

 

  1. The University recognizes that its recent and future growth will force the Town to be prepared for and respond to a substantially larger number of fire service and first-responder medical emergency service calls.  The University and Town will together seek to have the State fairly compensate the Town for fire service to the University and the Hospital.

 

  1. (a) The University intends to initiate development at Horace Williams in 2007 and therefore cannot extend the Town’s lease. 

 

(b) The University has no plans to utilize any of the Town-constructed  improvements, but if its plans change will provide reasonable compensation to the Town for such improvements.

 

  1. (a) The University and the Town agree to cooperate in developing specific strategies for the development of employer-employee housing.

 

(b) The University agrees to make a payment in lieu of taxes to the Town for housing developed on the Horace Williams tract that is intended to meet needs different from the proposed employer-employee housing, with the exception of any University-owned student housing.

 

  1. (a) The University is committed to providing a bed for every additional undergraduate head.  Based on present plans, the university expects to build _____ units of replacement student housing and  _____ units of new student housing by 20____. [numbers and date to be added]

 

(b) The University also expects to build _____ units of replacement student family housing and ______ units of new student family housing by 20____. [numbers and date to be added]

 

  1. The University confirms its willingness to consider mutually acceptable sites for the Chapel Hill/Carrboro School System, for the construction of new schools, including possible sites at the Horace Williams tract and Glen Lennox properties, subject to the approval of the Board of Trustees and State authorities.

 

  1. The University and the Town, along with other interested municipalities and agencies will jointly plan for a “metropolitan area network” that has the potential to reduce greatly the cost of providing high speed connectivity between government and educational facilities.  The University will pledge its expertise and high performance networking to enable sharing economies of scale and other mutual benefits in the acquisition and operation of such infrastructure.

 

  1. The University will continue its recent policy of collaborating with the Town in planning for, controlling and cleaning up after sports celebrations and will plan alternative celebration events and sites to keep students on campus and minimize disruption downtown.  The University and the Town will establish a joint committee to communicate regularly regarding student matters and collaborate on strategies to address Town, neighborhood, and student concerns.

 

  1. The University will construct additional recreational facilities for students at both the Main Campus and the Horace Williams tract so that Town parks and recreation facilities are less likely to be burdened by student use.  For the Main Campus, such facilities will be included in the University’s Development Plan.

 

  1.  (a) The University’s Development Plan will include measures to avoid or mitigate the adverse impacts of stormwater runoff consistent with the requirements of the Office-Institutional 4 zoning district.

 

(b) The University and the Town agree to collaborate on mutually supportive strategies to improve stormwater management, although the University will continue to manage its own program for compliance with all applicable laws.

 

  1. The University and the Town agree to appoint staff representatives to address options for regulation, enforcement, revenue sharing, and maintenance cost sharing for parking control on street segments bordering the University.  Work will be initiated no later than January 2002.

 

  1. The University will continue the operation of and expand the student car storage lot. 

 

  1. (a) The University will explore the feasibility of and make a good faith effort to devise a means of requiring students to prove payment of the Town motor vehicle registration fee, or of collecting an equivalent fee for transmittal to the Town, at the time of issuing any parking permit to a student in residence in the community.  This work will be conducted no later than January 2002.

 

(b) The University will take the lead in seeking legislation to permit such a practice if it determines that legislation is needed.

 

  1. The University pledges to examine the feasibility of certain sites as possible recreation or parklands for community use.

 

  1. The University will invite the Town Council to appoint two representatives from Town government to serve on the Horace Williams Advisory Committee.  The University and the Town will jointly identify and invite two other community residents to serve on the committee.

 

THIS MEMORANDUM OF UNDERSTANDING shall exist and continue for a period of thirty (30) years from and after the date first above written and may be amended only by mutual consent of the parties hereto.

 

EITHER PARTY to this Memorandum of Understanding may request an amendment to the Memorandum by written request to the other party.  The other party agrees that it will meet to discuss any requested amendment within 30 days of receipt.  Amendments to the Memorandum will be effective only after approval in writing by both parties.

 

IN WITNESS WHEREOF, the Town of Chapel Hill and the University of North Carolina, have caused this Memorandum of Understanding to be signed by their duly authorized representatives.

 

This the _____ day of _________________, 2001.

 

 

                                                                                                                                               

TOWN OF CHAPEL HILL                            UNIVERSITY OF NORTH CAROLINA AT

CHAPEL HILL

 

 

__________________________________    _____________________________________

 

 

__________________________________    _____________________________________

Title                                                                  Title

 

 

Witness:                                                           Witness:

 

__________________________________    _____________________________________