MEMORANDUM

AGENDA #4e

MEMORANDUM

TO: Mayor and Town Council

FROM: W. Calvin Horton, Town Manager

SUBJECT: Homestead Aquatics Center: Proposal to Apply for a Parks and Recreation Trust Fund Grant

DATE: January 14, 2002

The attached Resolution would authorize the Town Manager to apply for a Parks and Recreation Trust Fund grant (PARTF) in the amount of $250,000 for partial development of the Homestead Park Aquatics Center, provide 100% matching funding, and authorize execution of an agreement that would commit the Town to provide recreational services on the Homestead Park Aquatics Center site for a period of 25 years.

BACKGROUND

Municipalities can apply for funding through the State of North Carolina’s PARTF program for parks and recreation related capital improvements. Local government units can apply for up to $250,000 per application. The State estimates that approximately $6,000,000 – $6,500,000 will be available for local governments in the current fiscal year. The application deadline is January 31, 2002. If the Town were successful in securing a grant, the funds would be made available sometime after June 1, 2002.

DISCUSSION

We think the Town’s best project for potential PARTF funding is the Homestead Park Aquatics Center. It would be our intent to emphasize the cooperative nature of the project and to point out that the project is supported by Orange County, the Chapel Hill/Carrboro City Schools, the Town of Carrboro, and the Town of Chapel Hill, with funding coming from both the Town and the County. The project currently has a potential budget of $5,530,000, with $1,175,000 coming from the Town’s 1996 Parks bond, $855,000 from the 1997 Orange County Parks bond, and $3,500,000 from the 2001 Orange County Parks bond. We believe that the additional funds would help us in our efforts to maintain the building program approved by the Council in the face of future uncertainties such as inflation, construction costs, and site constraints.[sl1] [sl2]

It would be possible to apply for an alternative project; however, we think that no other current or proposed project has the same combination of positive factors as the Homestead Park Aquatics Center. These factors include: an approved conceptual plan, enough local funding already in place to start the design process, and voter authorization of general obligation bonds. The Southern Community Park has the last two elements, but not the approved conceptual plan.

In order to accept a PARTF grant, the Town would be required to match the funding amount. The Town currently has approximately $1,175,000 allocated for this project.

In addition, if the Aquatics Center is funded through the PARTF program, the Town would be required to sign an agreement that would prevent any non-recreational use of the property for 25 years from the date the contract is executed.

RECOMMENDATION

That the Council adopt the attached Resolution which would authorize the Manager to apply for a PARTF grant in the amount of $250,000, guarantee $250,000 in matching funds from the current project budget, and authorize the Mayor to sign an agreement guaranteeing that the Homestead Park Aquatics Center would be used for recreational purposes only for a period of 25 years.

A RESOLUTION AUTHORIZING THE TOWN MANAGER TO APPLY FOR A NORTH CAROLINA PARKS AND RECREATION TRUST FUND GRANT (2002-01-14/R-6)

WHEREAS, the State of North Carolina has established a Parks and Recreation Trust Fund grant program; and

WHEREAS, the Town is eligible to apply for grants from the program; and

WHEREAS, the Town anticipates the construction of the Homestead Park Aquatics Center; and

WHEREAS, funds from the Parks and Recreation Trust Fund could enhance the park program;

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council hereby authorizes the Manager to apply for a Parks and Recreation Trust Fund grant in the amount of $250,000 and to guarantee matching funding from the existing project budget.

BE IT FURTHER RESOLVED by the Council that, if the Town’s grant application is successful, the Mayor is hereby authorized to sign an agreement with the State of North Carolina that would commit the Town to provide recreational services on the Homestead Park Aquatics Center site for a period of 25 years.

This the 14th day of January, 2002.