AGENDA #4g
MEMORANDUM
TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manager
SUBJECT: Request for Authorization to Acquire Property for the West Rosemary Street Parking Lot
DATE: April 28, 2003
The purpose of this memorandum is to request authorization from the Town Council to acquire property located near the corner of West Rosemary Street and Sunset Drive. The property would continue to be operated by the Town of Carrboro as a municipal parking lot.
The attached resolution would authorize acquisition of property located at Tax Map 7.93.L.18 (“B” shown on the map in Attachment 1) using Community Development funds.
BACKGROUND
In 1995, Carrboro staff approached Town staff with an idea of jointly developing a parking lot on the corner of West Rosemary Street and Sunset Drive. The facility was to be constructed on two privately-owned lots at the northeast corner of West Rosemary Street and Sunset Drive. One lot is located within the Town of Carrboro’s corporate limits (see “A” shown on the map in Attachment 1) and the other lot is within the Town of Chapel Hill’s corporate limits (see “B” shown on the map in Attachment 1). It was agreed that the Town of Carrboro would enter into a short-term lease for the lots with the existing owners and operate a municipal parking lot.
The Council approved a Special Use Permit for this site in 1999. In addition, the Council appropriated a total of $35,000 of Community Development funds to the Town of Carrboro in 1996, 1997 and 1999 for the construction of this parking lot. In exchange for paying a lease fee, in May 1999 the Council agreed to pay $500 from the Off-Street Parking Fund annually for the property tax on the lot located in Chapel Hill.
The Town entered into a Performance Agreement with the Town of Carrboro for this project in April 2000. The Town of Carrboro entered into a lease agreement with the owners of the properties. Construction of the parking lot was completed in 2000. Per the Performance Agreement, the Town of Carrboro is responsible for operating and maintaining the parking lot. The lease on the portion of the property within the Town of Chapel Hill corporate limits expired on March 2, 2003.
On February 10, 2003, we informed the Council of the opportunity to purchase this property. We also proposed a process to proceed with the acquisition process that included returning to the Council to authorize the acquisition of the property once a purchase contract was obtained.
DISCUSSION
In accordance with federal acquisition procedures we notified the property owner of the Town’s interest in acquiring the property and commissioned an appraisal. The appraiser’s opinion is that the fair market value of the property is $80,000. A copy of the appraisal is on file in the Planning Department. The owner executed the Purchase Offer on April 22, 2003 (please see Attachment 2).
Funding for the acquisition is available through the Town’s Community Development program. The acquisition of property in the Northside neighborhood is an eligible Neighborhood Revitalization activity in the Town’s 2002-2003 Community Development program. Approximately $95,000 is currently available in the fund.
Carrboro staff reports that the lot is well-used by patrons of the surrounding Midway business district, and provides a much-needed service in the area that is supportive of the Towns’ economic development efforts. The Town of Chapel Hill provided federal funds for the improvements in the expectation that the project would support the Town’s neighborhood revitalization goals for the Northside neighborhood.
Acquisition of the lots by Chapel Hill and Carrboro would allow the Town of Carrboro to continue providing a municipal parking lot in the downtown area that serves businesses in the Midway district in the Northside neighborhood. Acquisition would enable both Towns to protect the significant public investment made in constructing the parking lot improvements three years ago. If this request is approved the Town of Carrboro could operate the lot for the long-term serving citizens both of Carrboro and Chapel Hill without the need for renewing leases every three years with the private owners.
NEXT STEPS
If the Council approves this request, we would proceed with the acquisition of the property. We would next return to the Council to request authorization to lease the property to the Town of Carrboro. We would also be required to provide public notice of the Town’s intent to lease the property to Carrboro. If the Council approves the request to lease the property to the Town of Carrboro, we would enter into a revised Performance Agreement with the Town of Carrboro to operate and maintain the municipal parking lot.
RECOMMENDATION
We recommend that the Council adopt the attached resolution authorizing acquisition of property located at Tax Map 7.93.L.18 (“B” shown on the map in Attachment 1). The request meets the guidelines of the Neighborhood Revitalization program established by the Council, and there are funds available in the Community Development Neighborhood Revitalization budget for this request. We also believe that the acquisition of this property would be consistent with the Town’s current efforts in Northside neighborhood.
ATTACHMENTS
A RESOLUTION AUTHORIZING ACQUISITION OF PROPERTY LOCATED AT THE CORNER OF WEST ROSEMARY STREET AND SUNSET DRIVE, TAX MAP 7.93.L.18 (2003-04-28/R-5)
WHEREAS, the Town provided $35,000 of Community Development funds to the Town of Carrboro to construct a municipal parking lot on the corner of West Rosemary Street and Sunset Drive; and
WHEREAS, the owner of the property has accepted the Town of Chapel Hill’s offer to purchase the property for $80,000;
NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council authorizes acquisition of property located at the corner of West Rosemary Street and Sunset Drive (Tax Map 7.93.L.18).
BE IT FURTHER RESOLVED that the Council authorizes use of Community Development Neighborhood Revitalization funds for this purchase.
BE IT FURTHER RESOLVED that the Council authorizes the Manager to execute documents related to the acquisition of this property.
This the 28th day of April, 2003.