MINUTES OF A MEETING OF THE MAYOR AND COUNCIL OF THE

  TOWN OF CHAPEL HILL, TUESDAY, NOVEMBER 21, 1989, 7:30 P.M.

          (CONTINUATION OF NOVEMBER 13, 1989 MEETING)

 

Mayor Howes called the meeting to order. Council Members in at­tendance were:

 

     Julie Andresen     Nancy Preston

     David Godschalk    James C. Wallace

     Joe Herzenberg     Arthur Werner

     David Pasquini     Roosevelt Wilkerson, Jr.

 

Also in attendance were: Council Members Elect Joyce Brown and Alan Rimer, Town Manager David Taylor, Assistant Town Managers Florentine Miller and Sonna Loewenthal, Public Safety Director Cal Horton, Planning Director Roger Waldon, Town Attorney Ralph Karpinos, Student Liaison to the Town Council Bill Hildebolt, and Assistant to the Attorney Richard Sharpless.

 

Town Manager Taylor stated that this evening's meeting, the Coun­cil's first regular meeting of November, began on Monday, Novem­ber 13th. Mayor Howes noted that persons who were expecting to find the Carrboro Board of Aldermen meeting on channel 13 should tune in to channel 4.

 

Petitions

 

Claire Cooperstein expressed concern about buffer ordinance com­pliance at two area sites, Lloyd's Tire on Hillsborough Street and an office building site contiguous to the YMCA on Airport Road. Ms. Cooperstein showed slides of the two areas, noting that a thirty foot buffer is required at the Lloyd's Tire site. Ms. Cooperstein estimated that a two‑foot buffer is currently in place. Ms. Cooperstein also stated that special off‑street park­ing is also required for businesses such as Lloyd's Tire.

 

Ms. Cooperstein expressed concern that the site next to the YMCA, once densely wooded, had been recently bulldozed to within a few feet of the property line. Ms. Cooperstein said she hoped the Council will take steps to insure that Lloyd's Tire and the lot next to the YMCA are required to meet standards of the buffering ordinance.

 

Ms. Cooperstein said that while serving on the Tree Protection Task Force, she heard that developers had difficulties with spe­cific provisions of the buffering ordinance. Ms. Cooperstein suggested that the Council may need to take another look at the buffer ordinance.

 

COUNCIL MEMBER WILKERSON MOVED, SECONDED BY COUNCIL MEMBER PRESTON, TO REFER THE MATTER TO STAFF. THE MOTION WAS ADOPTED UNANIMOUSLY (9‑0)

 

Mayor Howes indicated that item 20C, a report on Triangle afford­able housing programs, would be deferred to the Council's Novem­ber 30th meeting.

 

St. Thomas More School

 

Town Engineer George Small noted that improvements to Fordham Boulevard would be occurring in the near future. Mr. Small said that the project involves frontage along Carmichael Street on the school property. Mr. Small said it was safe to say that the project will involve several changes in ingress and egress along many parts of Fordham Boulevard. Mr. Small detailed access to and from St. Thomas More School from Fordham Boulevard.

 

Mr. Small said that the North Carolina Department of Transporta­tion (NCDOT) had carefully examined the installation of traffic signals, concluding that no new signals would be installed during the project. Mr. Small added that NCDOT analysis of ingress and egress concluded that direct access onto ramps should be elimi­nated. Mr. Small detailed various turning maneuvers necessary during the Fordham Boulevard improvements project. Mr. Small noted that traffic counts by the North Carolina Department of Transportation did not currently warrant the installation of a signal. Mr. Small said that the resolution before the Council this evening requests a recount of traffic in the area, possibly triggering signal installation in the future.

 

Mayor Howes inquired further about traffic signal installation at the school along Fordham Boulevard. Mr. Small said that the traffic counts were not very close to those needed to warrant installation of a traffic signal. Mr. Small indicated that a number of factors other than traffic counts determine whether signal installation is warranted. Mayor Howes said that current traffic at Fordham Boulevard and Mason Farm Road appeared to jus­tify installation of a signal. Mayor Howes said that adoption of the resolution would allow more vigorous pursuit of this matter.

 

Council Member Werner stated that the resolution was neutrally worded. He inquired why the Council could not ask for the traf­fic signal outright. Mr. Small indicated that in the past the North Carolina Department of Transportation had said the traffic signal was not needed. Mr. Small said the resolution appeared to contain the best wording to attain the desired objective. Coun­cil Member Werner noted that the Council is discussing qualita­tive points while State standards are tied to quantitative stan­dards.

 

Council Member Andresen observed that cars attempting to turn left onto Fordham Boulevard would face a more difficult situation when Carmichael Street is closed to traffic.

 

Mayor Howes stressed that urgency of adopting resolution 13 this evening, to set the traffic signal process in motion.

 

Council Member Preston requested a clarification of the bus stop situation at St. Thomas More School. Mr. Small said that the school had given an easement for the establishment of a Town bus stop. Mr. Small clarified his earlier remarks by noting that he did not want to lead the Council to believe that the warrant for the signal at Mason Farm Road and Fordham Boulevard would defi­nitely not be met.

 

Council Member Godschalk moved adoption of Resolution 13, amended by devoting special consideration to school traffic and to fund and install a traffic signal at Fordham Boulevard and Mason Farm Road as soon as possible.

 

COUNCIL MEMBER GODSCHALK MOVED, SECONDED BY COUNCIL MEMBER WERNER, TO ADOPT RESOLUTION 13, AS ADOPTED. THE MOTION WAS ADOPTED UNANIMOUSLY (9‑0).

 

A RESOLUTION REQUESTING THE NORTH CAROLINA DEPARTMENT OF TRANS­PORTATION TO REEVALUATE TRAFFIC CONDITIONS IN THE VICINITY OF ST.THOMAS MORE SCHOOL AND CARMICHAEL STREET ADJACENT TO THE FORDHAM BOULEVARD IMPROVEMENT PROJECT (89‑11‑13/R‑13)

 

WHEREAS, the Council of the Town of Chapel Hill has received a petition requesting assistance in dealing with existing and fu­ture traffic problems in the vicinity of St. Thomas More School as a result of the Fordham Boulevard Improvement Project and;

 

WHEREAS, the Town has reviewed the situation and thinks that con­gested and unsafe traffic conditions may occur on Carmichael Street during and after the Fordham Boulevard Improvement Project; and

 

WHEREAS, the Mason Farm and Laurel Hill areas of Town may have significant difficulty with access to and from Fordham Boulevard, particularly during construction;

 

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council requests the North Carolina Depart­ment of Transportation to: ‑

 

1)                    Restudy the need for a traffic signal, devoting special con­sideration to St. Thomas More School, at the intersection of Fordham Boulevard and Old Mason Farm Road/Carmichael Street and to fund and install such traffic signal as soon as pos­sible.

 

2)                    Work with the Town of Chapel Hill and/or the University of North Carolina to identify and construct an alternative means of providing ingress/egress between Carmichael Street and N.C. 54 (Raleigh Road).

 

3)                    Assist the Town in providing traffic control at the inter­section of Fordham Boulevard at Old Mason Farm Road/Carmichael Street, as may become necessary to provide safe and reasonable ingress/egress during construction of the Fordham Boulevard Improvement Project.

 

This the 13th day of November, 1989.

 

Interfaith Council Report

 

Assistant Town Manager Florentine Miller said that the resolution before the Council would accept an energy efficiency grant/loan from the North Carolina Housing Finance Agency. Ms. Miller said that the Interfaith Council had been operating a homeless shelter at the old Municipal Building at the corner of North Columbia and West Rosemary Streets since 1985. She noted that a three‑year building lease will expire in November, 1990, with a two‑year extension option. Ms. Miller observed that the North Carolina Housing Finance Agency grant requires that the facility be used for energy activities related to affordable housing programs. Ms. Miller said that the loan would become a grant after fifteen years if the facility continues to be used for affordable hous­ing. Ms. Miller concluded her remarks by noting that the Town might have to repay some or all of the loan/grant if conditions change in the future.

 

Noting that renovations being made to the shelter facility at North Columbia and Rosemary Streets would permit future use flex­ibility, council Member Andresen inquired about terms of repay­ment for the loan. Ms. Miller noted that repayment of the loan in years ten through fifteen would be prorated on the basis of twenty percent per year.

 

Council Member Andresen said that the grant will make it possible to site a kitchen at the shelter facility. Council Member Andresen inquired whether this money could be withdrawn in the future. Ms. Miller said no. Council Member Andresen inquired whether the Town would be bound to maintain a shelter facility at the old Municipal Building for the next three years. Town Manag­er Taylor said the grant applied to a fifteen‑year period, with total repayment required within the first ten years, if certain conditions are not maintained.

 

Council Member Andresen asked what would happen if one of the IFC programs were halted. Town Manager Taylor said the critical fac­tor is whether affordable housing programs remain in place.

 

Council Member Wilkerson stated that the Town is in the process of making unrecoverable contributions. Council Member Wilkerson added that he understood that the Interfaith Council had expended approximately $360,000, not including the cost of asbestos remov­al, to meet minimum building codes. Council Member Wilkerson inquired whether these figures were correct. Town Manager Taylor said this was correct to the best of his knowledge.

 

Council Member Wilkerson inquired whether building improvements were necessary, regardless of whether or not the grant were accepted.  Mr. Taylor said this was correct.

 

Council Member Wilkerson said it would be necessary to use the facility for a shelter, affordable housing, or other community development activities for a period of three years. Council Mem­ber Preston asked whether the three‑year period would begin when renovations are completed. Mr. Taylor said yes.

 

Council Member Wilkerson inquired when renovations are targeted for completion. Ms. Miller said early 1990. Town Manager Taylor said that approximately one year remained on the current lease, with the possibility of a two‑year extension. Council Member Wilkerson noted that there was no obligation to renew the lease. Council Member Wilkerson inquired how reasonable it would be not to renew the lease. Town Manager Taylor it would be extremely difficult politically not to renew the lease. He added that if the grant money is accepted, there is an implied obligation to have some type of affordable housing program at the facility.

 

Council Member Wilkerson inquired whether it would be possible to move funding to a new site. Town Manager Taylor said he did not think so. Council Member Wilkerson asked whether it would be possible to use government vouchers to obligate a commitment to a new building. Town Manager Taylor said he did not see how vouchers could be used in this instance. Town Manager Taylor noted that the building could be sold conditionally in the fu­ture, if this involved substituting one site for a more prefera­ble alternative.

 

Mr. James Webb said he had approached the Council last May, re­questing exploration of whether the old Municipal Building could be included in the National Historic District Register. Mr. Webb noted that State officials have recently agreed to work with federal officials to attain this end. Mr. Webb said there would be no additional expense to the Town, nor would it compromise the grant/loan currently under discussion by ?he Council. Mr. Webb noted that it had been gratifying to work with Mary Reeb, a his­torical building consultant, Town staff, and Interfaith Council officials in this effort.

 

Mayor Howes said that the documentation of the history of the old Municipal Building was greatly appreciated, Mayor Howes noted that Mr. Webb had personally arranged and paid for this study, and thanked Mr. Webb for his contributions to the benefit of the community.

 

Mr. Webb presented copies of the study to the Council and staff, requesting that the Town staff further examine the document.

 

COUNCIL MEMBER PRESTON MOVED, SECONDED BY COUNCIL MEMBER HERZENBERG, TO RECEIVE AND REFER THE REPORT TO THE TOWN MANAGER. THE MOTION WAS ADOPTED UNANIMOUSLY (9‑0).

 

Council Member Preston inquired about acceptable uses for the grant funds. Town Manager Taylor stated that the funds must be used for energy related items. He noted that the contract for these items at the shelter facility had already been awarded. Town Manager Taylor said that the Interfaith Council is request­ing that excess monies from the grant be returned to them for other uses. Town Manager Taylor said the staff is aware that there will be future change orders and would therefore recommend against returning any monies until the project is completed. Council Member Preston inquired about the cost of the shelter renovation. Town Manager Taylor said that $547,000, not includ­ing the cost of asbestos removal or architect fees, had been al­located to date. Council Member Preston asked how much asbestos removal and architect fees totalled. Mr. Taylor said approxi­mately $125,000 to $150,000.

 

James Sauder, President of the Interfaith Council, said that the project architects and contractors had reviewed the project cost figures carefully and determined the total project cost to be $830,000. Mr. Sauder said that the Interfaith Council had raised $340,000 of t?is cost and had additionally withdrawn $72,000 from its reserve account.

 

Mr. Sauder said it cost $725,000 to bring the shelter facility to building code standards. Mr. Sauder said he hoped the Council would allow the Interfaith Council to operate the shelter in the old Municipal Building as long as possible. Council Member Andresen inquired whether any changes to the community kitchen program were anticipated in the future. Peggy Pollitzer said the process of planning for the kitchen was underway. Ms. Pollitzer stated that efforts were being made to serve a larger population. Ms. Pollitzer also noted that joint rules for the kitchen and shelter were being explored.

 

Council Member Preston inquired whether three meals a day are served at the kitchen. Ms. Pollitzer said yes, noting that breakfast is not currently served on Saturday and Sunday morn­ings. Council Member Preston inquired how many people are cur­rently served by the kitchen. Ms. Pollitzer said approximately 28,000 meals had been served to date, with an estimated 37,000 meals to be served this year. Council Member Preston asked whether the Interfaith Council hoped to have programs ongoing between meals. Ms. Pollitzer said this was an ultimate objective of the Interfaith Council.

 

Council Member Preston said it had been reported to her that there appeared to be some disagreement among Interfaith Council officials concerning facility use. Mr. Sauder said there were one or two dissenting votes among the thirty‑five board members.

 

Mr. Sauder the joint use of the facility as a shelter and kitchen was not a point of argument in the Interfaith Council.

 

Council Member Godschalk observed that if the grant were accept­ed, a longer term agreement would likely occur between the Town and Interfaith Council. Council Member Godschalk added that the agreement is not an irrevocable one. Council Member Godschalk observed that the Interfaith Council recommended siting the kitchen and shelter in the same facility.

 

Council Member Andresen said that the solution before the Council had been arrived at because there is not necessarily a better one at this time, Council Member Andresen said there might be poten­tial problems down the road by adopting the resolution before the Council. Council Member Andresen expressed concern about locat­ing the kitchen in the old Municipal Building. Council Member Andresen said that there is a tremendous need for boarding houses in the community. Council Member Andresen concluded her remarks by noting that the problem of homelessness should not be insti­tutionalized. Council Member Andresen recommended that the Human Services Advisory Board examine the homelessness situation in the community.

 

Noting that he resides next to a rooming house, Council Member Herzenberg stated the Interfaith Council has programs to help people with various needs. Council Member Herzenberg said he hoped persons served by these programs will prosper.

 

Council Member Preston asked whether the change order situation would delay acceptance of the building. Town Manager Taylor said no, noting that Town staff can work on additional details in an expeditious manner.

 

Council Member Preston said she intended to vote"against the res­olution since she felt the kitchen should not be sited at the old Municipal Building.

 

Council Member Werner said the community should be grateful to the Interfaith Council for taking on the responsibility of as­sisting the homeless. Council Member Werner stated that by In­terfaith Council management of the matter, the issue had been taken out of the local political arena.

 

Council Member Wilkerson said it was unfortunate that the matter of how much money was being spent on the building was being dis­cussed. Council Member Wilkerson stated that he hoped that Coun­cil would continue to be supportive of Interfaith Council ef­forts.

 

COUNCIL MEMBER GODSCHALK MOVED, SECONDED BY COUNCIL MEMBER WILKERSON, TO ADOPT RESOLUTION 14. THE MOTION WAS ADOPTED BY A VOTE OF 7‑2, WITH COUNCIL MEMBERS ANDRESEN AND PRESTON VOTING NO.

 

A RESOLUTION AUTHORIZING THE ACCEPTANCE OF A LOAN/GRANT FROM THE NORTH CAROLINA HOUSING FINANCE AGENCY ENERGY‑EFFICIENT HOUSING PRODUCTION PROGRAM (89‑11‑13/R‑14)

 

WHEREAS, the Town of Chapel Hill ?nd the Inter‑Faith Council have entered into a Performance Agreement to renovate the Shelter for the Homeless; and

 

WHEREAS, the current budget for the renovation project does not include funds to install the kitchen; and

 

WHEREAS, funds for the installation of the kitchen are available through the North Carolina Housing Finance Agency Energy‑Efficient Housing Program; and

 

WHEREAS, the North Carolina Housing Finance Agency proposes to award a loan/grant to assist in renovating the Shelter;

 

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

 

                        1.                     Accept a loan/grant not to exceed $107,835 from the North Carolina Housing Finance Agency;

 

                        2.                     Verify construction costs in existing contracts to as­sure that the loan/grant does not exceed the amount needed;

 

                        3.                     Issue change orders to the existing construction con­tracts; and

 

                        4.                     Advise the Inter‑Faith Council that no funds will be released until the renovation project is completed in order to fund required change orders.

 

This the 13th day of November, 1989.

 

Clayton Road Traffic

 

Town Engineer George Small stated that the performance of stop signs along Clayton and Elliott Roads had been observed by Town staff since Council action last spring. Mr. Small said that since the installation of stop signs, there has been a reduction in traffic speeds on Clayton and Elliott Roads. Mr. Small added that residents reaction to date had been mixed. Mr. Small said there is still concern about the intersection of Elliott and Cur­tis Roads. He added that this intersection, along with other problem intersections around the Town will be addressed in the near future.

 

Council Member Wilkerson inquired further about the possibility of installing a stop sign at Curtis and Elliott Roads. Mr. Small said this matter had been discussed by the Council on other occa­sions, but had not been approved. Mr. Small noted that there was an accident record at this intersection as well as driver confu­sion. Council Member Wilkerson said he thought the council had earlier agreed to installation of a stop sign. Council Member Andresen observed that a stop sign had been installed on a trial basis, but proved confusing to drivers.

 

Ms. Jansen, a resident of Estes Drive, said that automobiles speeding along Elliott and Clayton Roads appear to ignore stop signs. Ms. Jansen added that the volume of traffic increases tremendously on inclement days. Ms. Jansen requested that the Council install a sidewalk contiguous to the Rashkis' home for the safety of children and other walkers in the area.

 

Mr. Mel Rashkis said he had yet to see an extensive study like that made on Clayton Road. Mr. Rashkis said that the problem is quite severe and dangerous. Mr. Rashkis stated that no engineer­ing study can stop drivers from speeding along Clayton Road. Mr. Rashkis urged the Council to install sidewalks on Elliott Road as soon as possible.

 

Brian Kelief said that the Clayton/Elliott Road composed by Town Engineering staff was a remarkable achievement. Mr. Kelief thanked the Council and Town staff for their responsiveness in this matter. Mr. Kelief said that the stop signs have made a difference in the area. Mr. Kelief requested that the Council consider the installation of a sidewalk and pedestrian crossing in the area.

 

Mayor Howes inquired how Mr. Kelief felt about the installation of the sidewalk contiguous to his property. Mr. Kelief said this would mean a little less mowing on his property.

 

Town Manager Taylor observed that there is a real need for side­walks in the area. Town Manager Taylor said the staff would fur­ther study the situation. Mayor Howes said everyone appeared to be agreeable about the need for sidewalk installation. Mayor Howes said he liked the idea of painted pedestrian crosswalks. Mayor Howes noted that no formal action was required at this time.

 

Housing

 

Town Manager Taylor said he was pleased that Dr. Michael Stegman and Dr. Michael Lugar were able to make their preliminary report to the Council this evening.

 

Dr. Stegman distributed a four page report summary to the Coun­cil, along with preliminary financial analyses of the Tandler Homeownership program. Dr. Stegman added that research assis­tants Terri Beckman and Mark Thompson were also present in the audience this evening.

 

Dr. Stegman said that the Tandler homeownership program had been evaluated from a number of perspectives. Dr. Stegman stated that his briefing would be given in three parts and that the Council would not be asked to make any decisions this evening. Dr. Stegman said that the first twenty‑four home sales had oc­curred at an average price of approximately $86,000, while the average second mortgage was about $26,000. Dr. Stegman said the Town's total investment was $935,000, an average of $27,000 per home. Dr. Stegman stated that the Tandler program was successful in attending to its intended population, those in the income range $13,800 to $28,250 per year. Dr. Stegman noted that eleven of the twenty‑four homebuyers had incomes less than 60% of the median income.

 

Dr. Stegman said the homes were attractive to smaller families with an average of 2.6 persons per household. Dr. Stegman added that two‑thirds of the homeowners were white, 30% black and one buyer was of Asian origin. Dr. Stegman also noted that homeown­ers were clustered in technical, clerical and secretarial occupa­tions.

 

Dr. Stegman continued that most buyers receive initial informa­tion on the homeownership program in local newspapers. He added that less than half of the homeowners were satisfied with answers to their questions about homeownership. Dr. Stegman stated that on a scale of one to five, Council members had given an average response of four to the program, a fairly positive response. Three members of the Council indicated that they would not sup­port private participation in affordable housing programs.

 

Dr. Stegman said the results of the Council interviews indicated that the best feature of the Tandler program was that units were actually completed, sold and occupied, making affordable homeown­ership opportunities available in Town.

 

Dr. Stegman said the worst features cited were poor working rela­tionships between the Town and developers, incomplete punch list items, inexperience of Town staff in administering programs, and complex financing arrangements.

 

Dr. Stegman said there were several possible preliminary sugges­tions for future affordable housing programs, including: estab­lishment of a second mortgage pool, encouragement of non‑profit private developments, University involvement in affordable hous­ing activities and establishment of an inclusionary housing zon­ing proposal.

 

Council Member Wilkerson said he was concerned about the poor response of Town employees. Dr. Stegman noted that four hundred and fifty surveys had been distributed, while only one hundred and ten were returned. Dr. Stegman noted that thirty percent of respondents did not qualify due to income requirements, 15% found the program unappealing and 9? thought homeownership to be unat­tractive.

 

Council Member Werner inquired whether information was available concerning types of employer. Dr. Stegman said yes, noting that information could be provided on an aggregate basis to protect the confidentiality of homeowners.

 

Dr. Mike Lugar stated that a variety of appreciation rates had been considered in evaluating the Tandler program. Dr. Lugar stated that owners are not required to pay full interest on sec­ond mortgages. He added that homeowners would realize a positive return in investment if they remain in their home for five to seven years. Dr. Lugar said Tandler owners would realize a $13,000 gain over seven years compared to $30,000 by unsubsidized homeowners in the same period. Dr. Lugar noted that the unsubsi­dized buyer would have had to provide a $10,000 down payment upfront.

 

Council Member Andresen inquired whether the structure of the Tandler program was fair to homeowners and the Town. Dr. Lugar said it was premature to draw conclusions in this respect. Dr. Lugar noted that homeowners who do not sell within the first five years will have an experience similar to private homeownership experience.

 

Dr. Stegman said he was uncertain that Tandler homebuyers could operate in a non‑subsidized market. Dr. Lugar added that losses arise from 6% transaction commissions required by the Tandler program. Dr. Lugar said that in other communities, the Town acts as broker, eliminating the need for broker commissions. Council Member Godschalk noted that if the Town repurchased the Tandler units, no transaction costs would be involved for homeowners. Council Member Godschalk inquired whether the Tandler homes were more expensive than starter homes in other nearby communities. Dr. Stegman said analysis on this element was incomplete.

 

Dr. Stegman said that home builders and developers feel that they ought to be able to add options to make homes more attractive to buyers. Dr. Stegman noted that this could result in increased home prices.

 

Mayor Howes inquired whether there was any way to measure how strongly people felt about living at Tandler. Dr. Stegman said homeowners felt strongly that the location of the units was a positive factor.

 

Mayor Howes inquired when the Council could schedule a final re­port on the Tandler homeownership program. Dr. Stegman said the report would be completed early in the new year (1990). Dr. Stegman thanked his researchers for their assistance in compiling the report.

 

Maureen Detweiler, a Tandler homeowner, expressed concern that the Town would receive one‑third of the return from home improve­ments. Town Manager Taylor said that if improvements are noted at the time of closing, a proration would occur. Town Manager Taylor stated that improvements not outlined in contracts have not been addressed to date. Town Manager Taylor said the Tandler program tries to help people become homeowners and protect the Town's investment simultaneously.

 

Ms. Detweiler said the Tandler program and the location of homes was appreciated. Ms. Detweiler said there had been some negative aspects about the program. Ms. Detweiler expressed concern that none of the information about second mortgages was contained in purchase contracts. Ms. Detweiler requested that the Council further investigate" this matter. Town Manager Taylor said he would get specifics about Ms. Detweiler's concerns and report back to the Council. Mayor Howes indicated that the Town staff would meet with her to further discuss her concerns.

 

Tandler Monthly Status Report

 

Town Manager Taylor indicated that a memorandum outlining the status of the project was contained in the Council's agenda mate­rials.

 

Culbreth Park

 

Planning Director Roger Waldon noted that the Culbreth Park hous­ing proposal had been discussed at the Octo?er 2nd Town Council work session. Mr. Waldon said that the developer proposes a cluster subdivision with innovative financing on Culbreth Road. Mr. Waldon indicated that the proposed subdivision is located adjacent to Culbreth Junior High School and will offer thirty homes for low and moderate income owners, ten public housing units, and twelve market rate homes.

 

Mr. Waldon noted that the Council was being asked to take action on the proposal this evening. Mr. Waldon noted that $420,000 in second mortgages from Town funds was requested by the project developer. Mr. Waldon observed that the Town has $240,000 in unencumbered funds in the Housing Loan Trust Fund. He stated that the Manager's recommendation was to adopt Resolution A preliminarily committing $238,000 for second mortgages subject to execution of a contract between the Town and Culbreth Development Corporation and Resolution B directing the drafting of a formal development agreement in concept between the Town and Culbreth Development Corporation.

 

Council Member Godschalk said Culbreth Development Corporation felt that the resolutions, if adopted, are workable but not de­sirable due to the difference in available versus requested sec­ond mortgage monies. Council Member Godschalk inquired about the impact of second mortgage monies on possible project success. Mr. Waldon said that the matter was of a delicate nature. Mr. Waldon stated that if the full $420,000 is never available, it might be necessary to serve slightly higher income groups or sub­sidize fewer units with second mortgages. Mr. Waldon suggested that the Triangle Housing Partnership could possibly be a source to close the $180,000 second mortgage gap.

 

Runyon Woods, representing Culbreth Park, said he and his col­leagues were taking the Town at their word in pledging best ef­forts to attain the balance of funds. Mr. Woods said that all options had not been investigated to this point. Mr. Woods said he had several strong disagreements with Dr. Stegman's earlier remarks about affordable housing.

 

Council Member Werner inquired about timing concerns. Mr. Woods said the current unavailability of adequate funds would have no impact. Mr. Woods noted that following adoption of Resolutions 15A and B, Governor Martin could announce the loan of $2.5 mil­lion at 2% for eighteen months to Culbreth Park Development Cor­poration. Mr. Woods said the Town funds are not needed until development targets are met.

 

Council Member Andresen said that Culbreth Park is an exciting project. Council Member Andresen expressed concern about future Town administration of the project. TOW? Manager Taylor indicat­ed that terms of administration will be worked out in the devel­opment contract, with the hope that administration can be subcon­tracted to a non‑profit housing corporation.

 

COUNCIL MEMBER HERZENBERG MOVED, SECONDED BY COUNCIL MEMBER GODSCHALK, TO ADOPT RESOLUTION 15A. THE MOTION WAS ADOPTED UNAN­IMOUSLY (9‑0).

 

A RESOLUTION COMMITTING FUNDS TO THE CULBRETH PARK COMMUNITY DE­VELOPMENT CORPORATION FOR THE CULBRETH PARK HOUSING PROGRAM (89‑11‑13/R‑15a)

 

WHEREAS, The Culbreth Park Community Development Corporation has submitted a proposal to build a subdivision of homes for low‑income families, dated August 25, 1989; and

 

WHEREAS, the Council is supportive of this proposal and commends the efforts of the Corporation to help alleviate the shortage of low‑income housing in Chapel Hill;

 

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council commits $238,000 of the Housing Loan Trust Fund to be used for at least seventeen second mortgages in the Culbreth Park subdivision, to be used and administered ac­cording ?0 terms to be set out in and subject to a contract be­tween the Town and the Corporation.

 

BE IT FURTHER RESOLVED that the Council pledges its best efforts to provide or assist in raising funds for up to thirteen (13) additional homes over the next two fiscal years.

 

This the 13th day of November, 1989.

 

COUNCIL MEMBER WILKERSON MOVED, SECONDED BY COUNCIL MEMBER PRESTON, TO ADOPT RESOLUTION 15B. THE MOTION WAS ADOPTED UNANIMOUSLY (9‑0).

 

A RESOLUTION AUTHORIZING THE MANAGER TO NEGOTIATE A CONTRACT BE­TWEEN THE TOWN AND CULBRETH PARK COMMUNITY DEVELOPMENT CORPORA­TION (89‑11‑13/R‑15b)

 

BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council authorizes the Manager to negotiate a draft contract be­tween the Town of Chapel Hill and the Culbreth Park Community Development Corporation, such contract to include provisions for administering the second mortgage funds of the Culbreth Park pro­posal, additional detail on the terms of the second mortgage and resale provisions, and final revisions to the proposal to build low‑income housing dated August 25, 1989.

 

This the 13th day of November, 1989.

 

Mayor Howes announced that the next regular meeting of the Town Council would be cablecast on Thursday, November 30th at 7:30 p.m.

 

The Council's regular meeting stood adjourned at 10:15 p.m.

 

COUNCIL MEMBER WERNER MOVED, SECONDED BY COUNCIL MEMBER WALLACE TO ENTER EXECUTIVE SESSION. THE MOTION WAS ADOPTED UNANIMOUSLY (9‑0)‑

 

The Council returned to the Council Meeting room from Executive Session at 11:12 p.m.

 

COUNCIL MEMBER PASQUINI MOVED, SECONDED BY COUNCIL MEMBER HERZENBERG, TO RECONVENE IN REGULAR SESSION. THE MOTION WAS ADOPTED UNANIMOUSLY (9‑0).

 

Mayor Howes announced that the Council would consider a property acquisition matter.

 

COUNCIL MEMBER PRESTON MOVED, SECONDED BY COUNCIL MEMBER WERNER, THAT THE TOWN COUNCIL AUTHORIZE THE TOWN MANAGER TO EXECUTE ON BEHALF OF THE TOWN A CONTRACT TO PURCHASE A FORTY‑FOUR ACRE TRACT ON AIRPORT ROAD IDENTIFIED AS TAX MAP 24, LOT 19 FROM WILLIAM CREECH AND KAY MADDRY CREECH, SAID PROPERTY TO BE PURCHASED WITH OPEN SPACE BOND MONEY. THE MOTION WAS ADOPTED BY A VOTE OF 8‑1, WITH COUNCIL MEMBER PASQUINI VOTING NO.

 

Mayor Howes announced on behalf of the Council that the Council had asked Assistant Town Manager Sonna Loewenthal to serve as Interim Town Manager effective January 1, 1990. Ms. Loewenthal expressed her agreement to serve in this capacity. Town Manager David Taylor's resignation will be effective December 31, 1989. Appropriate resolutions will be offered at the November 30, 1989 Council meeting. Mayor Howes noted that the decision of the Council in this matter was unanimous.

 

Mayor Howes indicated that the Council will meet on the evening of Monday, December 4th at 6:00 p.m., prior to their organiza­tional meeting, to begin planning for recruitment and selection of a new Town Manager.

 

COUNCIL MEMBER GODSCHALK MOVED, SECONDED BY COUNCIL MEMBER WERNER, TO ADJOURN THE COUNCIL MEETING. THE MOTION WAS ADOPTED UNANIMOUSLY (9‑0).

 

The meeting stood adjourned at 11:17 p.m.