HomeMy WebLinkAboutAgenda - 06-16-2015-13 (9) INFORMATION ITEM
June 9, 2015
MEMORANDUM
To: Bonnie Hammersley, Orange County Manager
From: Jeff Thompson, Director, Asset Management Services
Lucinda Munger, Director, Library Services
Michael Harvey, Planner III
Andrea Tullos, Assistant Director, Library Services
Subject: Southern Branch Library Siting Update; Carrboro Arts & Innovation Center Working
Group Update
Southern Branch Library Sitin_g Update
Staff continues to work toward the analysis and recommendation of sites for a potential
Southern Branch Library. In early 2015, the Development Agreement discussions regarding the
Brewer Lane property between Orange County and property owner/site developer, Main Street
Partners, ended amicably without an agreement to develop a library at the site. The relationship
between the County and the Developer remain strong.
Staff continues to conduct preliminary due diligence on several sites proposed by the Board of
County Commissioners and Carrboro. Updates and staff recommendations on these sites are
attached:
Attachment 1 - The Carrboro Century Center;
Attachment 2 - 203 S. Greensboro Property(initially proposed for study by Carrboro in
May, 2013);
Attachment 3 - The former Fire & Hearth site (East Main Street across from the Hilton
Garden Suite Hotel);
Staff will continue to work on these sites within the preliminary site due diligence framework
approved by the Board of Commissioners and will seek feedback from the Board in the fall of
2015.
In addition to these three sites, staff has recently begun preliminary due diligence on 5011503
West Franklin, a County property that houses the Chapel Hill/Orange County Visitor's Center,
the Skills Development Center, Durham Technical Community College, Guardian ad Litem, and
tenant occupant TerraDotta. This site was studied by staff in 2010; current staff
recommendations have not been developed and will be forthcoming in the fall of 2015.
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Attachment 1 - Century Center Preliminary Phase Due Diligence
Century Center
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Background
The .7 acre Century Center is owned by the Town of Carrboro and currently houses the Carrboro Police
Department, Carrboro Parks and Recreation, and the Orange County Cybrary. The two level facility is
approximately 23,540 gross square feet and in area with a net useable flood area of 18,000 square feet.
An adjacent .46 acre parcel, also owned by the Town, contains 39 publically dedicated parking spaces.
An additional 17 spaces are on the east side of the main parcel.
Each level yields approximately 9,000 usable square feet in its current configuration.
Conceptually, the site would be re-purposed in some part to house a Southern Branch Library while
displaced Carrboro staff would relocate, potentially to a refurbished Carrboro Town Hall. Jeff Thompson
and Michael Harvey are working with David Andrews and Patricia McGuire on studying merits of this site
as well as the development variables related to the possible renovation of Town Hall.
Preliminary review of the viability of the Century Center, consistent with adopted site criteria, has been
completed.
Positive characteristics, according to the criteria are as follows:
1. The site meets the criteria points of location and access;
2. The parcel is in downtown Carrboro,
3. The overall facility appears structurally able to be re-purposed for a more open library floor plan;
4. The facility is zoned appropriately for a library; however the use would need to be re-applied
within the CUP framework;
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Challenging characteristics according to the criteria are as follows:
1. Use of the facility would depend on the relocation of Carrboro staff. Development of a library,
therefore, would be delayed until appropriate space is created with no guarantee(s) of a timeline
on which this would be achieved. There is also no firm idea on the total amount of space that will
be available to support the library,
2. Onsite parking, should the facility be shared with some Carrboro department staff, would be
limited, causing the site to require off-site parking;
3. The site is severely challenged with regard to handicapped accessibility, a lack of natural light,
and is not equipped with an elevator;
4. There is little or no ability for future expansion.
5. The County may be asked to be involved physically or financially with the renovation of the
Carrboro Town Hall.
Staff recommendation:
At this point, continue performing due diligence work in collaboration with Carrboro staff in the areas of:
1. Determining the Carrboro staff(Police and Parks and Recreation Departments) that would re-
locate to Carrboro Town Hall or other locations in order that a more definitive schematic space
plan could be prepared for the Southern Branch Library within the Century Center;
2. Performing the physical due diligence for the feasibility of renovating Town Hall to house the
potentially relocated Carrboro staff;
3. Developing schematic partnership structure and cost options between Orange County and
Carrboro for review, discussion, and Board Direction.
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Attachment 2 -203 S. Greensboro Preliminary Phase Due Diligence
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Background
The .89 acre Century Center is owned by the Town of Carrboro and is currently utilized as a public
parking lot.
The parcel was submitted for consideration and evaluation as a library site by the Carrboro Town Board
on May 10, 2013. Staff had studied the parcel in accordance with established library site evaluation
criteria and initially determined potential benefits, with respect to the development and/or use of the
property, were outweighed by identified benefits constraints including:
a. Proximity to existing residences creating issues for property owners (i.e. noise, traffic, congestion,
etc.)
b. Cost of construction,
c. Traffic impacts,
d. Limits of expansion opportunities.
After having additional discussions with the Town of Carrboro, which included the review of a previously
approved development proposal for the site and Carrboro staff's assurances over potential development
of satellite parking to support a library, staff is re-evaluating the property.
Buildable area on the parcel is estimated to be at approximately 30,000 square feet. With the
construction of a single level structure, staff estimates a 15,000 square foot library structure, with adjacent
surface parking for approximately 50 vehicles, may be achieved.
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It should be noted local zoning allows a multi-level building to be constructed on the property. As a result
a larger, multi-floor, building can be erected to house other users. This site has potential for the
collaborative Carrboro Arts and Innovation Center that could house the library, the Arts Center, the Kidzu
Museum, and potentially other uses.
Positive characteristics, according to the adopted site evaluation, criteria for the property are as
follows:
1. The site meets the criteria points of location and access;
2. The site is in downtown Carrboro;
3. The site is fairly level and open with access to needed utilities;
4. The facility is zoned appropriately for a library use; however the use would likely require a
Conditional Use Permit application;
5. The parcel is owned, and was submitted for evaluation, by the Town of Carrboro;
6. The County may experience a more favorable acquisition cost structure in its negotiations with
Carrboro.
Challenging characteristics according to the criteria are as follows:
1. The presence of unsuitable soils and rock are a concern; however a full geotechnical analysis of
the site will inform this;
2. The topography and drainage of the site limit on grade entrances to a proposed facility to the
west side of the property bordering Jones Ferry Road
3. Future expansion would be limited to building more levels to the facility; designing for this
possibility would increase the cost of the initial structure.
4. Final determination on the need to develop parking either on or off-site has not been formalized.
As a result staff is unsure what we could be walking into with respect to a requirement that we
replace the public parking displaced as a result of a library being constructed on the parcel.
5. Traffic studies have not been completed identifying the viability of locating a library here.
Staff recommendation:
At this point, continue performing due diligence work in collaboration with Carrboro staff in the areas of:
1. Physical and geotechnical due diligence;
2. Performing the physical due diligence for the feasibility of developing the site as both a single and
multi-story structure.
3. Continuing to review and develop an understanding on the parking requirements/needs for a
standalone library structure and surface parking; and
4. Developing schematic partnership structure and cost options between Orange County and
Carrboro for review, discussion, and Board Direction.
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Attachment 3 - Former Fire & Hearth Property Assembly Preliminary Site Due Diligence
Fire and Hearth
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Background
A three parcel collection of semi-contiguous parcels anchored by the former Fire & Hearth retail store and
Browning Ferrell Furniture totaling approximately .9 acres is currently on the market for sale (hereafter
`Fire & Hearth parcels'). This location is opposite of the 300 Main development on the north side of East
Main Street. As currently comprised the parcels do not offer sufficient land area, or road frontage, to
support development of a library facility. Vehicular access would also be complicated. Additional land
area would have to be secured to achieve sufficient land area for library development as well as ensure
proper vehicular ingress/egress to and from the site.
Contiguous to these parcels is a .26 acre restaurant and a .1 acre single family residence not for sale.
Inclusion of these two parcels would improve the use of the property, including access for a library
project. As of the writing of this report there have been no overtures made to these property owners to
discuss their attitudes on potential purchase options.
The Fire & Hearth parcels will likely to be valued in the market at the equivalent$800K- $1 MM per acre.
Using the $1 MM per acre figure as a benchmark, staff has estimated the cost of the full assembly(i.e.
purchase of approximately 1.26 acres in support of library space development)would total approximately
$1.26MM. This assumes successful purchase of adjacent properties.
With surface parking feasible on this assembled site in lieu of structured parking, the budgeted costs for
the Brewer Lane ground lease and purchased structured parking ($600K +$900K= $1.5MM) may be in
line with this assembled site's purchase and surface parking development costs.
Overall development costs are expected to be no greater than most other downtown sites (and which
likely could be substantially less on the whole because the site could be surface parked).
Conceptually, the buildings on the property would be deconstructed and the entire site developed for a
single or dual level building with onsite surface parking.
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Positive characteristics according to the criteria are as follows:
1. The site meets the criteria points of location, visibility and access;
2. The site is in downtown Carrboro;
3. The site conditions are topographically ideal and seem to be able to carry the structural loads of a
Southern Branch Library and required surface parking;
4. The facility is zoned appropriately for a library; however a CUP process would be required;
5. Land acquisition costs are roughly equivalent to Brewer Lane given the more expensive
structured parking at Brewer Lane and surface parking on this site.
Challenging characteristics according to the criteria are as follows:
1. The assembly of the five parcels is necessary for the site to work as a library; this is challenging
and largely unknown at this point;
2. Required deconstruction costs would add to the total project cost of the project
3. Given the size of the parcel(s), expansion to accommodate future library space or space for
alternative uses, will not be practical.
Staff recommendation:
Staff should continue performing due diligence work. A decision point after the completion of preliminary
due diligence may be to engage with a real estate broker to assemble the properties under an option to
purchase structure.
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Carrboro Arts & Innovation Center("CAIC) Working Group Update
In the spring of 2015, an organizational meeting was held with the elected and appointed
chairpersons of Orange County, Carrboro, the Arts Center and Kidzu, along with the
organizations' managers and executive directors to collaboratively explore the merits of co-
locating and sharing a set of spaces that would serve and benefit the County's Southern Branch
Library, Carrboro, the Arts Center and the Kidzu museum within the central cultural area of
Carrboro.
A steering committee consisting of County Manager Bonnie Hammersley, Carrboro Manager
David Andrews, ArtsCenter Chair Don Rose, ArtsCenter Board Member Phil Szostak, and Kidzu
Board Chair Betsy Bennett has been formed to guide this effort and report findings and
recommendations to the respective governing boards. A technical committee consisting of
Orange County Asset Management Services Director Jeff Thompson, Carrboro Planning
Director Trish McGuire, ArtsCenter Interim Executive Director Noel James, and Kidzu Interim
Executive Director Lisa Van Deman staff has been formed to advise the steering committee in
its work.
The work of these groups will follow the general guidelines of the "Pathway to a Proposal"
proposed by Carrboro Alderperson Bethany Chaney during an early spring Carrboro Board
meeting.
The Steering and Technical Committees met on June 8, 2015 to discuss tasks and guidelines
with the "Pathway to a Proposal". The group agreed on its collective charge and has charted a
course to move forward with due diligence on four sites:
1. 203 S. Greensboro Street site
2. The current ArtsCenter site
3. The former Fire & Hearth Site
4. The "Armadillo Grill Parking" site (the site previously proposed by the CAIC group earlier
in 2015)
The group agreed to collaborate on a co-location visioning plan through the summer of
2015, develop business plans focusing on potential co-location synergies, and—depending
upon the summer's work-- be in position to consider investing together on required due
diligence that will continue to examine and potentially build a co-location development case.
Attached is a PowerPoint deck of slides that facilitated the group's discussions on June 8,
2015 and captures the consensus and basis for moving forward with the collaboration. The
PowerPoint deck is framed upon the "Pathway to a Proposal" written by Alderperson
Bethany Chaney. The comments highlighted in red represent the Steering Committee
feedback and points of general group agreement for going forward work.
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CAIC Technical Review Committee
Update — 6/8/15, Carrboro Town Hall
Members:
Noel James, Interim Executive Director, The Arts Center
Lisa Van Deman, Interim Executive Director, Kidzu
Patricia McGuire, Planning Director, Town of Carrboro
Julie Eckenrode, Assistant to the Manager, Town of Carrboro
Jeff Thompson, Asset Management Services Director, Orange
County
Steering Committee members present:
ArtsCenter: Don Rose, Chair; Phil Szostak, Board Member
Kidzu: Betsy Bennett, Chair (teleconference); John Mills; Melissa Cain
Carrboro: David Andrews, Town Manager
Orange County: Bonnie Hammersley, County Manager 1
Intended Outcomes 10
• Update Technical Committee progress to Steering
Committee
• Responses to "Proposed Path to New Proposal"
Framework
— Workgroup Charge
— Timeline/Process Recommendations
— Process Facilitation Recommendation
• UNC SOG — Development Finance Initiative
• Receive Steering Committee Feedback
Technical Committee Background
• Four meetings, lots of "homework"
• Organizational, process, and relationship focus
• Ready with a recommended plan to move
forward along " Proposed Path to New Proposal"
as drafted by Carrboro Alderperson Bethany
Chaney
Proposed to New Proposal
"Take everything off the table: location, financing mix,
architectural plans, ownership structure, etc."
TRC Recommendation :
This process starts anew with everything off the table. All CAIC
proposals, sites, discussions, and expectations prior to April,
2015 organizations of Steering and Technical Review
Committees are effectively cleared from the going forward
discussion and work group product.
Steering Committee feedback:
Okay with recommendation; however past CAIC proposals will need to be considered in
context with discussions going forward.
4
Proposed Path to New Proposal
"The process must include or acknowledge the following:
Shared objectives are fundamental to public-private
partnerships. Objectives of engaging in a new process and
potentially developing a new proposal must be clearly outlined,
completely transparent, and mutually-agreed by all parties"
TRC Recommendation :
The TRC's draft "Charge" for the process addresses these objectives
as well as the roles of both the Steering and Technical Review
Committees
Steering Committee feedback:
Okay with Charge as described on Powerpoint slide # 6.
Charge 14
• Compile information and prepare a report that lays the
foundation for implementing the steps identified in the
"Proposed Path to New Proposal" endorsed by the Carrboro
Boa rd;
• Perform the necessary work collaboratively and transparently
with clearly defined objectives mutually agreed upon by all
parties;
• Assess development opportunities and options ( land &
building, market support, partner operations, public
input/process, and financing) for co-location; and
• Evaluate and potentially present a proposal for co-location
following appropriate analysis (and governing board
presentation/feedback) along a generous pre-development
timeline.
Proposed to New Proposal
"The non-profit partners and public sector staff— negotiate and propose a process
that includes a generous timeline and time-bound benchmarks to see whether a
better, stronger, financially palatable and feasible public-private partnership can be
conjured."
TRC Recommendation: The proposed timeline follows:
De riverable to Steering Committee
Workgroup Organization May-June, 2015
Collaboration Space Planning Jun-August, 2015 Co-location space plan, shared space
location, share time
Market demand analysis, Partner business July-Sept., 2015 Projected unmet needs in marketplace 3-5
plan analysis; Land-use planning & physical years out; feasibility of partner business plans
site assessments; Public input on and sites/needs for public private
collaboration concepts partnership; physical assessment; summary
of public input on collaboration concepts
Co-location program uses/scale of uses; site Oct, 2015-Jan. 2016 Endorsement of co-location program
recommendation
Concept plan financing options, public- Feb-April, 2016 Endorsement of financing and partnership
private partnership structure options structures
RFP for project issued May-June, 2016 Draft development agreement for evaluation
and start of project.
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Steering Committee Feedback to Suggested
Timeline on powerpoint slide #7:
• The groups agreed that the timeline tasks are not purely serial
in nature and may have parallel tasks occurring
simultaneously;
• Initial collaborative "vision planning"for a co-location concept
will occur during the summer between the four partners
(ArtsCenter, Kidzu, Carrboro, Orange County) during the
summer)
• Financial analysis of co-location will occur throughout the
process;
• "Generous" timeline trumps trying to 'fit" the tasks within
one year; in other words, groups will stay focused, but will not
force the process.
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Proposed Path to New Proposal
"Engaging in this process does not constitute a commitment
from the Town to participate financially in any development
project."
TRC Recommendation :
Engagement in the process by any participant (Town of
Carrboro., Orange County, The ArtsCenter, Kidzu ) does not
constitute a commitment to participate financially in any
development project. The parties agree to contribute
staff time to the process.
Orange County, The ArtsCenter, and Kidzu agree to
contribute to reasonable due diligence and process costs
that inure to the benefit of the process and resulting
proposal.
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Steering Committee Feedback to Financial
Commitment powerpoint slide #9:
• All partners agree to the Financial Commitment statement
within the original "Proposed Path to New Proposal';
• Governing board decisions to contribute due diligence funds
for the process (market studies, business planning, economic
impact, physical analysis, etc.) will be tabled/postponed until
after the staff "visioning" process occurs as well as no earlier
than September, 2015;
• A potential recommendation forjointly contributing due
diligence funds along an agreed upon formula may occur no
earlier than the governing board agenda review cycle after
the summer break.
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TRC recommends working with the UNC School of
Government's Development Finance Initiative ("'DF!")
• a full service technical analysis resource for
complex projects that may be benefit from a
public-private partnership;
• services include market analysis, partner
operations and business planning consultation,
physical site assessment, and
financing/partnership structuring.
• Costs are estimated at up to $50-75K for entire
process with an additional 2-4% of the project
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TRC recommends working with the UNC School of
Government's Development Finance Initiative ("'DF!")
Costs are estimated at up to $50-75K for entire
process ( under market value of a la carte services)
DF1 assumes this risk by participating in the project
development fee should the project warrant a
public-private partnership. This amounts to with
an additional 2-4% in fees ( based upon the total
project cost) should the project be developed .
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TRC recommends working with the UNC School of
Government's Development Finance Initiative (""DFI-'-)
• Most costs can be shared pro-rata among Orange
County, ArtsCenter and Kidzu;
• Operations business planning consultation can be
shared among ArtsCenter and Kidzu;
• Most physical site assessments (geotech,
environmental, etc. ) can be absorbed by the
County on sites that may support the library
should the collaboration not materialize.
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Steering Committee Feedback to DF1
recommendation slides #11, #12, and #13:
• Staff will work through the visioning process during the
summer to prepare:
— a table of needed due diligence materials necessary for the co-location
work;
— options for sourcing the due diligence information; and
— a detailed proposal from the UNC School of Government's
Development Finance Initiative, its value proposition, cost stucture,
and areas of due diligence that will be addressed in the proposal.
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Proposed Path to New Proposcl�
"The ArtsCenter retains Noel James as Interim Executive Director long enough
to conduct a thorough business planning process, which includes:
-Utilizing an outside consultant
-Incorporating a rigorous market, donor and stakeholder research
-Financial plans and projections that demonstrate significant gains in
diversifying private sector fundraising and membership development
a plan for board development"
TRC Recommendation :
Noel James remains affiliated with the ArtsCenter organization to
support the organization and the inbound Executive Director in
assisting in generating the information necessary for a successful
business planning process critical to this process and resulting
proposal.
Steering Committee feedback:
The ArtsCenter Board Chair, Don Rose, assured that Noel James will remain involved
In the work. 15
Proposed to New Proposal
"The business planning process should "test" whether the market, revenue
models or other factors related to either organization actually support a co-
location strategy. It should also rigorously test financial capabilities of each
organization such that their contributions to any potential project will be
maximized, not underestimated."
TRC Recommendation :
That a primary objective of the process will be assess the value of a
co-location strategy for all participants, and that this value
assessment will be evaluated using the best practices available
within DFI's evaluation .
Steering Committee feedback:
The proposed due diligence scope of work will include generally accepted methods
to test the factors contributing to the feasibility and sustainability of a co-location
Model. 16
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Proposed to New Prop . :.�
"A transition plan [for ArtsCenter leadership] may or may not be part of the
final business plan — but let the planning process inform this."
TRC Recommendation : Transition plans in Board and Management
Leadership will inform this process.
Steering Committee feedback:
Accepted without comment.
"To the extent that Kidzu also needs a business plan, they do the same."
TRC Recommendation :
As stated above, transition plans in Board and Management
Leadership will inform this process.
Steering Committee feedback:
Accepted without comment.
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Proposed Path to New Proposal
"Any new proposal includes modified, shared assumptions about economic
impact, growth, goals and measures, etc."
TRC Recommendation :
All planning assumptions (economic impact, growth, costs,
meaningful measurement, etc.) will be shared, validated, and
agreed upon between all parties throughout the process.
Steering Committee feedback:
Agreed as part of the shared due diligence scope.
"Public sector partners outline non-negotiables, participation limitations, or
accountability requirements that must be included in any future proposal."
TRC Recommendation :
All participation parameters and requirements will be addressed in
the process.
Steering Committee feedback:
Partners agree to submit and attempt to mutually accept these requirements as
part of the process.
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Salter *'ontemplated in Study
• 203 S. Greensboro *
• Current ArtsCenter Location — 300 Main
• Fire & Hearth *
• "Armadillo P Location * *
*Studied by County as a standalone library site as well
**Added by the Steering Committee on 618115
203 S. Greensboro 28 Ore-
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M aor ,j t agic themes of prnr- - - -
• Fundamental questions, incentives for each group
— Potential revenue and cost multipliers for co-location
— Potential dilution of risk by co-location
— "What's the value for each participant in a co-location?"
• Standalone timelines of each partner
• Impact of Carolina Arts and Innovation Center
announcement
• Requirement of public and/or private funds, relative
risks for collaborative project
• Probability and magnitude of economic impact of
collaborative project
• Utility and value ( if any) of public private partnership
structure
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