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HomeMy WebLinkAboutAgenda - 03-15-2005-9aORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: March 15, 2005 Action Agen a Item No. - 4 SUBJECT: Possible Acquisition of the Triangle SportsPlex DEPARTMENT: Manager/PurchasinglFinance PUBLIC HEARING: (YIN) No ATTACHMENT(S): Draft Resolution Blackman & Sloop Report Corley Redfoot Zack Report (under separate cover) Durham 688-7331 Mebane 336-227-2031 INFORMATION CONTACT: Rod Visser, ext 2300 Pam .Jones, ext 2652 Ken Chavious, ext 2453 TELEPHONE NUMBERS: Hillsborough 732-8181 Chapel Hill 968-4501 PURPOSE: To consider whether or not Orange County should pursue acquisition of the Triangle SportsPlex. BACKGROUND: In Fall 2004, the Board of Commissioners directed staff to perform due diligence analysis regarding the County's potential interest in acquiring the Triangle SportsPlex property, The County s interests relate not only to recreation opportunities, but also to a proposal to construct the new Central Orange Senior Center in conjunction with an expansion of the SportsPlex, The SportsPlex is an 82,000 square foot facility in the Meadowlands Business Park in Hillsborough that provides a regulation ice rink, three swimming pools, fitness equipment, and other recreation amenities. The County operates a small senior center in rented space on property immediately adjacent to the SportsPlex property. The County has an existing ten-year facilities/service agreement under which the County provides payments of $400,000 a year to Eaton Vance, the owner of the SportsPlex, to support the availability and affordability of the swimming pools and other recreational opportunities for citizens of Orange County. The ten-year agreement expires at the end of March 2005. Staff have been working with the agent for Eaton Vance for several years to examine options upon the expiration of the ten-year agreement, Since early 2004, staff have been working to develop a proposal that would involve the construction of an expansion to the existing SportsPlex building, That expansion and a reallocation of some existing, underutilized square footage within the existing building would be used to provide 15,000 square feet of dedicated space for a Central Orange Senior Center to be operated by the County's Department on Aging, Consideration may also be given to the development on the property of affordable housing. 2 County staff and consultants have compiled the accompanying analysis and background reports to assist the BOCC in determining whether or not it would further the County Commissioners' policy and program priorities to negotiate a detailed agreement to purchase the property from Eaton Vance, Staff believe that the acquisition of the property presents significant opportunities to accomplish important County functions in a cost efficient manner, with the prospect of savings through economies of scale in construction and operational costs, Therefore, staff recommend that the Board proceed with the acquisition of the property and provide specific direction to staff on additional steps to take by means of the accompanying resolution, or a modified version thereof.. Staff and consultants will attend the March 15 meeting and plan to 1) make a detailed presentation that will review the process and results of the due diligence assessments that have been completed, and 2) respond to Commissioner questions regarding the proposed acquisition of the SportsPlex property. FINANCIAL IMPACT: As noted in the accompanying background reports, and as will be addressed in the staff presentation. RECOMMENDATION(S): The Manager recommends that the Board pursue acquisition of the Triangle SportsPlex, and adopt the accompanying resolution, or a modified version thereof, that will provide specific direction to the Manager, staff, and Attorney on how to proceed, Drafted 03/11/05 ® ~~~ ORANGE COUNTY BOARD OF COMMISSIONERS A RESOLUTION OF INTENT TO PURSUE ACQUISITIAN OF THE TRIANGLE SPORTSPLEX PROPERTY WHEREAS, the Orange County Board of Commissioners has had a long- standing view of the importance of having a public swimming pool in central Orange County that is accessible to all residents of the County; and WHEREAS, Orange County has had a facilities services/agreement in place since 1994 that provides for annual County payments of $400,000 to pay for the costs associated with the operation of the swimming pools at the Triangle SportsPlex in Hillsborough; and WHEREAS, that agreement is set to expire at the end of March 2005; and WHEREAS, the Board of Commissioners has indicated its commitment to the construction and operation of a 15,000 square foot senior center to serve all residents, but especially those of central and northern Orange County; and WHEREAS, Eaton Vance, the owner of the Triangle SportsPlex, has indicated its willingness to sell the property to the County; and WHEREAS, there is an opportunity to create a senior center of at least 15,000 square feet of dedicated space at the SportsPlex by constructing an addition to the existing building in combination with the reallocation of currently underutilized space within the existing building; and WHEREAS, the Orange County Board of Commissioners has determined that it would further the Boards' policy and program priorities to negotiate a detailed agreement to purchase the property from Eaton Vance; NOW, THEREFORE, BE IT RESOLVED THAT the Orange County Board of Commissioners does hereby indicate its intent to acquire the Triangle SportsPlex property and hereby directs the Manager, staff, and Attorney to accomplish the following: 1 Negotiate with Eaton Vance an agreement to purchase the SportsPlex property at a price not to exceed a figure to be determined by the Board, taking into account any adjustments that may be needed for allowances to make necessary and appropriate repairs and refiarbishments to SportsPlex property. The agreement to purchase would be subject to subsequent review and approval by the Board of Commissioners. 2. Initiate the process involved with obtaining Local Government Commission approval far debt the County will need to incur to complete acquisition of the property. gg~~ nrafted 03/11/05 5~~~ 3. Develop a model structure for the accounting of SportsPlex revenues and expenses, including operating, capital, and debt through an enterprise fund or other appropriate structure as determined by staff in consultation with the County's auditors 4. Initiate the development review process that would lead to securing all necessary approvals from the Town of Hillsborough to construct an addition and to make other necessary modifications to the existing SportsPlex building and grounds leading to the creation of a co-located senior center, 5. Explore options and develop agreements related to the management and operation of the SportsPlex facility, including (but not necessarily limited to) the overall physical plant, the ice operation, the fitness operation, the pool operation, and any food service operation. Any such agreements would be subject to subsequent review and approval by the Board of Commissioners.. It is the Board of Commissioners' intent that operation of the senior center and its programming be conducted by the Orange County Department on Aging.. 6. Explore options and develop agreements related to management, design, and construction of the SportsPlex expansion/senior center creation project. Any such agreements would be subject to subsequent review and approval by the Board of Commissioners, 7. Develop and execute a continuation agreement with Eaton Vance, subject to review and approval by the Chair, that will provide for ongoing operation of the SportsPlex for the period April 1, 2005 through closing on the property, This, the 15th day of March 2005.