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HomeMy WebLinkAboutORD-2024-025-Professional services contract with Development Finance initiative UNC School of Government for pre development services for the greene tract and approval of budget amendment #1-A ORD -2024 - 025 ! � I5 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date : September 5 , 2024 Action Agenda Item No . 6 - a SUBJECT : Professional Services Contract with Development Finance Initiative ( UNC School of Government) for Pre- Development Services for the Greene Tract and Approval of Budget Amendment # 1 -A DEPARTMENT : Planning and Inspections ATTACHMENT ( S ) . INFORMATION CONTACT . 1 . DFI Scope of Services Perdita Holtz , Deputy Director , 919 - 2 . Letters of Support from the Towns of Chapel 245 - 2578 Hill and Carrboro Cy Stober , Director , 919 -245 -2592 3 . Greene Tract Master Plan and Entitlement Timeline 4 . Year-to - Date Budget Summary PURPOSE : To authorize the County Manager to sign a contract on behalf of Orange County to procure a professional services contract with the Development Finance Initiative ( DFI ) for pre . development services for the Greene Tract and to approve Budget Amendment # 1 -A to provide for the total cost of the project . BACKGROUND : With the anticipated conclusion in late September/October of the current community engagement and Master Plan efforts on the jointly- owned Greene Tract , the three local government owners/partners ( Orange County and the Towns of Chapel Hill and Carrboro ) are looking ahead to the next necessary phase of realizing development of the Greene Tract . An in - depth financial feasibility analysis of the Master Plan is necessary , including an analysis of providing housing at various levels of affordability and public investment support . Additionally , a development partner(s ) must be identified and selected . Staffs have identified the DFI program at the UNC School of Government as uniquely suited to perform the necessary analyses and project marketing to private sector developers ( both non - profit and for- profit) who would construct the Master Plan . DFI partners with communities "to attract private investment for transformative projects by providing specialized finance and real estate development expertise . " The Scope of Services for the proposed contract is included in Attachment 1 . Letters of Support from the Towns of Chapel Hill and Carrboro are included in Attachment 2 . Many of the tasks in the Scope of Services are expected to be completed in a 12 - 18 month timeframe . However , the contract with DFI will be for 10 years , until December 1 , 2035 , as DFI will be a partner in soliciting private sector developers to bring the Master Plan to on -the - ground fruition , which may occur in phases . item on this September 5 , 2024 Business meeting agenda , the existing In a separate agenda contract for Master Plan services with Thomas & Hutton is proposed to be extended in the event that adjustments to the Master Plan resulting from community engagement efforts are necessary as a result of the financial feasibility analysis DFI will complete . The proposed DFI contract is one part of overall efforts to develop the Greene Tract in accordance with community desires , to include affordable housing . Other processes , such as " entitlement" (zoning approval ) by the Town of Chapel Hill will run concurrently with DFI ' s and Thomas & Hutton ' s work . The entitlement process is expected to be in the form of a Development Agreement and is expected to commence in October 2024 . Attachment 3 is a DRAFT timeline of the Master Plan and Entitlement , with the timeline subject to refinements as a variety of activities are underway that could necessitate updates . FINANCIAL IMPACT . Orange County allocated $ 399 , 800 for Greene Tract costs during FY 2023 -24 . The DFI ' s Scope of Services is for $ 132 , 400 , payable over two installments of $ 66 , 200 each , over two fiscal years . This creates a total project cost of $ 532 , 200 . Based on the 2021 Green Tract Interlocal Agreement , the Towns shall reimburse funds to the County based on the adopted cost share agreement of 43 % - Orange County , 43 % - Chapel Hill , and 14 % - Carrboro . Per the approved cost-share agreement for Greene Tract expenses , the resulting total financial impact to Orange County will be $ 56 , 932 funded by County Capital Reserves after it is reimbursed for costs by the municipal partners . Budget Amendment # 1 -A increases the General Fund authorization by $ 132 , 400 and County Capital Reserve by $ 567932 . DFI is also compensated by the chosen developer(s ) who will be required to pay DFI a Development Services Fee of 1 % of the total project costs . No local government contribution to the Development Services Fee will be necessary . ALIGNMENT WITH STRATEGIC PLAN : This item supports : • GOAL # 3 . HOUSING FOR ALL OBJECTIVE #4 . Prioritize and select County- owned land and /or facilities as part of an overall plan of facilities to create crisis , bridge , low barrier , affordable , and permanent housing . RECOMMENDATION ( S ) : The Manager recommends the Board : 1 . Approve and authorize the County Manager to execute and sign the contract after approval of content and form by the County Attorney ; 2 . Authorize the expenditure of up to $ 132 , 400 for professional services to provide Pre . Development Services for the Greene Tract Master Plan ; and 3 . Approve Budget Amendment # 1 -A . ORD -2024- 025 16 � � i (° ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date : September 5 , 2024 Action Agenda Item No . 6 - a SUBJECT : Professional Services Contract with Development Finance Initiative ( UNC School of Government) for Pre - Development Services for the Greene Tract and Approval of Budget Amendment # 1 -A DEPARTMENT : Planning and Inspections ATTACHMENT ( S ) : INFORMATION CONTACT : 1 . DFI Scope of Services Perdita Holtz , Deputy Director , 919 - 2 . Letters of Support from the Towns of Chapel 245 -2578 . Hill and Carrboro Cy Stober , Director , 919 - 245 -2592 3 . Greene Tract Master Plan and Entitlement Timeline 4 . Year-to - Date Budget Summary PURPOSE : To authorize the County Manager to sign a contract on behalf of Orange County to procure a professional services contract with the Development Finance Initiative ( DFI ) for pre - development services for the Greene Tract and to approve Budget Amendment # 1 -A to provide for the total cost of the project . BACKGROUND : With the anticipated conclusion in late September/October of the current community engagement and Master Plan efforts on the jointly- owned Greene Tract , the three local government owners/partners ( Orange County and the Towns of Chapel Hill and Carrboro ) are looking ahead to the next necessary phase of realizing development of the Greene Tract . An in - depth financial feasibility analysis of the Master Plan is necessary , including an analysis of providing housing at various levels of affordability and public investment support . Additionally , a development partner(s ) must be identified and selected . Staffs have identified the DFI program at the UNC School of Government as uniquely suited to perform the necessary analyses and project marketing to private sector developers ( both non - profit and for- profit) who would construct the Master Plan . DFI partners with communities to attract private investment for transformative projects by providing specialized finance and real estate development expertise . " The Scope of Services for the proposed contract is included in Attachment 1 . Letters of Support from the Towns of Chapel Hill and Carrboro are included in Attachment 2 . Many of the tasks in the Scope of Services are expected to be completed in a 12 - 18 month timeframe . However , the contract with DFI will be for 10 years , until December 1 , 2035 , as DFI will be a partner in soliciting private sector developers to bring the Master Plan to on -the - ground fruition , which may occur in phases . In a separate agenda item on this September 5 , 2024 Business meeting agenda , the existing contract for Master Plan services with Thomas & Hutton is proposed to be extended in the event that adjustments to the Master Plan resulting from community engagement efforts are necessary as a result of the financial feasibility analysis DFI will complete . The proposed DFI contract is one part of overall efforts to develop the Greene Tract in accordance with community desires , to include affordable housing . Other processes , such as " entitlement" (zoning approval ) by the Town of Chapel Hill will run concurrently with DFI ' s and Thomas & Hutton ' s work . The entitlement process is expected to be in the form of a Development Agreement and is expected to commence in October 2024 . Attachment 3 is a DRAFT timeline of the Master Plan and Entitlement , with the timeline subject to refinements as a variety of activities are underway that could necessitate updates . FINANCIAL IMPACT . Orange County allocated $ 399 , 800 for Greene Tract costs during FY 2023 -24 . The DFI ' s Scope of Services is for $ 132 , 400 , payable over two installments of $ 66 , 200 each , over two fiscal years . This creates a total project cost of $ 532 , 200 . Based on the 2021 Green Tract Interlocal Agreement , the Towns shall reimburse funds to the County based on the adopted cost share agreement of 43 % - Orange County , 43 % - Chapel Hill , and 14 % - Carrboro . Per the approved cost-share agreement for Greene Tract expenses , the resulting total financial impact to Orange County will be $ 56 , 932 funded by County Capital Reserves after it is reimbursed for costs by the municipal partners . Budget Amendment # 1 -A increases the General Fund authorization by $ 132 , 400 and County Capital Reserve by $ 56 , 932 . DFI is also compensated by the chosen developer ( s ) who will be required to pay DFI a Development Services Fee of 1 % of the total project costs . No local government contribution to the Development Services Fee will be necessary . ALIGNMENT WITH STRATEGIC PLAN : This item supports : • GOAL # 3 . HOUSING FOR ALL OBJECTIVE #4 . Prioritize and select County- owned land and /or facilities as part of an overall plan of facilities to create crisis , bridge , low barrier , affordable , and permanent housing . RECOMMENDATION ( S ) : The Manager recommends the Board : 1 . Approve and authorize the County Manager to execute and sign the contract after approval of content and form by the County Attorney ; 2 . Authorize the expenditure of up to $ 132 , 400 for professional services to provide Pre - Development Services for the Greene Tract Master Plan ; and 3 . Approve Budget Amendment # 1 -A .