DRAFT

(Contact the town clerk at 919-469-4011 for official minutes; no photos or images are included in this version)

 

Cary Town Council Minutes
Thursday, June 14, 2007
6:30 PM
Council Chambers
316 N. Academy Street, Cary, N.C.
Web Site: 
www.townofcary.org

 

These minutes are divided into sections due to their length. Click on the links within this document to view the full text minutes of particular sections.

 

Present: Mayor Ernie McAlister, Mayor Pro Tem Jack Smith, Council Members Marla Dorrel, Ervin Portman, Jennifer Robinson and Nels Roseland

 

Absent: Council Member Julie Robison

 

A.   COMMENCEMENT

 

1.    Call to Order (Mayor McAlister)

 

Mayor McAlister called the meeting to order at 6:30 p.m.

 

_________________________

 

2.    Ceremonial Opening (Mayor Pro Tem Smith)

 

Mayor Pro Tem Smith provided the ceremonial opening.

 

_________________________

 

3.   Adoption of agenda (Town Council)

 

ACTION: Mrs. Robinson moved to adopt the agenda as presented. Mayor Pro Tem Smith provided the second, and council granted unanimous approval.

 

_________________________

 

B.   CONSENT AGENDA

 

Ms. Dorrel pulled item B.3.u., Data Warehousing and Predictive Modeling Software, from the consent agenda for discussion.

 

1.   Regular Consent Agenda (this link contains the full text minutes of the regular consent agenda items)

 

a.   Consideration of approval of the minutes of the regular town council meeting held on May 24, 2007, and the minutes of the budget work session held on May 15, 2007.  (Approved)

 

b.   Consideration of activities to educate Cary voters on how to participate in this fall’s new Instant Runoff Voting (IRV) methodology. Council may take action. (Approved)

 

2.   Land Development Consent Agenda (this link contains the full text minutes of the land development consent agenda items)

a.   West Lake Development

(1)  Citizen Initiated Annexation Petition 07-A-10
Property owner:
Bruce Odell Henderson|
Property address: 8400 Henderson Road
Acreage: 9.66
Zoning: Residential 30 Wake (R-30W)
Contiguous to Corporate Limits: Yes
Proposed use: To incorporate a new parcel and reduce minimum lot size within West Lake Planned Development District (07-REZ-02)
Staff Presenter: Mr. Dan Matthys
Recommended Council Action: Council may take action
 (Approved)

(2)  Rezoning 07-REZ-02, West Lake Planned Development District (PDD) Amendment
Location:
Northwest of Optimist Farm and Henderson Roads
Current zoning: Residential 30 Wake (R-30W)
Request: To amend existing Planned Development District to include subject property
Acreage: 9.66 ±
Staff Presenter: Ms. Jennifer Currin
Comprehensive Plan Consistency: In accordance with N.C.G.S. 160A-383, and based upon the recommendations and detailed information developed by staff and/or the Planning & Zoning Board contained in the case report, approval of this case by the Cary Town Council will officially adopt the individual rezoning report as evidence that consistency with the Comprehensive Plan has been thoroughly evaluated and that this is a reasonable action to further the community’s public interest in carrying out the Comprehensive Plan.
Planning and Zoning Board Recommendation:
Unanimously recommended approval
Recommended Council Action: Council may take final action
 (Approved)

b.   Gaglione Property development

 

(1)  Citizen Initiated Annexation Petition 07-A-13
Property owner: Patrick & Kathleen Gaglione
Property address: 2533 and 2531 O’Kelly Chapel Road and includes detached Accessory Shop Building
Acreage: 1.85 plus .33 acres of right-of-way
Zoning: Residential 40 Chatham (RA-40)
Contiguous to Corporate Limits: Yes
Existing use: Single-family residential (emergency request to connect to Town’s water); associated with 07-REZ-07
Staff Presenter: Dan Matthys
Other Approvals Needed: The Chatham County Commissioners approved this request on 2/5/2007
Recommended Council Action: Council may take action
 (Approved)

(2)  Rezoning 07-REZ-07, Gaglione Property
Location:
2533 O’Kelly Chapel Road
Current zoning: Residential 40 Chatham (RA-40 C)
Requested zoning: Residential (R40)
Acreage: 1.85 ±
Presenter:
Mrs. Debra Grannan
Comprehensive Plan Consistency: In accordance with N.C.G.S. 160A-383, and based upon the recommendations and detailed information developed by staff and/or the Planning & Zoning Board contained in the case report, approval of this case by the Cary Town Council will officially adopt the individual rezoning report as evidence that consistency with the Comprehensive Plan has been thoroughly evaluated and that this is a reasonable action to further the community’s public interest in carrying out the Comprehensive Plan.
Planning and Zoning Board Recommendation:
Unanimously recommended approval
Recommended Council Action: Council may take final action
 (Approved)

3.   Operations Committee, June 7, 2007 (this link contains the full text minutes of the operations committee consent agenda items)

 

a.   Bid Award – 2007 Street Improvements Project (EN07-115)
Committee unanimously recommended awarding the construction contract for the 2007 Street Improvements project to Asphalt Experts, Inc. for $984,442.55.  The award (by Council) represents a preliminary determination as to the qualification of the bidder and no legally binding acceptance of the bid or offer occurs until the Town has executed a written agreement. Committee also recommended the appropriation of $150,000 from FY 2007 general capital reserve – street payment-in-lieu revenue to be budgeted within the construction account of the Street Improvement FY07 project (ST1155).
(Approved)

 

b.   Bid Award – Cary/Apex Water Treatment (EN07-117)
Committee unanimously recommended awarding the Cary/Apex Water Treatment Facility Palmer Bowlus Flume Installation and Chemical Improvements Project to Seaside Environmental Constructors, Inc. for $89,500 representing a preliminary determination as to the qualification of the bidder with no legally binding acceptance of the bid or offer until the Town has executed a written agreement.
(Approved)

 

c.   Request to Release Church Street Pump Station Easement (EN07-118)
Committee unanimously recommended granting the request to release an unused pump station easement at the intersection of Church Street (SR 1637) and Barbee Road (SR 1706).
(Approved)

 

d.   High House Road Widening Project: Funding Source Adjustment (EN07-119)
Committee unanimously recommended the removal of the $450,000 in NCDOT municipal agreement funding from the ST1077 High House Road Widening project and an appropriation of $50,000 in general capital reserve unrestricted fund balance to the construction account of Project ST1077, resulting in a total appropriation to date of $8,895,000 to the High House Road Widening project (ST1077).
(Approved)

 

e.   Bid Award – Woodland Drive Sewer Extension Project (EN07-122)
Committee unanimously recommended awarding the Woodland Drive Sewer Extension Project to H.B. West, Inc. for $354,416.60.  The award (by Council) represents a preliminary determination as to the qualification of the bidder and no legally binding acceptance of the bid or offer occurs until the Town has executed a written agreement.  Committee also recommended that $93,570 be transferred upon bid award from SW1087 Sewer Annexations to SW5010 Woodland Drive Sewer in order to provide funds needed to meet the bid award.
(Approved)

 

f.    Kildaire Farm Road Widening Project Condemnation Resolution (EN07-123)
Committee unanimously recommended approving the amended condemnation resolution approved for St. Francis United Methodist Church, Inc., a North Carolina non-profit corporation.
(Approved)

 

g.   Walnut Street Widening Project Condemnation Resolutions (EN07-124)
Committee unanimously recommended approval of condemnation resolutions related to securing necessary right of way easements for Walnut Street Widening Project.
(Approved)

 

h.   Bid Award – Kildaire Farm Road Widening, Trinity Road Extension, Penny Road Water Line (EN07-125)
Committee unanimously recommended approval of a bid award for construction of Kildaire Farm Road Widening from Lochmere Golf Club to just north of Ten Ten Road (ST1084 & ST1152), Trinity Road Extension just north of Cary Towne Boulevard (ST1091), and the Penny Road Water Line Extension at Ederlee Drive (WT1136) for the Alternate #1 bid of $12,283,611.90 to CC Mangum.  This award by Council represents a preliminary determination as to the qualifications of this bidder with no legally binding acceptance of this award until the Town has executed a written agreement.

Committee further recommended the transfers of existing funds described in the Fiscal Impact section of this staff report for projects ST1084 and ST1091 be approved in order to partially address construction funding needs of the Kildaire Farm Road Widening project.

Committee also recommended approval of the appropriation of $2,000,000 in 2003 general obligation bond – transportation debt to the ST1084 Kildaire Farm Widening project in order to completely address the construction and contingency funding needs of the Kildaire Farm Road Widening project, which would bring the ST1084 project budget to $9,776,201 to be budgeted as follows for expenditures:  $1,800,000 in construction and $200,000 in contracted services.

Committee further recommended approval of the appropriation of $38,000 in utility capital reserve unrestricted fund balance to the WT1136 Penny Road Water Line Connection project, bringing the WT1136 project budget to $108,000 to be placed within the WT1136 construction account for expenditure.
(Approved)

 

i.    Reimbursement Contract Cash Reimbursement Request (EN07-126)
Committee unanimously recommended reimbursement in the amount of $52,756 to Raleigh Chinese Christian Church.
(Approved)

 

j.    Consideration of Granting an Easement to Duke Power (EN07-128)
Committee unanimously recommended granting an easement to Duke Power for electric facilities to serve the Kit Creek Pump Station.
(Approved)

 

k.   Request for Additional Appropriation to Self-insurance Fund (FN07-010)
Committee unanimously recommended recognizing $84,000 in small claims revenues and appropriating these funds to the small claims fund expenditures account.
(Approved)

 

l.    Request for Additional Appropriation to Self-insurance Fund (HR07-005)
Committee unanimously recommended recognizing $83,280 in workers' compensation reinsurance reimbursement revenues and appropriating these funds to the workers' compensation claims fund expenditures account.
(Approved)

 

m.  Amendments to Stop Street Schedules (PD07-017)
Committee unanimously recommended adoption of an ordinance amendment to the Town Code Sec. 34-329 (stop streets).
(Approved)

 

n.   Budget Adjustment: Recognition of Donations (PR07-028)
Committee unanimously recommended recognizing $5,000 for appropriation of donations and expenditures in the PRCR Memorial Donations Accounts for acceptance of the currently identified donations of $1,890 and to allow for possible additional donations and related installations through the end of fiscal year 2007, with an additional $3,110 expenditure authority to be expended only to the degree that donations are actually received.
(Approved)

 

o.   Request for Grant Budget Adjustment (PR07-030)
Committee unanimously recommended approving the award of $110,000 of the $120,000 contribution from the John Rex Foundation for the Bond Park FIT project at this time, and incorporating the remaining $10,000 of the total contribution into the FY 2008 Town of
Cary Proposed Operating Budget to be recognized at budget adoption.  Committee also recommended that the $110,000 for the Bond Park FIT project be budgeted within Project PR1114. (Approved)

 

p.   Request for Approval of Amendment No. 2 to Interlocal Agreement for Western Wake Regional Wastewater Management Facilities (PWUT07-023)
Committee unanimously recommended approval of entering into Amendment No. 2 to Interlocal Agreement for design, construction, ownership, management and operation of Western Wake Regional Wastewater Management Facilities.
(Approved)

 

q.   NCDOT Utility, Sidewalk and Traffic Signal Mast Arm Municipal Agreements – NCDOT U 2804B (EN07-129)
Committee unanimously recommended approval of the appropriation of $64,615 in water development fee fund balance and $232,663 in Powell Bill fund balance allowing the Town to satisfy two recently-received North Carolina Department of Transportation (NCDOT) invoices for work completed through municipal agreements.
(Approved)

 

r.    Connemara Drive (Somerset Division) Traffic Calming (EN07-112)
Committee unanimously recommended that installation of four medians along Connemara Drive since the community has met the requirements of the traffic calming policy by submitting a petition showing 80.1% support, submitted a payment for the $1,600 community contribution, completed an encroachment agreement for the planting and maintenance of these proposed medians, and submitted and received approval for the landscaping plans.
(Approved)

 

s.    Selection of Design Team for the Cary Community Aquatic Center (PR07-029)
Committee unanimously recommended contracting with Brinkley Sargent Architects for the design of the Cary Community Aquatic
Center for a fee of $1,525,000. (Approved)

 

t.    Mosquito Control Program (PWUT07-022)
Committee unanimously recommended approval of a comprehensive mosquito prevention education program that includes options for temporarily securing meter lid openings.  Committee further recommended maintaining the scheduled implementation of the A.M.I. project.
(Approved)

 

u.   Data Warehousing and Predictive Modeling Software (TS07-001)
Committee unanimously recommended approval of the exception to formal bidding requirements and the purchase as allowed in N.C.G.S. 143-129(e)(6) and authorization of staff to negotiate and enter into a purchase and service agreement for the SAS combined data warehousing and predictive modeling software package that includes a site-wide perpetual license that will support the entire organization’s data warehousing needs and the development of a predictive modeling application for the Town’s police services and development services.
(Pulled from consent for discussion; see item G.3.)

 

C.   RECOGNITIONS, REPORTS, AND PRESENTATIONS

 

There were no recognitions, reports and presentations on this agenda.

 

_________________________

 

 

D.   PUBLIC HEARINGS (this link contains the full text minutes of the public hearing items)

 

1.   Fiscal Year 2008 Budget
Public hearing on the Town of Cary’s Proposed Fiscal Year 2008 Budget, which identifies services and infrastructure projects to be undertaken by the Town from July 1, 2007 through June 30, 2008. No council action is necessary. The budget will be on the June 28, 2007 agenda for final council action. (No action required; staff directed to bring a report to the 6/28/07 council meeting to address recent crime statistics published by the Attorney General's Office and the SBI, including options to address this issue)

2.   Rezoning 07-REZ-09, Batchelor Property/Prentiss Creek
Location:
west of Highcroft Planned Development District and south of Green Hope School Road
Current zoning: Residential-40
Requested zoning: Residential-12 Conditional Use and Transitional Residential Conditional Use
Acreage: 53.36
Presenter: Ms. Jennifer Currin
Recommended Council Action: Council may refer this item to the
August 20, 2007 Planning and Zoning Board meeting (Referred to 8/20/07 P&Z meeting)

3.   Comprehensive Plan Amendment 07-CPA-04, Indian Wells
Location:
along Indian Wells and Wackena Roads, approximately 1,200 feet west of the intersection of NC Highway 55 and Indian Wells Road
Current comprehensive plan designation: Very Low Density Residential
Requested comprehensive plan designation: Medium Density Residential
Acreage: 164.5
Presenter: Mr. Scott Ramage
Recommended Council Action: Council may continue this public hearing to the June 28, 2007 council meeting
 (Continued public hearing to the 6/28/07 council meeting)

4.   Street Closing
Consideration of a request to close a portion of Yates Store Road as relocated at the intersection of Green Level Church Road. Council may take action. (Approved)

 

E.   PUBLIC SPEAKS OUT

 

Mr. Chris Telesca, a voting activist in Wake County, stated he is not sure what happened earlier on the agenda with Instant Runoff Voting and the funding for education purposes. Mayor McAlister stated this item was approved on the consent agenda, and there was no dollar amount from the Town of Cary associated with that approval. Mr. Telesca stated Cary is the only community in North Carolina that has passed Instand Runoff Voting. He stated four other communities considered it, but they turned it down. He distributed handouts that are attached to and incorporated in these minutes as Exhibit D. He stated there is only four months between now and the election to educate voters on a new method of voting and counting votes, and he is concerned with the cost of an education program in this timeframe. He stated some data shows that Instant Runoff Voting confuses voters, it fails to live up to expectations, it increases the cost of elections, and results in more difficulty in recounts and audits.

 

Mr. Chris Stallman on behalf of “DavisandHighHouse.org” stated the proposed developments are too dense for the area (Crosland and Searstone). They seek to hold Searstone to the currently approved plan, keep the Crosland density appropriate to their residential community (i.e., Stonecreek Village), stop approvals until the land use plan objectives can be achieved in a comprehensive way, and provide residents adequate opportunity to review, understand and comment on the plan.

 

Mr. Terry Buschbach spoke about the water pressure issue. He stated he designed his sprinkler system for 60 pounds; he’s now at 60 pounds on a good day but 40 pounds on many days. He stated on 5/30/07 he had 30 pounds of pressure. He stated there is a problem with the system. He sees in the staff report that 10 residents requested a review by staff; he and his neighbors did not know about this opportunity. He stated the water tower at Green Hope high school seems to be built too low. He does not think it’s a good idea to have booster pumps on individual lots; instead, he stated it needs to be addressed by central pumps and by designing more localized pressure zones if needed.

 

Ms. Brenda Carroll, a resident in the Somerset subdivision, stated when discussions were held with council a couple of years ago when another subdivision was coming on-line in between Berkley and Somerset, the residents did not realize the Town went to court about the commercial building at the front of her neighborhood. She stated they now have a proposal for another commercial building in their neighborhood that will result in more cut-through traffic in their subdivision.

 

_________________________

 

 

F.   LAND DEVELOPMENT DISCUSSION ITEMS (this link contains the full text minutes of the land development discussion items)

1.   Reedy Creek Development: 

a.   Activity Center Concept Plan 05-AC-009, Reedy Creek
Location:
707 & 801 NE Maynard Road and 771 and 803 Reedy Creek Road
Base zoning district:  The subject property is within the Northwoods PDD and also includes an Office and Institutional (O&I) zoning district.
Overlay zoning district: Reedy Creek Neighborhood Mixed Use Overlay
Request:  The proposed Activity Center Concept Plan (ACCP) consists of a mixture of high density residential, office and commercial development.
Acreage: 17.66 acres+
Presenter: Mrs. Debra Grannan
Planning and Zoning Board Recommendation:
Majority vote recommended approval
Recommended Council Action: Council may take final action. The valid protest petition has been withdrawn; simple majority vote is required. (Approved)

b.   Annexation Petition 06-A-01
Property owner:
Ali R. Hashemi-Nejad
Property address: 801 NE Maynard Road
Acreage: 10.74 plus 0.88 acres of right-of-way
Zoning: Planned Development District Major - Office and Institutional (OIP)
Contiguous to Corporate Limits: Yes
Associated development: 05-AC-009 (item F.1.a. on this agenda)
Presenter: Mr. Dan Matthys
Council Action: Council may take final action 
(Approved)

2.   Rezoning 06-REZ-39, Cary Park Mixed Use Overlay District
Location:
intersection of Carpenter Fire Station Road and Cary Glen Boulevard
Current zoning: Planned Development District Major, Office and Institutional Conditional Use and Residential-40
Requested zoning: add a Mixed Use Overlay to the existing zoning
Acreage: 149.22 acres
Presenter: Mrs. Anna Readling
Comprehensive Plan Consistency: In accordance with N.C.G.S. 160A-383, and based upon the recommendations and detailed information developed by staff and/or the Planning & Zoning Board contained in the case report, approval of this case by the Cary Town Council will officially adopt the individual rezoning report as evidence that consistency with the Comprehensive Plan has been thoroughly evaluated and that this is a reasonable action to further the community’s public interest in carrying out the Comprehensive Plan.
Planning and Zoning Board Recommendation: Majority vote recommended approval
Recommended Council Action: This item was tabled at the
May 24, 2007
council meeting. After removing this item from the table, council may take final action. (Approved)

 

G.   COMMITTEE REPORTS (this link contains the full text minutes of the committee reports that were discussed)

 

Operations Committee, June 7, 2007 (any item pulled from the committee consent agenda for discussion [agenda item B.3.] will be discussed during this portion of the agenda) (Mrs. Robinson)

 

1.   Highcroft Drive Safety and Traffic Concerns (EN07-113) REVISED JUNE 11, 2007
Mrs. Robinson felt strongly that the Highcroft Drive speed limit should be changed to 25 mph, while Mr. Smith and Ms. Dorrel agreed that a 30 mph speed limit was acceptable.  Committee unanimously recommended that a traffic calming plan be developed and that the street remain as a collector and that on-street parking be prohibited.  Committee further recommended that any costs associated with improving the aesthetics of speed hump and crosswalk installation be the responsibility of the neighborhood that benefits from the improvements and should not be paid from public funding. Council may take action. (Approved 25 mph speed and concurred with committee's recommendation to develop a traffic calming plan, that the street remain as a collector, and that the Town not participate in costs associated with improving the aesthetics of traffic calming devices)

 

2.   Mitigation Options of Impacts to Individual Plumbing and Irrigation System (EN07-121)
Mr. Smith and Ms. Dorrel recommended against pursuing Town funded pumping systems to increase pressures to areas of lower or reduced water system pressures, while Mrs. Robinson felt the Town should consider compensation be made to homeowners negatively affected by the lower water pressure. Council may take action. (Staff will provide additional meeting at a future council meeting)

 

3.   Data Warehousing and Predictive Modeling Software (TS07-001)
Committee unanimously recommended approval of the exception to formal bidding requirements and the purchase as allowed in N.C.G.S. 143-129(e)(6) and authorization of staff to negotiate and enter into a purchase and service agreement for the SAS combined data warehousing and predictive modeling software package that includes a site-wide perpetual license that will support the entire organization’s data warehousing needs and the development of a predictive modeling application for the Town’s police services and development services.
(Approved)

 

 

H.   OLD/NEW BUSINESS (any item pulled from the regular consent agenda for discussion [agenda item B.1.] will be discussed during this portion of the agenda)

 

1.   Consideration of approval of revisions to the agreement between the Town of Cary, Wake County Public School System and the Cary Park developer approved by Council on January 25, 2007. The revisions pertain to removing the Cary Park developer as a party to the agreement. Council may take action. (Mrs. Mary Henderson)

 

STAFF REPORT

Council, June 14, 2007

Revision of Agreement with WCPSS for the location of schools at Hawes Tract
(PR07-31)

Consideration of approval of revisions to the agreement between the Town of Cary, Wake County Public School System and the Cary Park developer approved by Council January 25, 2007.
Speaker:  Mary G. Henderson, Director

 

From:  Mary G. Henderson, Director
Prepared by:  Mary G. Henderson, Director
Approved by:  William B. Coleman, Jr., Town Manager
Approved by:  Benjamin T. Shivar, Assistant Town Manager

 

On January 25, 2007 Council approved an agreement between the Town, Wake County Public Schools System and the Cary Park developer to locate an elementary and middle school on the existing Town property known as the Hawes Tract with a condition that all three parties agree to the terms of the agreement (PR07-18).  WCPSS has now requested that all references to the role and involvement of the Cary Park developer be removed from the agreement and that the revised agreement be between the Town and WCPSS only.  The other terms of the agreement remain intact.

 

A copy of the revised agreement is attached with revisions noted.   The Town Attorney has discussed the changes with WCPSS staff, reviewed the proposed changes, and is satisfied with the revisions as noted.

 

According to officials with WCPSS, they are prepared to immediately move forward with plans to develop an elementary school and acquire the middle school site based on the terms of the agreement.

 

Fiscal Impact: 

This revision does not impact any fiscal obligations to either party from the initial agreement approved in January 25.

 

Staff Recommendation:  Approval of the agreement with Wake County Public School System with the noted revisions.

 

STATE OF NORTH CAROLINA 

                                                 

COUNTY OF WAKE                  

 

AGREEMENT

 

               THIS AGREEMENT is made and entered into this ____ day of June, 2007, by and between the Wake County Board of Education (Board) whose address is Wake County Board of Education, Real Estate Services,  Attn: Betty L. Parker, Director, 1551 Rock Quarry Road, Raleigh, NC 27610, and the Town of Cary, NC (Town) whose address is Post Office Box 8005, Cary, NC 27512-8005. , and Panther Creek – Raleigh Limited Partnership, a North Carolina limited partnership (PC-R) whose address is 190 Finley Golf Course Road, Chapel Hill, NC 27514.

 

WITNESSETH:

 

            WHEREAS, PC-R, the developer of the Cary Park Planned Unit Development (“Cary Park”), to further its interests in developing Cary Park and Town policies and objectives for planned growth and economic development, entered into an Agreement dated November 16, 2001 (“2001 Agreement”) with Town whereby PC-R agreed, among other things, to ‘provide the amount of $5,500,000.00 for the construction of an elementary school (the “School”) on the Hawes Tract which obligation was secured by a letter of credit, a copy of which is attached hereto as Attachment A (“Existing Letter of Credit”); and

 

            WHEREAS, the Town acquired the tract of land known as the Hawes Tract, which is located on Green Level to Durham Road (S.R. 1625) in Cary, and which is in close proximity to Cary Park .  The Town has stated its intention to convey a portion of this tract at no cost to the Board for construction of an elementary school; and

 

            WHEREAS, parties had an initial site in mind for an elementary school which site posed development problems, and Town and Board have identified a new portion of Hawes Tract for elementary school; and

 

            WHEREAS, it was originally contemplated that Town and Board desire that Town would assign Existing Letter of Credit to Board as the party building the elementary school; and

 

            WHEREAS, Board intendsdesires to build the elementary school on Hawes Tract, and the parties desire to alter their agreements such that PC-R will obtain a new letter of credit drawn on a North Carolina bank to secure payment of the $5,500,000 to the Board for construction of School, and if Board does not construct School as provided herein, pay such funds to Town; and

 

            WHEREAS, if Board does not construct an Elementary School as provided herein, that Board will reconvey the Elementary School site to Town in exchange for the amounts initially paid by Board to Town for its acquisition as specified hereinbelow; and

 

            WHEREAS, Board also desires to build a Middle School on the Hawes Tract, and Town and Board desire to confirm their agreements that Town will provide land therefore at a cost that is substantially below market value, and that if Board does not construct a Middle School as provided herein, that Board will reconvey the Middle School site to Town in exchange for the amounts initially paid by Board to Town for its acquisition as specified hereinbelow; and

                                                                                                                        

            NOW THEREFORE, in consideration of the mutual goals and promises contained herein, and the mutual benefits to result, the parties agree as follows:

 

  1. The recitals set forth above are incorporated into this Agreement.

 

2.   The purpose of this Agreement is to facilitate construction by Board of a public elementary school on the Hawes Tract with funds provided by PC-R, together with up to 20 acres of land provided by Town of Cary at no cost.  To this end, the parties agree and PC-R hereby revise the payment provisions and letter of credit requirements of paragraph 1 (a) of 2001 Agreement to reflect (1)(1)the Board shall build the School; the Board shall build the School; (2) the Town agrees to assign its rights to payment of invoices as provided in Paragraph 1 (a) of 2001 Agreement and the Existing Letter of Credit issued on behalf of PC-R to Board, so that if necessary Board can draw on Existing Letter of Credit to enforce PC-R’s commitment to PC-R shall pay $5,500,000 directly to Board in installments upon presentment by Board to PC-R of invoices for design and construction costs; (3) PC-R shall pay $5,500,000.00, less all amounts PC-R disburses to Board pursuant to the provisions hereof, to Town on or before November 1, 2011 if a School is not constructed as set forth herein; and  (4) PC-R shall secure the obligations set forth in (2) and (3) above by a new irrevocable self-renewing letter of credit issued by a North Carolina bank (securing the payment obligations to both Town and Board as described herein) and acceptable to the parties.  The parties agree to work together in good faith toward achieving the purpose of this Agreement.

 

3.   Board shall build a public elementary school as described herein on approximately twenty (20) acres of the Hawes’ Tract and generally in the location shown as “Proposed Elementary School Site” on the concept plan attached hereto as Attachment B and incorporated herein by reference (hereinafter referred to as “School”). In reliance upon the 2001 Agreement, Board anticipates that PC-R shall will provide the amount of five million five hundred thousand dollars ($5,500,000) for the Construction of School upon presentation of invoices as provided therein.  Board shall provide additional funding to PC-R’s $5,500,000 such that total funding from PC-R and Board will construct an elementary school with a permanent capacity of not less than 650 students.  In the event that School is not constructed by August 1, 2011, Board shall, on or before August 1, 2011, pay to Town without demand all sums Board previously received from PC-R, and will reassign to Town the Letter of Credit so that Town may collect such additional funds from PC-R as to which it may be entitled. and will and PC-R shall, on or before November 1, 2011 pay to Town $5,500,000.00 less all amounts PC-R previously disbursed to Board. 

 

To the extent of $5,500,000, PC-R shall provide for the payment of design and construction costs for School as follows:

 

a.       Upon Board’s securing building permit for School and breaking ground on the School Site, Board shall on a monthly basis submit copies of invoices for design and construction costs for School to PC-R and PC-R shall advance to Board sufficient funds to cover the sum of all such invoices (“Monthly Installment”), until $5,500,000 has been advanced to Board.  All invoices shall be sent by Board to :

 

                                    Panther Creek-Raleigh Limited Partnership

                                    East West Partners

                                    190 Finley Golf Course Road

                                    Chapel Hill, NC 27514

 

                                    With copies to Town, if requested:

                                   

                                    Town of Cary

                                    Attn: ____________________

                                    Post Office Box 8005

                                    Cary, NC 27512-8005

All payments shall be made payable to the Wake County Board of Education and sent by PC-R to Board to:

 

            Wake County Board of Education

            C/O Wake County Public School System

            Attn: Mark Winters, Finance Officer

            3600 Wake Forest Road

            Raleigh, N.C. 27609

 

      As originally provided in paragraph 1 (a) of the 2001 Agreement, PC-R shall pay the total amount of the Board-submitted invoices to the Board within thirty (30) days of receipt by PC-R.  In the event any Monthly Installment is not timely paid, the Board may draw upon the New Letter of Credit provided for herein securing PC-R’s obligation to pay. 

 

      Should PC-R advance to Board design and “start up” funds and Board fail to initiate and complete construction under terms and conditions of this Agreement,  Board shall pay to Town the total amounts advanced by PC-R. Such reimbursement payments to Town of sums advanced to Board under Existing Letter of Credit shall be made within sixty (60) days of the earlier of any decision not to build School, Board’s abandonment of School construction (which shall mean failure to diligently pursue construction for any period of ninety (90) days or more), or August 1, 2011, if School is not built.  In the event School is not built as provided herein,  PC-R shall pay Town $5,500,000 in cash less all amounts previously disbursed to Board, which payment obligation shall be secured by New Letter of Credit, and the New Letter of Credit will be canceled upon Town’s receipt of $5,500,000 less all amounts previously disbursed to Board.  If such funds are not paid to Town by November 1, 2011, the Town may draw upon the New Letter of Credit provided for herein securing PC-R’s obligation to pay.

 

b.       The School will be initially constructed to accommodate not less than six hundred fifty (650) students, grades K-5.  The actual capacity of the school may vary depending upon the class sizes that will be determined by the instructional program.

 

c.       The School building is to consist of at least ninety thousand (90,000) square feet of floor area.

 

d.       The School will be constructed to meet Wake County Public School System’s standards in effect at the commencement of construction and will consist of such facilities as the Board in its discretion deems beneficial or necessary to fulfill its program standards and accomplish the education goals set for the School.

 

e.       The Board shall build School with a projected August 1, 2009 school opening date.

 

4.  Within thirty days of Board’s written notice to the Town of  Board appropriation of money for School construction and recordation by Board of a subdivision map, the Town shall convey to Board fee simple title to an approximately 50 acre tract (“Tract”) on Hawes Tract (generally in the location shown on the concept plan attached hereto as Attachment B, which consists of an approximate 20 acre Elementary School site (Site) and an approximate 30 acre building site for a future Board Middle School (Middle School Site).  The 20 acre Site shall be conveyed at no cost to Board. Site is further identified as “Elementary School Site” on Attachment B, which is attached hereto and incorporated herein by reference.  Board shall pay Town $21,225.00 per acre for all acreage in excess of 20 acres of Tract and shall pay all surveying, closing costs and other costs and expenses associated with this land transfer.  Board shall bear the costs and expenses of preparing and recording a subdivision map that divides the Hawes parcel and specifically identifies the Tract, and also dedicates the new road that will extend from the western property line of Green Level to Durham Road to the southern property line of the Hawes parcel adjacent to the MI Homes property (“New Road”) as shown on the Concept Plan.

 

5Should the Town convey Tract to Board and Board fails to initiate and complete School construction on School Site under terms and conditions of this Agreement, Board shall re-convey the Tract to Town upon payment by Town of an amount equal to the purchase price paid by Board. The Tract shall be re-conveyed without any encumbrances that attached during the Board’s period of ownership except those mandated by the Town and approved by the Town.  The Tract shall be re-conveyed to Town at the earlier of sixty (60) days after Board’s decision not to build School or Board’s abandonment of School construction, or October 1, 2011. Board agrees to execute such agreements, deeds and instruments as Town may deem necessary to effect the purposes contemplated herein, including a Memorandum in recordable form evidencing this obligation to reconvey.  Board agrees that this Agreement to reconvey shall survive the closing and may be enforced through specific performance.  As to the potential reconveyance of the Middle School Site, see paragraph 15 hereinbelow.

 

6.  Any utility easements customarily granted to the Town by Board in the process of development of land and for construction thereon of a public school will be provided by the Board at no costs to the Town. Any utility easements customarily granted to the Board by the Town in the process of development of land and construction thereon of a public school will be provided by the Town at no costs to the Board.

 

7.  Contemporaneously with the conveyance to Tract as provided in Paragraph 4, Town shall assign Existing Letter of Credit to Board as anticipated in Paragraph 1 (a) of 2001 Agreement. execution of  this Agreement, PC-R shall provide to Town and Board an irrevocable and self-renewing standby Letter of Credit (issued in duplicate so that an original is provided to both Town and Board) in a form substantially equivalent to the Existing Letter of Credit, drawn on a North Carolina bank in the amount of $5,500,000 (“New Letter of Credit”). Such New Letter of Credit shall secure the obligations of PC-R hereunder, and specifically:  (1) to secure payment to Board of funds up to $5,500,000 for the design, construction, and furnishing of the School on Site; and (2) in the event School is not constructed on Site by Board, to secure payment to Town of any and all funds, up to $5,500,000.00, less all amounts previously disbursed to Board.  Upon the issuance of New Letter of Credit, Existing Letter of Credit may be cancelled. PC-R shall maintain New Letter of Credit in force as long as any portion of its obligation hereunder remains unsatisfied.  If at any time PC-R fails to renew the New Letter of Credit at least thirty (30) days prior to a respective expiration date of the New Letter of Credit and a portion of its obligation remains unsatisfied, the New Letter of Credit may be presented for payment and shall be payable in full to Town and Board on the sixth business day following presentment. Upon receipt thereof, Town and Board shall disburse the funds in accordance with the provisions of this Agreement.  At any time prior to such sixth business day, the New Letter of Credit may be reissued or replaced, in which event such presentment shall be deemed cancelled.  If at any time before November 31, 2011, the New Letter of Credit shall expire and the obligation of PC-R remain unsatisfied, the New Letter of Credit shall be immediately reinstated by PC-R.

 

 8. The Board is responsible for approving a student assignment plan for the new School, within the constraints of law. The approved plan will designate 200 student seats of the total number of seats available in the School, to which designated seats students who permanently reside in Cary Park will have first priority for assignment. If at the time the school initially opens there is not a sufficient number of students who permanently reside in Cary Park to fill the 200 designated seats, the Board may assign students who permanently reside outside of Cary Park to fill the available designated seats. Once the seats designated for students who permanently reside in Cary Park are filled by students who permanently reside outside of Cary Park, the Board will not be required to displace the assigned students. As seats become available at the school, students who permanently reside in Cary Park will have first priority to the seats for assignment, until the total number of students assigned to the School who permanently reside in Cary Park fully populate the 200 seat designation.

 

9.  Town and Board shall agree upon the location and design, and shall share equally in the cost of design and construction of the road from the western property line of Green Level to Durham Road to the southern property line of Hawes tract adjacent to MI Homes property (“New Road”). Town and Board shall agree upon the location and design, and shall share equally in the cost of design and construction of a water line along New Road from the western property line of Green Level to Durham Road to the southern property line of Hawes tract adjacent to MI Homes property (“Water Line”).  Board shall be responsible for all costs of extending water line from Tract boundary to School Site.  Board is responsible for all other development costs including those related to utility extensions. Additionally, Town and Board shall agree upon the location and design, and shall share equally in the cost of design and construction of the shared drive access that will extend from the New Road in an easterly direction and that is contemplated to serve both Middle School traffic and Park traffic, as shown on the Concept Plan.

 

Other than as stated, the Board shall be responsible for the cost and installation of all improvements needed in the planning and construction of the School.

 

10. The Board is responsible for making its own connection to water and sewer lines. It shall also be responsible for such development requirements, approvals and fees as are customarily charged in the process of the development of land and construction thereon of a public school.

 

11. The proposed School Site shall be subject to reasonable site review and approval by the school system’s facilities staff, and shall be sufficient in size to meet the building requirements, including any new or expanded Cape Fear River basin buffer requirements, storm water management regulations, and limits on nitrogen level discharges as required by the State of North Carolina and/or the Town of Cary, North Carolina. Unless specifically raised prior to conveyance of the Tract, Board shall be deemed to have approved the Site in these respects.

 

12. The Site will be subject to environmental and geotechnical review by Board at Board’s expense and shall be zoned appropriately for the intended new School [and community park uses]. Unless specifically raised prior to conveyance of the Tract, Board shall be deemed to have approved the Site in these respects.

 

13. Board, its agents, employees or other representatives shall have the right during the term of this Agreement to go upon the Site for the purpose of making such surveys, engineering, topographical, geological and other tests and measurements including, but not limited to, soil tests, percolation tests and subsoil tests as Board deems necessary or advisable.  Board agrees to return the Site to as near its original condition as is possible after completion of tests the Board or its agents conduct on the Site.  Board indemnifies and holds Town harmless from loss, cost, damage or expense resulting from Board’s activities on Site for purposes contained herein. Such due diligence measures are sought to be performed prior to transfer of title of the Tract to Board, so that work can begin immediately upon transfer of title in a good faith effort to timely complete the School for opening.

 

14. Board and Town shall work jointly to coordinate the development of Middle School Site with a park site, and shall use their best efforts to enter into joint use agreements pertaining to the use of the respective sites.

 

15. Board must begin construction (obtain a building permit and commence construction work on Middle School Site) of a Middle School on or before August 1, 2011, or Middle School Site property (all acreage over the 20 acres used in development of elementary School) shall be re-conveyed to Town for the price paid by Board with no encumbrances that attached during the Board’s period of ownership other than those agreed to by Town. Board agrees that, if it has not begun construction of Middle School by the time a certificate of occupancy is issued for the School, Board will, at any time a written request for such is received from Town, subdivide the Tract so that there exists a legal lot that is School Site (approximately 20 acres) and a legal lot that is Middle School Site. The Middle School Site shall be re-conveyed to Town at the earlier of sixty (60) days after Board’s decision not to build School or Board’s abandonment of School construction, or October 1, 2011.  Board agrees to execute such agreements, deeds and instruments as Town may deem necessary to affect the purposes contemplated herein, including a Memorandum in recordable form evidencing this reconveyance obligation.  The Board agrees that this obligation to reconvey survives the closing and may be enforced by specific performance.  In the event any defense is raised to an action for specific performance, Board agrees that the value of Middle School Site shall be it’s fair market value on August 1, 2011.

 

16. Except as specified herein, this Agreement may be modified only by written agreement of the parties hereto.  As to paragraphs 4,5,6,9, 10, 11, 12, 13, 14 and 15, this Agreement may be modified only by written agreement of Town and Board.   Unless otherwise provided herein or agreed in writing, the Town’s offers to convey property described herein shall terminate on December 31, 2009.  PC-R’s obligation to pay Town $5,500,000 if School is not built shall expire unless demand for payment is made by November 15, 2011.   Board’s obligations to pay to Town sums advanced to Board and to reassign the Letter of Credit if School is not timely constructed, and to re-convey property as stated in paragraphs 5 and 15 and any other obligation that by its nature is intended to be performed after closing shall survive closing and termination of this Agreement. 

 

17. Title must be delivered at closing by Special Warranty Deed and must be fee simple            marketable title, free of all encumbrances and assessments, except utility easements     and unviolated restrictive covenants, neither of which materially affect the value of     the Property and such other encumbrances as may be assumed or specifically      approved by Buyer.  The Property must have legal access to a public right-of-way.

 

18.  This Agreement constitutes the entire understanding between the parties. Except as to the specific revisions and modifications set forth herein, the 2001 Agreement remains in full force and effect between the parties and is hereby ratified.   

 

19. The parties agree to take such action and execute such other and further agreements, deeds and instruments as are necessary to effectuate the purposes hereof.   

 

IN WITNESS WHEREOF, the Board and the Town and PC-R have approved this Agreement and have caused it to be executed and attested to the year and date written above.

 

WAKE COUNTY BOARD OF EDUCATION

 

_________________________________________

                                 Patti Head

                                       Chair

 

ATTEST: _________________________________

                           Del Burns, Secretary

 

TOWN OF CARY

 

__________________________________________

                                    Mayor

 

ATTEST: __________________________________

                              Clerk of Town Board

 

 

PANTHER CREEK-RALEIGH, Limited Partnership 

 

By: Panther Creek- Raleigh GP, L.L.C., General Partner of

       PANTHER CREEK-RALEIGH, Limited Partnership 

 

By:  Hearthstone, a California Corporation

(formerly known as Hearthstone Advisors, Inc.), Member

 

By:  _______________________________________

                                    (vice) president

 

ATTEST: ______________________________________

 

Attachment A  - Existing Letter of Credit, and Atachment B – concept plan, are attached to and incorporated in these minutes as Exhibit H.

 

Mayor McAlister asked if there are changes to any financial obligations. Town Attorney Chris Simpson stated the amended agreement only removes the Cary Park developer as a party to the argreement, and the Town will assign the letter of credit to the school board. She stated the school board concurs with this.

 

ACTION: Mr. Roseland moved to approve this item; Mrs. Robinson provided the second.

 

Mr. Portman asked if the Cary Park developer has met the obligation to fund the amounts due. Mrs. Simpson concurred.

 

ACTION: Vote was called for on the motion to approve, and council granted unanimous approval.

 

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