Information Items:
NCDOT Review of Subdivision Streets in the ETJ
Staff Resource: Danny Pleasant, 704-336-3879 -- dpleasant@ci.charlotte.nc.us
City staff is continuing to work with NCDOT to resolve problems that we described in the October 14 Council Manager Memo regarding their review of ETJ subdivision streets. Our staff met with NCDOT this past Wednesday to define an approach to solving the most immediate problems involving developers seeking review and approval of final plats. Staff identified first and second priority cases that will receive the most urgent attention.
Priority 1 includes 52 plats in 25 subdivisions that are in the record plat review process. Currently, 24 of these plats are ready for recording contingent upon NCDOT approval. They will receive the highest priority for review and resolution by NCDOT.
Priority 2 includes subdivision plans that have been approved for construction and are either under construction or pending approval of grading permits. These have not been submitted for record plat review. We do not know the final number in this category but believe it to be fewer than 58 subdivision plans. Subdivision staff is reviewing these at the Register of Deeds Office to determine whether any of them were recorded. These plans will receive the next highest priority for review and resolution.
City and NCDOT staffs will conduct intensive review of priority 1 plats on Monday, October 31, and Wednesday, November 2. City staff will work alongside NCDOT staff to try to resolve any issues that may arise. NCDOT staff indicated that they are looking into options for any record plats that they determine do not meet or exceed NCDOT standards. For example, NCDOT may consider approving any such plans if they are included in the proposed 2007 annexation areas. NCDOT may consider maintenance bonds as a way to resolve situations where strict compliance is impractical because construction has been completed or is nearing completion. We will schedule a similar review of priority 2 cases once we understand the time needed to complete priority 1 items.
NCDOT also agreed to start conducting its review of preliminary subdivision (construction) plans concurrently with City staff review. Previously, NCDOT would review plans only after City staff had completed its review. Now, NCDOT and City staffs will review all plans concurrently to ensure compliance with applicable standards.
We will continue to provide progress reports on a weekly basis.
City West Commons Shopping Center
Staff Resource: AC Shull, 704-336-2439 -- ashull@ci.charlotte.nc.us
On October 20, 2005, the Charlotte Mecklenburg Development Corporation (CMDC) Board approved moving ahead with the marketing and sale of the City West Commons Shopping Center. CMDC has determined that the financial market for shopping centers is strong at this time, and the completed City West Commons development has accomplished CMDC's goal of creating new retail development for the West Boulevard corridor.
CMDC and City staff met with the West Boulevard Neighborhood Coalition on October 4, 2005, and discussed the opportunity for a West Boulevard neighborhood-based entity to purchase the shopping center. The Operating Agreement provides an opportunity in 2006 for other partners to purchase the shopping center.
Dorothy Waddy, President of the West Boulevard Coalition, said that she would discuss ownership issues with members and stakeholders and get back with the City and CMDC in December, 2005. City West CDC has previously expressed interest in purchasing the majority interest in the shopping center. The CMDC owns 57% of the shopping center, and Reid Park CDC (currently City West CDC) owns 29%.
City West Commons was completed and opened in October, 2003. It is currently producing positive cash flow and is current on all loan payments to the City. The project debt was provided
by the City with two loans. A HUD Section 108 loan balance of $2,151,477 and an Economic Development subordinate loan balance of $871,286 are currently outstanding. Both loans would be due the City in a sale.
We will keep City Council advised on the progress of the sale.
Electronic Reverse Auction
Staff Resource: John Trunk, 704-336-5195 -- jtrunk@ci.charlotte.nc.us
BSS/Procurement Services has held the City's first 'reverse auction' - an electronic sealed bid process coordinated by Asset Management Technologies, a vendor sponsored by the North Carolina League of Municipalities.
A reverse auction operates in much the same way as an online auction site such as eBay. It gives bidders a deadline to submit bids. Until that time they can monitor their bid's ranking as compared to competitor's bids and counter with another bid of their own. Instead of raising their bid, bidders must lower their prices. Many auctions go right down to the wire, with several bid changes from the participants.
On October 21, 2005, the City asked for unit price bids for eight staff sedans. The process involved four (4) vendors who, prior to the start of the auction, had each submitted an opening bid. They then engaged in a web-based process that lasted approximately 48 minutes and resulted in 29 bid changes. While the results did not yield any significant savings over the traditional bid process, the electronic process did save staff time when compared with the traditional paper bid method.
With the guidance of the League's representative we will continue to identify items - high dollar commodities - that have the potential of yielding significant savings using the reverse auction method.
Sale of the Children's Theatre Property
Staff Resource: Curt Walton, 704-336-5019 -- cwalton@ci.charlotte.nc.us
In April 2001 City Council approved the sale of the Children's Theatre property on Morehead Street to Morehead Properties, Inc., an adjoining property owner. The sale was contingent on an appraisal to be completed at the time of the sale, and was to be executed once the property was vacated. Children's Theatre relocated to ImagineOn on October 8, 2005 and a new appraisal showed an increase in the value from $975,000 to $1,116,900. On October 24, 2005, the City sold the property to Morehead Properties for $1,116,900.
On July 18, 2005, Council approved a rezoning of the property to MUDD (CD). Morehead Properties is ready to begin redevelopment of the site immediately, which will include demolition of the property. Demolition will likely occur within the next several weeks.
The proceeds from the sale of the property are dedicated to the arena financing model.
