CFARC Proposal

8/8/2019 CFARC Proposal

1/9

OFFICE OF THE CITY MANAGER

(910) 341-7810FAX(910)341-5839

TDD (910)341-7873

ITEM O4a

9/21/2010

City Council City Hall Wilmington, North Carolina 28401

Dear Mayor and Councilmembers:

The Cape Fear Area Resource Center (CFARC) by way of attached letter dated June 11, 2010 has requestedthat its leases with the City of Wilmington for several properties located in the area of 10th and FanningStreets, be terminated. Additionally, attached is a memorandum dated June 16, 2010 from CFARC listingconditions for the termination. This request was discussed by Council at its September 7, 2010 meeting anda decision was delayed until Council's September 21, 2010 meeting and because of several questions aboutthe conditions yet to be answered.

One question dealt with whether or not the NAACP could continue to lease space at the facility. CDBGFunds cannot be used to finance the use of facilities or equipment for political purposes or to engage in otherpartisan political activities, such as candidate forums, voter transportation, or voter registration. However, afacility originally assisted with CDBG funds may be used on an incidental basis to hold political meetings,candidate forums or voter registration campaigns, provided that all parties and organizations have access tothe facility on an equal basis and are assessed equal rent or use charges, if any. According to the HUDGreensboro office, dedicated ongoing space cannot be leased to the NAACP since it conducts voterregistration.

The City has placed the property under its insurance coverage, therefore, ongoing insurance coverage byCFARC is moot. The leased phone system by CFARC at the facility can be assumed by the City for a costof $20,000.

Lastly, based on the City Attorney's review, it appears that the 2007 amendment to the 2006 lease added theparcel of land on which the modular unit sits. That being the case, it appears the modular unit is subject tothe provision that provides termination of lease makes it city property (this would be in spite of the 2005lease's lack of that language). This response takes into account that the 2007 amendment occurred close intime to the City granting the funds to purchase the modular unit. Thus, it appears the grant and theamendment were connected.

A resolution terminating the leases of CFARC is attached and as well as a Supplemental AppropriationOrdinance of $20,000 to assume the installed phone system.

O4a-1


2/9

Passage of the attached Resolution and Ordinance is recommended.

Respectfully submitted,

Sterling B. Cheatham,City Manager

O4a-2


3/9

Resolution City CouncilCity of WilmingtonNorth Carolina

Introduced By: Sterling B. Cheatham, City Manager Date: 9/21/2010

Resolution Terminating Leases with Cape Fear Area Resource Center

LEGISLATIVE INTENT/PURPOSE:

WHEREAS, the Cape Fear Area Resource Center (CFARC) has requested the termination of itsleases from the City of Wilmington of city-owned properties located at North 10th and FanningStreets due to the organizations inability to meet current financial obligations in the presenteconomy;

WHEREAS, other non-profit organizations, including some of the current subtenants, haveexpressed interest in occupying some of the facilities currently leased by the City of Wilmington toCFARC;

WHEREAS, the best interests of the citizens of the City of Wilmington will be served bytermination of the existing leases between the City of Wilmington and CFARC.

THEREFORE, BE IT RESOLVED

THAT, the Wilmington City Council authorizes the termination of all leases to the CFARC of city-owned properties located at North 10th and Fanning Streets in accordance with the leases.Further that the City Council authorizes the assumption of the lease payments for CFARCs installedphone system which requires a separate action to adopt the Supplemental Appropriation Ordinancefor $20,000.

Bill Saffo, Mayor Adopted at a ____________ meeting on ______________, 2010.

Attest: Approved As To Form:

Penelope Spicer-Sidbury, City Clerk City Attorney

O4a-3


4/9

O4a-4


5/9

O4a-5


6/9

O4a-6


7/9

O4a-7


8/9

O4a-8


9/9

N

1 0 t h

S t

N

1 0 t h

S t

F a n n i n g S t F a n n i n g S t

H a n o v e r S t H a n o v e r S t

A n d e r s o n

S t

A n d e r s o n

S t

Cape Fear Area Resource Center

O4a-9

Wilmington Coastal Boxing= C

Dreams of Wilmington =B,E and F

E

B

F

A

I

D

N

OM

C

J

H G

Cape Fear AreaResource Center =A, D, G, H*, I, J*, M,N, and O*Proposed:Community Boys &Girls Club use

Documents

CFARC Proposal