DRAFT MOU BETWEEN DURHAM AND UNH RELATIVE TO REDEVELOPMENT OF 66 MAIN STREET ET AL Since the spring of last year, Administrator Selig, Councilor Carden Welsh, former Councilor Jim Lawson, EDC Chair Ute Luxem, Planner Michael Behrendt, and most recently Director of Economic Development Mary Ellen Humphrey, have been meeting with representatives from the University of New Hampshire to discuss and develop a Memorandum of Understanding (MOU) relative to the 66 Main Street redevelopment project, et al. The “et al” refers to the fact that the Development transcends 66 Main Street (the former ATO site) and includes: the Town-owned North and South Parking Lots on either side of Pettee Brook Lane immediately behind 66 Main Street, Hetzel and Alexander Halls, C-Lot, and 66 Main Street properties. Whether or not the redevelopment will ultimately involves all parcels remains to be seen and will depend upon proposals received in the early part of 2015 from the private development community. The MOU outlines the expectations, contributions, terms and conditions between Durham and UNH with respect to the potential development of the aforementioned area of downtown, as well as each party’s potential contributions and requirements and limitations with respect to the Development. The Council held a public hearing to obtain feedback from members of the community on Monday night, January 12, 2015. Following the close of the public hearing, the Council and Mr. Selig discussed the topic in some length and attempted to answer questions that had been raised by the public. Administrator Selig offered a list of recommended modifications to the MOU in response to concerns raised. The Council deferred action on the modified MOU until its next meeting on February 2nd. While the public hearing is closed, the public can still submit written material or provide in person feedback during the public comments section of the February 2nd Council meeting. Emails can be sent to [email protected]. Residents who are interested in this issue should watch the meeting on DCAT ON DEMAND: dcat@pegcentral Some basic questions and answers that might be helpful for those trying to understand the MOU: Has RSA 97-E already been granted for a project by the Town Council? No. While it is possible the Council could grant such tax relief if requested and deemed appropriate in accordance with Council policy, no such action has been taken, nor is granting RSA 79-E tax relief required by the terms of the draft MOU. Has the Council already bonded $1 million to support private development as part of a downtown project? No. While the Council could bond funds that would be offset through incremental taxes created as a result of new development within the Downtown TIF District, this could only be utilized to support public infrastructure. In addition, separate public hearings would be required for the Council to issue debt. Is there a guarantee that the land developed under the MOU at 66 Main Street would be taxable? The draft MOU states: The land, buildings and improvements located at 66 Main Street shall become taxable or subject to a payment in lieu of taxes equal to the ad valorem taxes which would otherwise be assessed on such land, buildings and improvements.” Is UNH land exempt from taxation? Yes. RSA 187-A:25, Tax Exemption, states that the property of the University System of New Hampshire and each of its constituent institutions and divisions is exempt from taxation as provided in RSA 72:23. However, RSA 72:23(d) provides that all leases and other agreements entered into or renewed by the USNH on or after April 1, 2006, the terms of which provide for the use or occupation by others of real or personal property owned by the USNH or the community college system of New Hampshire, shall provide for the payment of properly assessed real and personal property taxes by the party using or occupying said property no later than the due date. This later provision was inserted into state law at the request of the Town of Durham in 2006, at which time Administrator Selig and Durham business owners provided detailed testimony before the state legislature. Is UNH property subject to Durham land use regulations under state law? No. UNH property is considered state property and is exempt from local land use regulations so long as it is utilized for governmental uses as defined by state law, RSA 674:54. However, any use, construction, or development of land occurring on governmentally-owned or occupied land, but which is not a governmental use as defined in the statue, shall be fully subject to local land use regulations. Will the Town’s north and south parking lots on either side of Pettee Brook Lane be developed or altered under this MOU? They could be if the Council believed that it was in the Town’s best interest to do so, however, the MOU does not require the Council to dedicate these properties to the redevelopment. In addition, any spaces lost would need to be replaced on a 1 to 1 basis to support existing downtown uses. Could UNH develop its property without any involvement by the Town of Durham through an MOU? Yes. The University is under no obligation to work with Durham in developing properties it owns beyond undertaking an advisory consultation with the Planning Board pursuant to RSA 674:54. Does the envisioned project include a Hotel? Yes. The draft MOU states that the development shall contain a branded or boutique hotel containing approximately 80 to 100 guest rooms. UNH and the Town prefer the hotel has a presence on Main Street. UNH will cooperate in providing conference room space on its campus for users and guests of the hotel. What might happen to Hetzel and Alexander Halls? According to the draft MOU, Hetzel Hall may be repurposed and/or refurbished. Alexander Hall may be repurposed and/or refurbished, or demolished in whole or in part. If a developer proposes to use Hetzel Hall, Alexander Hall, and/or Lot C, the developer must demonstrate to the satisfaction of UNH, how and why such buildings and/or lands should be included in the development, and how their respective use enhances the development. What about the UNH C-Lot? Lot C may be used to provide parking for the development through the construction of structured parking, provided, however, that UNH shall at all times retain the following: (i) its rights to the existing number of parking spaces in Lot C, (ii) service access to Mills Hall as well as other facilities and utilities in the vicinity, and (iii) use of Lot C for UNH visitor parking. If structured parking were developed at Lot C along Mill Road, it could be utilized to support a future Center for the Arts toward the rear of Lot C as envisioned in the UNH Master Plan. What about Barnes and Nobel? The Barnes and Nobel bookstore that is currently located on the UNH campus in the Memorial Union Building could be relocated to the development in some way. Barnes and Nobel has expressed an interest in being part of a new development on Main Street. If relocated to Main Street, the store would likely provide offerings that would be of interest both to students and community members but no plan has been developed to date. The existing Barnes and Nobel operation in the MUB is tax exempt. Whether a new downtown Barnes and Nobel would be taxable or tax exempt would depend on many factors as outlined in state law as described above. Has any one private developer already been chosen to build a project? No. The purpose of the MOU is to provide direction in crafting an RFP that would be issued to the general development community. A half dozen independent developers have already expressed an interest in submitting a proposal for the consideration of Durham and UNH. Is there a market for another hotel in Durham? UNH has conducted independent market research which indicates there is a demand for an additional 80-100 room hotel on Main Street. Are properties within the Downtown Tax Increment Finance District exempt from taxation? No. Properties within the downtown TIF do still pay property taxes on new value that is created. The taxes from the new value, however, are held within a special account for use within the TIF to accomplish the public objectives that have been laid out in the Downtown TIF Development & Financing Plan. The only exception would be if the Council has granted tax relief for a period of generally up to 5 years under RSA 79-E. However, the existence of the Downtown TIF District creates an inherent disincentive for the Council to grant RSA 79-E tax relief. Who ultimately approves a proposal under the draft MOU? Any proposal which the parties wish to accept pursuant to the RFP must be approved by Durham’s Town Council and the University System of New Hampshire Board of Trustees. Who reviews the design for the development? As outlined in the draft MOU, the appearance and design of the development are critically important elements to both Durham and UNH. The Town and UNH retain the right to reject any aspect of a development design and require a re-design prior to submittal of the final proposed plan to local land use boards for approvals. If the plans undergo material changes in the course of such approvals, as determined by the Town and/or UNH, such plans must be re-approved by the Town and/or UNH prior to commencing construction of the development. What Development Preferences have the Town and UNH established in the draft MOU to date? The following attributes/features (not in any preferential order) are desired for the project: • Upscale restaurants and other retail/commercial uses on the ground floors; • Research and development space; • Uses complementary to UNH’s Interoperability Lab (the IOL is located in taxable property in the new Madbury Commons development on Madbury Road); • Professional offices; • Support of UNH’s executive education programming (which would potentially be brought back to Durham from Portsmouth); • Visiting faculty apartments; • Other uses on upper floors which would have need to use the hotel; • Inclusion of UNH’s hospitality management program as part of the management of the hotel; • As few variances, waivers and other forms of required zoning or planning relief for the development as is reasonably practicable; • Continuation/extension of walkable corridor concept from the Interoperability Lab building within the Madbury Commons project through the development to Main Street – in essence fulfilling the vision created several years ago during the B. Dennis Downtown Plan; • Generally enhanced walkability and biking; • In addition to new parking r • Other than replacing student housing lost to UNH through the redevelopment of Hetzel Hall and/or Alexander Hall, student housing in the development is discouraged; • Required for the development, parking to replace any spaces lost if the Town-owned North Parking Lot and/or South Parking Lot are redeveloped, as well as an additional potential 100+ parking spaces to support visitors and guests coming to the downtown area; • Structured parking, particularly in the rear of 66 Main Street and on the South Parking Lot will be favored; and • The creation of public parks and green space. Can the draft MOU be terminated by the parties after execution? Yes. Should Durham and UNH fail to move forward with the project envisioned under this draft MOU within 18 months from the mutual execution thereof, either party shall have the right to terminate the MOU upon at least 90 days’ written notice to the other party. Again, written comments may be submitted to [email protected].
Posted on: Fri, 16 Jan 2015 20:04:02 +0000
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