BACKGROUND:

On November 2, 2005 the Board adopted a resolution directing staff to pursue negotiation of a partnership agreement with the Piedmont Family YMCA and Piedmont Virginia Community College (“PVCC”) to construct a YMCA facility at PVCC.  After the adoption of that resolution, the YMCA entered into discussions with the City of Charlottesville for a preferred location in McIntire Park.  On November 14, 2007 the Board adopted a resolution supporting a YMCA facility at either McIntire Park or PVCC subject to an acceptable partnership agreement.  The County Executive appointed a negotiating team which met with representatives of the City and YMCA to discuss the County’s participation in this partnership.  Mr. Rooker and Mr. Boyd represented the County in this meeting.  On December 17, 2007 City Council approved an ordinance authorizing the City Manager to execute a forty (40) year ground lease agreement (Attachment A) with the YMCA for a location in McIntire Park.  The ground lease agreement references a “Use Agreement” (Attachment A(B)), a three party Agreement between the YMCA, the City and the County, which defines the amenities provided, use of the facility, benefits to the residents of the City and the County and the respective responsibilities of the YMCA, the City and the County.  The Board must authorize the County Executive to execute the Use Agreement in order for the YMCA project to move forward.

STRATEGIC PLAN:

Goal 1:  Enhance the Quality of Life for all Citizens.

Goal 2:  Develop Policies and Infrastructure Improvements to Address the County’s Growing Needs.

DISCUSSION:

The following is a list of some of the substantive provisions within the Use Agreement.

1. Facility Location:  The City agrees to lease land within McIntire Park

2. Capital Contributions:  The County agrees to make a future capital contribution of $2,030,000 and the YMCA agrees to diligently conduct a capital campaign to solicit contributions from private donors to pay for the cost of construction.

3. Facility Components:  The facility components will include:  fitness center, gymnasium with indoor walking/jogging track, multi-purpose space, locker rooms, child watch space, and a family aquatic center.  If sufficient additional funds are raised a licensed day care center will be added.

4. Public Access:  The facility will be open to all residents of the City of Charlottesville and Albemarle County, and any non-resident member of the YMCA.  The YMCA’s service area, as designated by YMCA of the USA, includes all or portions of the counties of Greene, Madison, Fluvanna, Orange, and Louisa, and residents within this service area will also have access to the facility.  In the event that after 40 years the lease is not renewed or is otherwise terminated, the City will allow access to County residents on the same basis as it allows access to City residents.

5. Management:  The responsibility for the ongoing management and operation of the Facility will be vested in an Executive Director or Chief Executive Officer who will report to a Board of Directors, chaired by a volunteer President, which will function as the policy-making body of the YMCA.  The City and County will each have the right to appoint two members (four members altogether) to the YMCA’s Board of Directors.

6. Fee Structure and Financial Assistance:  The Board of Directors will approve a reasonable membership and fee structure and no resident of the City or County will be denied access or use of the facility for financial reasons.  The YMCA has committed to providing scholarship-based access with a sliding scale to families and children who cannot afford regular membership rates.  All families at or below the Federal Poverty Guidelines will be admitted free-of-charge.

7. Additional Provisions Related to Funding:  In the event the City commits on or before May 20, 2008 to provide a future capital contribution of $1,250,000 towards construction, the YMCA agrees to include at least six (6) lanes and a one (1) meter board and diving well and give Charlottesville High School swim team priority access to those six lanes for practice up to two hours immediately after school classes end during the winter swim season.  The Use Agreement recognizes that the County has tentatively included $1,250,000 in its CIP budget for fiscal year 2012 in consideration of contributing towards a competitive pool at the facility and allows for continued negotiation of this matter between the three parties.  In the event no agreement is reached between the parties on additional capital contributions, the YMCA will be allowed to proceed with the core facility components.

8. Additional Provisions Related to the Rights of the County With Respect to Lease:  The County will have the same rights of audits and inspection of books, records and the facility as the City.  The City and YMCA agree that the Lease may not be modified in any way which lessens or adversely impacts the rights of the County or its residents.

It is staff’s opinion that the Use Agreement fairly recognizes the County’s commitment to this project and the expected benefits to County residents.  If there are additional issues which the Board desires to be addressed in the Use Agreement, such additional provisions may be added if agreed to by the City and the YMCA.

BUDGET IMPACT:

The County commitment to this project is $2,030,000 from the Capital Improvements Program.  There is no ongoing operating fund commitment at this time.  Should the County decide to invest additional capital dollars in the future for a cool water competitive pool, there would be an expectation on the part of the YMCA for an ongoing operating fund commitment. The amount of that operating fund commitment would depend on negotiations between the City, the County and the YMCA on the ultimate design of the competitive/lap element of the facility.

RECOMMENDATIONS:

Staff recommends that the Board approve the proposed Use Agreement and authorize the County Executive to execute the agreement on behalf of the County in substantially the same form as attached hereto, after it has been approved by the County Attorney with any necessary changes.

ATTACHMENTS

A – YMCA Active Ground Lease

A(A) – Exhibit A of Ground Lease (YMCA Study Location)

A(B) – Exhibit B of Ground Lease (YMCA Active Use Agreement)

A(C) – Exhibit C of Ground Lease (Default Location)

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