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1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: September 16, 2025 <br /> Action Agenda <br /> Item No. 6-b <br /> SUBJECT: Discussion of a Ground Lease with UNC for 2700 Homestead Road for the Cold <br /> Weather Cots Program and Integrated Day Center <br /> DEPARTMENT: County Manager <br /> Asset Management Services <br /> (AMS) <br /> ATTACHMENTS: INFORMATION CONTACT: <br /> PowerPoint Caitlin Fenhagen, 919-245-2303 <br /> Alan Dorman, 919-245-2627 <br /> PURPOSE: To: <br /> 1) receive and discuss information regarding a facility located at 2700 Homestead Road in <br /> Chapel Hill as a potential location for the Cold Weather Cots Program and an Integrated <br /> Day Center; <br /> 2) authorize staff to enter into negotiation with UNC for a ground lease of up to ten (10) years <br /> for the 2700 Homestead Road property; and <br /> 3) direct staff to develop a budget amendment to fund the compliance and design study. <br /> BACKGROUND: In April 2025, County Manager Travis Myren and Interim Chapel Hill Town <br /> Manager Mary Jane Nirdlinger sent a letter to Gordon Merklein, UNC Associate Vice Chancellor <br /> for Real Estate and Campus Enterprises, regarding a UNC facility at 2700 Homestead Road in <br /> Chapel Hill. The building, formerly a Duke Energy property, appeared to be under-utilized by UNC <br /> and in a location that would be well-situated for the County's cold weather cots operation and a <br /> potential integrated day center. <br /> The cold weather cots operation was held at University Baptist Church in Chapel Hill last winter, <br /> but this location is not available to the County for the upcoming winter of 2025-2026. Instead, the <br /> Orange County Housing Department is executing memoranda of understanding (MOU's) with 1) <br /> the Town of Chapel Hill to utilize the former Chapel Hill Police Department Building on Martin <br /> Luther King, Jr. Boulevard; and 2) St. Matthew's Church in Hillsborough — both to serve as the <br /> cold weather cot locations for the upcoming winter. An integrated day center, which is one of the <br /> gaps identified in the Partnership to End Homelessness Systems Gaps Analysis, has been a high <br /> priority gap for the County to fill. <br /> The letter sent by the County and Town Managers inquired as to whether UNC would be willing <br /> to consider allowing the County to utilize the Homestead Road building for these two identified <br /> needs. The letter followed numerous conversations between UNC stakeholders and Town and <br /> County staff regarding the issue of unsheltered individuals in the downtown Chapel Hill area. <br />