AGENDA ITEM EXECUTIVE SUMMARY
ITEM TITLE*
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Public Hearing: Downtown Municipal Services District (MSD) Contracted Services
presenter
RESPONSIBLE STAFF, TITLE, DEPARTMENT*
David Putnam, Director, Economic Development
STAFF RECOMMENDATION*
Staff recommends that Council open and close the Public Hearing on the Municipal Services District (MSD) contracted services, as required prior to finalizing a service contract for enhanced downtown operations.
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ACTION/DECISION POINTS*
Council is asked to open the public hearing on the MSD contract services, receive public comment, and close the hearing.
LEGISLATIVE CONTEXT*
Municipal Service Districts are authorized under NC General Statute 160A-536, which permits municipalities to levy an additional tax within a defined district to fund enhanced services beyond baseline municipal operations.
Chapel Hill established its Downtown MSD in 1989, covering Franklin and Rosemary Streets between Henderson Street and Merritt Mill Road. A public hearing is required before Council enters into contracted services funded by the MSD tax.
BACKGROUND AND CONTEXT*
From September - December 2025, the Economic Development staff conducted extensive engagement with downtown residents, property owners, and businesses to identify priorities for enhanced MSD-funded services.
Participants were asked what services were working well, what was missing, and what MSD‑funded services should end. Key priorities identified through this engagement were:
• Downtown community safety
• Cleanliness
• Activation and visitor experience
• Landscaping and maintenance
• Town coordination and communication
Through a competitive request for proposals, the Town received three responses, interviewed two applicants, and identified the Downtown Chapel Hill Partnership as the recommended contractor, with Block by Block as the subcontracted service provider.
The contract scope includes sanitation and cleaning, customer-focused RESPECT-aligned service delivery, coordination with Town staff, and regular performance reporting.
FINANCIAL IMPACT
The MSD tax yields a dedicated revenue stream of approximately $427,000 annually for enhanced downtown services. Funds support landscaping, safety initiatives, contracted cleaning services, and operations.
COMMUNITY ENGAGEMENT
Town staff designed an inclusive outreach process to reach a wide range of downtown stakeholders with multiple formats including:
• Three open houses
• One group meeting
• Five individual meetings
All of the areas in the MSD boundaries were reached. In some cases, subareas or groups were represented by an individual in sessions. In these instances, the representative spoke on behalf of multiple people or businesses.
ATTACHMENTS
Downtown RFP Engagement Briefing
Draft Staff Presentation
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