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HomeMy WebLinkAboutAgenda - 05-18-1999 - 8eORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: May 18, 1999 SUBJECT: Section 202 Elderly Housing Application DEPARTMENT: Housing/Community Development ATTACHMENT(S): Progress Report Action Agenda Item No. 8— &— PUBLIC HEARING: (Y/1S) INFORMATION CONTACT: Tara L. Fikes TELEPHONE NUMBERS: - - ext. 2490 Hillsborough 732 -8181 Chapel Hill 968 -4501 Durham 688 -7331 Mebane 227 -2031 PURPOSE: To consider a request from First Baptist Church of Chapel Hill to revise the feasibility study budget for the preparation of a HUD Section 202 Elderly Housing Application. BACKGROUND: In January 1999, the Board appropriated $10,000 to the First Baptist Church of Chapel Hill to assist with the completion of a feasibility study in order to prepare a Section 202 Elderly Housing Application for submission to HUD in the Summer of 1999. This decision was made based on the following recommendations from the Manager: 1. Funds should be appropriated from the Commissioners Contingency Fund, contingent upon approval of funds from the Town of Chapel Hill; 2. County staff should provide the project sponsor, First Baptist Church, a copy of the Impact Fee Reimbursement Policy and provide technical assistance with the preparation of an impact fee reimbursement request in accordance with the referenced policy and the County's annual budget preparation process; and 3. Funds granted by the Orange County Board of Commissioners should only be used for the feasibility study related to the above referenced HUD Section 202 Elderly Housing Application. The church proposes to build a 40 unit apartment complex for the elderly at a site on Merritt Mill Road in Chapel Hill. The following budget, that includes the County $10,000 contribution and a contribution from the Town of Chapel Hill of $25,000, was presented for the predevelopment feasibility study. Feasibility Study Budget (January 1999) 1. Detailed topographic survey 2. Environmental Phase I Analysis 3. Preliminary site design, site planning 4. Soils Engineering Tests 5. Appraisal 6. Land Options 7. Preparation of Fund Reservation, Legal, Organizational, Coordination TOTAL $8,000 $3,000 $5,000 $5,000 $4,000 $5,000 $5,000 $35,000 2 The Project Consultant, Lane Sarver has prepared a progress report detailing the accomplishments to date and is included as an attachment to this abstract. At this time, the First Baptist Church is requesting a revision in the January budget line items. Specifically, in order to demonstrate site control as required by HUD, First Baptist Chuch must obtain an "Option to Purchase" for the property identified for this housing proposal. That property is located on Park Road in Chapel Hill, approximately six (6) acres in size, is owned by the Pines Community Center and the sales price is $300,000. The owner, Pines Community Center has an outstanding loan with Central Carolina Bank for the acquisition of this property. Thus, the Pines Community Center has agreed to enter into an Option to Purchase agreement with First Baptist Church at a cost of $2,000 per month which would cover their monthly interest payments. The option period is estimated to be thirteen months beginning May 1999 and ending May 31, 2000. The land option costs included in the feasibility study budget will increase from $5,000 to $26,000. Any funds paid to the Pines Community Center for the land option would be applied to the purchase price of $300,000. On May 10, 1999, the Town of Chapel Hill approved an additional contribution of $10,000 to assist in meeting the increase in option fees. The First Baptist Church is asking Orange County to amend the January budget to increase the land option line item, thereby, redirecting the remainder of the $10,000 appropriation to the land option costs in order to allow them to meet the increased land option expense. There is approximately $8,656 in County money remaining in this budget. The revised budget is as follows: Feasibility Study Budget (May 1999) ORIGINAL REVISED COUNTY BUDGET BUDGET SHARE 1. Detailed topographic survey $8,000 $4,725 $ 1,350.00 2. Environmental Phase I Analysis 3,000 1,100 314.27 3. Preliminary site design, site planning 5,000 2,500 714.25 4. Soils Engineering Tests 5,000 4,000 1,142.80 5. Appraisal 4,000 1,900 542.84 6. Land Options 5,000 26,000 4,571.55 7. Preparation of Fund Reservation, Legal, Organizational, Coordination 5,000 4,775 1,364.29 TOTAL $35,000 $45,000 $10,000.00 FINANCIAL IMPACT: This is not a request for additional funding, rather a budget revision that will redirect existing funds. RECOMMENDATION(S): The Manager recommends that should the Board approve the request from First Baptist Church of Chapel Hill to revise the feasibility study budget for the preparation of a HUD Section 202 Elderly Housing Application, County staff should continue to monitor payment requests to ensure that expenditures are made in accordance with the revised budget. 3a. Progress Report To Town of Chapel Hill And County of Orange Feasibility Study Merritt Mill Road Elderly Housing Presented By First Baptist Church of Chapel Hill 106 N. Roberson Street Chapel Hill, North Carolina 28 April, 1999 P To The Town of Chapel Hill and County of Orange The First Baptist Church of Chapel Hill is pleased to present the following progress report on its efforts to determine the feasibility of developing a HUD Section 202 Elderly Housing project for very low income residents of Chapel Hill and Orange County. Organizationally, the Board of Deacons of the First Baptist Church agreed to serve as the Housing Committee for the Church. The Committee invited a representative from the United Church of Chapel Hill and a representative from the InterFaith Council to join in planning the proposed project and to offer the experiences from those organizations previous efforts to secure such elderly housing. The Committee has accomplished the following tasks as it has pursued a determination of the feasibility of the project. 1. Housing Consultant & Organizational Coordination- The Committee contracted with L Lane Sarver, Inc. to provide Housing Consultant and Coordination services. The Housing Consultant has conducted research and has provided technical assistance to the Committee as it pursued its tasks. The Housing Consultant Contract called for a payment of $3,000.00. The invoice for housing consultant services was forwarded to the Town and County for payment, which has been received and has been paid. 2. Topographic Survey. The Committee solicited proposals from surveying and engineering firms. It selected the firm of The John R. McAdams Company to conduct the topographic survey. The McAdams Company completed the survey and delivered it to the committee for the contracted price of $4,725.00. The invoice has been forwarded to the Town and County for payment. 3. Environmental Analy, siS ; The Committee contracted with GeoTechnologies, Inc. to perform an Environmental Phase I Analysis. The Environmental Phase I Analysis has been completed and the report received at the contracted price of $1,100.00. No environmental problems were identified E 5 in the analysis. The invoice for the Environmental Analysis was sent to the Town and County, funds were received, and the invoice has been paid. 4. Appraisal. The Committee solicited proposals from 12 appraisal firms. It accepted the proposal of the firm of Joseph A. Sapanaro Associates for the amount of $1,900.00. The completed report has been received and the invoice for services was forwarded to the Town and County. Funds have been received and the invoice has been paid. 5. Architect The Committee solicited proposals from 7 architectural firms. The Committee received responses from 2 firms, which the committee interviewed. The Committee selected the firm of Arthur R. Cogswell. Mr. Cogswell has reviewed the proposed site, has designed a preliminary site plan and preliminary building plan, and presented the proposed plan to the Chapel Hill Design Review Commission on 21 April, 1999. Suggestions from their review of the Concept Plan have been incorporated Into a revised site plan. The architect and surveyor have developed the details for a required sewer easement, which has been presented to the owner of adjacent Laurel Ridge Apartments. The sanitary sewer manhole lies approximately 8 feet off the adjacent utility easement, which in turn is about 50 feet from the property line of the project. The extension of the sewer line will be a requirement of the Site Option (see below), but will depend on the owner of Laurel Ridge Apartments agreeing to grant the required 8 foot extension to get to the public utility easement right -of -way. 6. Attorney. The Committee selected Attorney John T. Stewart to provide legal and real estate advice for the project. Attorney Stewart has completed the title research on the property, has conferred with lenders who have mortgages on the property, and has sent a proposed easement agreement to the owner of Laurel Ridge Apartments. 7. Organizational. A new non -profit corporation has been established to become the Owner Corporation of the project. The Committee had extensive deliberation on the composition of the new corporation. It was established with a 9 member Board of Directors, with 7 directors appointed by the First Baptist Church of Chapel Hill and one director appointed by each of the United Church of Chapel Hill and the InterFaith Council for Social Service, which have agreed to co-sponsor the project. 8. Site,. Rev. Manley, Mr. Rufus Minor and Lane Sarver met with the Board of Directors of Pines Community Center, Inc.. Pines Community Center, Inc. voted unanimously to support the project and to option the land to First Baptist Church in return for an option fee sufficient to cover the interest cost on the mortgage note held by CCB, in the amount of $2,000.00 per month. The purchase price was agreed at $50,000.00 per acre, or $300,000 for the 6 acres, an amount which is supported by the appraisal. The Seller will also be required to extend the sewer to the site and to obtain the proper easement as required by OWASA. Because HUD requires Site Control to extend through 27 May, 2000 (12 months from the Section 202 application due date), option payments in the amount of $26,000.00 must be evidenced by either payment or escrow. With the predevelopment feasibility study budget amended to reflect actual cost items, this can be accomplished with an additional $10,000.00, to be applied to the purchase price. A proposed revised budget is shown below: PROPOSED REVISED BUDGET: ITEM 1. Topographic Survey 2. Environmental Phase I 3. Site Planning 4. Soils Engineering Tests 5. Appraisal 6. Land Options 7. Legal, Organizational, Coordination TOTAL REVISED ORIGINAL BUDGET BUDGET 4,725.00 8,000.00 1,100.00 3,000.00 2,500.00 5,000.00 4,000.00 5,000.00 1,900.00 4,000.00 26,000.00 5,000.00 45,000.00 35,000.00 C: Proposed Increase of $10,000.00 from Town of Chapel Hill, and agreement by Town of Chapel Hill and Orange County to amend budget items. 9. Financial SUmmaa. Attached is a listing of invoices received from vendors, requests for payment forwarded to the Town of Chapel Hill and County of Orange, and a listing of checks issued to cover services provided during the feasibility study. x� F- F m� �s LL I I r D C