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HomeMy WebLinkAboutAgenda - 04-07-2009 - 6cORANGE COUNTY BOARD oF` COMMIS514NERS ACTIN AGENDA ITEM ABSTRACT Meeting Date: April 7, 2009 Action Agenda item No. ~ ~ SUBJECT: Divestiture of Count Pro ernes ~ . DEPARTMENT: Purchasing and Central Srvcs. PUBLIC HEARING: ~Y~N~ No ATTACHMENT(S): Summary Spreadsheet INFORMATION CONTACT: Pam Jones (919) 245-2652 Lori Taft (919) 245-2660 Wilbert McAdoo (919) 245-2625 Frank Montes de Oca (919) 245-6100 PURPOSE: To discuss end decide which Countywowned properties shall be subject to divestiture and direct staff regarding the divestiture procedure. BACKGRaUND: liver the past decade, tirange County has conducted various studies to outline the best manner in which to meet the challenges of providing operational space for its departments and for others whose space it is mandated to provide. Since the first iteration of the space study conducted in ~ 999 and presented in X040. . } co-location of operations with similar function and customer base, ~}consolidation of operations to as few sites as may be 'practicable and 3}ownership, rather than leasing of facilities; were presented as guiding principles for future facility develapment.~ Although some of the strategies outlined in the original study and the two subsequent updates were modified to take advantage of changing circumstances and new opportunities ~e.g. West Margaret lane County Campus expansion}, the Study goals have generally been met or et least the mechanism to fully implement the strategy put in motion ~e.g. option to purchase Hillsborough Commons Shopping Center in February Zo~Z for use as the CentrellNorthern grange Human Services Campus}. As these goals were fulfilled County buildings became available for other uses or for divestiture es projected. The buildings listed below were briefly discussed by the Board on in November X008 es candidates for divestiture. Since that time, staff has further explored options for future use and validated no operational deficiencies would occur with the disposal of the subject properties et the proper time. Divestiture options for the following properties are discussed below: ~. Clerk of Court Annex, 1~ N~. Churton Street, Hillsborough 2. Graham Building, ~ ~ 8 N. Churton Street, Hillsborough 3. Homestead Community Center, Chapel Hill 4. Highway 49 old ABC store, Cedar Grove 5. Purchasing office, 29 Bast King Street, Hillsborough ~. 9 1 Center at New Hope Church Road, Chapel Hill operation relocated} 7. vvhitted Building, Hillsborough . Clerk of Court Annex ~ ~ 2 N. Churton Street This building is used as a satellite office of the Clerk of Superior Court. The Clerk of Court operations were recently moved to the newly expanded Courthouse, with the exception of the Fst~tes Division, which remains in the building until the renovation work in the old portion of the Courthouse is completed. only two employees remain in the building after the relocation, so in consultation and agreement with the Clerk of Court, the Public vvvrks Director has recommended the Clerk of Court Annex be closed in order to recognize savings in utility costs that will be needed to help meet the budget reductions being required of the Public vllorks Department. The facility is expected to close no later than March 30, 2009. Counties are mandated to provide facilities for Court operations. Thy Board may recall this facility was originally designated to address other space requirements for Court offices. However, staff has sought alternatives for how those needs are addressed based on the Board's stated goal of releasing properties along Churton Street back to the private sector. Illlith that in mind, this building is recommended for divestiture consistent with the procedures outlined later in this abstract. 2. Graham Buildln ~ S N. Churtan Street Previously the main office for the Veteran's Affairs office, a division within the Department of Social Services, this building is currently occupied only by the Literacy Council. The Veteran's office was consolidated with other DSS offices at the vvhitted Building over a year ago. The Literacy Council has leased space at the County's Skills Development Center in Chapel Hill since the Center was developed in ~ 997; however, na such lease arrangement exists for the space at the Graham Building. Staff recommends the part-time staff person operating from this site be relocated, the building closed no later than May 1, 2009 tv realize utility cost savings and the building sold as quickly as practicable. 3. Homestead Cvmmurtit Center The Homestead Community Center was given to the County in the ~ 9SO's by~ a homeowner's association who chose to no longer support the expense of its upkeep. Since that time it has been used far programs run by the Parks and Recreation Department as well as meeting space for various County and non..County agencies. During recent meetings regarding the redrafting of the County's Facility Use Policy, the Parks and Recreation Director reported the primary use of the facility is now for non-County agency meetings. Recreation programming is no longer offered at this site. The building is remote to other County operations and is not served by public transportation. Further, in the midst of a residential area, it is less attractive for institutional uses. Staff explored the site as an FMS base station however analysis determined it was not optimal for response by Emergency Medical personnel so the site was dropped from discussion. , This site does not now, nor would in the future, meet the goals outlined in the County's various space studies to limit the number of buildings under County ownership and to promote co- loration of like operations. This site is recommended for divestiture as soon as practicable. 4. Ali hwa 49 old ABC store Cedar Grove This building was given to the County when the ABC store was closed and was the sole storage for surplus items awaiting auction in the County's inventory for, many years. Through the use of GovDeals, fihe on-line auction system by which the County now disposes of its surplus items, this building is no longer needed for storage purposes. The concrete block building is very small dust over ~ 004 s.f.} and other than fihe small fihree or four car parking area in fihe front of the building has no associated property. No alternative use has been identified. This building is recommended for divestiture as soon as practicable. ~. Purchasin t]ffice~ ~ ~9 East Kin Street The Purchasing and Central Services Department, along with technology support for Gounty operations and the phone system, has occupied this building since 24DD. These functions are scheduled to be relocated to the new office building on West Margaret Lane upon its completion later this year. Transition to the new facility by the resident departments is likely to occur by Fall 2009, after which the building will be vacated. The site at ~ 29 East King Street has been discussed as a potential location for the Heritage Center. However, plans far a freestanding center may be impeded indefinitely by economic conditions and as such may dictate essential elements of the Heritage Center be housed in the new Library being constructed on West Margaret Lane. The location of the building at ~ 29 East King Street is in a prime location for retail or other commercial business purpose in Hillsborough and would be easily marketed as such. Should the Board not preserve this location for a Heritage Center it is recommended for divestiture as quickly as practicable. G. 9~ ~ Center at New Ho a Church Road Cha el Hill The relocation of administrative and communications operations for Emergency Services was completed earlier this year. Emergency medical response teams continue to utilize the facility at 1914 New Hope Church Road until ~ suitable locations providing acceptable response times to designated areas can be identified and agreements struck far their use. Director Frank Monfies de Cca is exploring a variety of options, however, none yet are ready fio be presented as viable alternatives. Although the current use of this facility certainly falls below highest and best use, it will not be recommended far disposal until such time appropriate ambulance bases can be procured. ?. UVhitted Buildin The Whined Building is currently the center of operations for human services delivery in Central and Northern Crange County. The Library will vacate approximately 12,540 square feet when they move to ,the new Library facility on West Margaret Lane later in 2DO9. Furkher, fihe Department of Social Services, who occupies approximately 17,D4o square feet of the Whitfied Building, will relocate to space leased by the County at the Hillsborough Commons Shopping Center early in the summer of 2009. The Health Department and Housing and Community Development will remain at the Whined Building at this time. The lease for Hillsborough Commons includes an option fio purchase the entire shopping center in early 2412, should the Board choose to do so. That site would then become the CentrallNorthern Orange Human Services Campus, functioning similar to the 4 County's human services campus in Chapel Hill. In anticipation of that eventuality, the Health Department, using available funding, is proposing to undertake modest renovations to the Whiffed Building now, primarily in the clinic areas, in order to utilize a portion of the space vacated by DSS andlor the Library. Housing may also experience relief from their overcrowded conditions by expanding into nearby offices vacated by the Library. Divestiture of this site carries greater risk and effort than any of the sites previously discussed. The County Manager and staff have hosted tours of the facility for both the Town of Hillsborough and the Grange County Board of Education. While both groups saw potential in the building, no formal proposals are forthcoming for its use. Divestiture of this site is not immediate. It must remain in the County's inventory until at least 20 3. Assuming the Board chooses to exercise the purchase option for Hillsborough Commons in February 20 2, upfit would likely not be completed before Zoe 3. It is recommended the Board direct staff to develop options for the divestiture of this property to include, but not necessarily limited to. use by the Town andlor the orange County Board of Education andlor publiclprivate partnerships that may support Board goals, such as in the area of affordable housing or economic development. At such times viable options are identified, staff" would report to the Board for input or decisions needed to further the discussion. Divestiture Prvicedues Disposal of public assets is prescribed specifically by law [G.S. ~ 60A, Article ~ Zj. First, the property must be declared as surplus by the governing board. meal property must always be sold using a competitive procedure. Competitive procedures include: sealed bid G.S. 8oA-~D8j ® negotiated offer and upset bid [G.S. ~ BoA~Z69j public auction [G.S. ~ 6oA~~lo] The governing Board would then consider the resulting bid and declare the sale final, at which time closing on the property may occur. Although not prescribed by law, after the Board has declared a property as surplus, it is recommended the Board authorize staff to seek appraisals of the property to assist in establishing a minimum price from which bidding shall commence. Tax values are not established for public properties and, in order to promote fair and equitable pacing, an independent appraisal is recommended. Staff intends to present the results of the appraisals and seek the Board's approval of the minimum bid pace prior to marketing the property far sale to the public. F'iNANCiAL IMPACT: The attached spreadsheet will reflect the tax values as estimated in October Zoo8 by the Assessor's office and are~provided only to give an. idea of the magnitude of value should the property be sold. while capital funding is not~plentiful and the desire to add to the County's coffers as quickly as possible is understandable, it should be noted the current state of economic instability in the real estate market may adversely impact the final sale price of the facilities. The Board is asked to authorize the Purchasing Director to procure independent appraisals of the properties approved for divestiture to allow mare accurate projection of expected proceeds. RECCJMIM~NCATi~N~S~: The Manager recommends the Board; 1. Endorse and approve recommendations.as presented; and ~. Declare the following properties as surplus • ~ ~ 2 N. Churton Street, Hillsborough ~ 18 N. 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