HomeMy WebLinkAboutAgenda - 08-18-2009 - 6cORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: August 18, 2009
Action Agenda
Item No. (o - C
SUBJECT: Divestiture of County Properties
DEPARTMENT: Asset Management & PUBLIC HEARING: (Y/N) No
Purchasing Services
ATTACHMENT(S):
Resolution
Property Data Sheets
Relevant General Statutes
INFORMATION CONTACT:
Pam Jones (919) 245-2652
PURPOSE: To consider setting minimum bid amounts for properties subject to divestiture.
BACKGROUND: In April 2009 the Board approved the following properties for divestiture:
• Clerk of Court Annex, 112 N. Churton Street, Hillsborough
• Graham Building, 118 N. Churton Street, Hillsborough
• Homestead Community Center, Chapel Hill
• Highway 49 old ABC store, Cedar Grove
Staff was instructed to obtain appraisals whereby a minimum asking price could be established.
Appraisals completed by Pickett-Sprouse Realtors reflect the following values for the subject
properties:
• Clerk of Court Annex, 112 N. Churton Street $450,000
• Graham Building, 118 N. Churton Street $130,000
• Homestead Community Center $275,000
• Highway 49 old ABC store, Cedar Grove $ 5,000
Pickett-Sprouse is a large commercial realty
extensive experience with property sales in
commented throughout the appraisal that th
establish property values. Although the dow
drastic in Orange County as in other area
comparables upon which to base the appraisal
will continue over the next several months to
"pristine" buyers to obtain financing. Based on
the Board set a minimum asking price at the
above.
firm with experience in the area as well as
Orange County. Pickett-Sprouse staff has
e current market is a difficult one in which to
nturn in property sales may not have been as
s of the country, the fact is there are fewer
values. The tightened financing market has and
a year or more to make it difficult for all but the
assessment of the appraisal, staff recommends
stated appraised value for the properties listed
Divestiture Procedures
Disposal of public assets is prescribed specifically by law [G.S. 160A, Article 12]. First, the
property must be declared as surplus by the governing board. Real property must always be
sold using a competitive procedure. Competitive procedures include:
• sealed bid [G.S. 160A-268]
• negotiated offer and upset bid [G.S. 160A-269]
• public auction [G.S. 160A-270]
The General Statutes noted above are attached for reference purposes.
Staff is recommending the Board authorize the sale of the subject properties via sealed bid,
with an upset bid. An outline of the steps to be taken would include:
• Advertising the properties for sale as required in a local newspaper, but also circulating
information via Internet and posting signs on the buildings for sale;
• A bid date would be set (approximately 60 days after BOCC approval) after which bids
would be opened publicly;
• The bid results would be presented to the Board who would "propose to accept the
offer", which would subsequently kick off the upset bid process;
• Appropriate advertising for the upset bid would occur and the process would begin with
the highest responsible bid creating the threshold for upset bids;
• Upset bids would be accepted for a period of 10 days, after which a bid opening would
be held for any upset bids. An upset bid must be a minimum of 10% of the first $1,000
and 5% of the balance in order to be considered;
• Assuming an upset bid is received, it would form the threshold for the next round of
upset bids. This would continue until no upset bids were received during the 10 day
period, after which the results would be presented to the Board for consideration.
Proposed terms of sale are included in the attached Resolution Authorizing Sealed Bid Sale.
FINANCIAL IMPACT: No financial impact will be realized until such time properties are sold
and proceeds received.
RECOMMENDATION(S): The Interim Manager recommends the Board:
1. Approve the Resolution Authorizing Sealed Bid Sale; and
2. Authorize the Director of Asset Management and Purchasing Services to carry out the
sale pursuant to the process and timeline identified herein.
RES-aoo9- 0~3 3
Resolution Authorizing Sealed Bid Sale with Upset Bid of
Certain Real Property Owned by Orange County
WHEREAS, Orange County owns property located at the following locations:
- Highway 49 old ABC store, Cedar Grove-PIN# 9829408061
- Homestead Community Center, 600 Homestead Road, Chapel Hill-PIN #
9779086412
- Clerk of Court Annex, 112 N. Churton Street, Hillsborough-PIN # 9874066435
- Graham Building, 118 N. Churton Street, Hillsborough-PIN # 874065497
WHEREAS, North Carolina General Statute 160A-268 permits the County to sell real
property by advertisement and sealed bid; and North Carolina General Statute 160A-269
permits an upset bid, after receipt of an offer for the property;
THEREFORE, THE ORANGE COUNTY BOARD OF COMMISSIONERS RESOLVES THAT:
1. The Board of Commissioners hereby authorizes the sale of the following properties by
sealed bid with an upset bid:
- Highway 49 old ABC store, Cedar Grove-PIN# 9829408061
- Homestead Community Center, 600 Homestead Road, Chapel Hill-PIN #
9779086412
- Clerk of Court Annex, 112 N. Churton Street, Hillsborough-PIN # 9874066435
- Graham Building, 118 N. Churton Street, Hillsborough-PIN # 874065497
2. The County will accept sealed bids until 10:00 AM local time, Tuesday, October 13, 2009.
Bids shall be delivered to the office of the Director of Purchasing and Asset Management
at 129 East King Street, Hillsborough, North Carolina. Bids will be submitted by property
in separate, sealed envelopes marked clearly with the property name.
3. At 10:OOAM, Tuesday, October 13, 2009 all bids received shall be opened in public and
the amount of each bid recorded.
4. The record of bids shall be reported to the Board of Commissioners at its regular meeting
on Thursday, November 5, 2009. The Board of Commissioners will take action which
proposes to accept the offer, thereby commencing an upset bid process at this same
meeting. Bids will remain open and subject to acceptance until the Board of
Commissioners award the bids.
5. To be responsible a bid must be accompanied by a bid deposit of five percent (5%) of the
amount of the bid. A bid deposit may take the form of cash, a cashier's check, a certified
check, or a surety bond. The deposit of the bidder to whom the award is made will be
held until sale of the property is closed; if that bidder refuses at any time to close the sale,
the deposit will be forfeited to the County. The deposits of other bidders will be returned
at the time the Board of Commissioners awards the property to the highest bidder, or until
such time the original highest responsible bid is overturned by an upset bid.
6. In addition, to be responsible, a bidder must be current on payment of all property taxes
owed to the County.
7. The County reserves the right to withdraw the property from sale at any time and the right
to reject all bids.
Adopted August 18, 2009.
PICKETT-SPROUSE REAL ESTATE
SUMMARY OF _IMPORTANT_ DATA AND CONCLUSIONS
Property and Location 112 N. Churton Street
Hillsborough, North Carolina
Owrner Orange County
Land Area 11,'750 square feet (0.26 acre)
Improvements Office building containing 3,268 S.F.
Zoning Central Commercial
Historic District Overlay
Highest and Best Use Ofhce/Retail
Market Value Opinion $450,000
Effective Date of Appraisal June 18, 2009
Appraisers Robert M. Sprouse
John T. Kepley
Appraisals • Brokerage • Consultation • Development
5
PICKETT-SPROUSE REAL ESTATE
SUMMARY OF IMPORTANT DATA. AND CONCLUSIONS
Property and Location 118 N. Churton Street
Hillsborough, North Carolina
Owner Orange County
Land Area 1,450 square feet (0.033 acre)
Improvements Office building containing 762 S.F.
Zoning Central Commercial
Historic District Overlay
Highest and Best Use Office
Market Value Opinion $130,000
Effective Date of Appraisal June 18, 2009
Appraisers Robert M. Sprouse
John T. Kepley
Appraisals • Brokerage • Consultation • Development
PICKETT-SPROUSE REAL ESTATE
SUMMARY OF IMPORTANT DATA AND CONCLUSION'S
Property and Location 600 Homestead Road
Chapel Hill, North Carolina
Owner Orange County
Land Area Two Acres +/-
Improvements Building containing 3,200 S.F.
Zoning K-15, Single Family Residential
Carrboro Zoning Jurisdiction
Highest and Best Use Residential or Church/Daycare/School
Market Value Opinion $275,000
Effective Date of Appraisal June 17, 2009
Appraisers Robert M. Sprouse
John T. Kepley
Appraisals • Brokerage • Consultation • Development
PICKETT-SPROUSE REAL ESTATE
SUMMARY OF L'~IPORTANT DATA AND CONCLUSIONS
Property and Location Highway 49, Old ABC Store
Orange County, North Carolina
Owner Orange County
Land Area 15,206 square feet (0.35 acre)
Improvements Former ABC building containing 1,320 S.F.
Zoning AR, Agricultural Residential
Highest and Best Use Agricultural Residential/Storage
Market Value Opinion $5,000
Effective Date of Appraisal June 18, 2009
Appraisers Rohert M. Sprouse
John T. Kepley
Appraisals • Brokerage • Consultation • Development
S
PICKETT-SPROUSE REAL ESTATE
SUMMARY_OF IMPORTANT DATA AND CONCLUSIONS
Property and Location 1914 New Hope Church Road
Chapel Hill, North Carolina
Owner Orange County
Land Area 2.37 acres
Improvements Two level building containing 6,152 S.F.
'Coning R1, Residential
Highest and Best Use Church/Daycare.~School
Market Value Opinion $430,000
Effective Date of Appraisal June 17, 2009
Appraisers Robert M. Sprouse
John T. Kepley
Appraisals • Brokerage • Consultation • Development
GS 160A-268
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O
§ 160A-268. Advertisement for sealed bids.
The sale of property by advertisement for sealed bids shall be done in the manner prescribed
by law for the purchase of property, except that in the case of real property the advertisement for
bids shall be begun not less than 30 days before the date fixed for opening bids. (1971, c. 698, s.
http://www.ncleg.net/EnactedLegislation/Statutes/HTMLBySection/Chapter_ 160A/GS_1... 8/11 /2009
GS 160A-269 Page 1 of 1
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§ 160A-269. Negotiated offer, advertisement, and upset bids.
A city may receive, solicit, or negotiate an offer to purchase property and advertise it for
upset bids. When an offer is made and the council proposes to accept it, the council shall require
the offeror to deposit five percent (5%) of his bid with the city clerk, and shall publish a notice
of the offer. The notice shall contain a general description of the property, the amount and terms
of the offer, and a notice that within 10 days any person may raise the bid by not less than ten
percent (10%) of the first one thousand dollars ($1,000) and five percent (5%) of the remainder.
When a bid is raised, the bidder shall deposit with the city clerk five percent (5%) of the
increased bid, and the clerk shall readvertise the offer at the increased bid. This procedure shall
be repeated until no further qualifying upset bids are received, at which time the council may
accept the offer and sell the property to the highest bidder. The council may at any time reject
any and all offers. (1971, c. 698, s. 1; 1979, 2nd Sess., c. 1247, s. 25.)
http://www.ncleg.net/EnactedLegislationlStatutes/HTMLIBySectionlChapter_160A/GS_1... 8/11 /2009
GS 160A-270
§ 160A-270. Public auction.
Page 1 of 1
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(a) Real Property. -When it is proposed to sell real property at public auction, the
council shall first adopt a resolution authorizing the sale, describing the property to be sold,
specifying the date, time, place, and terms of sale, and stating that any offer or bid must be
accepted and confirmed by the council before the sale will be effective. The resolution may, but
need not, require the highest bidder at the sale to make a bid deposit in a specified amount. The
council shall then publish a notice of the sale at least once and not less than 30 days before the
sale. The notice shall contain a general description of the land sufficient to identify it, the terms
of the sale, and a reference to the authorizing resolution. After bids have been received, the
highest bid shall be reported to the council, and the council shall accept or reject it within 30
days thereafter. If the bid is rejected, the council may readvertise the property for sale.
(b) Personal Property. -When it is proposed to sell personal property at public auction,
the council shall at a regular council meeting adopt a resolution or order authorizing an
appropriate city official to dispose of the property at public auction. The resolution or order shall
identify the property to be sold and set out the date, time, place, and terms of the sale. The
resolution or order (or a notice summarizing its contents) shall be published at least once and not
less than 10 days before the date of the auction.
(c) The council may conduct auctions of real or personal property electronically by
authorizing the establishment of an electronic auction procedure or by authorizing the use of
existing private or public electronic auction services. Notice of an electronic auction of property
shall identify, in addition to the information required in subsections (a) and (b) of this section,
the electronic address where information about the property to be sold can be found and the
electronic address where electronic bids may be posted. Notice may be published in a newspaper
having general circulation in the political subdivision or by electronic means, or both. A
decision to publish notice solely by electronic means for a particular auction or for all auctions
under this subsection shall be approved by the governing board of the political subdivision.
Except as provided in this subsection, all requirements of subsections (a) and (b) of this section
apply to electronic auctions. (1971, c. 698, s. 1; 1973, c. 426, s. 43; 2001-328, s. 5; 2005-227,
s. 4; 2006-264, s. 74.)
http://www.ncleg.net/EnactedLegislation/Statutes/HTMLBySection/Chapter_ 160A/GS_ 1... 8/ 11 /2009