HomeMy WebLinkAboutAgenda - 04-06-2010 - 7d i
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: April 6, 2010
Action Agenda
Item No, �7
SUBJECT: Divestiture of County Real Propeqy
DEPARTMENT: AMPS PUBLIC HEARING: (Y/N) No
ATTACHMENT(S): INFORMATION CONTACT:
Resolution
Data Sheets Pam Jones (919) 245-2652
David Cannell (919) 245-2651
PURPOSE: To solicit comments from the county commissioners regarding the disposition of
properties discussed for divestiture; and if recommended, set minimum bids for those properties
where minimum bids have not previously been set.
BACKGROUND: This abstract covers three separate areas related to the county's continuing
property divestiture efforts and is intended to:
• Provide opportunity for the Board to comment on 112 and 118 N. Churton Street
properties prior to the bids being released for a second solicitation;
• Provide an opportunity for the Board to comment on potential uses of 129 East King
Street prior to declaring it surplus and establishing the minimum bid for advertisement;
and
• Provide an opportunity for the Board to comment on potential uses of 1914 New Hope
Church Road prior to declaring it surplus and establishing the minimum bid for
advertisement.
112 and 118 N. Churton Street Properties
P I N # 9874065497-TM BL#4.30.B.12 and P I N # 9874066435-TM BL# 4.30.B.11 respective l
On November 5, 2009 staff presented the bid results for properties previously approved for
divestiture. The Board requested historic preservation easements be placed on the two
Churton Street properties. The $159,500 bid for 112 N. Churton Street (Graham Building) and
the $465,500 bid for 118 N. Churton Street (Clerk of court Annex) were rejected. Staff has
worked with the North Carolina Preservation Foundation and the county Attorney to draft
acceptable language for the bids and is prepared to begin the re-bidding process immediately
for these two sites. Successful bidders will be required to pay directly for the easment in the
amount of $3,000 and $7,000 respectively for 112 and 118 N. Churton Street. Unless instructed
to do otherwise, the minimum bid cited in the re-advertisement will be set at the original
amounts of$130,000 and $450,000 respectively.
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Both of the Churton Street properties and the old Purchasing office at 129 East King Street,
which the Board has also identified for divestiture, have been actively discussed by the Heritage
Center Task Force as potential sites for the Center, although no recommendations or decisions
by the group have been received. The 112 N. Churton Street property has also been noted as
a potential location for the Public Defender's office at such'time it is relocated from leased
space at Carr Mill Mall. Prior to the properties being advertised, or as would be the case for the
Churton Street properties, re-advertised, the Board is asked to discuss these matters and
provide any information that might change the intent to solicit the property bids.
129 East Kinq Street; PIN #9874068476• TMBL#4.30.B.3
This property is located on the north side of East King Street between Churton Street on the
west and Cameron Street on the east. It is a rectangular shaped lot containing 10,647 square
feet (0.24 acres), with approximately 39.875 feet of frontage along the north side of East King
Street. The lot is 267 feet deep. The building contains 6,662 square feet and covers the lot
except for a small three car parking area to the front and an area about 50-60' behind the
structure. Approximately 4,622 square feet of the building was improved for use as office
space; open storage and mechanical space comprise the remaining approximately 2,040
square feet. The storage and mechanical areas of the building are not conditioned space.
The property is located in the Central commercial District for the Town of Hillsborough.
Permitted uses include banks, bars, churches, clubhouses, community centers (conditional use
only), convenience stores, day care, funeral home, government facilities and office buildings,
hotels, library, laundry services, offices and personal services, printing, restaurant, retail sales
and schools. There is no minimum lot area or width requirement, nor front, side and rear
setback.
This property is within the Historic overlay district for the Town of Hillsborough.
The highest and best use for the property as cited in the Appraisal is either office or retail use.
The historic importance of this structure has not been established; however, staff is not
recommending a Historic Preservation Easment be placed on this property.
Appraised value for the property is $590,000, established as a range of value based on the
Sales Comparison Approach ($587,000) and the Income Approach ($598,500). Staff
recommends $590,000 be set as the minimum bid for this property.
1 914 New Hope church Road• PIN##9872862049• TMBL# 7.9..14
This property consists of 1.84 acres with one structure containing approximately 6,152 square
feet on two levels. There is no elevator; however, the structure is built in a manner that both
levels are accessible at grade from the front and rear of the building. The facility was
previously used by the County for its Emergency Services operations. Those operations have
since been relocated. No alternate use has been identified for the facility at this time.
The property is zoned R-1, Rural Residential District. Permitted uses include child care facilities
(Class B Special Use), church, community center (Class B Special Use), government facilities,
public parks, schools (Class A Special Use), clubs or lodges, greenhouses and kennels.
According to the appraisal prepared by Pickett-Sprouse Realtors, dated July 29, 2009, the
highest and best use for the property is likely for child daycare, churches and schools.
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The deed between Robert Edward Strayhorn and wife, Helen Mohler Strayhorn, filed with the
Orange County Register of Deeds on June 4, 1982 (Book 389 Page 457-458) reflects no
covenants which would restrict its use.
The report reflects an appraised value of $430,000, which is recommended as the minimum bid
for which this property should be offered.
"Alternative Use" Potential:
The County Health Director has indicated a potential to use the facility as a centrally located site
for creation of a single county-wide dental clinic IF County Commissioners concur with the
concept. It is a County-owned facility. Extensive renovations would be required and a site
analysis has not yet been conducted to determine the feasibility of the project if staff is
authorized to pursue a more detailed investigation.
Divestiture Procedures
The Board is aware that disposal of public assets is prescribed specifically by law [G.S. 100A,
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. 150A-259]
■ public auction [G.S. 160A-270]
Staff is recommending the Board authorize the sale of the property 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 80 days after BOCC approval) after which bids
would be opened publicly;
■ The bid results would be presented to the Board and would "propose to accept the offer'
which would subsequently initiate 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 establish 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. Future sales will be distributed based on 60% to the Schools and 40%
to a reserve fund established for future development of an Orange County Southwest Branch
Library.
RECOMMENDATIONS): The Manager recommends the Board:
1. Direct staff to move forward (or not) on Churton Street property sales; and
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2. Declare properties at 1 914 New Hope church Road, chapel Hill PIN # 9872862049 and
129 East King Street, Hillsborough PIN #9874068476 as surplus and set minimum bids as
cued; and
3. Approve the Resolution Authorizing Sealed Bid Sale as attached; and
4. Authorize the Director of Asset Management and Purchasing Services to carry out the sale
pursuant to Board direction.
C)�0 0
Resolution Authorizing Seated Bid Sale with Upset Bid of
Certain Real Property owned by orange County
WHEREAS, Orange County owns property located at the following locations:
129 E King Street, Hillsborough, NC; PIN #9874068476
1914 New Hope Church Road, Chapel Hill, NC; PIN # 9872862049
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 GRANGE 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:-
- Old Purchasing Building 129 E King Street, Hillsborough, NC; PIN #9874068476
- Old EMS Center 1914 New Hope Church Road, Chapel Hill, NC; PIN # 9872862049
2. The County will accept sealed bids until 10:00 AM local time, Tuesday, May 11, 2010.
Bids shall be delivered to the office of the Director of Purchasing and Asset Management
at 131 W Margaret Lane, Suite 301, Hillsborough, North Carolina. Bids will be submitted
by property in separate, sealed envelopes marked clearly with the property name.
3. At 10:00 AM, Tuesday, May 11, 2010 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 their regular
meeting on Tuesday, June 1, 2010. 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 April 6, 2010.
PICKETT-SPROUSE REAL ESTATE
SUMMARY OF IWORTANT DATA AND CONCLUSIONS
Property and Location 112 N. Churton Street
Hillsborough, North Carolina
[owner Orange County
Land Area 11,750 square feet(0.26 acre)
Improvements Office building containing 3,268 S.F.
Zoning Central Com nercial
Historic District Overlay
Highest and Best Use Office/Retail
Market value Opinion $450,000
Effective Date of Appraisal June 18 9 2049
Appraisers Robert M. Sprouse
John T. Kepley
Appraisals • Brokerage Consultation - Development
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PICKETT-SPROUSE READ, ESTATE
SUMMARY OF MWORTANT DATA AND CONCLUSIONS
Property and Location 118 N. Churton Street
Hillsborough, North Carolina
Owner Orange Count
Lana Area 1,450 square feet (0.033 acre) •
Improvements Office building containing 762 S.F.
-Zonm* g Central Commercial
Historic District Overlay .
I�igliest and Best Use Office
Market Value opinion $130NO
Effective Date of Appraisal June 18, 2009
Appraisers Robert M. Sprouse
John T. Kepley
Appraisals • Brokerage • Consultation - Development
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PICKETT-SPROUSE REAL ESTATE
StJA04AjkY of IMPORTANT DATA AND CONCLUSIONS
Property and Location 129 E. King Street
Hillsborough, North Carolina
Owner Orange County
Land Area 10,647 square feet (0.24 acre)
Improvements Office building containing 4,892 S.F.
Attached storage containing 1,770 S.F.
Zoning Central Commercial
Historic District Overlay
Highest and Best Use Office/Retail
Market Value opinion $590,;000
Effective Date of Appraisal March 10, 2010
Appraisers Robert M. Sprouse
John T. Kepley
Annraisals Braknrana Comijltstfnn a DQVQlonment
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P 1 CKETT--S PROUSJE REAL ESTATE
SUNMARY of I DATA AND CONCLUSIONS
Property and Location 1914 New Hope Church Road
Chapel HiU, North Carolina
Owner Orange County
Land Area 2.37 acres
Improvements Two level.building containing 6,152 S.P.
Zoning 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
Aooraisals • Brokerage # Consultation • Development