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HomeMy WebLinkAboutAgenda - 03-23-2000 - 3ORANGE COUNTY BOARD OF COMMISSIONERS WORKSESSION AGENDA ITEM ABSTRACT Meeting Date: March 23, 1999 Action Agenda Item No. A-" 3 SUBJECT: Proposed Little River Natural Area and Park DEPARTMENT: Environment and Resource PUBLIC HEARING: (Y /N) No Conservation ATTACHMENT(S): INFORMATION CONTACT: * - Materials to be provided at meeting Dave Stancil, 245 -2590 Rich Shaw, 245 -2591 TELEPHONE NUMBERS: Hillsborough 732 -8181 Chapel Hill 968 -4501 Durham 688 -7331 Mebane 336- 227 -2031 PURPOSE: To provide an opportunity for the Board to take appropriate action regarding the proposed Little River Natural Area and Regional Park in conjunction with Durham County, Triangle Land Conservancy and the Eno River Association, on land located along the Orange County- Durham County line. BACKGROUND: Staff has participated in a series of discussions with the partners listed above regarding the County's possible participation in a joint purchase of land for a proposed Little River Natural Area and Regional Park. Materials related to this action will be provided at the meeting. FINANCIAL IMPACT: To be discussed at the meeting. RECOMMENDATION(S): As the Board decides. ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: March 21, 2000 Action Agenda Item No. SUBJECT: Consideration of Option to Purchase Land for Proposed Little River Park DEPARTMENT: Environment and Resource PUBLIC HEARING: (Y /N) Conservation ATTACHMENT(S): INFORMATION CONTACT: Letter of Intent (Terms for the Option) Dave Stancil, 245 -2590 Funding Scenario for Land Acquisition Rich Shaw, 245 -2591 Map of Proposed Little River Park Geof Gledhill, 732 -2196 TELEPHONE NUMBERS: Hillsborough 732 -8181 Chapel Hill 968 -4501 Durham 688 -7331 Mebane 336- 227 -2031 PURPOSE: To authorize the execution of an option agreement to secure Orange County the opportunity (through May 31, 2000) to purchase 135 acres for a proposed 390 -acre Orange /Durham County regional park and natural area. BACKGROUND: Orange County (in partnership with Durham County, the Triangle Land Conservancy and the Eno River Association), is considering the purchase of land in Little River Township for a proposed Little River Regional Park and Natural Area. The 390 -acre property is owned by the Triangle Community Foundation and straddles the county line, with 135 acres in Orange and 255 acres in Durham. The proposed park will preserve areas along the North Fork of the Little River, and feature low- impact recreation areas. The property would be managed jointly by Orange and Durham counties. The proposed option agreement (attached) appears consistent with the County's interest in this joint purchase. It gives Orange County the right to purchase its 135 -acre portion through May 31, 2000, by which time the County must commit to a binding purchase agreement or lose its share ($9,000) of the $30,000 option price. Results of a grant application to the Clean Water Management Trust Fund are expected no later than May 25. The proposed option agreement stipulates that if the parties enter into a purchase agreement (before May 31, 2000), the purchase price for the entire property would be $1,014,000 (or $2,600 /acre). Including estimated closing costs, the Orange County portion would cost $367,150. It is expected that grant funds from the Clean Water Management Trust Fund and /or the Parks and Recreation Trust Fund, along with the TLC /ERA fundraising campaign, will reduce the cost to the County. 2 If the maximum amount is received from both grants, the Orange County portion would cost $104,580. In addition, the agreement gives Orange County the right to reduce its total acreage to be acquired from 135 acres to 109 acres in the event that grant funds are not awarded for this project from the NC Clean Water Management Trust Fund by May 31, 2000. An initial payment for the majority of the property (including the entire Orange County portion) would be due October 31, 2000 and a final payment for the remaining 85 acres (all in Durham County) would be due July 31, 2001. A small portion of Orange County's acquisition costs (e.g., survey, environmental assessment, legal fees) could be delayed until after July 2001, at which time Orange and Durham will reconcile all cost outlays associated with the project to the agreed 35/65 apportionment. An inter -local agreement will be developed to address the acquisition, development and future management of the proposed park property. Durham County approved the letter of intent to enter into the option agreement on March 13, 2000. The Triangle Land Conservancy and Eno River Association boards have also approved of the agreement. Finally, staff has learned from an informal contact with the Clean Water Management Trust Fund that the staff to the CWMTF board will recommend approval of a grant for this project. While not a guarantee, the chances of receiving a grant are greatly enhanced by the endorsement from the staff. FINANCIAL IMPACT: The cost of the option agreement is $30,000, of which Orange County's share would be $9,000. (Durham County will pay $18,000 and TLC /ERA will pay $2,000.) Those funds would be paid from the ERC fund, and may be applied to the purchase price. The potential funding scenarios for the total project, including projected reductions in net costs from potential grants, are shown in the attached spreadsheet. County funds to purchase the property could come from some combination of the ERC fund (FY 00 -01), the Recreation and Parks payment -in -lieu funds, or other sources as deemed appropriate. RECOMMENDATION: The Manager recommends that the Board discuss the letter of intent and, if acceptable, instruct staff to prepare an item for the March 23 work session to formally adopt the letter of intent to execute the option agreement, and authorize payment of the option amount of $9,000. Mr. Wendell Davis Deputy County Manager Durham County 200 East Main St. Durham, North Carolina 27701 Mr. David Stancil Orange County Planning Department P.O. Box 818I Hillsborough, North Carolina 27278 Ms. Portia McKnight Wayne E. Cash, President c/o Kate Dixon Eno River Association Triangle Land Conservancy 4419 Guess Road 11011 -A Wake Forest Road Durham, North Carolina 277I2 Raleigh, North Carolina 27604 Re: Triangle Community Foundation Property Dear Sirs and Madame: On behalf of The Triangle Community Foundation, thank you for your letter dated February 10, 2000 and your joint counter proposal for our consideration. After further discussion among the parties, we believe that the provisions set forth below in this Letter of Intent fairly represent the intent of the parties. We offer them for your consideration and ask that, if this Letter of Intent meets with your approval, that you sign this letter where indicated and return it to me_ a) Durham and Orange Counties would each be granted a three month option to purchase the property (through May 31, 2000) for a combined non - refundable, except as otherwise required herein, price of $30,000.00 payable to the Foundation. The option payment would be made within two weeks of our reaching an agreement on the terms of this proposal, and would be applied to the purchase price of the property, if timely closed. b) Durham and Orange would each have until May 31, 2000 to exercise the option to . purchase and enter into a binding Purchase Agreement for its respective portion of the 390 -acre Newton tract. The purchase price is $2,500.00 per acre. Durham County and Orange County will each execute its own option to purchase and binding purchase agreement relating to the property located in its jurisdiction. Title to the property located in Durham County will be conveyed to Durham County, while title to the Orange County Property will be conveyed to Change County. C) Upon exercising the option and entering into the binding Purchase Agreement (on or before May 31, 2000), Orange County reserves the right to reduce the total acreage to be acquired from approximately 135 acres to no fewer than 109 acres. A sketch of the proposed 26 acres which might be removed from the purchase is shown in Exhibit A (attached). Orange County upon the exercise of the option will purchase the property with a closing and final payment on or before October 31, 2000. d) Durham County upon the exercise of the option will purchase 170 acres of the property 4 with a closing and final payment on or before October 31, 2000. Durham County may defer closing and final payment on the remaining 85 acres of the property, as shown. in Exhibit B. with a written notice given to the Seller as to this deferral on or before May 31, 2000. This deferred closing would occur and final payment by Durham County would be made on or before July 31, 2001. e) The Foundation agrees to allow the Buyers access to the property for inspecting, planning, design, and fumd raising purposes. f) The Buyers agree to involve the Foundation in future publicity and public relations events concerning the property to a level as mutually agreed to by the Foundation and the Buyers. g) A Phase I Environmental Study will be conducted by the Buyers, and at Buyers expense, to be completed on or before May 31, 2000. Should the Phase I Environmental Study reveal conditions which disqualify the Buyers from receiving Clean Water Trust.Fund grans for the property, then the option payment specified in paragraph "a" shall be refunded to the Buyers. h) Orange County agrees to pay for and complete by May 1, 2000 the survey required to prepare the descriptive exhibit to the binding Purchase Agreement showing the approximate 135 acre tract, and the 26 acre tract contained therein, totally located in Orange County, identified in this Letter of Intent. i) Durham. County agrees to pay for and complete by May 1, 2400 the survey rewired to prepare the descriptive exhibit to the binding Purchase Agreement showing the approximate 255 acre tract, and the 85 acre tract contained therein, totally located in Durham County, identified in this Leiter of Intent. j) This is a letter of intent and no party is bound until a definitive Option to Purchase and binding Purchase Agreement are executed by all necessary parties. k) if Orange County does not exercise its option and Durham County does exercise its op'iion, then an access and road agreement must be negotiated and agreed upon prior to executing the binding Purchase Agreement between Durham County and TrianglC Community Foundation. Should the parties fail to reach agreement on an access and road agreement, then the portion of the option payment specked in paragraph "a" attributable to Durham County shall be refunded to Durham County. 1) If Durham County does not exercise its option, then the Orange County option, unless other-se agreed to by Orange County and the Foundation, is null and void and the Portion of the option payment specified in paragraph. "a" attributable to Orange Cou:.ty sltall be refunded to Orange County. m) The Foundation shall deliver at closing a General Warranty Deed to each Buyer. The title 7 �+ ^ 5 to Whe property ��1 be free and clear of all encumbrances except. jLLVL defects Of tits- AJ may be insured against by title insurance. Should the Foundation be unable to deliver title to the property free and clear of encumbrances as set forth herein, then the option payment specified in paragraph "a" shall be refunded to the Buyers. Funding Scenario for Proposed Little River Regional Park Price per acre Acres Land cost Closing costs Total cost Total cost for Land: $ 2,600 390 $ 1,014,000 $ 35,000 $ 1,049,000 Reduction in Reduction in % of Initial Durham/ Durham/ project commitment Orange outlay Orange outlay County costs at full cost to: to: Total Amounts: 1 Durham - 255 acres 0.65 $ 681,850 $ 571,350 $ 356,720 Orange -135 acres 0.35 $ 367,150 $ 307,650 $ 192,080 *Triangle Land Conservancy and Eno River Association have pledged $170,000 toward project. Will hold jc "Assumes 127 acres of land qualifies for CWMTF assistance raising Mar -00 Potential ultimate reduced cost $ 194,220 $ 104,580 0 _ v .n. zfc......- >- ..- v.:;...;., ,......,- ,..._..;•:r....,..r., ._........ ...... _....._. __:.,..:., _.. _ I II i II v zo a � 3 "G r Ra sill County it yy H. Eli Ir � M z n S � ; o� II i II v zo a � 3 "G r Ra sill County