HomeMy WebLinkAboutAgenda - 06-15-2010 - 4qORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: June 15, 2010
Action Agenda
Item No.
SUBJECT: Propose to Accept Offer to Purchase County Property and Update Status of
the Sale of Other County Property
DEPARTMENT: Asset Management & PUBLIC HEARING: (Y /N) No
Purchasing Services (AMPS)
ATTACHMENT(S):
Resolution
INFORMATION CONTACT:
Pam Jones, AMPS, (919) 245 -2652
John Roberts, County Attorney,
(919) 245 -2318
David Cannell, AMPS, (919) 245 -2651
PURPOSE: To consider an offer to purchase the County property located at 118 N. Churton
Street, Hillsborough and propose to accept the highest offer submitted.
BACKGROUND: On April 6, 2010 the Board authorized staff to begin the divestiture process of
the following properties:
• Clerk of Court Annex, 112 N. Churton Street, Hillsborough
• Graham Building, 118 N. Churton Street, Hillsborough
• Old EMS, 1914 New Hope Church Road, Chapel Hill
• Purchasing Building, 129 E King Street, Hillsborough
• Highway 49 Old ABC Store, Cedar Grove
Pursuant to North Carolina General Statute and Board direction, properties were advertised
and bids accepted on May 25, 2010. The County only received bids on one of the five
properties that were advertised for sale. Bid results for each property are as follows:
Name of Property
Minimum Bid
Highest Bid
Received
112 N. Churton Street, Hillsborough
$450,000 + $7,000 Preservation
No Bids Received
easement paid to Preservation
NC
118 N. Churton Street, Hillsborough
$130,000+ $3,000 Preservation
$171,408.00
easement paid to Preservation
NC
1914 New Hope Church Road, Chapel
$430,000
No Bids Received
Hill
129 E King Street Hillsborough
$590,000
No Bids Received
Highway 49 Old ABC Store, Cedar $ 5,000 No Bids Received
Grove
Divestiture Procedures For 118 N. Churton Street
As a reminder, disposal of public assets is prescribed specifically by law [North Carolina
General Statute 160A, Article 12]. First, the property must be declared as surplus by the
governing board (completed April 7, 2009). Real property must always be sold using a
competitive procedure. Competitive procedures include sealed bid, negotiated offer and upset
bid and public auction. The Board chose to pursue sealed bids (completed October 20, 2009)
with an upset bid.
The process steps are as follows:
• Advertise the properties for sale as required in a local newspaper. Circulate
information via internet and post signs on the buildings for sale; (completed during
May 2010);
• Accept bids and open publicly (May 25, 2010);
• Present results to the Board who would "propose to accept the offer ", thereby
commencing the upset bid process (June 15, 2010);
• Next steps, to commence June 16, 2010:
• Advertise the highest responsible bid amount as the basis for upset bids and
commence the upset bid process.
• Accept upset bids for a 10 day period after advertisement after which time a bid
opening would be held. Assuming a valid upset bid was received (must be a
minimum of 10% of the first $1,000 and 5% of the balance in order to be
considered) additional rounds of the upset process would be continued until no
further upset bids were received.
• Present results to the Board for consideration after the conclusion of the final
upset bid process (August 17, 2010).
Update on the Sale of the Other Four Properties
No bids were received on the following properties;
• Clerk of Court Annex, 112 N. Churton Street, Hillsborough
• Old EMS, 1914 New Hope Church Road, Chapel Hill
• Purchasing Building, 129 E King Street, Hillsborough
• Highway 49 Old ABC Store, Cedar Grove
Staff believes that the primary reason no bids were received on the four properties is the
economic climate. In the case of the old ABC store, the remote location and difficulties in
bringing the well and septic system to code are also reasons.
Staff proposes to continue to market the four buildings to obtain offers that meet the minimum
set by the Board. Further, staff will look for additional ways to advertise the properties in a cost
effective way during the Board's summer break. If minimum bids are received during that time,
the bids will be brought to the Board for acceptance, and subsequent upset process (detailed
above). Each building will also be considered for alternate uses by County functions.
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.
RECOMMENDATION(S): The Manager recommends the Board propose to accept the highest
offer submitted as outlined above, approve the attached Resolution Authorizing Upset Bid
Process and authorize the Chair to sign the resolution as appropriate.
RES - ao►fl- 06 op
Resolution Authorizing Upset Bid Process 4
WHEREAS, the Orange County owns the following property located at the following location:,
• Graham Building, 118 N. Churton Street, Hillsborough —PIN # 874065497 and;
WHEREAS, North Carolina General Statute § 160A -269 permits the County to sell property by upset bid, after receipt of an offer for
the property; and
WHEREAS, the County has received an offer to purchase the property described above, from the group listed below in the amounts
listed below
Building Name Group Submitting Highest Bid Amount of Highest bid
Graham Building, 118 N. Churton Street, Hillsborough James B. Johnson III $171,408.00
WHEREAS, the bidders have paid the required five percent (5 %) deposit on their offers;
THEREFORE, THE BOARD OF COUNTY COMMISSIONERS OF ORANGE COUNTY RESOLVES THAT:
1. The Board of County Commissioners authorizes sale of the properties described above through the upset bid procedure of North
Carolina General Statute § 160A -269.
2. The Director of Asset Management and Purchasing Services shall cause a notice of the proposed sales to be published. The notice
shall describe the properties and the amount of the offers, and shall state the terms under which the offer may be upset.
3. Persons wishing to upset the offer that has been received shall submit a sealed bid with their offer to the office of Asset
Management and Purchasing Services within 10 days after the notice of sale is published. At the conclusion of the 10 -day period, the
Director shall open the bids, if any, and the highest such bids will become the new offer. If there is more than one bid in the highest
amount, the first such bid received will become the new offer.
4. If a qualifying higher bid is received, the Director of Asset Management and Purchasing Services shall cause a new notice of upset
bid to be published, and shall continue to do so until a 10 -day period has passed without any qualifying upset bid having been
received. At that time, the amount of the final high bid shall be reported to the Board of County Commissioners.
5. A qualifying higher bid is one that raises the existing offer by not less than ten percent (10 %) of the first $1,000.00 of that offer and
five percent (5 %) of the remainder of that offer.
6. A qualifying higher bid must also be accompanied by a deposit in the amount of five percent (5 %) of the bid; the deposit may be
made in cash, cashier's check, or certified check. The County will return the deposit on any bid not accepted, and will return the
deposit on an offer subject to upset if a qualifying higher bid is received. The County will return the deposit of the final high bidder at
closing.
7. The terms of the final sale are that
— the Board of County Commissioners must approve the final high offer before each sale is closed, which it will do within
30 days after the final upset bid period has passed, and
— the buyer must pay with cash at the time of closing.
8. The County reserves the right to withdraw the property from sale at any time before the final high bid is accepted and the right to
reject at any time all bids.
9. If no qualifying upset bid is received after the initial public notice, the offer set forth above is hereby accepted. The appropriate
county officials are authorized to execute the instruments necessary to convey the property to the groups listed above
Adopted June 15, 2010