HomeMy WebLinkAboutAgenda - 08-23-2011 - 8eORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: August 23, 2011
Action Agenda
Item No. ~ - 2
SUBJECT: Sale of 1914 New Hope Church Road to Orange County Schools Board
of Education
DEPARTMENT: Asset Management Services PUBLIC HEARING: (Y/N) No
(AMS), Financial Services,
County Attorney
ATTACHMENT(S):
Letter from Mike Parker, Attorney for
Orange County Schools Board of
Education
INFORMATION CONTACT:
Pam Jones, AMS, (919) 245-2652
David Cannell, Financial Services,
(919) 245-2651
John Roberts, County Attorney,
(919) 245-2318
PURPOSE: To consider transfer alternatives for 1914 New Hope Church Road to Orange
County Schools Board of Education.
BACKGROUND: In August 2009 the Board of Commissioners declared 1914 New Hope
Church Road, Chapel Hill as surplus property and directed staff to advertise it for sale. No bids
were received for the property.
The 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. The
appraised value and the minimum bid set for the property in April 2010 was $430,000.
The deed between Orange County and 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.
2
In November 2010 the Orange County Schools Board of Education submitted a request to
purchase the site for a sum of $100,000. The Board of Education proposed that the purchase
be funded by reducing the school system's pay-as-you-go capital funds from the County by
$25,000 for each of four years.
Sale of property by the County to a School Board is allowed pursuant to North Carolina
General Statutes. The Board of Commissioners approved the sale in principle during a work
session on November 18, 2010.
The Manager recommends the Board also consider along-term lease arrangement with the
school in lieu of outright sale. Recommended terms would be a 20-year lease at $1 per year
with the Schools assuming ail maintenance and operational responsibilities. This would allow
use of the facility by the Schools, preserve the County's long-term options should conditions
change within the lease period and would not impact the Schools' future pay-as-you-go funding
allocation. Should the Board prefer this approach, staff will negotiate with the Board of
Education staff and bring forward a lease for approval by the respective Boards.
FINANCIAL IMPACT: Pay-as-you-go capital funding to Orange County Schools would be
reduced by $25,000 in FY 2013, FY 2014, FY 2015 and FY 2016 if the property were to be sold
to the Board of Education. tf the lease option is approved, the Board of Education would not
experience a reduction in revenue. Operational costs to the County and Schools would not be
materially different in either scenario.
RECOMMENDATION(S): The Manager recommends the Board consider the transfer
alternatives for this property and provide the appropriate direction to staff.
D. 1dlCHAEL_P(~RKER;•::• :
mlkeparker~chesh~re-parlcer.com.
• .• a i.. ~
November 3, 2010
Ms. Pam Jones
Asset Management and Purchasing Director
PA. Box 8181 ,
Hillsborough, ~I~C 2'72,'78 •
RE: 911 Site on New Hope Cbur~t 1Zoad
Dear Pam:
~~~1~ ~~~ o ~ I_
• ~ ~o1a 1
fln behalf of the Orange County Board of rducatson, I would-like to submit an
offer to purchase the old 911site on New PTope Church Road, PII~ ;9872-86-?.049, for
$IQ0,000.00. The Board of Educatiolz woula like to pay for this by having the County
withhold $25,000.00 from the pay-as-you go capital funds over the next four years. The
Boazd realizes this offer is substantially Less than the appraisal on the property but we
hope the BOCC will Zook favorably on the offer-since it is from the Boazd of Education
and. this parcel adjoins the Thew Tope Elementary School site. Please let lne know if I
need to-submit anything mare formal in the way of an offer ar bid.
With best regards, I am
ours rtl ,
• D.11~ichael Parkex
Cc: Dr. George McEarley
CHESHIRE ~ PARKER
ATTORNEYS AT LAW
100 N. CH(31270NSTREET
P. O. BOX 100
HIt.LSBOR000H, N.C.•27278
TELEPF1oNE 519,-'732-8I4I
TELEFAX s19.7:i7__9'l fi7 -
ALEXpiiGER H. ErRAliAM (IB90.1477)
- 1-t1CICLS hS: CHESHIRE (1925-2003)_
M1SC.LI?TY 911