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HomeMy WebLinkAboutAbstract - Co. Mgr - Purchase & Sale Agreement – Southwest Library Site, 210 Hillsborough RoadORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Dater August 23, 2011 Ac#ion Agenda Item No. ~ ' Q SUBJECTS Purchase & Sale Agreement -Southwest Library- Site, 210 Hillsborough Road DEPARTMENT: Manager's Office PUBLIC HEARING: (Y/N) No ATTACHMENT(S): INFORMATION CONTACT: Frank Clifton (919) 245-2306 John Roberts (919) 245 2318 PURPOSE: To consider purchasing the parcel located at 210 Hillsborough Road, Carrboro, and authorize the Manager to execute all necessary documents to close the purchase. BACKGROUND: Orange County entered into a Purchase & Sale Agreement on October 22, 2010 to purchase approximately 2.691 acres of property located in Carrboro for the purpose of developing and constructing a branch public library facility. This Agreement allows an examination period of the property that will exp-ire on August 31, 2011. The Agreement contemplates closing the purchase transaction no later September 30, 2011, where the earnest money deposit will apply to the purchase price. On April 12, 2011, the Carrboro Board of Aldermen appr-oved the County's petition to conditionally rezone the property in order to accommodate a public library facility not to exceed 20,000 square feet, subject to the required conditional use permitting process as governed by Carrboro's land use ordinance. On June 21, 2011, staff presented physical due diligence on the property to the- Board. The results of these physical due diligence items (survey, geotech, utility availability, environmental assessment, cultural, archaeological, and off-site traffic engineering analysis) are favorable and support the purchase of the property. Title research has been completed since that point and the findings are as follows: The title issues remain unresolved. An existing restrictive covenant against subdivision encumbers the title. The adjacent neighbors' attorneys notified the County the adjacent neighbors intend to sue the County based on the restrictive covenant if the county acquires the property. There could be a resolution to this threatened lawsuit, but it would involve the purchase of additional property for an alternate access point at additional cost to the county. There are other title issues primarily related to easements. The easement issue involving the most cost is associated is the adjacent neighbors' sewer easement. If a road or driveway is 2 constructed over their sewer line and -the sewer line has problems needing repair, the adjacent neighbors would have the right to tear up the access road or driveway to repair the line. If the Board decides to purchase the property, the County may need to relocate the line at an as yet undetermined cost in order to circumvent this problem. The -other major non-easement issue is the public road right of way that extends across the parcel. This is something the title work shows may be yet another issue that could potentially add a significant amount to the cost of the property. FINANCIAL IMPACT: The Agreement purchase price for the property is $610,000. Estimated. closing costs, title insurance, and property taxes are estimated at $10,036. There are adequate funds included within the FY2011-16 Manager's Recommended Capital Investment Plan to complete this transaction. At this point, funds for the construction of the Southwest Library have not been allocated to the Capital Project and is for consideration by the BOCC as a future Capital Investment Plan item. After the allocation of .reserves, the balance for the site for the- Southwest Library--will be financed and purchased with installment debt that will be issued during the first quarter of the FY2011-12 fiscal year. Should the BQCC choose not to _purchase the property, the County will- have expended approximately $30,000 in contract deposits and due diligence costs, as well as considerable staff time in examining this site. Similar investments in dollars and staff time will be needed to examine alternative sites. RECOMMENDATION(S): The Manager recommends that the Board consider the purchase of the parcel located at 210 Hillsborough Road, Carrboro, and, if in agreement that- the issues noted above and associated- costs are acceptable, authorize the Manager to execute all necessary documents to close the purchase. If the Board finds those issues to be unacceptable, the Board should decline to pursue the purchase unless- the current owner either rectifies the associated issues or reduces the purchase price to offset the County's projected financial expenses accordingly. Otherwise, based upon direction by the Board, County staff can pursue other Library site locations.