HomeMy WebLinkAboutAgenda - 10-18-2011 - 8aORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: October 18, 2011
Action Agenda
Item No. 8 -GZ
SUBJECT: Property Divestiture: 112 and 118 N. Churton Street, Hillsborough
DEPARTMENT: Asset Management Services PUBLIC HEARING: (YIN) No
(AMS) and Financial Services
ATTACHMENT(S):
Resolution
INFORMATION CONTACT:
Pam Jones, AMS, (919) 245-2652
David Cannell, Financial Services, (919)
245-2651
PURPOSE: To consider divestiture options regarding two surplus properties owned by Orange
County at 112 N. Churton Street (Clerk of Court Annex -PIN # 9874065497-TMBL# 4.30.6.12)
and 118 N. Churton Street (Graham Building -PIN # 9874066435-TMBL# 4.30.8.11),
Hillsborough.
BACKGROUND: In April 2009 the Board of Commissioners declared several properties
surplus and instructed staff to pursue divestiture. Properties at 112 and 118 N. Churton Street
were among those declared surplus and minimum bids of $450,000 and $130,000 respectively
were established.
On November 5, 2009 staff presented the bid results for properties previously approved for
divestiture. The Board of Commissioners requested historic preservation easements be placed
on the two Churton Street properties. The $465,500 bid for 112 N. Churton Street (Clerk of
Court Annex) and the $159,500 bid for 118 N. Churton Street (Graham Building) were rejected.
Since that time, staff has made multiple attempts to re-bid the property, using a contract
negotiated with the North Carolina Preservation Foundation that would protect the property from
future demolition under a historic preservation easement. As a reminder, the Foundation's fees
for administering this easement would be $7,000 for 112 N. Churton and $3,000 for 118 N.
Churton Street. These fees would be paid directly by the successful bidders at closing. Bids
were received for 118 N. Churton Street, but later withdrawn. No bids were received for 112 N.
Churton Street during this round of solicitation.
The County has not identified any long-term needs for which these properties would be suitable
and still desires to effect a sale. Staff recommends that the Board consider one of the following
disposal options and direct staff to proceed with remarketing the property using minimum bids
as cited previously.
Option 1: Terms of bid would include a requirement for the buyer to enter into an agreement
with NC Preservation Foundation. Terms of the NC Preservation Foundation agreement would
require approval of the Foundation for any exterior changes to the building, but would
essentially cause the buildings to remain as they stand. Changes to interior portions of the
building would be as mutually agreed between the NC Preservation Foundation and the new
owner. This would allow greater flexibility of interior modifications, which was previously voiced
as a primary concern from potential buyers. The cost of administration of this agreement by the
NC Preservation Foundation would remain $7,000 for 112 N. Churton and $3,000 for 118 N.
Churton.
Option 2: NC Preservation Foundation would purchase the facilities at a negotiated price and
would resell the facilities.
Option 3: By approval of the attached Resolution, the County would request that the Town of
Hillsborough accept a preservation easement that would give the authority to delay demolition
indefinitely for the facilities. It is expected the Town would grant authority for the enforcement
of the easement to the Hillsborough Historic District Commission. This would effectively fill a
gap in the existing regulations by which a property owner could potentially remove the buildings.
FINANCIAL IMPACT: No financial impact will be realized until such time proceeds from sale of
these properties is realized.
RECOMMENDATION(S): The Manager recommends that the Board:
1) Approve the attached Resolution requesting the Town of Hillsborough accept a
preservation easement for properties at 112 and 118 N. Churton Street, which
would indefinitely delay the removal of the buildings by future owners; and
2) Authorize the County Attorney to work in concert with the Town Attorney to craft the
easement; and
3) Authorize staff to begin the bidding process for divestiture of these properties, with
the established minimum bid limits of $450,000 for 112 N. Churton Street and
$130,000 for 118 N. Churton Street, as soon as the Town has accepted the
preservation easement.
R~.v - aol I - o~~- 3
ORANGE COUNTY BOARD OF COMMISSIONERS
RESOLUTION REGARDING THE LONG TERM PRESERVATION OF PROPERTIES AT 112 AND
118 NORTH CHURTON STREET, HILLSBOROUGH, NORTH CAROLINA
WHEREAS, Orange County owns the properties at 112 N. Churton Street, Hillsborough, NC (PIN #
9874065497-TMBL# 4.30.B.12) and 118 North Churton Street, Hillsborough, NC (PIN # 9874066435-
TMBL# 4.30.B.11; and
WHEREAS, the Orange County Board of Commissioners has identified no long-term use for the
properties for County business and desire to offer the properties for sale pursuant to General
Statutes; and
WHEREAS, the Orange County Board of Commissioners desires to ensure the properties are
maintained by future owners in a manner that will preserve their historic significance to the
community; and
WHEREAS, the Town of Hillsborough through its Historic District Commission has the authority to
ensure historic properties are preserved in such manner;
THEREFORE, THE ORANGE COUNTY BOARD OF COMMISS{ONERS REQUESTS THAT THE
TOWN OF HILLSBOROUGH BOARD OF COMMISSIONERS:
1) Accept a preservation easement that protects the historical integrity of properties at 112 N.
Churton Street and 118 N. Churton Street, Hillsborough NC and indefinitely delays
demolition of the facilities; and
2) Authorize the Town. Attorney to develop a suitable easement in concert with the Orange
County Attorney for final approval by the Town Commissioners; said easement to be
recorded with the Orange County Register of Deeds and attached to the properties in
perpetuity.
Adopted this 18t" day of October, 2011.
Bernadette Pelissier, Chair
Orange County Board of Commissioners
Attest:
Donna Baker, Clerk to the Board of Commissioners