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ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: March 22, 2012
Action Agenda
Item No. 7" G
SUBJECT: Property Divestiture: 112 and 118 N. Churton Street, Hillsborough
DEPARTMENT: Asset Management Services PUBLIC HEARING: (Y/N) No
and Financial Services
ATTACHMENT(S): INFORMATION CONTACT:
3/5/12 Letter from Hillsborough
Mayor Tom Stevens Pam Jones, (919) 245-2652
David Cannell, (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.B.12)
and 118 N. Churton Street (Graham Building — PIN # 9874066435-TMBL# 4.30.B.11),
Hillsborough.
BACKGROUND: Since April 2009 the County has actively marketed the properties at 112 and
118 N. Churton Street, Hillsborough for sale. Several rounds of bid/upset bid were conducted
and on November 5, 2009, the Board was presented with winning bids of $465,500 and
$159,500 respectively for the finro properties. These bids were rejected in order to initiate action
that would effectively fill a gap in the existing Town regulations, by which a property owner could
potentially remove the buildings.
The Board authorized staff to negotiate an agreement with the NC Preservation Foundation to
accept and administer a preservation agreement on the properties, effective upon sale. The
Foundation agreed to a discounted fee of $7,000 and $3,000 respectively, which would be
added to the final bid price for the properties and would be paid directly to NC Preservation
Foundation by the new property owners at closing.
Subsequent solicitations using this contract were unsuccessful for the property at 112 N.
Churton, and the highest bid for 118 N. Churton was later withdrawn. Although the Foundation
significantly reduced the preservation requirements, particularly for the interior of the buildings,
no further interest in buying the properties has been forthcoming.
In October 2011 the County requested the Town of Hillsborough accept a preservation
easement for the properties, which would likely have been administered through its Historic
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District Commission. In January 2012, the Town Board of Commissioners declined to accept
the easement (see attached letter from Hillsborough Mayor Tom Stevens).
The County continues to be contacted by people interested in purchasing the properties,
assuming they are not encumbered in a manner that could preclude their effective use.
It is notable as well that the NC Preservation Foundation would purchase and resell the
properties, should the County choose to enter into that type of agreement.
The County has identified no long-term needs for which this property would be suitable and still
desires to effect a sale.
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) authorize staff to move forward with soliciting bids for the properties, with minimum bids
set at $450,000 for 112 N. Churton Street and $130,000 for 118 N. Churton Street;
2) direct staff, at such time as the bidding/upset bidding process concludes, to present the i
highest bids to the Board of Commissioners for consideration; and
3) impose a deed restriction that the exterior of the buildings situated on both properties shall
comply with the Town of Hillsborough's Historic District Design Guidelines.
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March 5,2012
Ms Bemadette Pelissier
Chair-Board of Orange County Commissioners
P.O.Box 8181
Hillsborough,NC 27278
Dear Bemadette,
After our producrive joint meeting,I realized the town had not formally responded,in writing,to the BOCC request
to accept a conservation easement on the County-owned properties at 112 and 118 North Churton Street that the
County currently has for sale.It was the Town board's intent to address this item at our joint meeting,an intent that
was simply overlooked.
The Town Board discussed this request at our January regular meeting. Our Board supports and appreciates the
County Commissioners'intent to help preserve important resources in downtown Hillsborough.That being said,we
are concerned that accepting individual easements on any buildings not owned by the town will cloud the
regulatory issues our Historic District Commission(HDC)deals with on a regular basis.Accepting the easements
on these two properties may encourage others to make similax donations,further complicating what authority the
HDC may be acting under.
We concluded that managing such easements would become a source of possible liability and confusion in the long
term, and for that reason the Town Board respectfully declines the offer.We encourage the Board of Counry
Commissioners to pursue other options available to them(i.e. a restrictive covenant or easement to their own
Preservation Commission)ihat may reach similar ends at little to no cost.
Please don't hesitate to contact me if you have any questions or concerns about the matter.
Best regards,
�___--
Tom Stevens
Mayor �
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Eric Peterson
Frank Clifton✓
101 East Orange Street •P. O. Box 429 •Hillsborough, North Carolina 27278
919-732-1270 • Fax 919-644-2390