HomeMy WebLinkAboutAgenda - 06-05-2012 - 7cCARD- aota_ cQQ
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: June 5, 2012
Action Agenda
Item No. -j - G
SUBJECT: Approval of a Settlement Resolution Authorizing an Exchange of Properties
Between Orange County and Eno River Parking Deck, LLC, and Approval of
Budget Amendment #9 -B
DEPARTMENT: County Attorney PUBLIC HEARING: (Y /N) No
Financial Services
ATTACHMENT(S):
Attachment 1. Resolution
Attachment 2. Budget as Amended
Spreadsheet
Attachment 3. Year -To -Date Budget
Summary
INFORMATION CONTACT:
John Roberts, 245 -2318
Clarence Grier, 245 -2453
PURPOSE: To approve a resolution regarding settlement with Eno River Parking Deck, LLC,
authorizing the purchase and the exchange of properties pursuant to North Carolina General
Statute §160A -271 to purchase the Eno River Parking Deck, and to approve Budget
Amendment #9 -B.
BACKGROUND: In 2009 Orange County entered into a long term Lease Agreement with Eno
River Parking Deck, LLC, ( "Eno River") to provide parking at Eno River's multi -level parking
facility ( "Parking Deck ") for its West Campus Office Building, Library, and Gateway Center.
Since 2010 numerous operational issues have arisen pertaining to the Lease Agreement
ultimately resulting in a lawsuit between the County and Eno River. During settlement
negotiations the parties reached a viable solution to the lawsuit that involves the transfer of
ownership of the Parking Deck from Eno River to Orange County. North Carolina General
Statute §160A -71 authorizes property exchanges between counties and private entities subject
to certain conditions - those being identification of the properties, a statement of the properties'
values, and ten days' public notice. The properties to be exchanged are identified and valued
as follows:
The Parking Deck property (PIN 9874052667) has a stated value of $2,900,000. The County
Attorney recommends the Board of Commissioners recognize this stated value for purposes of
this negotiated settlement only. The Orange County -owned property located at 112 North
Churton Street (PIN 9874066435) has an assessed valuation of $450,000 and the Orange
County -owned property located at 118 North Churton Street (PIN 9874065497) has an
assessed valuation of $130,000.
2
The terms of the settlement are that Orange County will pay $1,000,000 and transfer clear fee
simple title to the properties at 112 and 118 North Churton Street to Eno River and, in
exchange, Eno River will transfer clear fee simple title to the Parking Deck to Orange County.
The County will appropriate $1,000,000 from the General Fund's fund balance to make the
cash payment for the parking deck.
FINANCIAL IMPACT: The County will pay $1,000,000 from the General Fund's fund balance
plus the value of the buildings at 112 and 118 North Churton Street, which are assessed at a
combined value of $580,000. Indirect costs include the future maintenance costs of the parking
deck estimated to be approximately $25,000 annually. This annual maintenance cost is
approximately the same cost the County currently pays for maintenance. Additional costs
include approximately $5,000 in real estate closing costs.
RECOMMENDATION(S): The Manager recommends the Board:
1) Approve the settlement with Eno River Parking Deck, LLC, by approving and
authorizing the Chair to sign the resolution authorizing the exchange of properties;
2) Approve Budget Amendment #9 -B for the appropriation of $1,000,000 from the
General Fund's fund balance for the cash payment; and
3) Authorize the County Manager and Chair to execute all necessary documents to
effectuate the settlement and property exchange.
RES- 001a -054 1
3
ORANGE COUNTY BOARD OF COMMISSIONERS RESOLUTION
AUTHORIZING EXCHANGE OF PROPERTY
WHEREAS, Eno River Parking Deck, LLC owns a multi -level parking facility ( "Parking Deck ") (PIN
9874052667) on Nash and Kollock Street, Hillsborough, North Carolina; and
WHEREAS, Orange County leases approximately 200 parking spaces ( "Leased Spaces ") in the Parking Deck;
and
WHEREAS, Orange County and Eno River Parking Deck, LLC (the "Parties ") are currently engaged in
litigation regarding the Leased Spaces; and
WHEREAS, the Parties have reached a mediated settlement agreement whereby they will exchange certain
properties which shall result in a termination of the Lessor Lessee relationship and a dismissal of the litigation;
and
WHEREAS, the Parking Deck property has a stated value of $2,900,000, recognized as such for purposes of the
negotiated settlement only, and the Orange County -owned property located at 112 North Churton Street (PIN
9874066435) has an assessed valuation of $450,000 and the Orange County -owned property located at 118
North Churton Street (PIN 9874065497) has an assessed valuation of $130,000; and
WHEREAS, the Parties desire to transfer the Parking Deck property to Orange County and to transfer both of
the properties at 112 and 118 North Churton Street plus one million dollars ($1,000,000) to Eno River Parking
Deck, LLC; and
WHEREAS, North Carolina General Statute §160A-271 authorizes the County to exchange county -owned
property upon authorization by resolution of the Board of County Commissioners of Orange County adopted at
a regular meeting after at least ten (10) days' public notice; and
WHEREAS, the County has given the required public notice, and the Board has considered the matter at a
regular meeting.
NOW, THEREFORE, BE IT RESOLVED THAT:
1. The Exchange of properties described above is authorized.
2. The appropriate county officials are directed to execute the instruments necessary to carry out the
exchange.
This the 5h day of June 2012.
Bernadette Pelissier, Chair
Orange County Board of Commissioners
Attest:
Clerk to the Board of Commissioners
Attachment 1. Orange County Proposed 2011-12 Budget Amendment
The 2011-12 Orange County Budget Ordinance is amended as follows:
Note:
reflects encumbrance carry
forwards as authorized by
the annual budget
ordinance
#1 To appropriate
$1,000,000 of
Ori mal Bud et Encumbrance Budget as Amended General Fund Bud et as Amended
g g Can Budget as Amended g
ry through BOA#9 balance to through BOA#9-B
purchase the Eno
River Parking Deck
General Fund _
Revenue
Property Taxes $ 133,471,175 $ - $ 133,471,175 $ 133,471,175 $ $ 133,471,175
Sales Taxes $ 15,283,790 $ - $ 15,283,790 $ 15,283,790 $ $ 15,283,790
License and Permits $ 313,000 $ - $ 313,000 $ 313,000 $ $ 313,000
Intergovernmental $ 15,989,453 $ - $ 15,989,453 $ 19,861,428 $ $ 19,861,428_
Charges for Service $ 9,517,472 $
Investment Earnings $ 140,000 $ $ 9,517,472
140,000 $ 9,585,272
140,000 $ $ 9,585,272
Miscellaneous $ 1,266,298 $ - - $ 339,132
$ 1,266,298 $ 1,339,132 $ - $ 1,339,132
Transfers from Other Funds $ 1,064,917 $ - $ 1,064,917 $ 1,064,917 $ $ 1,064,917_
Fund Balance $ 1,131,417 $ 806,519 $ 1,937,936 $ 2,313,292 $ 1,000,000 $ 3,313,292
Total General Fund Revenues $ 178,177,522 $ 806,519 $ 178,984,041 $ 183,372,006 $ 1,000,000
$ 184,372,006
Expenditures
Governing&Management $ 14,072,861 $ 214,022 $ 14,286,883 $ 14,216,837 $ $ 14,216,837
General Services $ 17,543,235 $ 136,794 $ 17,680,029 $ 17,688,569 $ $ 17,688,569
_
Community&Environment $ 5,801,941 $ 76,056 $ 5,877,997 $ 5,930,057 $ -
Human Services $ 32,525,916 $ 123,048 $ 32,648,964 $ 35,230,202 $ - $ 5,230,257
Public Safety $ 19,697,379 $ 239,947 $ 19,937,326 $ 20,155,932 $ $ 20,155,932
Culture&Recreation $ 2,219,103 $ 16,652 $ 2,235,755 $ 2,267,158 $ $ 2,267,158 3`
Education $ 82,122,585 $ - $ 82,122,585 $ 81,459,389 $ - $ 81,459,38f-_
Transfers Out $ 4,194,502 $ - $ 4,194,502 $ 6,423,862 $ 1,000,000 $ 7,423,862
Total General Fund Appropriation $ 178,177,522 $ 806,519 $ 178,984,041 $ 183,372,006 $ 1,000,000 $$ 184,372,006
,A
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5
Year-To-Date Budget Summary
Fiscal Year 2011-12
General Fund Budget Summary
Original General Fund Budget I $178,177,522
Additional Revenue Received Through Budget
Amendment#9 (May 15, 2012)
Grant Funds $167,244
Non Grant Funds $3,845,365
General Fund Fund Balance for
Anticipated Appropriations (i.e.
$10,000 for the County's share of a vehicle
Encumbrances) $806,519 replacement as requested by the U.S. Forest Service
General Fund Fund Balance Appropriated (BOA#1); $192,243 to cover funding shortfall of Link
Center Geothermal HVAC Project(BOA#1-B);
to Cover Unanticipated Expenditures $375,356 $110,573 in insurance proceeds received in FY 2010-
General Fund Fund Balance Appropriated 11 to cover purchase of 3 ambulances(BOA#2-B);
$21,974 for budget carryforwards from FY 10-11 and
to Purchase Eno River Parking Deck $1,000,000 $7,334 for Hyconeechee Car per MOU(BOA#6);
$23,300 for purchase of a new van for Economic
Total Amended General Fund Budget $184,372,006 Development(BOA#8); $9,932 to cover remaining
Dollar Change in 2011-12 Approved cost of two(2)transport vans(BOA#9),
Appropriation of Fund Balance of$1,000,000 to
General Fund Budget $6,194,484
% Chan 9 a in 201 1-12 A purchase the Eno River Parking Deck(BOA#9-B)
pproved General
Fund Budget 3.48%
Authorized Full Time Equivalent Positions
Original Approved General Fund Full Time
Equivalent Positions 783.925
Original Approved Other Funds Full Time
Equivalent Positions loss of Smart Start funds
87.750 associated with Intensive
Position Reductions during Mid-Year (1.000) Home Visiting Grant
Program in Health;
Additional Positions Approved Mid-Year 0.000 employee was reassigned
Total Approved Full-Time-Equivalent to a vacant position within
Positions for Fiscal Year 2011-12
the department in GF
(BOA 870.675 (BBe OA#2)