HomeMy WebLinkAboutAgenda - 03-03-2015 - 7cORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: March 3, 2015
Action Agenda
Item No. 7 -c
SUBJECT: Land "Swap" Transaction — 416 Faucette Mill Road, Hillsborough
DEPARTMENT: Asset Management Services, PUBLIC HEARING: (Y /N) No
County Attorney, Tax
Administration, Housing,
Human Rights & Community
Development
ATTACHMENT(S):
1) Site Locator
2) Proposed Site "Swap" Illustratives
3) Due Diligence Information
Supporting a Buildable Residential
Lot on the County Parcel
4) Resolutions
PURPOSE: To consider:
INFORMATION CONTACT:
Jeff Thompson, 919 - 245 -2658
John Roberts, 919 - 245 -2318
James Bryan, 919 - 245 -2319
Dwane Brinson, 919 - 245 -2726
Audrey Spencer - Horsley, 919 - 245 -2492
This Item is a carry - forward from the
February 17, 2015 meeting cancelled
due to weather.
1) approving a land recombination ( "land swap ") transaction with AlterVue, LLC involving
adjacent parcels to mutually benefit the County and AlterVue, LLC with regard to the
integrity of a single family residential property located at 416 Faucette Mill Road and
adjacent County owned property that may be used for future affordable housing
development;
2) donating the resulting County parcel to Habitat for Humanity of Orange County for the
purpose of developing an affordable single family housing unit;
3) authorize the Chair to sign the attached resolutions and other necessary paperwork upon
final review of the County Attorney; and
4) supporting the Manager's efforts in pursuing similar efforts to analyze under - utilized or
vacant parcels owned by the County that may be suitable for future affordable housing
development.
BACKGROUND: AlterVue, LLC, ( "AlterVue ") a local real estate investor, purchased a single
family home located near 416 Faucette Mill Road ( "AlterVue Parcel ") in Hillsborough for the
purpose of improving the property and marketing it to potential homebuyers. (See Attachment
1, "Site Locator ").
2
Orange County recently conducted a tax foreclosure sale for a .8 acre parcel ( "County Parcel ")
adjacent to the AlterVue Parcel. The County Parcel and the AlterVue Parcel were once a
single, integrated parcel that was subdivided many years ago.
A tax foreclosure property owned by the County is a parcel that the County has acquired after
significant efforts to assist taxpayers with the payment of taxes. Those efforts include working
with taxpayers on pre - payments, payment schedules and other collection options. In rare
instances, foreclosure is the only option remaining. However, there is no set time period for the
County to begin foreclosure. Foreclosure is initiated only when all other options have been
exhausted.
Nick Nickerson, the Managing Member of AlterVue, approached the County staff last fall asking
for the County to sell small portions of the County Parcel to AlterVue because a survey update
confirmed that portions of the AlterVue Parcel were actually owned by the County within the
County Parcel. A portion of the single family residence located on the AlterVue Parcel straddles
a property line shared with the County Parcel.
Staff and the County Attorney met with Mr. Nickerson and agreed on a recombination "land
swap" structure to avoid the statutory property disposition process that may introduce upset
bidders into the process, potentially complicating AlterVue's intent. Attachment 2, "Proposed
Site "Swap" Illustrative ", depicts the "before and after" illustrations of the transaction.
AlterVue agreed with the County to pursue this transaction that would correct the survey issue
for AlterVue as well as to create a conforming, buildable lot for a single family home adjacent to
416 Faucette Mil Road on the resulting County Parcel.
The proposed transaction is as follows:
1. The County would deed the required portions of the County Parcel to AlterVue that
would yield a lot conforming to the Hillsborough Unified Development Ordinance;
2. AlterVue would deed the required portions of the AlterVue Parcel to the County that
would yield a vacant, conforming and buildable single family lot for affordable housing
use. Hillsborough staff has satisfactorily reviewed the transaction and the necessary
documents are ready for the Town's signature;
3. AlterVue would perform the due diligence work at no cost to the County confirming the
delivery of a conforming single family lot on the resulting County Parcel. AlterVue has
successfully completed this due diligence work, confirming that the resulting County
Parcel would support a single family lot (see Attachment 4, "Due Diligence
Information ", which includes the site -civil engineering report, and an opinion letter
from Habitat for Humanity of Orange County supporting the site as one desired for
constructing an affordable single family dwelling).
A power point presentation will be provided to the Board to assist in the understanding and
discussion of this item. This transaction meets the spirit and intent of the Board's Goal #1,
"Ensure a community network of basic human services and infrastructure that maintains,
protects and promotes the well -being of all County residents ".
3
FINANCIAL IMPACT: None. Should the Board approve the transaction, the County will gain a
suitable lot for affordable housing that may be donated or sold as the Board authorizes.
RECOMMENDATION(S): The Manager recommends the Board:
1) approve a land recombination ( "land swap ") transaction with AlterVue, LLC involving
adjacent parcels to mutually benefit the County and AlterVue, LLC with regard to the
integrity of a single family residential property located at 416 Faucette Mill Road and
adjacent County owned property that may be used for future affordable housing
development;
2) donate the resulting County parcel to Habitat for Humanity of Orange County for the
purpose of developing an affordable single family housing unit;
3) authorize the Chair to sign the necessary paperwork upon final review of the County
Attorney; and
4) support the Manager's efforts in pursuing similar efforts to analyze under - utilized or
vacant parcels owned by the County that may be suitable for future affordable housing
development.
AlterVue Parcel
County Parcel
Attachment 1
Site Locator
Parcels
Hillsborough Town Limits
416 Faucette Mill Rd
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N 1 in = 400 feet
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Orange County Planning and Inspections
Brian Carson (2/2/2015)
Attachment 2
Current Conditions 5
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MICHAEL A. NEAL & ASSOCIATES, PLLC
ENGINEERS, SURVEYORS, AND PLANNERS
105 West Corbin Street, Suite 201
Hillsborough, North Carolina 27278
(919) 644 -1277 mnealgmanaengineers.com
January 23, 2015
Mr. Jeff Thompson
Orange County Asset Management
131 West Margaret Street
Suite 300
Hillsborough, North Carolina 27278
Re: Lot "B "; Exempt Recombination of Lots "A" and "B"
Dear Mr. Thompson:
Attachment 3 7
I have reviewed the proposed lot `B" to be created by a recombination of two lots on
Faucette Mill, Rd. (SRI 328) in Hillsborough to determine if lot `B" as shown on the
Preliminary Plat dated January 5, 2015 by John Atkins PLS can be developed as a single
family lot. No inspection of subsurface conditions or utilities was conducted.
The lot is zoned R -20 which has certain dimensional requirements, below is a chart of
required and provided zoning dimensions.
Description Required Provide (ft.)
Minimum Lot Size 20,000 sf. 29,104 sf.
Lot width 100 ft. 100 ft.
Side and rear setbacks 20 ft. >20 ft.
Front setback 30 ft. >30 ft.
Lot `B" as shown on the subject plat will meet the dimensional requirements of the
current zoning regulations. Extracting the area of setbacks and such there will be an
approximate 13,000 sf buildable envelope on the lot. The lot slopes from the north
towards the southwest at roughly 2.5 %. The soils are listed by the SCS soils map as
being Georgeville series soil classifications which are generally well drained with
moderately permeable soils. There is a drainage ditch along the eastern property line
mainly on the adjacent lot, the Town of Hillsborough conducted an assessment of the
stream to determine if it has riparian buffers, they determined that no restriction exist due
to buffers encroaching onto this property.
Based on my inspection of the property and review of the Towns zoning requirements It
is my opinion that this lot can be developed as a single family lot and meet the
requirements of the Town of Hillsborough, NC to the same extent that the parient lot can
be developed. .
Sincerely
Mief A. Nei, Q.•��`�
Habitat
for Humanity
Orange County, NC
January 16, 2015
Nick Nickerson
Craver Real Estate
PO Box 16544
Chapel Hill NC 27516 -6544
Dear Mr. Nickerson,
88 Vilcom Center Drive, Suite L110
Chapel Hill, NC 27514
P (919) 932 -7077, F (919) 932 -7079
www.orangehabitat.org
info@orangehabitat.org
I have inspected the parcel to the southeast of 416 Faucette Mill Road, Hillsborough NC 27278.
The parcel belonging to Grange County (PIN 9865 62 1043) is listed as 0.8 acres.
The parcel appears to be suitable for building a single family residence.
Sincerely,
Tyler Momsen -- Hudson
Construction Director
RES- 2015 -007 Attachment 4
ORANGE COUNTY
NORTH CAROLINA
RESOLUTION TO EXCHANGE REAL PROPERTY
10
WHEREAS, Orange County is the owner of that certain parcel of land situated adjacent
to 416 Faucette Mill Road having PIN 9865621043 and an assessed value of $25,562; and
WHEREAS, Altervue, LLC is the owner of that certain parcel of land situated at 416
Faucette Mill Road having PIN 9865529132 and an assessed value of $87,932; and
WHEREAS, the parties desire to exchange said parcels as follows:
A 143 square foot portion of the Altervue, LLC Parcel situated at 416 Faucette Mill
Road, Hillsborough, NC, and having PIN 9865529132 being approximately 0.27 acres
prior to the exchange and approximately 0.4 acres after the exchange
to be exchanged for
A 6,633 square foot portion of the County Parcel adjacent to Faucette Mill Road,
Hillsborough, NC, and having PIN 9865621043 being approximately 0.8 acres prior to
the exchange and approximately 0.67 acres after the exchange.
WHEREAS, the exchange is to be an even trade with the sole other consideration
being all due diligence and transfer costs and fees to be paid by Altervue, LLC; and,
WHEREAS, the County has properly advertised by Public Notice its intent to exchange
said real property, and has complied with all statutory requirements to accomplish the same.
NOW THEREFORE, BE IT RESOLVED, the properties are exchanged as shown above
and the Chair is authorized to execute any and all documents and take whatever action is
necessary to accomplish the purpose of this Resolution
ADOPTED on this day of 12015.
Earl McKee, Chair
ATTEST:
Donna Baker, Clerk to the Board
RES- 2015 -008
ORANGE COUNTY
RESOLUTION APPROVING CONVEYANCE OF PROPERTY
NORTH CAROLINA
11
WHEREAS, Orange County is the owner of a parcel of property situated in a residential
neighborhood on Faucette Mill Road in Hillsborough, North Carolina having PIN 9865621043
and an assessed value of $25,562; and
WHEREAS, the parcel was acquired through tax foreclosure sale and Orange County has no
viable use for the parcel; and
WHEREAS, Orange County is authorized by North Carolina General Statute 160A -279 to
convey properties to entities involved in carrying out a public purpose; and
WHEREAS, Habitat for Humanity, a nonprofit corporation has offered to accept the parcel for
the public purpose of providing affordable housing for low income Orange County residents.
NOW THEREFORE BE IT RESOLVED THAT the Board of Commissioners authorizes the Chair
to execute all documents necessary to convey fee simple defeasible title to the County -owned
parcel adjacent to 416 Faucette Mill Road, Hillsborough, NC, and having PIN 9865621043 being
approximately 0.67 acres, consideration for said conveyance is the nonmonetary public purpose
of providing affordable housing for low income residents of Orange County. The following set of
conditions, covenants, and restrictions shall be incorporated in the deed given by the County to
Habitat for Humanity:
1) The property may be used only for the erection and construction of affordable
residential housing.
2) Said restriction shall be a covenant to run with the land.
ADOPTED on this day of 12015.
Earl McKee, Chair
ATTEST:
Donna Baker, Clerk to the Board