HomeMy WebLinkAboutAgenda - 06-07-2016 - 7-d - Approval of Contract to Purchase Real Property – S.L. Efland Heirs, and Approval of Budget Amendment #9-A 1
ORD-2016-022
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: June 7, 2016
Action Agenda
Item No. 7-d
SUBJECT: Approval of Contract to Purchase Real Property — S.L. Efland Heirs, and
Approval of Budget Amendment #9-A
DEPARTMENT: Environment, Agriculture,
Parks and Recreation
(DEAPR)
ATTACHMENTS: INFORMATION CONTACT:
1) Vicinity Map David Stancil, 919-245-2510
2) Site Map Rich Shaw, 919-245-2514
3) Offer to Purchase and Contract
PURPOSE: To consider approval of a contract to purchase approximately 37 acres from the
S.L. Efland Heirs, LLC for an expansion of the County's Soccer.com Center in Efland, and
approval of Budget Amendment #9-A.
BACKGROUND: The S.L. Efland Heirs, LLC owns approximately 37 acres located adjacent to
Orange County's Soccer.com Center on West Ten Road in Efland. The County is interested in
acquiring the property for an expansion of the soccer center facilities. Since the center opened
in August 2009, there has been an increasing need for additional parking and playing fields;
however there is no available space for new facilities on the existing County property.
The property is located four miles west of Hillsborough, and is part of a larger, 87-acre tract that
is divided by Interstate 85/40. The County is only interested in acquiring the middle portion of
the tract located south of the Interstate and north of West Ten Road. The 37-acre site shares a
property boundary with the center and has 600 feet of frontage along West Ten Road.
The existing Soccer.com Center is highly popular for both recreational leagues and also for club
teams, tournaments and soccer showcase events. It features five full-sized soccer fields, one
practice field, a '/2-mile walking track, concession stand, shelters, and restroom facilities. If the
County acquires the adjacent property, it would allow for the potential of an additional three
playing fields, vehicle parking, restroom facilities and a retention pond to capture stormwater
and drainage from the existing fields. The collected water could be used to supplement well
water used to irrigate the fields. Other potential uses of the site include nature/running trails
and tennis courts.
The site would address a significant need - additional parking. Currently, there are 108 spaces
for vehicles at the park and another 120 spaces available for use at Gravelly Hill Middle School.
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There is a need for 250 additional parking spaces or more to accommodate league play and
special soccer tournaments and events.
The subject property is zoned Economic Development Buckhorn Higher Intensity (EDB-2),
which is intended for a range of light industrial, distribution, retail, office, and services uses in
the Buckhorn Economic Development District. Allowed uses include parks, government
buildings, manufacturing, assembly and processing, wholesale trade, as well as various retail
and services with a conditional use permit. Although the property is in an Economic
Development District, there are no public water and sewer services currently available to this
site, and this particular property has topography that would have made it more expensive for a
business to link the property to the existing or future public sewer network. The appraised value
of the property was reduced by $300,000 to account for that constraint on land use.
The property is entirely undeveloped and forested with a mixture of immature pine and
hardwoods. A perennial stream runs from north to south along the eastern property boundary
and will need to be buffered from any construction. The stream flows to a small wetland located
in the far southeast corner of the property, and then enters a culvert under West Ten Road.
The owners have agreed to sell the property to Orange County for $740,000 (appraised value).
The County is currently completing its due diligence by completing a title search, a Phase 1
environmental site assessment (ESA), and a boundary survey. Following the completion of
those items, and the findings are deemed satisfactory, the parties will schedule a closing for the
transaction to occur by July 31, 2016 or as soon as possible thereafter.
FINANCIAL IMPACT: The purchase price is $740,000 ($20,000 per acre), with an additional
$12,000 - $15,000 anticipated in transaction costs (survey, Phase 1 ESA, title search/closing).
A portion of the funding for the acquisition ($425,000) would come from the approved Capital
Improvement Project funds budgeted for Soccer.com Center land acquisition in FY 2015-16,
and the remaining approximately $330,000 would come from the Lands Legacy Capital Project.
With this allocation, approximately $3.2 million remains available in the Lands Legacy Capital
Project. Budget Amendment #9-A provides for the use of the above mentioned funds, and
amends the following Capital Project Ordinances:
Lands Legacy Capital Project (-$330,000) -Project# 20011
Revenues for this project:
Current FY 2015-16 FY 2015-16
FY 2015-16 Amendment Revised
Alternative Financing $3,251,472 $0 $3,251,472
From General Fund $631,500 ($330,000) $301,500
Donations $1,000 $0 $1,000
Appropriated Fund Balance $9,337 $0 $9,337
Total Project Funding $3,893,309 ($330,000) $3,563,309
Appropriated for this project:
Current FY FY 2015-16 FY 2015-16
2015-16 Amendment Revised
Lands Legacy Program $3,893,309 ($330,000) $3,563,309
Total Costs $3,893,309 ($330,000) $3,563,309
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Soccer.com Center Capital Project ($330,000) - Project# 20026
Revenues for this project:
Current FY 2015-16 FY 2015-16
FY 2015-16 Amendment Revised
Alternative Financing $2,817,000 $0 $2,817,000
2001 Bonds $1,350,000 $0 $1,350,000
2/3 Net Debt Financing $381,960 $0 $381,960
Grant Funds $33,128 $0 $33,128
Sponsorships $12,000 $0 $12,000
From General Fund $26,040 $330,000 $356,040
Total Project Funding $4,620,128 $330,000 $4,950,128
Appropriated for this project:
Current FY FY 2015-16 FY 2015-16
2015-16 Amendment Revised
Soccer.com Project $4,620,128 $330,000 $4,950,128
Total Costs $4,620,128 $330,000 $4,950,128
SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goal is applicable to
this item:
• GOAL: CREATE A SAFE COMMUNITY
The reduction of risks from vehicle/traffic accidents, childhood and senior injuries, gang
activity, substance abuse and domestic violence.
The project will allow for improved parking facilities at the existing park, which helps to reduce
risks from vehicle/traffic accidents and thereby further one of Orange County's Social Justice
Goals of creating a safe community.
RECOMMENDATIONS: The Manager recommends that the Board:
1) Approve the purchase of approximately 37 acres of land located on West Ten Road
from the S.L. Efland Heirs, LLC and approve Budget Amendment #9-A with the
amended Capital Project Ordinances;
2) Authorize the Chair to sign the contract on behalf of the County, subject to final
review by staff and County Attorney; and
3) Instruct the County Attorney and staffs from DEAPR and Financial Services to
schedule and complete a closing on the property expected to occur on or before July
31, 2016.
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Attachment 3
Return to John Roberts, Office of the County Attorney, Box 8181, Hillsborough, NC 27278
STATE OF NORTH CAROLINA
COUNTY OF ORANGE
OFFER TO PURCHASE AND CONTRACT
THIS OFFER TO PURCHASE AND CONTRACT ("Agreement"), made and entered
into this the day of , 2016 by and between S L EFLAND HEIRS, LLC, a
North Carolina Limited Liability Company, having a registered North Carolina office address
of 1698 Westbrook Avenue, Burlington, North Carolina 27215 and an address of 4918 Andrea
Avenue, Annandale, Virginia 22003, hereafter called "Seller", and ORANGE COUNTY,
NORTH CAROLINA, a body politic and political subdivision of the State of North Carolina,
having an address of P.O. Box 8181, Hillsborough, North Carolina 27278, hereafter called
"Buyer";
WITNESSETH:
Buyer hereby offers to purchase and Seller, upon acceptance of said offer, agrees to sell
and convey, all of that plot, piece or parcel of real property located in Orange County, North
Carolina, which said real property is hereinafter referred to as "the Property" and is more
particularly described as follows:
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The approximately 37 acres of land and any and all improvements
thereon, and which land is illustrated on the GIS map that is Exhibit A hereto.
The Property is identified as being all of that portion of the land parcel lying and
situated north of West Ten Road and south of Interstate 85/40, and having
Orange County PIN 9844264137.
THE TERMS AND CONDITIONS OF THIS AGREEMENT ARE AS FOLLOWS:
1. PURCHASE PRICE: The purchase price for the Property shall be SEVEN
HUNDRED FORTY THOUSAND AND 00/100 DOLLARS ($740,000) plus any amount due
Seller as the result of the calculation made in Section 4(c) below for ad valorem taxes on the
Property for the calendar year in which the Closing occurs. The purchase price shall be paid
by payment in cash at the closing.
2. TITLE: Title will be delivered to Buyer at closing by a General Warranty Deed
from Seller, made to Orange County, North Carolina, which shall be fee simple marketable
title, free of liens, encumbrances, easements, restrictions, rights and conditions, including, but
not limited to, any promissory note, mortgage, deed of trust, real estate contract, right of first
refusal, or option to buy, other than current property taxes and rights, reservations, covenants,
easements, conditions, and restrictions of record as of the effective date of this Agreement that
do not materially affect the value of the Property or unduly interfere with Buyer's intended use
of the Property, which exceptions must be approved in writing by Buyer ("Permitted
Exceptions"). The deed conveying the Property shall be on a North Carolina Bar form
General Warranty Deed. The Property description in the deed shall conform to the survey of
the Property to be prepared as prescribed in Section 4(a) of this Agreement.
3. REPRESENTATIONS, WARRANTIES AND COVENANTS OF SELLER:
Seller makes the following representations and warranties to Buyer as of the effective date of
this Agreement and again as of the Closing Date:
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(a) Title. At the Closing Date, Seller shall have good, marketable, and indefeasible
fee simple title to the Property subject only to the Permitted Exceptions, and Seller is aware of
no other matters that adversely affect title to the Property.
(b) Leases. There are no leases, licenses, or other agreements granting any person
or persons the right to use or occupy the Property or any portion thereof except as described in
Section 3(d) of this Agreement.
(c) Options. Seller has not granted any options nor is Seller committed nor
obligated in any manner whatsoever to sell the Property or any portion thereof to any party
other than Buyer.
(d) Construction Liens. To the extent any improvements have been made or will be
made to the Property prior to the Closing Date that might form the basis of mechanics' or
materialmen's liens, Seller agrees to keep the Property free from such liens that might result
and to indemnify, defend, and hold Buyer harmless from any and all such liens and all
attorneys' fees and other costs incurred by reason thereof.
(e) Reports. All Reports, certificates, and other documents containing factual
information delivered by Seller, or by Seller's agents in connection with this Agreement, are
and shall be, to the best of Seller's knowledge, true and complete and shall not contain any
untrue statement of material fact or omit to state any material fact, the disclosure of which is
necessary to make the statements contained therein and in this Agreement, in light of the
circumstances under which they are made, not misleading.
(f) Environmental.
(1) Seller has no knowledge of any underground storage tanks being located
on the Property. Buyer agrees to perform a Phase I Environmental Assessment of the Property
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(hereafter "the Phase I"), at Buyer's expense. Should the Phase I disclose that one or more
underground storage tanks are located on the property, a condition precedent to Buyer's
obligation to close on the sale of the Property is that the following be done at Seller's expense:
(1) any underground storage tanks located on the Property be removed, (2) removal of
discharged fuel oil or other contaminants from the Property in a manner and to the extent
required to meet requirements for a certificate, (3) a copy of a certificate demonstrating
removal and clean-up be provided to Orange County, c/o Jeffrey Thompson, Director of
Assets Management Services, P.O. Box 8181, Hillsborough, North Carolina 27278, as soon as
the certificate is available and (4) the original of the certificate be provided to Buyer at the
closing. However, Seller shall not be obligated to undertake the cleanup identified in the Phase
I report if, in Seller's sole discretion, Seller determines that it is not economically reasonable
to do so. In that event, Seller may terminate this Agreement upon written notice to Buyer.
(2) Seller warrants and represents to Buyer as follows:
(i) Seller has no knowledge of, and no reason to believe (A) that any
industrial use has been made of the Property, (B) that, except for chemicals used in the
farming of the Property, the Property has been used for the storage, treatment or disposal of
chemicals or any wastes or materials that are classified by federal, State or local laws as
hazardous or toxic substances, or (C) that any manufacturing, landfilling or chemical
production has occurred on the Property.
(ii) To the best of Seller's knowledge, the Property is in compliance
with all federal, State and local environmental laws and regulations, including, but not limited
to, the Comprehensive Environmental Response, Compensation and Liability Act of 1980
("CERCLA"), Public Law No. 96-510, 94 Stat. 2767, 42 USC 9601 et seq., and the
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Superfund Amendments and Reauthorization Act of 1986 ("SARA"), Public Law No. 99-499,
100 Stat. 1613.
(iii) Seller has fully disclosed to Buyer that Seller has no knowledge
of the existence, extent and nature of any hazardous materials, substances, wastes or other
environmentally regulated substances (including without limitation, any materials containing
asbestos), in or under the Property or use in connection therewith.
(3) Seller shall indemnify and hold Buyer harmless from and against (i) any
and all damages, penalties, fines, claims, liens, suits, liabilities, costs (including clean-up
costs), judgments and expenses (including attorneys', consultants' or experts' fees and
expenses) of every kind and nature suffered by or asserted against Buyer as a direct or indirect
result of any warranty or representation made by Seller in subsection (e) herein being false or
untrue in any material respect, or (ii) any requirement under any law, regulation or ordinance,
local, State or federal, which requires the elimination or removal of any hazardous materials,
substances, wastes or other environmentally regulated substances existing or placed on the
Property at any time up to and including the Closing Date.
(4) Should the Phase I disclose the existence on the Property of any
hazardous materials, substances, wastes or other environmentally regulated substances
(including without limitation, any materials containing asbestos), a condition precedent to
Buyer's obligation to close on the sale of the Property is that the following be done at Seller's
expense: (1) such material, substance, or contaminant located on the Property be removed
sufficient to meet the requirements for a certificate, (2) that a copy of a certificate
demonstrating removal and clean-up be provided to Orange County, c/o Jeffrey Thompson,
Director of Assets Management Services, P.O. Box 8181, Hillsborough, North Carolina
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27278, as soon as the certificate is available, and (3) that the original of the certificate be
provided to Buyer at the closing. However, Seller shall not be obligated to undertake the
cleanup identified in the Phase I report if, in Seller's sole discretion, Seller determines that it is
not economically reasonable to do so. In that event, Seller may terminate this Agreement upon
written notice to Buyer.
(5) Seller's obligations under this Section shall survive the closing and
continue in full effect notwithstanding receipt of the purchase price.
(g) Representations/Warranties. All representations and warranties contained in this
Agreement are true and correct as of the date of execution of this Agreement and will be true
as of the Closing Date and shall survive closing and execution and delivery of the Deed and
shall not be merged therein.
4. SETTLEMENT CHARGES:
(a) Seller shall pay for the preparation of a deed, for the preparation and recording
of all documents necessary to convey marketable fee simple title free of liens and
encumbrances, and for the excise tax required by law.
(b) Buyer shall pay for recording the deed.
(c) Ad valorem taxes on the Property, if any, for the calendar year in which the
closing occurs shall be paid by Seller. The credit for pro-rated ad valorem taxes on the
Property that would be due Seller if Buyer were not a North Carolina local government shall
be added to the purchase price as provided in Section 1 of this Agreement. Seller shall pay any
Orange County ad valorem taxes on personal property of Seller for the entire year of the
closing. Seller shall pay all deferred taxes and any tax penalties including late listing penalties.
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(d) Buyer shall pay for a survey of the Property and all other closing costs other
than those associated with environmental cleanup, if necessary, as provided for in Section 3(f).
5. CONDITIONS:
(a) Seller agrees to allow Buyer access to the Property for the purpose of
inspecting, testing and analyzing the Property at any time prior to the closing of the purchase
of the Property.
(b) On request of Buyer, Seller agrees to exercise Seller's best efforts to deliver to
Buyer, as soon as reasonably possible following the signing of this agreement, copies of any
title information in possession of or available to Seller, including, but not limited to, title
insurance policies, attorneys opinions on title, surveys, covenants, deeds, notes, and deeds of
trust and easements relating to the Property.
(c) Any and all deeds of trust, liens or other charges against the Property not
assumed by Buyer must be paid and cancelled by Seller prior to or at closing.
(d) A condition precedent to Buyer's obligation to close on the sale of the Property
is that Buyer's Board of Commissioners formally approve the purchase of the Property by
action in an open public meeting as provided by law.
(e) Seller previously engaged attorney Joseph J. Kalo, IV, of the law firm Pittman
& Steele ("Kalo") to perform title work and other legal services necessary for the Grantors of
that certain Special Warranty Deed recorded in Book 5997, Page 493 of the Orange County
Registry to vest good, marketable, insurable fee simple title to the Property in Seller. Seller
hereby authorizes Kalo to: (i) provide a title opinion for the Property to Buyer and its
designated title insurer; (ii) deliver a copy of his title files related to the Property to Buyer; and
(iii) otherwise assist Buyer in obtaining a title insurance policy for the Property. Buyer agrees
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that any and all legal fees and expenses incurred for work performed by Kalo at Buyer's
request pursuant to this Section 5(e) will be paid exclusively by Buyer. In no event shall Seller
be responsible for legal fees or expenses billed by Kalo for work requested by Buyer under this
Section 5(e) even if this purchase transaction fails for any reason. Seller shall have no
responsibility for payment of any title insurance premium for any title policy Buyer elects to
procure for the Property.
6. MISCELLANEOUS PROVISIONS:
(a) This Agreement embodies and constitutes the entire understanding between the
parties with respect to the transaction contemplated herein and all prior agreements,
understandings, representations and statements, oral or written, are merged into this
Agreement. Neither this Agreement nor any provision hereof may be waived, modified,
amended, discharged or terminated except by an instrument signed by the party against whom
the enforcement of such waiver, modification, amendment or discharge or termination is
sought, and then only to the extent set forth in such instrument.
(b) This Agreement shall be governed by and construed in accordance with the laws
of the State of North Carolina, without, however, giving effect to any principle of conflicts of
law.
(c) The captions in this Agreement are inserted for convenience of reference only
and in no way define, describe or limit the scope or intent of this Agreement or any of the
provisions hereof
(d) Any provision herein contained which by its nature and effect is required to be
observed, kept or performed after the Closing Date, shall survive the closing and remain
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binding upon and for the benefit of the parties hereto, their heirs, personal representatives,
successors or assigns, until fully observed, kept or performed.
(e) This Agreement shall be binding and shall inure to the benefit of the parties
hereto and their respective beneficiaries, heirs, personal representatives, successors and
permitted assigns.
(f) As used in this Agreement, the masculine shall include the feminine and neuter,
and vice versa; the singular shall include the plural and the plural shall include the singular, as
the context may require.
(g) Any provision contained in this agreement which by its nature and effect, if
required to be observed, kept or performed after closing shall survive the closing and shall
remain binding upon and for the benefit of the parties hereto until fully observed, kept or
performed.
7. CLOSING: All parties agree to execute any and all documents and papers
necessary in connection with the closing and transfer of title to the Property on or before June
30, 2016 in Hillsborough, North Carolina ("Closing Date").
8. POSSESSION: Possession of the Property shall be delivered at closing.
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IN WITNESS WHEREOF,the Seller has caused this instrument to be signed by its
Managers,the day and year written above, and Orange County has caused this instrument to be
signed by the Chair of the Board of County Commissioners and attested by the Clerk to its Board
of County Commissioners, all the day and year written above.
STATE OF V1rC.1%
COUNTY OF Fx%c 0-4 SELLER:
SUBSCRIBED AND SWORN TO BEFORE ME
TNIS 2-'3 DAY OF lrr 1 , 2o tb , S L EFLAND HEIRS LLC
BY PYAVIt. E o Gums,"
By:
NOTARY PUBLI f lili , u/2 p 7.e/
[ 7t
, °Po ERIC CHAPS
l ) NOTARY PUBUCT037 By::3.:,::;111-7, COMMONWEALTH
OF VIRGINIA
MY COMMISSION EXPIRES MAY31,2319
BUYER:
ORANGE COUNTY,NORTH CAROLINA
By:
Earl McKee, Chair
Orange County Board of Commissioners
ATTEST:
Donna S. Baker,Clerk
to the Board of Commissioners
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IN WITNESS WHEREOF,the Seller has caused this instrument to be signed by its
Managers,the day and year written above, and Orange County has caused this instrument to be
signed by the Chair of the Board of County Commissioners and attested by the Clerk to its Board
of County Commissioners, all the day and year written above.
SELLER:
S L EFLAND HEIRS LLC
By:
By:
BUYER:
ORANGE COUNTY,NORTH CAROLINA
By:
Earl McKee, Chair
Orange County Board of Commissioners
ATTEST:
Donna S. Baker, Clerk
to the Board of Commissioners
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Acknowledgements
STATE OF ®r I
COUNTY OF Nf n4`N4 14
iveh 411 ia
ore,I, et/fife GI P i ��
a Notary Public ofd-Ge�.y,�Fert�., certify
that igidik,k) 67644 personally appeared before me this day and acknowledged the
due execution of the fore�ing instrument.
Witness my hand and official stamp or seal, this the ,4 day of ' ?►'(a I , 2016.
Notary Public
My commission expires: OFFICIAL STAID
10 0\/ 2, Z 2190 T •OREGON
C SION NO.944699
MY 22,2019
STATE OF
COUNTY OF
I, , a Notary Public of Orange County, North Carolina, certify
that personally appeared before me this day and acknowledged the
due execution of the foregoing instrument.
Witness my hand and official stamp or seal, this the day of , 2016.
Notary Public
My commission expires:
12
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NORTH CAROLINA
ORANGE COUNTY
I, a Notary Public of the County and State aforesaid, certify that Donna S. Baker
personally came before me this day and acknowledged that she is Clerk to the Board of
Commissioners for Orange County, North Carolina and that by authority duly given and as the
act of Orange County, North Carolina the foregoing instrument was signed in its name by the
Chair of said Board of Commissioners and attested by her as Clerk to said Board of
Commissioners.
Witness my hand and official stamp or seal, this the day of , 2016.
Notary Public
My commission expires:
13
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