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HomeMy WebLinkAboutAgenda - 01-24-2006-5nORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: January 24, 2006 Action Agenda Item No. 5- n SUBJECT: Disposal of Surplus County Real Property DEPARTMENT: Purchasing & Central Services PUBLIC HEARING: (Y/N) No ATTACHMENT(S): Location Map Resolution NC Non Warranty Deed form Notice of Sale INFORMATION CONTACT: Pam Jones 919 245-2652 PURPOSE: To consider declaring as surplus property that is owned by the County on Graham Street, Chapel Hill; and to consider accepting an offer from Toben Properties, LLC, to purchase that property, subject to upset bid. BACKGROUND: Toben Properties, LLC has offered to purchase property owned by the County on Graham Street, Chapel Hill for the sum of $38,018, which is the current tax valuation. The two lots are shown on the attached map. The property was acquired by the County in November 1983 by tax foreclosure and has remained vacant and disused since the County acquired it. Pursuant to County policy, the property was evaluated for County or public use, including for affordable housing. The property is extremely constrained by its small size and dimensions, and is of use only if to be combined with adjacent properties. No such County purposes were identified as feasible for the property and the Manager recommends that it be declared surplus and sold. The County is authorized to dispose of properties in one of four ways: Sealed bid, negotiated bid, upset bid and public auction. The upset bid method is used most frequently by County governments for the disposal of real property. In general, the process is as follows: 1. The upset bid procedure is begun when the governing body proposes to accept the offer. The Board typically approves a resolution that accepts the offer and sets forth the details of the sale. A resolution for this purpose is attached. 2. The offeror must place a sum equal to 5% of the offer on file with the county as earnest money. 3. The County publishes notice of the upset sale, which includes the property description, sets out the amount and terms of the offer and specifies the requirements to offer an upset bid. A Notice of Sale is attached. 4. Sealed upset bids will be received for a period of ten (10) days from the publication of the notice by the Orange County Purchasing Director. At the conclusion of the 10-day period, the Purchasing Director shall open the bids, if any, and the highest such bid will become the new offer. If there is more than one bid in the highest amount, the first such bid received will become the new offer. 5. In order to qualify as an upset bid, the next bid submitted must raise the initial bid by an amount equal to 10% of the first $1000 and 5% of the remaining bid. This bid then becomes the basis for any future upset bids that may be received within the ten (10) day period. & The procedures outlined in steps three and four above, are repeated until no upset bid is received. 7. The final qualifying offer is presented to the Board of Commissioners for approval. Should the Board choose to do so, it may accept the original offer, subject to upset as part of the resolution. This serves to expedite the closing of the final sale. FINANCIAL IMPACT: Although upset bidding could potentially raise the amount, the County will receive a minimum of $38,018 from the sale of this property. RECOMMENDATION(S): The Manager recommends that the Board: • Declare the subject property as surplus; and • Approve the resolution, which recommends sale of the subject property on Graham Street, Chapel Hill, NC, subject to upset bid, to Toben Properties, LLC, Chapel Hill for the sum of $38,018; and • Direct the Clerk to the Board to advertise as indicated in the resolution; and • Authorize the Attorney, Manager and his designees to execute documents to affect the sale at such time the upset bid requirements may be met. You Count In Orange County Page 1 of 1 0 R] Summary 0Building [71 Land I'] Documents ?PriorOwners ! ;Addresses Create Print Daa Page „ ...._ „_.L___..?_s?,....,.. -,; nr?fmnn Ccrim?n9RoniiraNamaoYnnC: 1/17/9nnn 0 ORANGE COUNTY BOARD OF COMMISSIONERS RESOLUTION ANNOUNCING SALE OF PROPERTY GRAHAM STREET CHAPEL HILL, NORTH CAROLINA WHEREAS, Orange County owns property described as two (2) tracts of land located in the Town of Chapel Hill, Orange County North Carolina and designated as #13 BL C Lloyd Place, P1/63 Tract 722472, PIN 9788.06- 6297 and #12 BL C Lloyd Place, P1/63, Tract 722473, PIN 9788-06-7213 by the Orange County Land Records; and WHEREAS, North Carolina General Statute 160A-269 permits the county to sell property by upset bid after receipt of an offer for the property; and WHEREAS, the County has received an offer to purchase the property described above, in the amount of $38,018, submitted by Toben Properties, LLC, Chapel Hill, North Carolina; and WHEREAS, Toben Properties, LLC has paid the required five percent (5%.) deposit on the offer; THEREFORE, the County Commissioners of Orange County resolves that 1. The County Commissioners propose to accept the Toben Properties, LLC offer to buy the property described above through the upset bid procedure of North Carolina General Statute 160A-269 as further detailed in this Resolution. 2. The Clerk to the Board shall cause a notice of the proposed sale to be published. The notice shall describe the property and the amount of the offer, and shall state the terms under which the offer may be upset. 1 Persons wishing to upset the offer that has been received shall submit a sealed bid with their offer to the office of the Orange County Purchasing Director within ten (10) days after the notice of sale is published. At the conclusion of the 10-day period, the Purchasing Director shall open the bids, if any, and the highest such qualifying bid will become the new offer- If there is more than one qualifying bid in the highest amount, the first such bid received will become the new offer. If there is more than one qualifying bid in the highest amount received on the same day, the first such bid opened will become the new offer. 0 4. If a qualifying higher bid is received, the clerk to the Board shall cause a new notice of upset bid to be published, and shall continue to do so until a 10-day period has passed without any qualifying upset bid having been received. At that time, the amount of the final high bid shall be reported to the County Commissioners. 5. A qualifying higher bid is one that raises the existing offer by not less than ten percent (101yo) of the first $1,000.00 of that offer and five percent (5%) of the remainder of that offer. 6. A qualifying higher bid must also be accompanied by a deposit in the amount of five percent (5%) of the bid; the deposit may be made in cash, cashier's check or certified check. The County will return the deposit on any bid not accepted and will return the deposit on an offer subject to upset if a qualifying higher bid is received. The County will return the deposit of the final high bidder at closing. 7. The terms of the final sale are that a. The County Commissioners must approve the final high offer before the sale is closed, which it will do within 30 days after the final upset bid period has passed; and b. The buyer must pay cash at the time of closing. c. The Deed from the County to the purchaser will be one without warranties of title or otherwise, including environmental, and will be the N.C. Bar Association North Carolina Non-Warranty Deed Form 7 (© 1977, 2002), a copy of which is attached hereto as Exhibit A. The Buyer will pay all 2006 ad valorem taxes on the property, & The County reserves the right to withdraw the property from sale at any time before the final high bid is accepted and the right to reject at anytime all bids. 9. If no qualifying upset bid is received after the initial public notice, the offer set forth above is hereby accepted as detailed in this Resolution. The appropriate county officials are authorized to execute the instruments necessary to convey the property to the highest bidder. Adopted the 24th day of January, 2006 01-16- VIM 1+ u:; rnvu- Exhibit A C....:.., T-. NORTH CAROLINA NON-WARRANTY PEED 9 Parcel Identifier No. Verified by County on the _ day of 20_ By: _ Mail/Box to: This instrument was prepared b Brief description for the Index: THIS DEED made this 20^, by and between Enter in appropriate block for each party: name, address, and, if appropriate, character of entity, e g corporation or partnership The designation Grantor and Grantee as used herein shall include said parties, their heirs, successors, and assigns, and shall include singular, plural, masculine, feminine or neuter as required by context WITNESSETH, that the Grantor, for a valuable consideration paid by the Grantee, the receipt of which is hereby acknowledged, has and by these presents does grant, bargain, sell and convey unto the Grantee in fee simple, all that cermin lot or parcel of land situated in the City of Township, County, North Carolina and more particularly described as follows: The property hereinabove described was acquired by Grantor by instrument recorded in Book page A map showing the above described property is recorded in Plat Book Page NC Bar Association Form No.. 7 Z 1977, 2002 * James Williams & Co, Inc. Printed by Agreement with the NC Bar Association - 1981 wwwJamesWilliams.com day of G TO HAVE AND TO HOLD the aforesaid lot or parcel of land and all privileges and appurtenances thereto belonging to the Grantee in fee simple. The Grantor makes no warranty, express or implied, as to title to the property hereinabove described. IN WITNESS WHEREOF, the Grantor has caused this instrument to be duly executed and delivered (Entity Name) z 0 By: z (SEAL) Title: x U By: (SEAL) Tide: By: (SEAL) Title: State of North Carolina - County of a C) I, the undersigned Notary Public of the County and State aforesaid, certify that x personally appeared before me this day and acknowledged the due execution of the foregoing instrument for the purposes therein expressed Witness my c-) hand and Notarial stamp or seal this day of 20 a - a a, w My Commission Expires: _ Notary Public State of North Carolina - County of I, the undersigned Notary Public of the County and State aforesaid, certify that Z personally came before me this day and acknowledged that _he is the _ of z a North Carolina or corporation/limited liability company/general parmerahipAimited U partnership (strike through the inapplicable), and that by authority duly given and as the act of each entity, _he signed the forgoing instrument in its name on its behalf as its act and deed. Witness my hand and Notarial stamp or seal this day of 20 w - My Commission Expires: Notary Public y State of North Carolina - County of J O 1, the undersigned Notary Public of the County and State aforesaid, certify that y personally appeared before me this day and x acknowledged the due execution of the foregoing instrument for the purposes therein expressed. Witness my u hand and Notarial stamp or seal this day of 20.. a v My Commission Expires: Notary Public The foregoing Certificate(s) of is/are certified to be correct This instrument and this certificate are duly registered at the dare and time and in the Book and Page shown on the first page hereof. Register of Deeds for County By: Deputy/Assistant • Register of Deeds NC Bar Association Form No 7 19 1977. 2002 - James Williams & Co, Inc Printed by Agreement With the NC Bar Association - 1981 wW'W.Jameswilliams com PUBLIC NOTICE SALE OF COUNTY PROPERTY An offer of $38,018 has been submitted for the purchase of certain property on Graham Street, Chapel Hill, owned by Orange County and more particularly described as two (2) tracts of land located in the Town of Chapel Hill, Orange County North Carolina and designated as #13 BL C Lloyd Place, P1/63 Tract 722472, PIN 9788-06-6297 and #2 BL C Lloyd Place, P1/63, Tract 722473, PIN 9788-06-7213 by the Orange County Land Records. The Board of Commissioners proposes to accept the terms of the offer except that Orange County will make no warranties of title or otherwise, including environmental, and the deed from Orange County will be by non warranty deed on the N.C. Bar Association North Carolina Non-Warranty Deed Form 7 (© 1977, 2002) (hereafter Non Warranty Deed). The Buyer will pay any and all 2006 ad valorem taxes on the property. Persons wishing to upset the offer that has been received shall submit a sealed bid with their offer to the office of the Purchasing Director, 129 East King Street, Hillsborough North Carolina by 5pm, Monday, February 6,2006, At that time the Purchasing Director will open the bids, if any, and the highest qualifying bid will become the new offer. If there is more than one bid in the highest amount, the first bid received will become the new offer, A qualifying higher bid is one that raises the existing offer to an amount not less than $39,969. A qualifying higher bid must be accompanied by an amount not less than five percent (5%) of the bid; the deposit may be made in cash, cashier's check or certified check, The County will return the deposit on any bid not accepted, and will return the deposit on an offer subject to upset if a qualifying higher bid is received. The County will return the deposit of the final high bidder at closing. The buyer must pay cash at closing, The County will make no warranties of title or otherwise, including environmental, and the deed from the County will be a Non Warranty Deed. The Buyer will pay any and all 2006 ad valorem taxes on the property. The County Commissioners must approve the final high offer before the sale is closed, which it will do within 30 days after the final upset bid period has passed. The County reserves the right to withdraw the property from sale at any time before the final high bid is accepted and the right to reject at any time all bids. Further information may be obtained at the office of the Purchasing Director, 129 East King Street, Hillsborough, NC, or at telephone (919) 245-2652 during normal business hours.