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HomeMy WebLinkAboutAgenda - 10-03-2017 - 8-j (added) - Approval of Ownership Transfer/Purchase of Cedar Valley and Efland Properties 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: October 3, 2017 Action Agenda Item No. 8-j (Proposed) SUBJECT: Approval of Ownership Transfer/Purchase of Cedar Valley and Efland Properties DEPARTMENT: Sheriff's Office ATTACHMENT(S): INFORMATION CONTACT: 1 . Final Plat of Survey for Cedar Valley Sheriff Charles S. Blackwood, Farms (Parcels 1-5) with Shading of 919.245.2900 Parcels with Liens Chief Deputy Jamison Sykes, 2. Final Plat of Survey Recombination 919.245.2913 for Vester Perry Heirs (Parcel 6) Jennifer Galassi, Legal Advisor, 3. Photographs of the Properties 919.245.2952 4. Memorandum of Understanding Concerning the Transfer and Use of the Premises and Real Property PURPOSE: To consider approval of the ownership transfer/purchase of Cedar Valley and Efland Properties. BACKGROUND: In early 2014, the Orange County Sheriff's Office (OCSO) Narcotics Unit partnered with the Drug Enforcement Administration (DEA) Raleigh Resident Office to investigate a high level drug distribution (the Operation) in Cedar Grove, NC. During the Operation, which spanned several months, it was learned that there are multiple properties acquired through the sale and trade of controlled substances. The six properties are all in northern Orange County. Five properties (Parcels 1-5) are adjoining and immediately adjacent to Cedar Grove Park. The five properties total over 29 acres. The sixth property (Parcel 6) is located in Efland and includes a residential structure located on .462 acres. The properties are eligible for transfer to Orange County pursuant to the federal Equitable Sharing Program. The OCSO will put Parcels 3 and 4 into official use for law enforcement purposes as outlined in the Memorandum of Understanding Concerning the Transfer and Use of the Premises and Real Property. The current structures on these Parcels will be evaluated for possible deconstruction and a temporary modular classroom may be placed on the properties. Parcels 1 , 2, 5, and 6 will transfer under the Weed and Seed Initiative, which authorizes the transfer of federally forfeited real property to a state or local government agency for subsequent re-transfer to the Weed and Seed recipient, a private nonprofit organization to support drug 2 abuse treatment, drug and crime prevention and education, housing, and job skills programs, or other community-based programs. FINANCIAL IMPACT: Parcel 2 and 4 are subject to liens that must be satisfied prior to transfer. The payoff amount for Parcel 2 will not exceed $95,000, and the lien on Parcel 4 will not exceed $80,000. Funding from the OCSO Drug Forfeitures Fund will be used to satisfy the lien on Parcel 4, while funding from the Orange County Lands Legacy Fund will satisfy the lien on Parcel 2. Additional costs may include taxes, including transfer tax, fees, US Marshals Service expenses, including title reports, appraisals, and maintenance, title and property insurance, costs associated with closing, and payment of the 20% federal share of the value of the properties as calculated based on a recent appraisal provided by the US Marshals Service. Waiver of the 20% federal share, however, may be approved. SOCIAL JUSTICE IMPACT: The following Social Justice Goals are applicable to this agenda item: • GOAL: ENSURE ECONOMIC SELF-SUFFICIENCY The creation and preservation of infrastructure, policies, programs and funding necessary for residents to provide shelter, food, clothing and medical care for themselves and their dependents. • GOAL: CREATE A SAFE COMMUNITY The reduction of risks from vehicle/traffic accidents, childhood and senior injuries, gang activity, substance abuse and domestic violence. RECOMMENDATION(S): The Manager recommends that the Board: • Approve the ownership transfer/purchase of the Cedar Valley and Efland properties; o Purchase Parcel 2 not to exceed $95,000 from the Lands Legacy fund o Purchase Parcel 4 not to exceed $80,000 from the Sheriff's Drug Forfeitures fund • Instruct the County Attorney to contact the Assistant US Attorney in Greensboro to coordinate the drafting of the necessary Memoranda of Understanding to transfer the properties to their ultimate nonprofit recipients; and • Authorize the Chair to sign the Memoranda of Understanding on behalf of the County subject to final review by staff and the County Attorney to effectuate the transfer of Parcels 1-6. •'S ,1A .1 u ,q` f �f�tt a, . /Li. 5 rs�px� @ 2 s . pp R3 Ms.? 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Iresi.i -• .. 4 1--; -t Ili 13 ATTACHMENT 4 MEMORANDUM OF UNDERSTANDING CONCERNING THE TRANSFER AND USE OF THE FOLLOWING PREMISES AND REAL PROPERTY: SIGNATORIES: United States Attorney's Office-MDNC United States Marshals Service—MDNC Drug Enforcement Administration—Raleigh RO Orange County Board of County Commissioners Orange County Sheriffs Office 14 Memorandum of Understanding Page 2 This Memorandum of Understanding(MOU)regarding the real property,with all buildings, appurtenances,and improvements located at [Address] (the Property),is entered into by the United States Attorney's Office for the Middle District of North Carolina(USAO),United States Marshals Service (USMS),Drug Enforcement Agency(DEA), Orange County Board of County Commissioners (OCBOCC),and Orange County Sheriff's Office (OCSO)(LLEA). This Memorandum sets forth the agreement by these parties to transfer the Property from the United States of America(United States)to Orange County pursuant to the federal Equitable Sharing Program. The Property was forfeited to the United States pursuant to [statute] because [describe criminal activity/violation]. On March 22,2017,the United States District Court for the Middle District of North Carolina issued a Final Order forfeiting [Property,Address] to the United States. The United States agrees to transfer title to the Property subject to the conditions set forth in this MOU. Orange County agrees to take the property in as is"condition. The OCBOCC will receive the Property for and on behalf of the OCSO,for use by OCSO,for the purpose set forth in this MOU. The transfer of the Property to Orange County will be made by General Warranty Deed. This MOU shall be attached as an exhibit to the Deed and shall specify that the Property is subject to a reversion clause for a period of five (5)years from the date that the Deed is filed with the Orange County Register of Deeds. The OCBOCC and OCSO agree to be responsible for payment of any and all liens,taxes (including transfer tax),fees(including public works fees),USMS expenses(title reports,appraisals, maintenance),title and property insurance,and costs associated with closing. Further,the OCBOCC shall be responsible for payment of the 20%federal share of the value of the Property,(according to the recent appraisal provided by USMS),and any other federal, state,or local shares not discharged by waiver, withdrawal or prior written agreement. The OCBOCC and OCSO agree to be jointly responsible for any and all additional construction or repairs needed to bring the facility into code compliance,as defined by the laws of[Federal, State, County,City]. The OCBOCC and/or OCSO agree to pay for all maintenance,utilities,liability insurance, and all arrears and any other expenses associated with the Property. 15 Memorandum of Understanding Page 3 The OCBOCC and OCSO agree to use the Property solely for law enforcement purposes. The property will be maintained and operated by the OCBOCC to/as [describe specific compelling law enforcement purpose that qualifies as a"permissible use"]. It is the responsibility of the OCBOCC and OCSO to ensure that the proposed use of the Property for the stated purpose complies with Federal, state and local environmental and zoning laws,rules,regulations,and orders. The OCBOCC and OCSO shall be prohibited from using the Property for inherently religious activities,such as worship,religious instruction or proselytization. The OCBOCC and OCSO are prohibited from making participation in religious activities off-premises a condition of a beneficiary's participation in any program conducted or receipt of any benefit or service provided by the OCBOCC and/or OCSO on the premises of the Property. The OCBOCC and OCSO shall commence using the Property as so specified,or in a manner approved by the U.S. Department of Justice,within one year from the date that the Deed is filed with the Orange County Register of Deeds,and use the property for the stated purpose continuously for a period of five (5)years. In the event that the OCBOCC and/or OCSO does not begin to use the Property for the agreed purpose within one year,or fails to continue such use for the five year period,or fails to meet any one of the provisions in this MOU,or permits any liens,mortgages or encumbrances of any kind to be placed on the Property,or transfers the Property to a non-governmental entity; then,at the sole discretion of the United States,through the USMS,all right,title,and interest in the Property shall revert to the United States,and: (1) The United States shall not be liable for any costs in connection with the reversion of title and possession to the Property or for any encumbrances or liens recorded against the Property after the date of transfer of the Property to the OCBOCC and before reversion to the United States; (2) The United States shall not be liable for the costs of any structure,edifice,or improvements of any kind made upon the Property after the date of transfer of the Property to the OCBOCC and before the reversion to the United States;and (3) The OCBOCC shall be responsible to the United States for any loss suffered by virtue of the conveyance of the Property caused by actions and claims from any third party. 16 Memorandum of Understanding Page 4 If,after the initial five year period of use,the OCBOCC and/or OCSO at any time discontinues use of the Property for the agreed law enforcement purpose,the OCBOCC must sell the Property and deposit the proceeds into OCSO's federal equitable sharing revenue account. The OCBOCC and OCSO agree to release and hold harmless the United States of America, USAO,USMS,DEA,and each of their officers,employees,and agents,from any claim by any third party,their heirs, successors,or assigns,including costs and expenses for or on account of any and all lawsuits or claims of any character in connection with the above-described use of the Property by the OCBOCC and OCSO arising on or after the date that the Deed is filed with the Orange County Register of Deeds. The MOU contains all of the agreements,promises,and conditions between the parties and cannot be modified without further written agreement changing the terms hereof. Sandra J.Hairston Date Acting United States Attorney,MDNC William R. Stafford Date United States Marshals Service,MDNC Date Drug Enforcement Administration Date Orange County Charles S. Blackwood Date Sheriff, Orange County Sheriff's Office 17 Memorandum of Understanding Page 5 http://orangecountync.2ov/departments/deapr/cedar grove park.php