HomeMy WebLinkAbout6-b - Potential Acquisition and Development of a Multi-Purpose County Campus
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: January 23, 2018
Action Agenda
Item No. 6-b
SUBJECT: Potential Acquisition and Development of a Multi-Purpose County Campus
DEPARTMENT: County Manager’s Office; Asset
Management Services (“AMS”)
ATTACHMENT(S):
1 – Hwy 70 Site Assembly
2 – Letter from Hillsborough Dated
November 29, 2017
3 – Purchase & Sale Agreements
4 – December 12, 2017 Presentation
INFORMATION CONTACT:
Bonnie Hammersley, 919-245-2306
Jeff Thompson, 919-245-2658
PURPOSE: To:
1) Ratify the Manager’s recommendation to pursue the acquisition of approximately 21
acres located with the Hillsborough Highway 70/Cornelius Street corridor known as the
“Hwy 70 Site Assembly” for the development of a County Campus site that addresses
multiple County Capital Investment Plan initiatives; and
2) Authorize the Manager to continue the site due diligence and examination process to
include pursuing necessary future land use and zoning amendments with the Town of
Hillsborough.
BACKGROUND: In the spring of 2017, the County began to investigate alternative locations for
the new Detention Center after ground lease negotiations with the State failed to produce
acceptable lease terms on the Orange Correctional site. During the same spring time period,
the Board asked staff to investigate potential sites along the Highway 70/Cornelius Corridor (the
area around Highway 70 between West Hill Avenue and Saint Mary’s Road) for the Environment
and Agricultural Center as an alternative to remodeling the current facility.
The Detention Center site assessment initially included two sites in downtown Hillsborough, the
existing jail location and the parking lot adjacent to the Courthouse. However, preliminary
findings revealed several significant challenges related to those sites, so the assessment area
was expanded to include sites outside of the downtown area.
Highlights of this assessment are as follows:
1. Existing detention site (north of Margaret Lane). The existing site poses
significant development issues and was not recommended:
a. Costs associated with deconstruction and temporary off-site housing of detainees
(off-site housing is estimated to cost $5.48 million during the construction
timeframe);
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b. Site restrictions prevent future expansion;
c. Significant concerns voiced by the Town of Hillsborough staff to siting a new
detention facility downtown;
d. A time intensive and potentially costly zoning compliance and permitting process;
e. Current cost estimates exceed budgeted amount.
2. Detention facility sited adjacent to Justice Facility (south of Margaret Lane). This
site also poses significant development issues and was not recommended:
a. Costs associated with the need to re-locate the District Attorney’s Office and David
Price Market House to alternative locations;
b. Park visibility and access;
c. Historic features on the site limit facility positioning and orientation;
d. Site restrictions prevent future expansion;
e. Significant concerns voiced by the Town of Hillsborough staff to siting a new
detention facility downtown;
f. A time intensive and potentially costly zoning compliance and permitting process;
g. Current cost estimates exceed budgeted amount.
3. Major Business Forms site (Hwy 86 North, near Coleman Loop Road). This
estimated 20 acre parcel had been under contract to purchase and had been studied by
staff and consultants over the past few weeks. The parcel includes a 40,000 square foot
manufacturing and storage facility. The use as a government services campus including
detention and agricultural center is feasible, expandable, and is supported by the Town of
Hillsborough. The property is properly zoned for these uses. The current budget could
support construction on this site. However, the site was not recommended for the
following reasons:
a. Sewer infrastructure would need to be extended to the site at an estimated cost of
$700,000-800,000;
b. The purchase price ($2,310,000) for a facility originally built in 1974;
c. The existing building is oversized given the County’s space needs for the
Environment and Agriculture Center and/or Parks Operations facility;
d. The existing facility would require extensive renovation for any County use;
e. The location would cause a more challenging operational environment for a
Detention Center;
f. Removal of the property from the commercial tax base.
4. Hwy 70 Assembly (Hwy 70 West, near West Hill Avenue; see Attachment 1). This
estimated 21 acre assembly of three parcels is currently under contract to purchase by
the County (as of December 7, 2017) and could continue to be studied by staff and
consultants over the next several weeks. The parcel is located along the Cornelius
corridor in the western entry into Hillsborough. The contract purchase price is $394,050
or $18,500 per acre. The use as a government services campus including detention and
agricultural center appears feasible, expandable, and is supported by the Town of
Hillsborough. The site has been recommended for the following reasons:
a. The location is operationally more desirable and has excellent access to the
Courts campus and Interstate 85;
b. Financially feasible within the current appropriated Capital Investment Plan;
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c. There are adequate water and sewer services immediately adjacent to the site (to
be fully analyzed by County staff and consultants);
d. Supported by the Town of Hillsborough, although the parcels will need a future
land use and zoning amendment through a reasonable legislative process to
secure the designations that will support the government services campus plan
(see Attachment 2, “Letter from Hillsborough dated 11/29/17” – please note
paragraph 5, page 2 );
e. More efficient detainee transportation routes;
f. No existing structures, so the site is more versatile;
g. If a campus model is adopted to include other uses, infrastructure (and related
mobilization costs) could be more efficient than constructing individual projects on
different timeframes and locations.
Due Diligence Update and Estimated Timeline. Should the Board ratify this recommendation,
staff will proceed with its efforts in examining the parcels and participating in the land use
amendment process governed by the Town of Hillsborough. Below is the relative timeframe for
completion, and an overall schedule of events that will take place over the next several weeks.
Land Records Assessment In progress, estimated completion January 2018
The assembly and analysis of the current site survey, deed research, title and surety
considerations, easements and restrictions.
Physical Investigations In progress, estimated completion February 2018
Site-civil engineering, surface and sub-surface characteristics, utility availability, storm water
flow, delineated streams, ponds & wetlands, environmental assessments, transportation, egress
and circulation assessment, off-site considerations, and public safety considerations are being
conducted and evaluated by a team of professional services firms that specialize in each of
these areas.
Land Use Considerations In progress, pertinent schedule below
The parcels are within the Town of Hillsborough Extra-Territorial Jurisdiction (“ETJ”), governed
by the Hillsborough Unified Development Ordinance (“UDO”), and are currently zoned Rural
Residential. With the support of the Hillsborough Town Manager and Planning
Director/Assistant Town Manager, Orange County has applied for a “Suburban Office” Future
Land Use Amendment as well as an Economic Development District (“EDD”) Zoning
Amendment. These designations will allow all of the contemplated uses within this government
services campus to include an Orange County Detention Center, the Environment and
Agriculture Center, the Park Operations Base, potential recreation areas, a potential park & ride
facility, and multi-use facilities and infrastructure (meeting facilities, parking, utilities, storage).
Hillsborough is arranging a public process to accommodate the County’s application and desire
for a decision on the land use amendments well within the outside acquisition date for the
property. Voluntary annexation may be considered by the County at a future time and is not an
action required for this future land use and zoning amendment process.
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To enhance and complement Hillsborough’s process, the County will finance public hearing
notice mailings extending to 1000 feet of the property line. This is in addition to Hillsborough’s
standard 500 foot notice for this type of application. The County will also hold a public
information session prior to the Town public hearing that is not required by the Town.
The anticipated schedule is as follows. All of these events subsequent to the January 23, 2018
BOCC regular meeting will be widely announced through the Orange County Department of
Community Relations:
Orange County public notice of intent regarding the property: January 23, 2018
Area resident mailing (1000 foot radius - County policy)*: January 26, 2018
County Public Information Session*: February 6, 2018
Hillsborough Public Hearing-Future Land Use, Zoning February 15, 2018
Hillsborough Planning Board Meeting March 15, 2018
Hillsborough Town Board Land Use Decision March or Early April, 2018
BOCC approval to acquire parcels April, 2018
Acquisition April, 2018
Design, Construction Manager at Risk Scope and Spring-Fall, 2018
Guaranteed Maximum Price (GMP)
Construction, commissioning, transition, occupation Winter 2018-Fall 2020
*Activities that are in addition to the requirements required by the Town of
Hillsborough
Based upon this analysis and recommendation, the County has entered into Purchase & Sale
Agreements (Attachment 3) with the owners of the parcels, subject to and contingent upon a
rigorous examination period and final BOCC approval to settle the transaction and acquire the
property.
FINANCIAL IMPACT : Adequate funds have been appropriated for this initiative within the
Detention Center and Environment and Agriculture Center Capital Projects, assuming that the
contemplated appropriation for the Parks Operations Base in Year 6 is moved forward to
FY2018-19 because of the efficiencies of the joint use of this site. Assuming that the due
diligence exercises yield favorable information regarding the site and its conditions, the
combined appropriations of $28.10 million are adequate to support the land acquisition as well
as provide for adequate project contingency funds.
SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goals are applicable
to this item:
• GOAL: FOSTER A COMMUNITY CULTURE THAT REJECTS OPPRESSION AND
INEQUITY
The fair treatment and meaningful involvement of all people regardless of race or color;
religious or philosophical beliefs; sex, gender or sexual orientation; national origin or
ethnic background; age; military service; disability; and familial, residential or economic
status.
• GOAL: ENSURE ECONIOMIC 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.
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• GOAL: ENABLE FULL CIVIC PARTICIPATION
Ensure that Orange County residents are able to engage government through voting and
volunteering by eliminating disparities in participation and barriers to participation.
RECOMMENDATION(S): The Manager recommends the Board
1) Ratify the Manager’s recommendation to pursue the acquisition of approximately 21
acres located with the Hillsborough Cornelius Street corridor known as the “Hwy 70 Site
Assembly” for the development of a County Campus site that addresses multiple County
Capital Investment Plan initiatives; and
2) Authorize the Manager to continue the site due diligence and examination process to
include pursuing necessary preliminary future land use and zoning amendments with the
Town of Hillsborough.
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Detention Center Siting
Feasibility Discussion
December 12, 2017
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•Present and discuss options for siting new Detention
Facility; and Agriculture & Environmental Center (AEC)
•Gather feedback for final staff recommendations to the
Board in December, 2017
Purpose
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•Early 2017
–State Decision regarding Ground Lease
•Disallowance of Detention Facility as collateral for financing
–Existing Site Feasibility Study with Designer
•Two options:
–Existing Detention Site (north of Margaret Lane)
–Adjacent to Justice Facility (south of Margaret Lane)
•Staff feasibility work through summer, fall
•Board small group discussions in November, 2017
Background
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Potential Downtown Detenton Sites
Existing Site
Justice Site
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Potential Downtown Detenton Sites
Existing Site:
Advantages:
•County owned property
•Proximity to courthouses,
l aw enforcement center
•Prescribed land use
•Potential for courts related
space improvements
Disadvantages:
•Detainee relocation costs
•Deconstruction costs
•Challenging Hillsborough
entitlement process
•Space restricted site; lack of
expansion
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Potential Downtown Detention Sites
Justice Site:
Advantages:
•County owned property
•Proximity to courthouses,
l aw enforcement center
•Prescribed land use
•Potential for courts related
space improvements
Disadvantages:
•Need to relocate DA, Price
Market House
•Required two level facility
•Parking replacement
•Perceived River Park
obstruction; historic markers
•Challenging Hillsborough
entitlement process
•Lack of expansion
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Potential Downtown Detention Sites
Costs possibly prohibitive:
Existing Site:
Budget 21.85M
Expense 27.26M
Deficit (5.41M)
Justice Site:
Budget 21.85M
Expense 22.63M
Deficit (.78M)
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•March 2017 – Board Direction for Cornelius Corridor
Siting of Ag Center, Park Operations Site
•June 2017 – Appropriation of Revere Road Site Major
Renovation as option to consider
•Staff work on Cornelius Corridor through summer, fall
Add’l Background – Ag Center
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Potential Perimeter Sites
Cornelius
Corridor Area
of Study
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Potential Perimeter Sites
Cornelius
Corridor Area
of Study
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Major Business Forms
Advantages:
•21 acre parcel
(expansion, availability
of other uses)
•Prescribed land use
•County planning
jurisdiction
•40,000 sq. ft. existing
facility
•Under contract to
purchase - $2.3MM
•Hillsborough Support
Disadvantages:
•Needs est. $700K
sewer extension
investment
•Age, layout of building
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Major Business Forms – W&S Service Boundary 49
Gray = Parking & Storm Water Green = DEAPR
Orange = Future Expansion Purple = Detention
Future Sewer Connection
Point
Storm water
Management
Detention Facility
Potential Land Plan-MBF (Detention only) 50
Gray = Parking & Storm Water Green = DEAPR
Orange = Future Expansion Purple = Detention
Future Sewer Connection
Point
EAC, Park Operations
Parking
Storm water
Management
Detention Facility
Yard, Storage &
Expansion
Demonstration for Gardens
Animal Husbandry, etc.
Education/Pavilion
Potential Land Plan-MBF (Detention, EAC, Park Ops) 51
“DMV” Property Advantages:
•20.5 acre parcel
(expansion,
availability of other
uses)
•Water and sewer
present
•Excellent access
to Justice Facility,
roadways
•Hillsborough
support
•Under Contract -
$394,050
($18,500/acre)
Disadvantages:
•Needs land use
code revision for
use
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Potential Land Plan-DMV Water & Sewer Service Boundary
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Gray = Parking & Storm Water Green = DEAPR
Orange = Future Expansion Purple = Detention
Storm water
Management
Detention Facility
Potential Land Plan-DMV (Detention only) 54
EAC, Park Operations
Gray = Parking & Storm Water Green = DEAPR
Orange = Future Expansion Purple = Detention
Future Expansion
Storm water
Management
Detention Facility
Yard, Storage &
Expansion
Demonstration for Gardens,
Animal Husbandry, etc.
Education/Pavilion Park & Ride
Potential Land Plan-DMV (Detention, EAC, Park Ops)
Parking
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•Shared Land Acquisition
•Shared Infrastructure
–Storm water management
–Utilities
–Site amenities
–Security
•Shared common areas (storage & training areas)
•Lower cost advantage for shared elements
•Master planning advantages
•Expansion capabilities
•Potential for Park Ops on site
Advantages of Detention & Ag Campus
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MBF-Jail DMV-Jail MBF/DEAPR/
Park Ops
DMV/DEAPR/
Park Ops
Appropriated $21.85M $21.85M $28.10M $28.10M
Expense $21.50M $18.90M $26.70M $27.10M
Under/Over $350K $2.95M $1.40M $1.00M
Cost Comparisons
-Detention probable cost estimates based upon designer feasibility studies
-Contingency is 10% of probable construction costs
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Downtown MBF DMV
Costs OVER WITHIN WITHIN
Operations IDEAL CHALLENGE GOOD
Entitlements Hillsborough
BOA, HDC
County Hillsborough land
use amendment
Hillsborough
Support
NO YES YES
Sheriff Support YES 2nd choice 1st choice
DEAPR Support YES
Key Factors Comparison:
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•December
–Contract site control
•December-January
–Continued land planning, schematic design, land use
amendment process, physical due diligence
•Spring-Summer 2018
–Site acquisition, design, site plan approval process, pricing
exercises, bidding
•Fall-Winter, 2018
–Final design, bidding, construction start
•Winter, 2018—Fall, 2020
–Construction, commissioning, transition, occupation
Estimated Timeline
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•Discuss options and answer questions
•Receive feedback
•Continue due diligence process
•BOCC action for future meeting
Next Steps
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