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HomeMy WebLinkAboutAgenda - 12-13-2005-9cORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: December 13, 2005 Action Agenda Item No. g-G SUBJECT: Acquisition of Storage Facility DEPARTMENT: Purchasing and Central PUBLIC HEARING: (YIN) No Services ATTACHMENT(S): INFORMATION CONTACT: Pam Jones, 245 -2652 Geof Gledhill, County Attorney, 732- 2196 PURPOSE: To consider approving the acquisition of a facility at 510 Meadowlands Drive, Hillsborough for use as a storage facility and office space. BACKGROUND: The County has long searched for a solution to its on -going need for bulky storage items and for records with long -term archival requirements. Storage for items such as voting tabulators must be kept securely and in climate conditioned space. Recently, the County was presented with an opportunity to purchase a building at 510 Meadowlands Drive in Hillsborough, currently occupied by Tweeter, Inc. The facility contains approximately 11,000 square feet of warehouse space and 11,000 square feet on two- levels of office space. Further, the site contains an area that is prepared and ready to receive approximately 30,000 square feet of future expansion to the existing building. The full complement of parking for the full site build out was completed when the initial building was constructed and includes 66 parking spaces. The owner has agreed to the County's purchase of the building for a sum of $1,700,000 and the County's purchase of non - inventory equipment and furnishings in the building (including fork lift trucks that will be invaluable in using the building for storage) for a sum of $35,000. All but $50,000 of the total $1,735,000 will be owner - financed for a period of 10 -years at an interest rate of 5 %. The Board will need to conduct a public hearing and approve a resolution regarding the acquisition and the financing at its January 24, 2006 meeting. This will provide the documentation needed by the Finance Director for submittal to the Local Government Commission (LGC) for LGC approval of the financing at the LGC's February 7, 2006 meeting. The sale is conditioned upon approval of the LGC. 2 In addition to the much needed quality storage space, the County will utilize the building to address critical office space needs as well. Emergency Management's Administrative Division, the Information Systems Department and the Economic Development Commission (EDC) will occupy the building. The move by the EDC will address critical space needs cited by the Board of Elections at its current location. Some modifications to the facility will be necessary in order, to accommodate multiple departments. An elevator will be considered to better meet ADA requirements. The Board is requested to authorize the Manager to enter into a contract with Corley Redfoot Zack to provide the minimal design work that will be required to create separate departmental space and to design the elevator installation. FINANCIAL IMPACT: The total purchase price is $1,735,000, with Fifty Thousand Dollars ($50,000) of the purchase price of the facility and the personal property to be paid to the owner at closing and the remaining $1,685,000 financed by the owner, at 5% over a ten -year period. Projected annual debt service payments would be in the neighborhood of $250,000 and will fit within the parameters of the County's Debt Management Policy. The Board approved an allocation of $200,000 from the 2004 2/3 Net Debt Reduction Bonds to fund upfit costs, including the installation of an elevator. Budget staff will bring a corresponding capital project ordinance to the Board at its next meeting. RECOMMENDATION(S): The Manager recommends that the Board: • Approve the terms of a contract to purchase the land, building and related personal property at 510 Meadowland Drive, Hillsborough for a sum of $1,735,000, $50,000 of which to be paid at closing and $1,685,000 to be owner financed for a period of 10 -years at a 5% interest rate, the purchase contingent upon approval of the Local Government Commission; and • Authorize the Manager, County Attorney and Finance Director to execute documents incident to the purchase and consistent with the terms cited herein; and • Authorize the Finance Director to submit application to the LGC for approval of the acquisition; and • Establish January 24, 2006 as the date for Public Hearing of the acquisition and instruct the Clerk to notice as appropriate; and • Exempt this project from the qualification -based selection process for architect services as allowed by GG 143 -64.32 and authorize the Manager to negotiate and sign a contract for services between the County and Corley Redfoot Zack to provide services as cited in this abstract. DEC, 9.2905 5 :16PM l2 ®09.2out lotus Fi.m ORRNGE CTY PURCH N0,876 P,1 Dr. Richard ShadtMan, Manager Shachtman LLM Shachtman LLCS 3913, East keRoad, #147 819 - 616.9906 cell Ann and Richard December 3, 2005 Ms. Pam Jones Orange County Purchasing Director PO Box 8181 Hillsborough, NC 27278 As mentioned in my voice mail to you this past week, the sale two Pieces ri es at 50 puzzle were put into place to enable Ann and T 1 o commit to a sale of i he premises IS subject to a mutually .0mitment, of Meadowiand Drive to Orange County. tax finee nature of ti�e�nt6rest on a Seller agreeable contract with respect to price, financed loan to the County from our LLC and other such desiderata as expressed in the list of issues for the contract sent to you previously. As to the key issue of price, the county will pay 1.7 million doll,►rs ($1,700AOOA0) for the land and building and $35,000.00 for the equipment on the list you sent me. There are some other financial arrangements tied to this transaction: as of this date all related parties have agreed to their part and we should be free and clear to construct a mutually agreeable and beneficial legal contract for the sale and purchase of the Prop "r Y' Please feel free to use this document as a "letter of intent° f r purposes of whatever governmental units are involved. My best; call me with arty questions, suggestions, etc. Signatures: MAC th mr. M i-LC by beftrd 5hachMRJ L &M f Dat6: Signature STATE OF � � � COUNTY OF I ova a Notary Public for !laid County and State, do hereby certi Richard Shachtman, manager of Shachtman, LL�C, a limited liability company, personally appeared before me this day and acknowledged the due execution of the foregoing instrument on behalf of the company. 12-HH -2aa C. 9 :2005 E 5 :16PM ORANGE CTY PURCH NO.876 P.2 Witness my hand card official seal this J. STA"ON le•S01e ai Florid pFapitalOG9a,' �knA Do�54t82 My Row T-A 2005.