HomeMy WebLinkAboutAgenda - 03-19-2019 8-f - Approval of a Contract to Purchase Real Property – Knight Property, and Approval of Budget Amendment #7-A.doc 1
ORD-2019-011
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: March 19, 2019
Action Agenda
Item No. 8-f
SUBJECT: Approval to Purchase Real Property — Knight Property, and Approval of Budget
Amendment #7-A
DEPARTMENT: Environment, Agriculture, Parks
and Recreation (DEAPR)
ATTACHMENT(S): INFORMATION CONTACT:
1. Option to Purchase David Stancil, 245-2510
2. Location Map Kim Livingston, 245-2514
3. Site Map
PURPOSE: To authorize Orange County's purchase of approximately 13 acres of land on NC
54 near Mebane Oaks Road from Eric Knight, owner of Steel String Brewery, for a NC
Mountains-to-Sea Trail corridor and trailhead or "hub," and approve Budget Amendment #7-A.
BACKGROUND: In September 2017, the Board of County Commissioners approved the
proposed route for the NC Mountains-to-Sea (MST) from Hillsborough's Riverwalk to the land
around the Cane Creek Reservoir to the Alamance County line. The property owned by Eric
Knight falls within the proposed route.
Eric Knight and the County have signed an Option to Purchase for Orange County to purchase
a 13-acre trail corridor and parking area contingent upon the Board of Commissioners approving
the acquisition. The ownership of this property would eliminate the need for the trail to follow
Highway 54, creating a safer trail route from the OWASA-owned land to Morrow Mill Road or
Saxapahaw-Bethlehem Church Road. It would also provide a potential MST trailhead or "hub,"
with a small parking area and restroom facilities accessible from Highway 54 for MST hikers.
Steel String Brewery has an interest in creating a new estate brewery on its property outside of
the MST corridor, highlighting ingredients grown on site and providing a unique agritourism and
recreational experience for visitors. This MST "hub" could serve as the MST "gateway" to
Orange County from the south, illustrating the County's commitment to local agricultural,
recreation, and community.
FINANCIAL IMPACT: The purchase price is approximately $130,000 ($10,000/acre with final
acreage determined by certified survey), which is 100 percent of the land value as determined
by a certified appraisal.
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Funds for the fee-simple purchase would come from Orange County (approximately $130,000
purchase price plus $12,000 for survey and closing costs).
The County's share of funds (approximately $142,000) would come from existing funds in the
Lands Legacy Capital Project. Funds of $120,000 will be moved to the Mountains-to-Sea Trail
Capital Project to cover previously approved budgeted funds in the Mountains-to-Sea Trail
Capital Project from the use of Lands Legacy funds, and $22,000 will be added to the Project
appropriation to cover the remaining cost associated with the purchase.
With this allocation, approximately $2.34 million remains available in the Lands Legacy Capital
Project. The following Budget Amendment #7-A provides for the use of the above mentioned
funds, and amends the following Capital Project Ordinances:
Lands Legacy Capital Project (4142,000) - Project#20011
Revenues for this project:
Current FY 2018-19 FY 2018-19
FY 2018-19 Amendment Revised
Alternative Financing $2,639,857 ($142,000) $2,497,857
From General Fund $42,697 $0 $42,697
Donations $1,000 $0 $1,000
Appropriated Fund Balance $9,337 $0 $9,337
Total Project Funding $2,692,891 ($142,000) $2,550,891
Appropriated for this project:
Current FY FY 2018-19 FY 2018-19
2018-19 Amendment Revised
Lands Legacy Program $2,692,891 ($142,000) $2,550.891
Total Costs $2,692,891 ($142,000) $2,550,891
Mountains-to-Sea Capital Project ($22,000) - Project#20043
Revenues for this project:
Current FY 2018-19 FY 2018-19
FY 2018-19 Amendment Revised
Alternative Financing $383,000 $22,000 $405,000
From General Fund $88,000 $0 $88,000
State Parks Funds $150,000 $0 $150,000
Donations $10,000 $0 $10,000
Total Project Funding $631,000 $22,000 $653,000
Appropriated for this project:
Current FY FY 2018-19 FY 2018-19
2018-19 Amendment Revised
Mountains-to-Sea Project $631,000 $22,000 $653,000
Total Costs $631,000 $22,000 $653,000
SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goal is applicable to
this item:
• GOAL: CREATING A SAFE COMMUNITY
The reduction of risks from vehicle/traffic accidents, childhood and senior injuries, gang
activity, substance abuse and domestic violence.
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By eliminating the need for the MST to follow Highway 54 and providing a safe off road parking
location for MST user, there will be a reduced risk from vehicle and traffic accidents and trail
user injuries.
RECOMMENDATION(S): The Manager recommends the Board:
1) Approve the purchase of approximately 13-acres of land for an MST corridor/hub on NC
54 near the intersection with Mebane Oaks Road from Eric Knight, and approve Budget
Amendment #7-A;
2) Authorize the County Manager to execute all necessary documents subject to final review
by the County Attorney; and
3) Instruct the County Attorney and staff from DEAPR and Financial Services to schedule
and complete a closing on the property expected to occur on or before June 30, 2019.
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Return after recording to: John L. Roberts, Office of the Orange County Attorney
Box 8181, Hillsborough,NC 27278
NORTH CAROLINA
COUNTY OF ORANGE
NORTH CAROLINA OPTION TO PURCHASE REAL PROPERTY
This Option to Purchase ("Option") real property made on 3*a1v�V1231 Zol` between
Er1C KJI(4, -' , hereafter referred to as Seller and to ORANGE COUNTY, hereafter
referred to as Buyer.
A. For the purposes of Notice, the addresses of the parties to this Option are:
SELLER: BUYER:
P. 0. Box 8181
IDS Odd S6m4 cd Hillsborough, NC 27278
chae A\` \ 1 21516
B. The Seller is the owner of property situated in Orange County and legally described at Book 4205,
Page 437, Orange County Register of Deeds and having PIN 9820-51-5411 (hereafter referred to as
Property).
C. For and in consideration of the sum of One Thousand Dollar($1,000.00) paid by the Buyer, and for
other good and valuable consideration,the receipt and sufficiency of which are hereby
acknowledged,the Seller does hereby give and grant unto the Buyer, its heirs,successors, assigns,
and representatives the exclusive right at the Buyer's option to purchase a portion of the Property
more particularly described as that portion of the 70.257 acre tract described on Exhibit A which
totals+/- 13 acres. Exact acreage and area to be determined before conveyance by a certified
survey. The value shall be determined by an appraisal performed to the Uniform Standards of
Professional Appraisal Practice. Buyer shall bear the expense of the appraisal and the survey. The
Seller agrees to allow the Buyer, its heirs, assigns, or representatives, access to the Property for
inspecting, surveying, planning, design, and fund raising purposes.
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D. If the Option is exercised,Seller shall convey marketable fee-simple title to the described portion of
the Property by a North Carolina General Warranty Deed, and this conveyance shall be subject to no
exceptions or encumbrances other than ad valorem taxes for the year of closing(which shall be
prorated between the parties to the date of closing), unviolated restrictive covenants and general
utility easements and rights-of-way of record which do not materially affect the value or Buyer's
intended use of the Property, and applicable governmental ordinances and other regulations. The
Buyer shall be responsible for any necessary subdivision and costs directly associated with such
subdivision. The Seller shall execute and deliver at closing with respect to the Property a title
insurance lien waiver affidavit, and the Property shall be in substantially the physical condition at
closing as that which existed on the date this Option to Purchase Real Property was executed. Buyer
shall be responsible for the cost of recording the deed for the Property.Seller shall bear the cost of
preparing the deed and any other instruments and the cost of recording any instruments under the
terms of this Contract with respect to the Property. Buyer shall pay for the cost of any title
insurance Buyer elects to purchase. Seller shall pay for Seller's reasonable attorneys'fees incurred
in connection with the preparation of this Contract and the closing of the transactions contemplated
hereby. Seller shall pay for the cost of the deed stamps to be affixed to the deed. Seller shall pay
the cost of discharging any mortgage, lien, or title encumbrance other than those permitted
hereunder. All other fees and costs shall be paid by Buyer or Seller in accordance with generally
recognized local custom.
This Option is contingent upon and subject to the following terms and conditions:
1. Term.This Option shall commence on the date the Seller obtains fee-simple ownership of the
Property and continue until 5:00 P.M. EST on June 30, 2019. Should Seller fail to secure fee-simple
ownership of the Property Seller shall reimburse to Buyer the One Thousand Dollar($1,000.00)
consideration payment. Should Buyer purchase the described portion of the Property the
consideration payment shall be credited toward the purchase price.
2. Exercise.At any time during the Option period, Buyer may exercise this Option by hand delivery or
deposit of written notice by certified or registered mail, returned receipt requested,to Seller at
address above.
3. Price. The agreed upon price of the described portion of the Property shall not exceed Ten
Thousand Dollars($10,000.00) per acre.
4. Closing. If the Option is exercised by the Buyer as provided in paragraph 2 above,the sale of the
described portion of the Property shall occur at a closing which shall be held at a time and place
designated by Buyer, but in any event within sixty(60)days after the date of the Option Exercise
Notice.
5. Board Approval. Purchase and Exercise of the Option is subject to and may not occur without
approval by the Board of County Commissioners of Orange County.
SIGNATURE PAGE TO FOLLOW
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IN WITNESS WHEREOF,the Seller has hereunto set its hand and seal, or if corporate, has caused this
instrument to be signed in its corporate name by its duly authorized officers and its seal to be hereunto
affixed by authority of its Board of Directors,the day and year first above written.
SELLER:Eric.
By: Date:
Title
STATE OF NORTH CAROLINA
COUNTY OF ORANGE
I, L►V''e%Lvn,a Notary Public for said County and State do hereby certify that
'6ra�►.+ personally appeared before me and acknowledged the due execution of the
foregoing instrument.
Witness my hand and official stamp or seal this the;?!) day of, vagr 2018.
t Public Kimberly S, y' on
Notary Pub%
®range Coun
My commission expires: North Carolina
10 23 aoa 1 �8mlj
BUYER:
COUNTY OF ORANGE, NORTH CAROLINA
By: Date: off—
Bonnie Hammersley, Orange o my Manager
STATE OF NORTH CAROLINA
COUNTY OF ORANGE
I, °mb S. ,' �n a Notary Public for said County and State do hereby certify that
&n'c' mnwrs personally appeared before me and acknowledged the due execution of the
foregoing instru ent.
Witness m hand and official stamp or seal this thea8 day of 2018.
No ary Pu is
Kimber y S. Livingston
No fa Public
My commi sion expires: ry
Orange County
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Exhibit A:
Proposed Acquisition
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Property — — Streams 1 inch= 8f2 feet
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Knight Property
Legend Context Map
Proposed Primary MST Route 0 County Parks and Open Space
- Knight Property 0 Non County Parks And Open Space
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Conservation Easements Held By Others Streets Date: 11/30/20171 inch — 6,849 feet
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Steel String Brewery Property
Proposed MST Acquisition
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Proposed Acquisition (+/- 13 acres) Building Footprints
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Property Streams
Proposed MST Route Streets
1 inch = 391 feet Orange County
0 Parcels Date: 1/8/2019 DEAPR