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Home My WebLink AboutORD-2019-011 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. 2 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. 3 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. 4 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 Eric K (4k'C , 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: �.��c K�►la�� P. 0. Box 8181 IiS Odd S6mA cd Hillsborough, NC 27278 chae Ai�\ I N(, 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. 5 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 6 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: 0 Wrl2(- Date: Title STATE OF NORTH CAROLINA COUNTY OF ORANGE I, �r+ r�H 5. L►ra'rv�s�6n,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 0 Kimberly S, y'�1nggeton Notary Pub% ®range Coun My commission expires: North Carolina 1 o 23 Aoa I �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 5. ,' �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 Kimberly S. Livingston Nota Public My commi sion expires: ry Orange County i Z3 aa2 North Carolina 7 1 w 10p ' hoffp1bpe ' 1 t '\ a 2 i N i ■ i Exhibit A: Proposed Acquisition ®Proposed Acquisition w-13 acres) Building Footprints N ! EM Property —"'—'-- Streams 1 inch= 391 feet Date:1/8f2019 =Parcels Streets Orange County DEAPR - _ m D LTDN FMr� � l m DRLU �RD � n ED GATE RD = -- p A Z O FST m 4( tIr- _ IM S E JDNN Hillsborough W go P R W T TEN E rn rlGO �\� � KATHY o • o � • w o � ♦ L � J ♦ dw � z �+ • g5 0 all MI A FARM L j I ■ I Ilk I � • I I I J ///jZ1 , ii l I Knight Property Legend Context Map N o Proposed Primary MST Route 0 County Parks and Open Space E'u - Knight Property 0 Non County Parks And Open Space �l Conservation Easements Held By County Major Streams Conservation Easements Held By Others Streets Date: 11/30/20171 inch — 6,849 feet w �. 1� k m g100 foot h n. �ffpropertY lino � r UQIC Op0In O O tiC Ors A M ,j Steel String Brewery Property Proposed MST Acquisition N Proposed Acquisition (+/- 13 acres) Building Footprints Property Streams Proposed MST Route Streets 1 inch = 391 feet Orange County 0 Parcels Date: 1/8/2019 DEAPR