HomeMy WebLinkAboutAgenda - 03-06-2002-10c , 1
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ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: March 6, 2002
Action Agenda
- Item No.
SUBJECT: Heritage Hills Hazard Mitigation Grant Program Completion Options
DEPARTMENT: County Manager PUBLIC HEARING: (Y/N) No
ATTACHMENT(S): INFORMATION CONTACT:
2/27/02 Interim Report Rod Visser, 245-2300
2/25/02 Housing Director Memo Tara Fikes, 245-2492
Site and Area GIS Maps Wilbert McAdoo, 245-2625
Site Photos TELEPHONE NUMBERS:
Hillsborough 732-8181
Chapel Hill 968-4501
Durham 688-7331
Mebane 336-227-2031
PURPOSE: To receive a preliminary report, and provide feedback to staff, regarding options
for the disposition of two lots and houses acquired by Orange County under the federal and
state funded Hazard Mitigation Grant Program.
BACKGROUND: Orange County has recently completed the purchase of two homes in the
Heritage Hills subdivision that sustained flood damage (but were subsequently repaired) as a
result of Hurricane Floyd in September 1999. The acquisitions were accomplished through
Hazard Mitigation Grant Program (HMGP) and related grant funds provided through the Federal
Emergency Management Agency (FEMA) and the State of North Carolina. The concept of the
program is to eliminate buildings from floodplains under the assumption that the cost of
voluntary acquisition will be less than the cost of repairs from repeated floodings over the years.
Using those grant funds, Orange County purchased the properties from the homeowners, who
have since relocated to other housing. Under the HMGP agreement with the State, Orange
County is obliged to remove the houses and restore the two properties to an essentially natural
state.
Orange County has a number of options that it can pursue regarding the disposition of the two
homes that need to be removed. The four basic options, in order of preference, include:
1. Removal and relocation
2. Deconstruction
3. Donation to an entity willing to remove the homes at no cost to the County
4. Demolition
The accompanying staff memo lays out in more detail these options, as well as additional
information that staff is working to obtain prior to seeking any formal decision from the Board on
disposition of these properties.
FINANCIAL IMPACT: The default option for disposition of homes under the HMGP is ,
demolition. Federal and state funds of approximately $30,000 were included in the approved
grant to the County to cover the cost of demolition, landfilling of residual materials, and restoring
the lots to a natural state. However, demolition is viewed by the County as an option of last
resort. It is staff's current understanding from grant program administrators that should
deconstruction be pursued instead, that grant moneys set aside for demolition costs can be
used. On the other hand, staff understands that federal and state grant funds cannot be used
to pay for any cost associated with moving and reusing one or both homes. Staff is prepared to
submit a request for exception to policy to the grantor, should the Board decide it wishes staff to
pursue the move/reuse option for one or both properties. If that exception were not granted,
then the County would need to consider whether it would be willing to use its own funds (such
as park or affordable housing bond funds to pay for the move, set up, and upfitting of one or
both houses in new locations). Preliminary cost estimates for the various options are laid out in
the accompanying staff memo.
RECOMMENDATION(S): The Manager recommends that the Board receive the report for
information only at this time — no Board decisions are required at this point. However, the
Board may wish to provide feedback regarding which option(s) seem most appealing and to
identify any additional information the Board will need to help reach a decision at a subsequent
Board meeting regarding the disposition of these two properties.
• — 3
HERITAGE HILLS HAZARD MITIGATION GRANT PROGRAM
INTERIM REPORT
February 27, 2002
Background on Heritage Hills Project
• Following Hurricane Floyd in September 1999, County and State Emergency
Management staff met with Heritage Hills residents to explain grant funds that might
be available to them, if eligible, for acquisition of their properties at fair market value.
•. Sources/types of grant funding
• Federal funding comprises 75% of grants —the State of North Carolina provides
a 25%match
• Grant funds include approximately 5% for administrative overhead
• Orange County hired consulting engineering firm PBSU to work with federal and
state officials and citizens, based on their extensive knowledge of applicable
regulations, previous expertise in dealing with Hurricane Fran and other
disasters, and excellent references
• PBSU being paid through grant funds, with no County funding needed
• HMGP (Hazard Mitigation Grant Program) —for acquisition of flood prone
properties from existing owners
• SARF (Supplemental Acquisition/Relocation Funds) —to assist homeowners
choosing to participate in acquisition so that they have adequate funds to
purchase and relocate to comparable housing
• PA (Public Assistance) —funds provided to Orange County to carry out
demolition of homes and restore properties to a natural state
• Completion of acquisition on 2 properties (both homeowners who chose to apply for
grant funds were successful) — both families have moved to other suitable housing in
the Chapel Hill area
Options for Disposition
• Demolition —this is the expected approach as laid out in the HMGP agreement with
the State —the least preferred option by Orange County, as both houses are clearly
reusable cost (based on professional estimate) is nearly $25,000
• Deconstruction —this is a feasible option - Pete and Robin Hendricks, who-did the
Orange Industries deconstruction project in Hillsborough last year, estimate their
cost at $21,000- adding transportation and storage of preserved materials, and
restoration of the property to natural, the total cost is about $35,000 PBSU
consultants report that federal/state officials have told them that Orange County
CAN use public assistance funds (those earmarked for demolition/restoration, a little
more than $30,000) for this purpose
• Relocation/Reuse - Orange County's preferred option - our consultants tell us
federal/state officials have said Orange County CANNOT use the public assistance
(PA) grant funds to move and reuse these houses — staff are checking out that
determination up the line, and understand that Congressman Price has expressed a
willingness to be of assistance.
• Estimated total cost to move, clear, and upfit the 611 Yorktown property to Little
River Park is about $83,000, and restore 611 Yorktown site to natural conditions
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• Estimated total cost to move, upfit, rehab (and add back on some bedrooms at a
new site, because some portion cannot be moved) the 609 Yorktown property to
the Pine Knolls area is roughly,$88,000
• Donate houses to a firm willing to move them at no cost to County— a local for-profit
firm that specializes in house moving and rehabilitation is willing to do this, so the
only cost would be what it takes to remove residuals and restore the Yorktown _
properties to natural (about $10,000 for both together)
Additional Matters to be considered/researched
• Disposition of the lots in Heritage Hills upon project completion
• Leave natural and unmanaged?
• Convert to some kind of park?
• Contract with neighborhood association to maintain and use?
• Pursue enrollment in National Wildlife Federation wildlife habitat
program?
• Possible sale of lots to adjacent owners, with restrictive covenant that
would prohibit future construction on the lots
• State statutes on disposition of county property and FEMA/state grant
program requirements must be examined/verified to determine which
disposition options are possible and/or what limitations there might be on any
of them
• How much funding is the County willing to contribute, beyond any available
federal/state emergency management grant funds, to pursue moving one or
both houses and reusing them for affordable housing, park visitor center, or
some other purposes?
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Orange County -
Housing and Community Development
Date: February 25, 2002
To: Rod Visser, Assistant County Manager
From: Tara L. Fikes
Subject: Heritage Hills
Wilbert and I met and developed the following options/estimates for the FEMA houses in
Heritage Hills. Please note that some numbers may have changed slightly from our
earlier conversation.
Option 1 — Removal/Relocation/Reuse
A. Little River Park
611 Yorktown Dr. (House Moving Cost) $22,500
Set-up/Foundation; Clearing; Footings $12,000
Replace bricks $ 5,000
Rehab $33,500
Deconstruction/Clearing of remaining lot $10,000
Total $83,000
B. Affordable Housing
Vacant lot on Wentworth Street in Chapel Hill (Pine Knolls Community)
609 Yorktown Dr. (House Moving Cost) $ 9,500
Set-up/Foundation; Clearing; Footings $12,000
Rehab $55, 500
Deconstruction/Clearing of remaining lot $11,000
Total $88,000
Additional Considerations
- Property presently owned by the Orange County Housing Authority must be
deeded to the participating non-profit organization.
- The County must enter into a legally binding agreement with the participating
non-profit organization to prepare the house for resale to a low-income family.
The County must provide the funds necessary to carry out the project.
Available resources include the Affordable Housing Trust Fund and/or
Housing Bond funds.
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Option 2 - Deconstruction
609 Yorktown Dr. $ 9,000
Transportation to storage fee $ 2,000
Remove foundation/footing/chimney, etc.
from the site $ 5,000
Total $16,000
611 Yorktown Dr $12,000
Transportation to storage fee $ 2,000
Remove foundation/footing/chimney, etc.
from the site $ 5,000
Total $19,000
Option 3 - Donation
Should the County decide not to keep the houses, Sustainable Living, Incorporated
President Brad Lessler has indicated a willingness to remove both houses from their
current sites at no charge. We estimate an additional $10,000 will be necessary to
clean up both sites and restore them to their natural settings.
Option 4 - Demolition
From D.H. Griffin Wrecking Company
609 Yorktown Dr. $12,740
611 Yorktown Dr. $11,680
Total $24,420
1 trust this information is helpful. If you have questions or need more information,
please contact me.
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