HomeMy WebLinkAboutAgenda - 06-21-2022; 8-t - Proposed Sale of the County Property (PIN #9779088613) Located in Chapel Hill 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: June 21, 2022
Action Agenda
Item No. 8-t
SUBJECT: Proposed Sale of the County Property (PIN #9779088613) Located in Chapel
Hill
DEPARTMENT: Asset Management Services
ATTACHMENT(S): INFORMATION CONTACT:
1. Offer for the Purchase and Sale of Travis Myren, Deputy County Manager,
Improved Property 919-245-2308
2. North Carolina General Statute 160A- Steven Arndt, Asset Management
269 Negotiated Offer, Advertisement, Services Director, 919-245-2658
and Upset Bids
3. Resolution Authorizing the Sale and
Upset Bid Process
4. Plat Showing Property/ PIN
#9779088613
PURPOSE: To consider the approval of the sale of County-owned property (PIN# 9779088613)
located off of Homestead Road in Chapel Hill, NC, and the approval of a resolution authorizing
the sale of the property through a negotiated offer, advertisement, and upset bid process.
BACKGROUND: This County-owned property, consisting of a landlocked 0.12 acre site was
conveyed to the County's recreation department in 1984. David Stancil, the Director of the
Department of Environment Agriculture Parks and Recreation, indicates the property has no value
for recreation purposes. An adjacent building and lot was the Homestead Community Center.
The County owned the site, and operated programs at the facility in the 1990's. The County
eventually sold the property with the Homestead Community Center and should have sold PIN#
9779088613 at the same time, but did not. The former Asset Management Director for the County
recognized this oversight and discussed her intention with the County Attorney to pursue selling
it many years ago, but left employment with the County before that could occur.
The property has a listed value of $150,000. However, the Tax Administrator indicates this is an
incorrect valuation. She indicates the department will "correct the value for 2023, and an estimate
would be $7,500." This value was not previously corrected due to its status as an exempt County
owned property. This estimated value does not take into account the lack of access and the lack
of development potential.
Catherine Gihlstorf, an adjacent property owner located at 8701 Drew Lane, Chapel Hill, and
Timothy Gallagher approached the County with an offer to purchase the property for $500
(Attachment 1). She has submitted the required 5% deposit to the County.
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In accordance with North Carolina General Statute 160A-269, public property may be sold through
a negotiated offer, advertisement, and upset bid process (Attachment 2). A resolution authorizing
the sale of the property through this upset bid process is also included (Attachment 3).
Should the Board approve the sale of this property in this manner, a notice of sale will immediately
be placed in a local paper and on the County's Purchasing web page. The notice shall contain a
general description of the property, the amount and terms of the offer, and a notice that within ten
days any person may raise the bid by not less than ten percent (10%) of the first one thousand
dollars, and five percent (5%) of the remainder. When a bid is raised, the bidder shall deposit
with the County five percent (5%) of the increased bid, and the County shall re-advertise the offer
at the increased bid amount for an additional ten days. This procedure shall be repeated until no
further qualifying upset bids are received.
FINANCIAL IMPACT: The property is currently undeveloped, has no development potential, is
landlocked without access, and as a landlocked undevelopable property has limited to no value.
SOCIAL JUSTICE IMPACT: There are no Orange County Social Justice Goal impacts
associated with this item.
ENVIRONMENTAL IMPACT: There are no Orange County Environmental Responsibility Goal
impacts associated with this item.
RECOMMENDATION(S): The Manager recommends that the Board:
1) Approve the sale of the 0.12 acre parcel of property having PIN# 9779088613 located in
Chapel Hill, NC through a negotiated offer, advertisement and upset bid process, in
accordance with North Carolina General Statute 160A-269;
2) Approve and authorize the Chair to sign the resolution authorizing the sale through this
process; and
3) Authorize the County Manager to conduct the sale, accept the highest bid, and execute all
necessary documents to complete the sale.
3
STATE OF NORTH CAROLINA
COUNTY OF ORANGE
OFFER TO PURCHASE ORANGE COUNTY REAL PROPERTY
This offer is being made as a negotiated offer, pursuant to N.C.Gen.Stat. 160A-269, and other applicable
sections of the North Carolina General Statutes. The terms of the offer are as follows:
1. OFFER: The undersigned Offerror herby offers to purchase the property described below from
Orange County for the price of$ 500.00 kAun-jr )
2. PROPERTY: The property upon which an offer is being made is that certain lot of parcel of land
including all improvements thereon, situated in Hillsborough Township, Hillsborough, North
Carolina,
PIN#9779088613 Leal description W/S SR 1728 Prop dedicated to Orange County
Recreation Dept. Pro ep_rty is 0.12 Acre.
3. "AS IS" CONDITION; TITLE: The Offeror acknowledges that this offer is for the purchase of the
property described above in its "as is"condition. Title will be conveyed by special warranty deed,
free and clear of all liens or encumbrances.
4. DEPOSIT: With this offer the undersigned has deposited 5%of the proposed purchase price with
the county as required by law (refundable if the offer is not accepted).
5. PROPERTY TAX: It is understood that the property is currently tax exempt, but that pursuant to
N.C. Gen. Stat. 105-29(d) the property may become taxable for the fiscal year beginning July of
the calendar year in which it is acquired,in which case,the property taxes will be the responsibility
of the Offeror.
6. UPSET RID PROCEDURE: It is understood that the this offer is subject to upset bid procedures
pursuant to N.C.Gen. Stat. 160A-269, and that no final action will be taken on acceptance of this
offer until the upset period has expired. It is also understood that by law, the County Board of
Commissioners may reject this offer and any upset bid offers at any time.
d
7. ADVERTISING COSTS: Upon closing, the Offeror agrees to reimburse the advertising fees for all
legal notice required under N.C. Gen. Stat. 160A-269.
8. WITHDRAWAL: The County reserves the right to withdraw the property from sale at any time
before the bid or any upset bids are accepted.
[Signature Page to Follow)
Date:10 June'.�2022
Initial: /___E� 11
4
OFFER TO PURCHASE ORANGE COUNTY REAL PROPERTY
P. 2
This the 10th day of__June 12022 .
(If a corporate Offeror) (If Individual)
Name of Entity Offeror:
(Print Name) Doering Gihlstorf
By: Offeror:
Title: (Print Name) Timothy Gallagher
Attest:
Corporate Secretary(Affix Corporate Seal)
Com
eh cA
I
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Attachment#2
169A-269. Negotis ted offer, advertisement, nod upset bids.
A city may receive, solicit, or negotiate an offer to purchase property and advertise it for
upset bids_ When an offer is made and the council proposes to accept it, the council shall
require the offeror to deposit five percent (S%) of his bid with the city clerk, and sha]I pub]ish a
notice of the offer_ The notice shall contain a general description of the property, the amount
and teems of the offer, and a notice that Within 10 days any person m ay raise the bid by not less
than ten percent (10%) of the first one. thou sand dollars ($1,000) and five percent (W%) of the
remainder. When a bid Is raised, the bidder shall deposit with the city clerk five percent (5%) of
the increased bid, and the. clerk shall readvertise the offer at the increased bid_ This procedure
shall be repeated until no further qualifying upset bids are received, at which time the council
may accept the offer and sell the property to the highest bidder. The council may at any tin-Le.
rej ect any and all offers. (1971, c_ 699, s. 1; 1979, 2nd Sess., c. 1247, s_ 25)
6
RES-2022-039
Attachment #3
Resolution Authorizing Upset Bid Process for .12 acre plot, GIS Pin #9779088613,
Chapel Hill, NC
WHEREAS, Orange County owns certain property, .12 acres of land and located at GIS Pin #
9779088613, Chapel Hill, NC.; and
WHEREAS, North Carolina General Statue 160A-269 permits the County to sell property by upset
bid, after receipt of an offer for the property: and
WHEREAS, Orange County has received an offer to purchase the property described above, in
the amount of$500 submitted by Ms. Catherine Gihlstorf, owner of adjacent property located at
8701 Drew Lane, Chapel Hill, NC, and Mr. Timothy Gallagher; and
WHEREAS Ms. Catherine Gihlstorf has paid the required five percent (5%) deposit on its offer;
THEREFORE, we, the Orange County Board of County Commissioners resolve that:
1. The Orange County Board of County Commissioners authorizes the sale of the property
described above through the upset bid procedure of North Carolina General Statute
160A-269.
2. The Orange County Purchasing Agent shall cause a notice of the proposed sale to be
published. The notice shall describe the property and the amount of the offer, and shall
state the terms under which the offer may be upset.
3. Persons wishing to upset the offer that has been received shall submit a sealed bid with
their offer to the office of the Purchasing Agent, located at 405 Meadowlands Drive,
Hillsborough, NC, within 10 days after the notice of sale is published. At the conclusion
of the ten day period, the Purchasing Agent shall open the bids, if any, and the highest
such bid will become the new offer. If there is more than one bid in the highest amount,
the first such bid received will become the new offer.
4. If a qualifying higher bid is received, the Purchasing Agent shall cause a new notice of the
upset bid to be published, and shall continue to do so until a 10—day period has passed
without any qualifying upset bids having been received. At that time, the amount of the
final high bid shall be reported to the Orange County Board of County Commissioners.
5. A qualifying higher bid is one that raises the existing offer by not less than ten percent
(10%) of the first$1,000 of that offer and five percent (5%) of the remainder of that offer.
6. A qualifying higher bid must also be accompanied by a deposit in the amount of five
percent (5%) of the bid; the deposit may be made in cash, cashier's check, or certified
check. The County will return the deposit on any bid not accepted, and will return the
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deposit on an offer subject to upset if a qualifying higher bid is received. The County will
return the deposit of the final high bidder at closing.
7. The terms of the final sale are that:
- The County must approve the final high offer before the sale is closed, which it will do
within 30 days after the final upset bid period has passed, and
- The buyer must pay with cash at the time of the closing.
8. The County reserves the right to withdraw the property from sale at any time before the
final high bid is accepted and the right to reject at any time all bids.
9. If no qualifying upset bid is received after the initial public notice,the offer set forth above
is hereby accepted. The County Manager is authorized to execute the instruments
necessary to convey the property to Ms. Catherine Gihlstorf, 8701 Drew Lane, Chapel
Hill, NC, and Mr. Timothy Gallagher.
This 215tday of June, 2022
Renee Price, Chair
Orange County Board of Commissioners
Laura Jensen
Clerk to the Board
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