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HomeMy WebLinkAboutAgenda - 03-19-2002 - 9b r 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: March 19, 2002 Action Age da 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 This item was previously scheduled on Chapel Hill 968-4501 the March 6, 2002 agenda Durham 688-7331 Mebane 336-227-2031 PURPOSE: To provide feedback to staff in winnowing down 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. i 1 2 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. Staff understands from grant program administrators that should deconstruction be pursued, that grant moneys set aside for demolition costs can be used. On the other hand, staff has been told previously that federal and state grant funds cannot be used to pay for any cost associated with moving and reusing one or both homes. Recently, the County's consultants on this project approached state officials about reconsidering that stance in view of Orange County's specific circumstances, and received an indication that the state may be open to further discussion on this point. Staff will pursue that if the Board decides it wishes to consider the move/reuse option for one or both properties. Preliminary cost estimates for the various options are laid out in the accompanying staff memo. The Board will need to consider whether it would be willing to use County funds (such as park or affordable housing bonds) of as much as $140,000 - $170,000 to pay for the move, set up, and upfitting of both houses in new locations. The other three disposition options can be accomplished almost entirely within the amount of grant funds earmarked for that purpose. RECOMMENDATION(S): The Manager recommends that the Board: 1) consider the options for disposition of.the two properties; 2) provide feedback regarding which option(s) is (are) preferred; and 3) 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 PBS&J 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 • PBS&J 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 PBS&J 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 4 • 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? G �ncP of re q .+ P 5 ll a 52 xa .w �r5 Cac°�cp 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. 6 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. 2 r; OLD EN O RDv t t - a FEMA Lots Heritage Hill Subdivision Heritage Hills Hazard Mitigation Project Pond Location Map 4,.. •�`Stream ••. ® FEMA Parcel 0 3000 6000 Feet Street city r Ito' I ' w A c _ CC %. f-- r— -- - -- IL dt s� '� � b`�`•..�I��,�� �a��a��� r•. tiff�-�.....-c"~�3..-'s J�'Cf '��r O4 �fr..� �•` !-�-� �'„j'`!j l�{ `''t���I�t. S+`t�4y^1C w '��� 'J`'s"`7���5 g•"�r��=i.�.! v Heritage Hills Hazard Mitigation,Project 609 / 611 Yorktown Road UNC Property (University Lake Watershed) - Building rEMA Parcel > Pond ' Stream 0 700 1400 Feet j Parcel Boundary ��Street 1�1 • • � 1.1 r e. � � "d+ >.�.°,tea• a°,, t[ +; u''°* � a:. SAP • ��^�r Il?.0.e '� b p '# yY Yy� r a . � T�r_ 3!��'{yit '� ,.+ .i �-/:' / + v�e•�":Ia'wksa .s 6":.'`k" ,,rr.., -1�..�T'w� �y�,�fz'Q'a< St rT I,� 1 § A•' 1�„`�^! �'r... ��.a�t ?�`,�e� .� a sY as`.:'' ! ',� ..e.•}„�,. 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