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HomeMy WebLinkAboutAgenda - 09-07-2005-10aORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: September 7, 2005 Action Agenda Item No. 10 -a SUBJECT: Update on Planned Acquisition of Triangle SportsPlex Property DEPARTMENT: Manager/Attorney/Finance/ Purchasing PUBLIC HEARING: (YIN) No ATTACHMENT(S): None INFORMATION CONTACT: Rod Visser, ext 2300 Geof Gledhill, 732-2196 Ken Chavious, ext 2453 Pam Jones, ext 2652 TELEPHONE NUMBERS: Hillsborough 732-8181 Chapel Hill 968-4501 Durham 688-7331 Mebane 336-227-2031 PURPOSE: To review progress related to several aspects of the planned acquisition of the Triangle SportsPlex property. BACKGROUND: The Board of Commissioners received status reports and made several decisions at its August 16, 2005 regular meeting regarding the planned acquisition of the Triangle SportsPlex property. During 2004 and 2005, at the direction of the Board of Commissioners, staff and consultants had performed due diligence analysis regarding the County's potential interest in acquiring that property. The County's interests relate not only to recreation opportunities, but also to a proposal to construct the new Central Orange Senior Center in conjunction with an expansion of the SportsPlex. The SportsPlex is an 82,000 square foot facility in the Meadowlands Business Park in Hillsborough that provides a regulation ice rink, three swimming pools, fitness equipment, and other recreation amenities. The County operates a small senior center in rented space on property immediately adjacent to the SportsPlex property. The Board approved contracts for architectural design and for project management of the Sports Plex/Senior Center expansion project at the August 16 meeting. The Board also authorized the staff to engage the Blackman & Sloop CPA firm to conduct an "agreed upon procedures" review of the SportsPlex financial position, and directed staff to make one more effort to persuade the property owners to provide whatever written representations might be needed to permit the conduct of a full-fledged audit of the SportsPlex financials. Staff and the Attorney have assurance that the owner has agreed to an extension of the due diligence period from September 12 to October 5, 2005. This extension of the "free look" period will provide time for the owner to resolve fully Orange County's request that it provide the management representations necessary for Blackman & Sloop to do an audit and to provide Blackman & Sloop with enough time to perform the audit. At this September 7 meeting, staff plan to provide updates on these and other aspects of the SportsPlex/Senior Center project, as noted in the bullet list below: ¦ architect progress in Hillsborough development review submission - targeting submission for October 2005 Hillsborough Board of Adjustment review ¦ update on condition of SportsPlex building, infrastructure, and equipment ¦ project management activities - including "construction manager at risk" proposal ¦ SportsPlex financials - progress report on "agreed upon procedures" and progress on efforts to secure a full audit ¦ facility management services - report on staff site visits to Wake County facilities owned and/or operated by Ice Ventures/Recreation Factory Partners ¦ appointment of the Central Orange Senior Center Planning Group - tentatively scheduled for BOCC action at September 20 regular meeting FINANCIAL IMPACT: There is no financial impact associated with this update As approved by the Board at the dune 23 meeting, the net cost to the County for the SportsPlex acquisition will be ± $5.565 million. Funding for the acquisition would come through third party financing that will be subject to approval by the North Carolina Local Government Commission. The estimated cost of the Senior Center expansion project is approximately $2 million, which will come from November 2001 voter approved bonds and alternative financing as needed. RECOMMENDATION(S): The Manager recommends that the Board: 1) receive the reports on the subjects noted above for information only at this time; 2) provide any appropriate feedback to the Manager, Attorney, and staff; and 3) approve an extension to the due diligence period to October 5, 2005 and a related amendment to the existing purchase agreement, subject to final review by staff and the County Attorney.