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HomeMy WebLinkAboutAgenda 11-11-2025; 2 - Options for Sale of Property at 6823 Millhouse Road 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: November 11, 2025 Action Agenda Item No. 2 SUBJECT: Options for Sale of Property at 6823 Millhouse Road DEPARTMENT: County Manager, County Attorney, Asset Management Services (AMS), Environment, Agriculture, Parks & Recreation (DEAPR) ATTACHMENT(S): INFORMATION CONTACT: Aerial Photo of Property Travis Myren, 245-2300 Map of Possible Property Division John Roberts, 245-2318 David Stancil, 245-2522 Alan Dorman, 245-2627 PURPOSE: To consider options for the sale of all or a portion of 79.05 acres of County-owned land at 6823 Millhouse Road for the purpose of a future soccer-oriented active recreation facility. BACKGROUND: In November 2004, Orange County acquired 69 acres of land at 6823 Millhouse Road, located north of Chapel Hill, from the late Mrs. Julia Blackwood for a future park site, planned to be a soccer center for southern Orange County. The County subsequently purchased an adjoining 10 acres in 2007 for a total of 79.05 acres. This land is located just north of the old County landfill (north), and is across the North Carolina Railroad "J Line" spur from the Town of Chapel Hill Operations Center. The property is in the Rural Buffer land use and zoning district — adjoining the Orange Water& Sewer Authority (OWASA) urban services boundary on its southern and eastern borders. The concept for a future soccer-oriented park at this location has been listed in previous County Capital Investment Plans (CIPs) dating back to the 2000's, known as the "Millhouse Road Park" project. The planned focus for park is for a soccer field complex, with low-impact recreation on the western portion of the property adjacent to Duke Forest. The northwest corner of the site contains a portion of a State-listed Natural Heritage site, and is in proximity to Blackwood Mountain, located within Duke Forest. The property contains two (2) access easements on the northern and southern boundary lines, the latter of which was the subject of a future realignment plan as part of a 2024 rezoning of an adjacent property owned by Acer, LLC (The Treeist). The Blackwood Division of Duke Forest is located to the west and southwest of the property, and a portion of the original Julia Blackwood property was acquired by Duke in 2004 as part of the negotiations for the County's acquisition. This land is now a part of Duke Forest. Preliminary design work was undertaken around 2008 for a six-field soccer complex and approximately 25-30 acre wooded preserve adjacent to Duke Forest, but the project was deferred 2 after the economic recession of 2009. In 2015, the County began discussions with the Town of Chapel Hill regarding a joint partnership for the soccer complex, which was reflected in both the County and Town parks and recreation master plans and CIPs (the project was subsequently pushed beyond the 10-year County CIP in June 2025). In 2022, discussions expanded to include a potential third party for the soccer complex. However, the project timetable was such that the creation of the facility was still several years out. In 2024, parties approached the County about purchase of the land for the purpose of constructing a privately-owned soccer center. An appraisal was conducted in March 2025 which found the value of the 79.05 acre property at $1,976,000 (or $24,997 per acre). Approximately 30 acres of the western part of the site (see attached map) is proposed to be retained by the County to protect the natural resources present on the property, which includes a North Carolina Natural Heritage site and a tributary of Old Field Creek. This section of the property also includes steep slopes and is beyond the area of the site that was planned for soccer fields and related amenities. Preliminary discussions between County staff and Duke Forest have been held regarding this area, as it abuts the Forest on two (2) sides. North Carolina law generally prohibits a governmental entity from conveying property with restrictions or conditions unless the property is conveyed to another governmental entity or to a nonprofit entity that will use the property for a public purpose. Interests that the County might wish to address in the sale might include: • To ensure that the use of the property is for active recreation purposes, or if desired, more specifically for a soccer field complex; • Some degree of public and local government access to the future soccer fields; • Provision of a trail corridor through the property to connect south and north to current and future open space; • As per a 2024 rezoning action, re-routing of the access easement on the property to the adjacent Acer, LLC property and low-impact recreation area be addressed in any approved site plan and plat; and • If sold to a nonprofit, including a restriction that the property reverts to the County if it ceases being used as a soccer field complex. Options for the Board to consider to facilitate this outcome given the procedural requirements for a potential sale might include: • A private negotiated sale of the property, which once completed would be announced and scheduled for action at a future Board meeting. The property sale would be accompanied by binding conditions placed on the property and benefits to both parties that would be signed prior to or during the closing. • Enter into a lease of the property of up to ten (10) years in length (the time limit allowed by law) for the purposes defined. The lease must be structured in such a way that it is not an attempt to circumvent the statutory prohibition on leases. The prohibition is that any lease of ten (10) years or longer must be treated as a sale. • The County could enter into a structured agreement with another party to contribute to the costs of upgrading the property to support a soccer complex, and contract with that party to manage the facility for a term with multiple renewal options. 3 • The County could sell the property without conditions under the negotiated sale upset bid process, with no memorandum of understanding and no control or say on the future use of the property. • The County could retain ownership of the property, either for the present or permanently. At this point, the County has not received a formal offer for the property, so opening the door to solicitation of the same would be the first step required. Staff requests the Board's direction as to 1) whether to entertain offers to purchase the property or a portion thereof, 2) whether to retain the western natural resource lands in County ownership for now, and 3) the manner of sale or lease process as outlined above. FINANCIAL IMPACT: If pursued, the proposed sale price for the property would be negotiated, based on the appraisal conducted in March 2025 (total value of $1.976 million or $24,997 per acre). If desired, the actual land area to be sold would be refined to retain and protect the natural resources on the approximately 25/30-acre western section of the property abutting Duke Forest, lowering the area for active recreation to be sold to approximately 49-54 acres. The 69-acre Blackwood property was acquired in 2004 for $1,260,500 and the 10-acre addition was acquired in 2007 for $187,350, for a total of $1,447,850. Both acquisitions were funded by the Lands Legacy Fund with monies from the 2001 voter-approved Parks and Open Space Bond. ALIGNMENT WITH STRATEGIC PLAN: This item supports: • GOAL 1: ENVIRONMENTAL PROTECTION AND CLIMATE ACTION OBJECTIVE 7. Conserve and protect high priority open space, including Natural Heritage sites, nature preserves, watershed riparian buffers and prime/threatened farmland. • GOAL 2: HEALTHY COMMUNITY OBJECTIVE 7. Invest in services and programs that improve the health and quality of life of the community (e.g., recreation and public open spaces, arts, etc.) RECOMMENDATION(S): The Manager recommends that the Board discuss the potential property disposition and provide direction to the Manager, Attorney and staff. Millhouse Road Park 4 i T---•I r jr - .LLI > AL e Ljj 7 1 u w .{.: October 30, 2025 This map contains parcels prepared for the inventory of real property within Orange County,and is compiled from recorded deed,plats,and other public records and data. Users of this map are hereby notified that the aforementioned public primary information sources should be consulted for verification of the information contained on this map. PIN: 9871519160 The county and its mapping companies assume no legal responsibility for the information on this map. OWNER 1: ORANGE COUNTY SIZE: 69.048A BUILDING COUNT: 1 1:4,800 OWNER 2: DEED REF: 3643/243 LAND VALUE: 0 0.04 0.08 0.16 mi ADDRESS 1: PO BOX 8181 RATECODE: 08 BLDG_VALUE: ADDRESS 2: TOWNSHIP CHAPEL HILL USE VALUE: 0 0.05 0.1 0.2 km CITY: HILLSBOROUGH BLDG SQFT: 2519.4 TOTAL VALUE: STATE, ZIP: NC 27278 YEAR BUILT: 1952 DATE SOLD: 12/30/2004 ORANGE COUNTY LEGAL DESC: #1 JULIA M BLACKWOOD P96/116 TAX STAMPS: 2521 NORTH CAROLINA Millhouse Road Park- Natural Resources Map 5 ti0R o K oI ,i BRUIN TRL 54 LU r ouull pll III Ipllllll IIIIIIIIIO II III plllllllllll� U) O J e 3Y' r �' A J'yf ♦ x �« H E Tract Information: 0 140 280 560 840 1,120 Feet Legend Landowner: Orange County ORANGE COUNTY Roads Lat: 35' 58.69" Long: 79' 04.86" Natural Areas Date: 04/11/2025 4 Streams Image: 2021 Aerial Photo Created By: Christian Hirni Natural Heritage Areas Acres: —78.7 County Open Space Sensitive Natural Department of Environment, Open Space Other Resources: —30 acs Agriculture,Parks&Recreation Tax Parcels