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Home My WebLink AboutAgenda - 06-26-2003-9BORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: June 26, 2003 Action Age ~d~a Item No. ~_ SUBJECT: Purchase Price for Options to Purchase Property for Orange County Schools' Middle School #3 DEPARTMENT: County Commissioners PUBLIC HEARING: (Y/N) No ATTACHMENT(S): OCS Middle School #3 Capital Project Ordinance 6/17/03 OCS Attorney Letter Area Map INFORMATION CONTACT: Moses Carey, ext 2125 TELEPHONE NUMBERS: Hillsborough 732-8181 Chapel Hill 968-4501 Durham 688-7331 Mebane 336-227-2031 PURPOSE: To consider approving the amount to be paid for options to purchase parcels of property for the proposed site of the planned third middle school in the Orange County Schools (OCS) district. BACKGROUND: Funds in the amount of $18.5 million were included in the successful November 2001 bond referendum for the siting and construction of a third middle school in the Orange County Schools system. During the past year, Orange County staff have been assisting the Orange County Schools Board and staff in identifying and analyzing the suitability of possible middle school sites considering land use, public utility, and other criteria established by the Orange County Board of Education. The BOCC appointed Commissioner Moses Carey to serve as the Board's liaison with OCS on this project, in accordance with the November 2000 "Policy on Planning and Funding School Capital Projects': As Orange County Schools are already over capacity at the middle school level, they are eager to site and construct the new middle school, with a projected opening date of August 2006. North Carolina General Statutes provide that it is the prerogative of the Board of Education to select school sites. The statutory role of Boards of County Commissioners in school siting is limited to approving the purchase price of the site. NCGS §115C-426(f) states, in part, that:: No contract for the purchase of a site shall be executed nor any funds expended therefor without the approval of the board of county commissioners as to the amount to be spent for the site; and in case of a disagreement between a board of education and a board of county commissioners as to the amount to be spent for the site, the procedure provided in G.S. 115C-431 shall, insofar as the same maybe applicable, be used to settle the disagreement. OCS and its attorney have negotiated with the owners of parcels of property in the Efland area and have developed option to purchase agreements with them. OCS would have six-month options to purchase each parcel at a cost of 3 percent of the total purchase price. If the sale were ultimately consummated, the cost of the options would be credited in each case against the sale price of the parcels. As outlined in the accompanying letter from the OCS Attorney, the total acreage proposed for purchase is 100.62 acres; the total purchase price is $1,283,500; and the total cost of the six-month options is $38,505. It is possible that some portion of this total property that may not be needed for a middle school could serve as the site for other compatible school and/or County uses. Discussion about that could take place in the coming months while the options to purchase are in effect. FINANCIAL IMPACT: As noted above, the cost of the six-month options is $38,505. This cost can be addressed with cash already on hand from the sale in March 2003 of the first installment of November 2001 voter-approved bonds. The accompanying OCS Middle School #3 Capital Project Ordinance would provide budgetary authorization for OCS to expend the funds for the six-month options. The BOCC will ultimately need to make a decision formally approving the amount to be paid for the middle school site. However, that is a decision separate from this decision on the options to purchase, and one that will be made at a subsequent BOCC meeting. RECOMMENDATION(S): The Manager recommends that the Board: 1) approve the option purchase price of $38,505 for option to purchase agreements to be executed between the Orange County Schools and the respective property owners for the parcels comprising the proposed site of the third OCS middle school; and 2) adopt the attached OCS Middle School #3 Capital Project Ordinance. Middle School #3 Orange County Schools Capital Project Ordinance Be it ordained by the Orange County Board of County Commissioners that pursuant to Section 13.2 of Chapter 159 of the General Statutes of North Carolina, the following capital project is hereby adopted. Section 1. The project authorized provides funds for the Orange County Schools to obtain options to purchase property for the ultimate design, construction, and equipping of a new middle school facility. Anticipated revenues for the project consist of 2001 voter approved bond funds. Section 2. The officers of the County are hereby directed to proceed with the project within the budget contained herein. Section 3. The following revenue is anticipated to complete this project: 2002-03 FY 2003-04 2003-04 Sales Tax $0 $0 $0 School Construction Impact Fees $0 $0 $0 Public School Building Funds $0 $0 $0 2001 Bonds $0 $38,505 $38,505 Other $0 $0 $0 Total Fundin $0 $38,505 $38,505 Section 4. The following amount is appropriated for this project: Through FY 2002x03 FY 2003-04 Through FY 2003-04 Constriction $0 $0 rte ikon ors to Purchase) $0 $38,505 $38,505 Site Devel t $0 $0 Fees $0 $0 $0 Moveable t $0 $0 Technolo $0 $0 Constriction Con ~ $0 $0 One-Time Start Costs $0 $0 Total $0 $38,505 $38,505 Section 5. This ordinance will remain in effect from July 1, 2003 through June 30, 2004. Adopted this 26`~ day of June, 2003. 116-L~ r UJ IUJ ~ IU`Y ~.l1Ull D. MICHAEL PARKER michaelparkerlC~+mindspring.com CHESHIRE ~ PARKER ATTORNEYS AT LAW I00 N. CHURTON STREET P.O. BOX l00 HILLSBOROUGH, NC 27278 7ELEPHONE 919-732-8141 TELEFAX 9]9-732-9167 Mr. Geoffrey E. Gledhill Coleman, Gledhill and Hargrave P.O. Drawer 1529 Hillsborough, N'C 27278 Re: Site for proposed middle school Dear Geof: 1-114 t'~G! U5 U-L257 4_,.. ALEXANDER H. GRAHAM (1690-1977) LUCIUS M. CHI=SHIRE (RETIRED) June 7.7, 2003 ~`~: ~; f ', ;. :, , .,, . „ ,~..ec. .,... I am enclosing herein proposed options and memoranda for the three properties we discussed as a potential site for the new middle school. I have negotiated these terms with Mark O'Neal. His respective clients have not approved these drafts but have agreed to these terms and I anticipate few changes. The essentials are as follows: OWNER ACREAGE PURCHASE PRICE 6 MONTH OPTION PRICE Owen L. Allison & 46.76 $550,000.00 $16,500.00 Mabel C. Allison L.B. Daniel & 19.96 $225,000.00 $6,750.00 Karen B. Daniel H.C. Euliss Trust 33.90 $508,500.00 $15,255.00 The Option prices are all 3a of the purchase prices. Mr. and Mrs. Allison and Mr. and Mrs. Daniel are willing to grant an additional six month option extension for an additional 5~ of the purchase price. The Euliss Trust is unwilling to extend the six month option. As per our discussion, the Euliss property and perhaps a portion of the Allison property would not be necessary for the middle school, however, it is available should the County wish to purchase it on these terms for other purposes of joint use planning. Certainly its value will be enhanced if water and sewer are extended to the adjoining property for a school. We are hopeful the County can consider these in the near future so w~e can proceed with the testing necessary to determine if these sites will be appropriate for the new middle school. I appreciate your assistance in this process. 86-25-` 83 89.84 FF30C] Mr. Geoffrey E. Gledhill June 17, 2003 page 2 with best regards I am, DMP/del pc: Dr. Michael Williams Ma.Brenda Stephens 1-114 Yld~f ~~ U-L~55 .,.~.,~ ,r`` ~,.. ~, ~ .,~ r~/v r truly M' h~el arker OCB1let.GEG ~~9,~+q 4K-' r 0 Z c~ C U Q ~~ .~ C a~ 0 v y a~ V .,~ O O V w O v A4 00 a ca J a c .~ y 0 'i .y O a~ O v ., c ,~ W