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HomeMy WebLinkAboutAgenda - 12-02-2002-9cORANGE COUNTY BOARD OF COUNTY COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: December 2, 2002 Action Age da Item No. ~-, SUBJECT: Adams Tract -Potential Participation DEPARTMENT: Environment and Resource PUBLIC HEARING: (Y/N) No Conservation ATTACHMENT INFORMATION CONTACT: 1) Staff Memo David Stancil, 245-2590 2) Carrboro Response to Questions (11/12/02) 3) Map TELEPHONE NUMBERS: Hillsborough 732-8181 Chapel Hill 968-4501 Durham 688-7331 Mebane 336-227-2031 PURPOSE: To consider potential participation in the acquisition of a 29-acre site in Carrboro, in conjunction with the Town of Carrboro. BACKGROUND: In May of this year, the Town of Carrboro transmitted a request for County participation in the acquisition of a 29-acre tract of land along Bolin Creek inside the Town known as the "Adams Tract." Specifically, the Town asked if Orange County would appropriate funds to be used as local government matching funds for a grant application to the Clean Water Management Trust Fund. In October, the Town asked that the $750,000 portion of the 2001 Parks and Open Space bond identified for Carrboro greenways be used to provide matching funds toward the acquisition of this property. On November 11th, the Board discussed this request. As a result of that discussion, the Board asked that: 1. A set of clarifying questions be transmitted to the Town of Carrboro regarding potential participation in this acquisition (please see Attachment 1), and 2. That a special presentation be scheduled for November 19th, inviting Town staff and Board members to make a presentation on the significance of this property to the Town and County open space networks and natural areas. Carrboro's responses to the questions were transmitted as a part of the Board's special presentation on this item on November 19, and are again included as an attachment. 2 At the November 19 special presentation, Carrboro Assistant to the Town Manager Richard White spoke regarding the Town's interest in this acquisition. Five additional persons spoke in support on the acquisition of the Adams Tract. An attached staff memo attempts to collate new information received (both on November 19 and in subsequent conversations), and provides a possible scenario of County involvement. In summary, this memorandum notes the following: - That the Town's $200,000 grant award from the Clean Water Management Trust Fund is tentative, to be finalized on December 10th - The most recent appraisal of the property is $1.35 million - The Joint Town/County Open Space funding in the CIP provides for $400,000 in this fiscal year (2001 bond -first bond sale) - One potential scenario of County involvement could provide matching funds for the Clean water grant ($200,000), plus an additional $200,000 from the current year appropriation, and a "dollar-for-dollar" match of other future Town/other funds, up to $350,000 total. - That the conditions of County involvement could be addressed through 1) a conservation easement ,granted by Carrboro to Orange County and other parties, that prohibits undesired uses, 2) a "Joint Use" Memorandum of Agreement, 3) deed restrictions and 4) resolutions adopted by both boards as to the planned uses of the property. FINANCIAL IMPACT: If the County chooses to participate in this acquisition in the manner outlined in the attached memorandum, the $400,000 appropriated for Town greenways (Joint Town/County open space) in the 2002-03 Fiscal Year would be identified for this project (contingent on the County's conditions of participation). An additional amount, adollar-for- dollar match up to $350,000, would also be identified from the Lands Legacy fund (either 2001 bond funds or pay-as-you go funding). The latter amount would require a repayment over time of 50% of the Lands Legacy portion. In this scenario, County funding participation would be conditioned on the completion of a conservation easement by December 31, 2003. RECOMMENDATION(S): The Manager recommends that the Board discuss the scenario outlined in the attached memorandum and agree to participate with the Town of Carrboro (providing a local government match for the Clean Water Management Trust Fund) as outlined in the memorandum, contingent upon the conditions proposed. 3 ORANGE COUNTY ENVIRONMENT AND RESOURCE CONSERVATION DEPARTMENT MEMORANDUM To: John Link, County Manager From: David Stancil, Environment and Resource Conservation Director Date: November 27, 2002 Re: Adams Tract This memo attempts to build on the Board's discussion on November 11th and 19th regarding this potential joint venture with the Town of Carrboro and craft a possible scenario of participation that meets multiple interests. New Information I have clarified the status of the Clean Water Management Trust Fund grant. At the November 19t" Board of Commissioners meeting, new information had just been made public about an apparent Clean Water grant award in the amount of $200,000. Prior to this announcement by Carrboro, information was received from the Trust Fund staff that a County decision on financial participation by December 3rd would be in sufficient time to be considered as part of the Town's grant request. Inconsistencies between the two responses were noted on November 19"'. In further discussions with Town staff, I have clarified that there is (as of this writing) no final decision on the Town's grant request. A tentative grant in the amount of $200,000 was proposed at the Trust Fund Board meeting on November 12th. A final decision on the grant will be made on December 10tH, consistent with my previous discussions with Trust Fund staff. Town staff indicates that the final grant award is pending a commitment of local government matching funds (which Carrboro has requested of the County). In addition, speakers at the meeting indicated the potential of raising additional private funds among a number of local groups (as well as other grant sources to assist the Town) to help raise the funding needed for purchase. 4 Potential Cost The most recent appraisal of the property is $1.35 million. To staffs knowledge, the owners have not identified a new purchase price. If the eventual purchase price is $1,350,000, and the $200,000 Clean Water grant is approved, an additional $1,160,500 would be needed for the purchase ($1,150,000 plus an additional $10,500 for closing and transaction costs1). It shoo/d be noted that, if the eventua/ purchase price exceeds the appraised va/ue, the Town and County wi// have to consider the propertys significance as compared to the potentia/tota/funding. One question that arises is what amount of match is "needed" with the smaller grant award ($200,000 as opposed to $989,000). Unfortunately, that is a difficult question to answer. Having experience with two previous County Clean Water grants, there is officially no local match required for Clean Water grants. However, it is widely known that provision of a match greatly enhances the success of the application. The County's practice has been to offer a match of 30-50% for our two successful grant applications. However, the unknown in this case is the lack of identified funding to fully acquire the property -the combination of grant and requested County match are in themselves not sufficient to meet the expected purchase price. As such, it is possible that a lowering of the local match might affect the grant award. Carrboro has asked Orange County to designate the $750,000 originally identified for Carrboro greenways in the 2001 bond for this purchase. The table on the following page shows the CIP funding stream for the 2001 bond allocated to greenways. As noted, the funding sources mentioned to date do not appear to be sufficient to raise all of the expected funds for purchase. Carrboro has indicated an intent to apply for other grants and work with local groups to raise money for the remaining purchase amount. 1 -The tentative $200,000 Clean Water grant includes $10,500 that is to go toward transaction costs and environmental assessments. This means that $189,500 of the grant would go to the purchase price) 5 Planned County Funding Timetable - ]oint Town/County Open Space (based on current CIP/Financing Schedule) Carrboro's request - $750,000 ** -These are funds for both Chanel Hill and Carrboro greenways, with the intention that greenways would tie into County open space network. It is not known whether the owners would be willing to set up an installment purchase of the property, but such an arrangement may help address future Town and County funding streams. The Town's current plan is to acquire an option on the property. The option will require payment of an 'earnest" amount (which normally becomes part of the purchase if pursued, or is foregone if not pursued). The option agreement would fix a purchase price for the property. One Possible Scenario for Participation There are a number of different issues that the Board has identified related to this potential joint venture, including: - Is a decision on the County's financial participation needed at this time? - Should any County funds be required to be matched by the Town? Should the match be required over time? Is this true of 2001 bond funds? - Where will the other funds come from for the total purchase price? - With a $200,000 Clean Water grant, how much of a local government match is required at this time? - Should the funding sources be tied to the proportional use of the property (i.e., greenways money to low-impact recreation areas, other funds to °open space" or lands left undisturbed)? - Who will own the property, and what mechanisms can be instituted to ensure that future use of the Adams tract is consistent with the uses outlined at this time and the County's conditions of participation? One of the questions that arose on November 19th regarded ensuring that future use of the property is consistent with the vision of uses currently expressed (greenways, open space, water quality and natural resource protection). •~- ~, FY 2002-03 $400 000 FY 2003-04 $200,000 FY 2004-05 $575 000 FY 2005-06 $575 000 TOTAL $1,750 000 3 6 While there is no mechanism that can preclude with certainty any future unplanned uses of the property, this issue has come up in recent years with both the Greene Tract and the American Stone quarry. In both of those cases, multiple parry conservation easements were identified to provide additional layers of protection against the potential for undesired future land use action by one of the parties. In this case, the same mechanism could be used, in conjunction with resolutions by the elected boards and deed restrictions, to provide as many layers of protection against undesired future uses as possible. If the Board chooses to participate in this joint venture, the following scenario is one approach that might be taken (assuming that an answer is indeed needed to the Clean Water Management Trust Fund at this time). There are certainly other scenarios that could be crafted or considered, and we would be glad to help address other scenarios as the Board sees fit. 1. Orange County agrees to participate in the joint acquisition with Carrboro, and notifies the Clean Water Management Trust Fund that it will provide local government matching funds of up to $750,000 (contingent on several conditions as shown below) 2. To address the Clean Water grant match (and Town request), the County might provide $200,000 from the 2001 bond (greenways), to be applied toward the approximately 6-acre portion of land being funded by the Clean Water Management Trust Fund grant. (The prorated value of this portion of the .property, based on the new appraisal, is $279,450). This portion of the property would include the area protected for water quality as well as a potential segment of the future Bolin Creek greenway. These 2001 bond funds might not require a 50-50 match from Carrboro, but the County's participation could be made contingent upon Carrboro and Orange County signing a ")oint Use" Memorandum of Understanding (similar to the IP Work Group's recommended process for joint projects, and the process being considered with the Town of Chapel Hill for Southern Park). 3. For the remainder of the Adams Tract (approximately 23 acres), Orange County could provide matching funds of up to $550,000, as follows: - An additional $200,000 from the 2001 bond for greenways (the remainder of the $400,000 for greenways appropriated for this fiscal year) - A "dollar-for-dollar" match of additional funds raised by the Town (or through other sources secured by the Town) toward the purchase, up to $350,000, from the County's Lands Legacy Fund. This $350,000 from the Lands Legacy Fund would be subject to the 50-50 match outlined in the County's Joint Parks and Open Space Criteria. Accordingly, the Town would repay $175,000 to the Lands Legacy Fund over four fiscal years (FY 4 7 2003-04 through FY 2006-07). Any grants received could be used to lower the Town and County shares of the purchase. 4. For the 23-acre remainder of the Adams Tract (not covered by the Clean Water Management Trust Fund easement), the Town could be asked to convey a conservation easement to Orange County and designated other parties (such as land trusts or conservation organizations). County financial participation above would be contingent on the formal execution of said easement, and any County funding commitment would be rescinded if the easement is not concluded by December 31, 2003. The easement would address (but is not limited to) the following provisions: - That the use of the property will be for pedestrian trails or greenways, public open space and the preservation of natural resources, or other .compatible land uses as mutually agreed to by the Town and County - That any changes to the uses of property require the agreement of all parties to the easement, and - That Carrboro's condemnation power, with respect to property owned by Orange County (the conservation easement properly) and used for governmental purposes to which the conservation easement property will be committed (preservation of open space and protection of the environmental qualities to be identified in the conservation easement) is limited and proscribed by law. 5. The Town of Carrboro agrees to place deed restrictions on the property, once acquired, that restricts the future use of the property as per the above, prohibits any connector roads or other prohibited land uses and contains a covenant regarding condemnation in the same form as noted in the previous paragraph. 6. The Town and County could both pass resolutions declaring the intent to use the Adams Tract for the uses as described above (trails, water and natural resource protection, open space). As noted above, there are many other potential scenarios. This one has been developed given the time considerations -with the assumption that a resolution to the matter is needed in short order to secure the Clean Water grant, but with the understanding that Orange County may have a number of conditions that need to be addressed in order to participate in this acquisition. This scenario uses the twin methods of multi-party conservation easements (along with deed restrictions) and a joint Memorandum of Understanding to address potential conditions of participation. The scenario would place the County's funding in the forefront of the project, while allowing (and encouraging) the Town and other parties to secure other funding sources for the acquisition. s S Please let me know if you have any comments or questions. If you or the Board would like to consider other potential scenarios, I would be glad to take a look at other approaches. Attachment 2 Adams Tract Questions and Responses Questions to Town of Carrboro' 1. Please clarify all intended uses of the property (all 29 acres). • To provide environmental protection for surface waters and urban drinking water supplies and establishing a network of riparian greenways for environmental, educational, and recreational uses To allow passive recreational uses of the Property including walking, biking, and fishing • To allow public access to the property for the purpose of conducting educational tours, scientific studies, maintenance of the Property, and any other purposes consistent with maintaining the conservation value. 2. Where exactly is the route of the proposed Bolin Creek Greenway -which side of Bolin Creek would it follow in this area? The Route has not been determined, but it is anticipated that the greenway will follow the creek corridor. 3. Who would own the property? If Carrboro is to own it, would Carrboro grant a conservation easement to Orange County that stipulated prohibited future uses for purposes other than open space and greenways? The State of North Carolina will be the Grantee and holder of the conservation easement for acres purchased with Clean Water Management Trust (CWMT) funds. The CWMT Fund is authorized by Article 13A, Chapter 113 of the General Statutes of North Carolina ("N.C.G.S.") to finance projects and to acquire land and interests in land, including conservation easements for riparian buffers for the purposes of providing environmental protection for surface waters and urban drinking water supplies and establishing a network of riparian greenways for environmental, educational, and recreational uses. For the remaining acres purchased with Orange County funds, The Town of Carrboro would grant Orange County a conservation easement. 4. Would conservation easements (either Clean Water or potential County easement) preclude the current mountain bike use? 10 While they would not preclude mountain bike use, minimizing stream impact might necessitate an altered use pattern. 5. Is there or will there be a plan that has a connector road going through the Adams tract? (Also clarify this with UNC). A connector road is not planned on the property. 6. Would Carrboro contact OWASA about utilizing utility easements for greenways? Presumably, any use for greenways of property not owned by the Town would require securing from the property owner an additional easement for that use independent of any OWASA easement, and subject to OWASA approval for compatible uses. 7. Does the Town have any money to put toward the acquisition? No 8. If the combination of grants and County contribution does not cover the full amount of purchase, where will other funds come from? The Adams Property Preservation Committee met on October 29 and produced the list of potential funding sources below: • PTA's and schools • Friends of Carrboro Recreation and Parks • Friends of Bolin Creek • Botany Department at UNC • Partnering with an affordable housing agency • Wetlands Preservation Fund • Ask Adams family to "donate" $250,000 of the value to the town • Ask Adams family to accept $250,000 payment in 5 years • DOT improvement money for greenways and bikeways • Triangle Land Conservancy • Land and Water Conservation Fund • Performance Bikes or other corporate donors The Committee will meet again on November 14 to decide which ones to pursue. uNc ~,. 0 0 0 Crq~y ,,~ ~--~~ ~~~ F> r .. . Parcels This map contains parcels prepared for the inventory of real propery within Hydrography (Cad,Streams) Orange County, and is compiled from recorded deed, plats, and other public Major Roads records and data. Users of this map are hereby notified that the aforementioned County public primary information sources should be consulted for verification of the Text TownshipText information contained on this map. The county and its mapping companies assume , „' Townships no legal responsibility for the information contained on this map. Orange County GIS ~~. r N 1:10000