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HomeMy WebLinkAboutAgenda - 12-07-1999 - 8s1 ` ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT .Meeting Date:. December 7, 1999 Action Agenda Item No. 8- S SUBJECT: Approval of.Option to Purchase Land -Cheeks Township DEPARTMENT: Environment and Resource PUBLIC HEARING: (Y/N) No Conservation ATTACHMENT(S): INFORMATION CONTACT: Option Agreement with Duke University Dave Stancil, ext 2590 Clean Water Grant Press Release TELEPHONE NUMBERS: Hillsborough 732-8181 Chapel Hill 968-4501 . Durham 688-7331 Mebane 336-227-2031 PURPOSE: To consider exercising an option. to purchase 62.7 acres of land in Cheeks Township from Duke University, via a grant in the amount of $143,000 from the Clean Water Management Trust Fund. BACKGROUND: On June 30, the Board agreed to an option to purchase a 62.7-acre tract of land west of Hillsborough from Duke University. The property is located .along US70, adjacent to the Orange-Alamance Water .Systems land and Corporation Lake, which provides water to the 6,000 customers of Orange-Alamance. In conjunction with this option, County staff submitted an application for a grant from the Clean Water Management Trust Fund for this property. On November 17, .the .Clean Water Management Trust Fund approved the County's grant request in the amount of $143,000, or 51 % of the $280,000 purchase price. The option agreement with Duke calls for a decision on exercising the option. by January 15, 2000. Uses of the property will be .limited due to .the watershed protection impervious surface requirements. The potential use for rustic nature trails on the property does exist. A budget amendment will be prepared in advance of the property closing which accounts for the grant received .and the County's share of funding. FINANCIAL IMPACT: The purchase. price of this property may be paid in full at the time of closing (which will occur within a reasonable time after January 15), or over three years in an installment approach. Funding sources would. include the $143,000 Clean Water grant; with the County's match coming from any combination of the following sources: the ERC CIP Fund ($150,000 available), the School/Park Reserve Fund (interest accumulation only - $140,000), the Parks land acquisition bond ($2.89 million); and the Cheeks-Hillsborough. Payment-in-Lieu Fund ($173,309). 2 Y RECOMMENDATION(S): The Manager recommends that the. Board exercise the option to purchase this property effective January.15, 2000. A budget amendment will be prepared for a subsequent meeting for the purposes of accepting the grant and completing the payment arrangements to Duke at the time of closing,. which would within a reasonable period of time after January 15. The Manager also recommends that the Board authorize a report to be prepared by ERCD and Recreation and. Parks staff regarding recommended .uses of the property, to be submitted at a subsequent meeting. 3 R MANAGEMENT TRUST FUND CLEAN WATE David A. McNaught 2313-8 Executive Park Circle Telephone (252) 830-3222 Executive Director ~ Greenville, NC 27834 ~ Fax (252) 830-3224 October 1, 1999 Mr. David Stancil, Director County of Orange P O Box 8181 Hillsborough, NC 27278 Subject: Application No. 1999A-017 Dear Mr. Stancil: The enclosed press release announces the fact that the Clean Water Management Trust Fund will not approve any grants this cycle, ,prior to the Trustees' November meeting. Your application is one of fifteen, which have had a positive recommendation from the appropriate subcommittee to the full board of Trustees. However, prior to acting on these recommendations, the Trustees will examine the urgent situation in eastern North Carolina and assess the implications for CWMTF. We will. do our best to respond to your application in a timely fashion. We appreciate your patience. Sincerely, ~~~ '~ David McNaught Executive Director CWMTF Trustees Chair, Joseph M. Hester, Jr. Rocky Mount Caroline Ansbacher Burlington Dr. John Cosflow Beaufort Karen Cragnolin Asheville Allen Holt Gwyn Greensboro John C. Hagan Greensboro Allen M. Hardison New Bern William Hollan Winston-Salem Robert D. Howard Whiteville Dr. Elizabeth Johns Bryson City Dickson McLean, Jr. Lumberton Mickey Simmons Newport C. Leroy Smith Winterville Chuck Wakild Wilmington Claudette Weston Winston-Salem Drew Willis .New Bern Jerry Wright Jarvisburg S 4 CLEAN WATER MANAGEMENT TRUST FUND David A. McNaught 2313-8 Executve Park Circle Telephone (252) 830-3222 Executive Director ~ Greenville, NC 27.834 ~ .Fax (252) 830-3224 PRESS RELEASE: September 29,.1999 Contact Persons (CWMTF Field representatives): In the west, Tom Massie, 828-586-4133; in the central, Bern Schumak, 704-947-0506; and in the east, Damon Tatem, 252-441-6672. CWMTF Director: David McNaught, 252-830-3222 In response to the unprecedented and catastrophic effects of Hurricane Floyd on eastern North Carolina, the Trustees of the NC Clean Water Management Trust Fund have suspended approving any grants until their November meeting at the earliest. "The hurricane has had significant impact on our rivers, creeks and estuaries," said CWMTF Chairman, Joseph Hester, 7r. of Rocky Mount. "It would be premature to approve any expenditures of State monies before we more fully understand the new problems, challenges and opportunities for the protection of water quality in the ravaged watersheds of eastern North Carolina. Therefore we have deferred approval of any projects for the time being." Hester advised that the Trustees had unanimously agreed that (1) no actions to approve applications in the current cycle would be made prior to the November meeting; (2) applications dealing with water quality problems associated with Humcane Floyd would be accepted at any time and would not be subject to the program's normal deadlines; (3) those applications would be reviewed and acted upon in an expedited fashion; and (4) CWMTF staff would work with other agencies to develop a strategic understanding of how CWMTF might best participate in the overall response to the flood-torn areas. CWMTF was established by the NC General Assembly in 1996 to assist in funding community initiatives to protect or restore water quality. It is predicted that the recent floods will cause serious water quality problems throughout the eastern part of the state. CWMTF staffwill seek to ensure that program funds will complement other relief activities while maximizing water quality benefits. Inquiries about potential prof ects may be made to the central office at (252) 830-3222. CWMTF Trustees Chair, Joseph M. Hester Jr. Rocky Mount Caroline Ansbacher Burlington Dc John Costlow Beaufort Karen Cragnolin Asheville Allen Holt Gwyn Greensboro John C. Hagan Greensboro Allen M. Hardison New Bern William Hollan Winston-Salem Robert D. Howard Whitevi0e Dr. Er~zabeth Johns Bryson City Dickson McLean. Jr. Lumberton Mickey Simmons Newport C. Leroy Smith Winterville Chuck Wakild Wilmington Claudette Weston Winston-Salem Drew Willis New Bern Jerry Wright Jarvisburg 5 Prepared by: .Geoffrey E. Gledhill Return to: Geoffrey E. Gledhill, P.O. Drawer. 1529, Hillsborough, NC 27278 NORTH CAROLINA ORANGE COUNTY OPTION TO PURCHASE AGREEMENT THIS OPTION TO PURCHASE AGREEMENT, made and entered into ~bQ. this the _~ day of 1999 by and between DUKE UNIVERSITY, a North Carolina corporation, hereafter "Duke University," and ORANGE COUNTY, NORTH CAROLINA, a body politic and corporate, a political. subdivision of the .State of North Carolina, hereafter "Orange County"; WITNESSETH: Duke University, for a valuable consideration, the receipt of which is hereby acknowledged, does hereby grant, bargain, sell and convey unto Orange County the option to purchase the property hereinafter referred to as Nthe Property" and upon the terms and conditions hereinafter set forth. The Property is described as follows: The 62.652 acre tract of land identified as Parcel Number 1 on the plat of property titled "Property of Duke University," prepared by James R. Hudson, R.L.S., which plat is recorded at Plat Book 43, Page 83, Orange County Registry. The Property is further identified as Orange County P.I.N. 9855-50-8167 and has an Orange County tax map reference of 3.41..14. THE TERMS AND CONDITIONS OF THIS OPTION ARE A5 FOLLOWS: 1. The purchase price for this option is ONE HUNDRED AND 00/100 DOLLARS ($100.00). Duke University acknowledges receipt of the purchase price for this option. Any payment made for the purchase of this option and the payment for extensions hereto, if 1 6 v any, shall be applied to the purchase price as set forth in paragraph 3 below. 2. Orange County will make application to the Clean Water Management Trust Fund (CWMTF) for funds to purchase the Property. Orange County should know whether it will receive a grant from CWMTF on or before December 31, 1999. The Eno River Association is conducting a water quality study of the. Upper Eno Watershed which study may affect the short term and long term use of the Property. Orange County expects that study to be completed and it to .receive the results of that study on or before December 31, 1999. Orange County has until the latter of twenty (20) days -- after its receipt of application for grant of the results of the no later than January to purchase contained may be exercised by a Zotification by CWMTF of the results of its funds or twenty (20) days after its receipt .Upper Eno Watershed study, but in no event 15, 2000, in which to exercise the option in this agreement. The option to purchase Notice to that effect either hand-delivered to Jeffrey H. Potter, the Duke University representative in this transaction, or mailed by certified mail to Duke University, addressed to Jeffrey H. Potter, Director of Real Estate Administration, Duke University, 402 Oregon Street, Durham, NC 27705. Delivery by mail shall be accomplished on the date the Notice is mailed. In the event that Orange County fails to exercise the option, then and in that event, this option shall be null and void and of no effect; provided, however, this option may be extended by amendment if the amendment. is signed by ..Duke University. 2 7 3. The .purchase price for the property is TW0 HUNDRED EIGHTY THOUSAND AND 00/100 DOLLARS ($280,000.00). The purchase price shall be paid, at the option of Orange County, by (1) payment in full and in cash at the closing: or `(2) payment in cash at the closing of the greater. of $50,000.00 or the CWMTF grant amount and the execution of a promissory note secured by a first lien deed of trust on the Property which promissory note will provide for the payment of the balance of the purchase price in two equal annual installments. If an installment purchase is elected by Orange County, the first installment of principal and interest will be due on the first anniversary of .the closing. The second and final installment of principal and interest will be due on the second anniversary of the closing. Installment payments shall include interest on the unpaid balance at the rate -- of 5~ per annum. Neither the promissory note nor the deed of trust will prohibit or provide a penalty for prepayment of any amount of the unpaid principal balance. The Property will be conveyed at the closing by special warranty deed from Duke University to Orange County. Any and all payments made for the purchase of this option and any extensions hereto shall be applied to the purchase price. 4. Duke University has made application to Orange County for a change in the Orange County Land Use Element designation of the Property from public interest to a Land Use Element designation permitting the use of the Property for one or more single-family residences. Orange County has not acted on that Land Use Element change application. It is not anticipated that 3 8 Orange.. County will act on that Land Use Element application until some reasonable time after it receives the results of the Upper Eno Watershed study referred to in paragraph 2 of this agreement. This option agreement is not a withdrawal by Duke University of its application for a change in the Land Use Element and the parties acknowledge that Duke University may continue to pursue its request for a change~in the Land Use Element. 5. During the term of this. option agreement and any extensions to it Duke University may continue to receive and accept back-up offers to purchase the Property. Duke University represents that it has received an offer to purchase the Property.. which is contingent on a change in the Orange County Land Use Element and a change in the zoning of the Property which would permit the use o~f the Property for one or more single-family residences. The parties agree that that offer, a copy of which has been provided to Orange County, is such a back-up offer. 6. Duke University agrees that Orange County, its agents. or employees, may go upon the Property for the purpose. of inspecting, testing and analyzing the Property at any .time prior to the closing of the purchase of the Property, provided that this option has not expired. 7. Duke University warrants that. since it has owned the property it has not encumbered the property and that it has received neither notice. of nor knows of any encumbrances or special assessments. either pending or confirmed for sidewalk paving, road paving, water, sewer or other improvements on or adjoining the Property. Duke University and Orange County agree 4 9 that there are no governmental restrictions, easements, zoning or other governmental regulations which would prevent the reasonable use of the Property for government facilities and office buildings; parks, public and non-profit; botanical gardens and arboretums; water and sanitary sewer pumping stations; or research lands and installations owned by non-profit entities. Duke University, upon request of Orange County, will assist in the removal of any such impediments to use discovered hereafter. 8. In the event herein set forth, upon preparation of a deed, documents necessary to liens and encumbrances Orange County shall pa: --~ Property if it deems a that Orange County exercises the option closing, Duke University shall pay for the for the preparation and recording of all convey marketable fee simple title free of and for the excise tax required by law.. for recording the deed, survey of the survey necessary and .for all other closing costs. Duke University agrees to furnish at closing an affidavit and indemnification agreement in form satisfactory to Orange County showing that all labor and materials, if any, furnished to the Property within. a 120 day period. prior to the date of closing have been paid for and agreeing to indemnify Orange County against any and all loss resulting from any cause or claim arising therefrom. 9. The special warranty deed of the Property to be executed by Duke University is to be made to Orange County, North Carolina. Possession of the Property shall be delivered at closing.. 5 10 10. Ad valorem taxes on the Property,. if any, shall be prorated on a calendar year basis.to the date of closing. Any Orange County ad valorem taxes on personal property of Duke University for the entire year of the closing shall be paid by Duke University. Any late listing penalties shall be paid by Duke University. 11. Any and all deeds of trust, liens or other charges against the Property not assumed by Orange County must be paid and cancelled by Duke University prior to or at closing. 12. On request of Orange County or its counsel, Geoffrey E. Gledhill, Duke University agrees to exercise its best efforts to deliver to Orange County as soon as reasonably possible following the signing of this agreement, copies of any title information in possession of or available to Duke University, including, but not ', .limited to, title insurance policies,. attorneys opinions on ~~ title, surveys, covenants, deeds, notes, and deeds of .trust and easements relating to the Property. Duke University further agrees, upon request of Orange County or its counsel, Geoffrey E. Gledhill, to provide any information requested by Orange County regarding title to the property, including any information related to family history which may. be necessary to establish title in Duke University.. 13. This: option agreement between_Duke Universityand Orange County may not be assigned without the express. written consent of both parties and, in the event that such prior written consent is secured, all conditions herein set forth between Duke 11 University .and Orange County shall be binding upon. any assignee, its heirs, successors. and assigns: 14. .This option agreement shall be binding-and shall inure to the benefit of the parties, their heirs, successors and assigns. 15. Duke University and Orange County agree that a memorandum of this. option agreement, in form satisfactory to . Orange County, shall be executed and may be recorded in the Orange County Registry. Alternatively, and at the election of Orange County, this option agreement may be recorded in the Orange. County Registry. 16. Any provision contained in this agreement which by its nature and effect, if required to be observed, kept or performed after closing shall survive the closing and shall remain binding -~ upon and for the benefit of the parties hereto until fully observed, kept or performed. 17. Orange County, upon exercise of the Option set forth in this agreement shall inform Duke University of a closing date, closing to occur at a place designated by the closing attorney for Orange. County. 18. This option contains the entire agreement of the parties and there are no representations, inducements or other .provisions other than those expressed in writing. Any changes, additions or deletions hereto must be in writing and signed by all parties. IN WITNESS WHEREOF, Duke University has caused this instrument to be signed. its President or an Executive Vice 7 12 President, attested by the University Secretary as provided by law and its corporate seal affixed hereto and, Orange County has caused this instrument to be signed by the chair of the Board of County Commissioners, attested by the Clerk to its Board of County Commissioners and its County seal affixed hereto, all the. day and year written above. DUKE SI • ~ (~C~,. VICE President ATTEST: [CORPORATE SEAL] University Secretary - ORANGE COUNTY, NORTH CAROLINA By: Alice M. Gordon, Chair Orange County Board of Commissioners . ATTES [COUNTY SEAL] Beverly Blyt e, Clerk to the Board of Commissioners NORTH CAROLINA Cpl-l.(LI--{-LAM COUNT'YL - . T, ~~~-- ~~~ a Notary P blic of 1~-~~~M County .and the aforesaid State, certify that ~•di1-1-~~ L'~ personally came before me this day and acknowledged that he she is University.. Secretary of Duke University, a corpora ion, and that by authority duly given and as the act of the corporation, the foregoing. instrument was signed in its. name by its E1C~G.VtGE P esident, sealed with its. corporate seal- and attested by ~• ~--~-«-~ ~{-~M as its University Secretary. Witness hand an fficial stamp or seal this the ~_ day o f ~l~l,(~1~ 19 ~~ . Notary Public My co ~1~ssior_ expires 11 o1Lt~G3 8 M 13 NORTH. CAROLINA. ORANGE COUNTY I, a Notary Public of the County and State aforesaid, certify that Beverly A. Blythe personally came before me this day and acknowledged that she is Clerk to the Board of Commissioners for Orange County and that by authority duly given and as the act of said .County, the foregoing instrument was signed in its name by the Chair of said Board of Commissioners and attested by her as Clerk to said Board of Commissioners. Witness my hand .and official stamp or seal, this the ~ day of _ ~'ccl a 19~. ,p ? ~~~~ Notary Public . 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