HomeMy WebLinkAboutAgenda - 11-13-2008 - 3ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: November 13, 2008
Action Agenda
Item No. 3
SUBJECT: Properties Subject to Potential Divestiture
DEPARTMENT: Purchasing and Central Srvcs. PUBLIC HEARING: (Y/N) No
ATTACHMENT(S):
Building information
INFORMATION CONTACT:
Pam Jones (919) 245-2652
PURPOSE: To discuss seven properties which may be subject to divestiture by the County;
and to discuss two additional properties owned by the County on Valley Forge Road.
BACKGROUND: The Board has previously expressed interest in divestiture of County
properties that may currently not be used to the highest and best use. Seven properties which
may not meet that criteria and as such may be considered for sale are presented in the
attached information sheets. They include:
• Clerk of Court Annex, 112 N. Churton Street
• Graham Building, 118 N. Churton Street
• Homestead Community Center
• Highway 49 old ABC store
• Whiffed Building
• 911 Center at New Hope Church Road (operation relocated)
• Purchasing office, 129 East King Street
The Board is further requested to discuss two additional properties on Valley Forge Road:
Old Orange Enterprises building on Valley Forge Road
The old Orange Enterprises building has been cited as the preferred location of a Value Added
Center. A grant was recently obtained which would move the Center closer to fruition.
Although the Board has recently approved the site for use by the value added center, this
information is included to ensure a comprehensive discussion on the properties which may be
removed from the County's inventory. Further, the information may be helpful as partnership
contributions are developed.
2
Industrial facility on Valley Forge Road leased to Builders First Source
Builder's First Source (BFS) opted to exercise one of two five-year renewal options in 2007 at a
lease rate of $205,000 per year. Further, BFS pays taxes in lieu to the County equivalent to the
tax bill they would receive should the building be under private ownership. In 2012 BFS may
choose to exercise the second five year option. Although the down-turn in building activity
caused a slow down in businesses of this type, it is plausible during the next nine years the
economy will rebound and place BFS in a position that building purchase may be plausible.
Staff would pursue purchase discussions with BFS at the appropriate time should the Board
indicate an interest in selling the property.
FINANCIAL IMPACT: In addition to funds received from the direct sale of the referenced
properties, properties would presumably be under private ownership and as such, subject to
taxation. This action would increase future annual tax revenue to the County and towns in
which they are located.
RECOMMENDATION(S): The Manager recommends the Board discuss each property and:
• Determine whether subject properties should be made available for sale or other
means of disposal as allowed by Statute; and
• Agree to general timelines by which the sale should move forward; and
• Authorize the Purchasing and Central Services Director to seek appraisals or other
reliable means of assessing properties in order to establish fair market value for the
properties identified for sale.
~ I Clerk of Court Annex
a Current Use:
Clerk of Courts Estates Division
o Potential uses if retained:
Public Defender offices
o Capital Investment in facility
(purchase/renovation):
Leased for several years.
Purchased this and the
adjacent Graham Building,
from same owner for
$485,000 in 2001
o Estimated additional costs if used for
potential use:
$30,000
o Estimated Tax Value $465, 000
o Description:
o Type of Construction: Brick and
Masonry
o Square footage: 3,336 square feet
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Graham Building
o Current Use:
Literacy Council
Previous location of Veteran's
Services
o Potential uses if retained:
a Not recommended for continued
ownership
o Capital Investment in facility
(purchaselrenovation):
u Leased for several years.
Purchased this and and the
adjacent Hillsborough Savings
Bank, from same owner for
$485,000 in 2001
o Estimated additional costs if used for
potential use: N/A
o Estimated Tax Value: $136,300
o Description:
o Type of Construction: Rock
o Square footage: less than 1,000 square
feet
~ Homestead Community
Center
o Current Use:
Managed by Parks and Recreation
Dept. Primary use appears to be
meeting. space for various groups
o Potential uses if retained:
EMS Base Station
o Capital Investment in facility
.. Donated to County by
homeowners association in late
1980's.
o Estimated additional costs if used for
potential use:
~~ $5,000
o Estimated Tax Value $250,000
a Description:
o Type of Construction: Concrete block
construction
a Square footage: 3,368
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• ~ Highway 49 Old ABC Store
o Current Use:
None
o Potential uses if retained:
Not recommended for continued
ownership
o Capital Investment in facility
(purchase/renovation):
Given to County upon closing of
ABC store
o Estimated additional costs if used for
potential use: N/A
o Estimated Tax Value: Not available
o Description:
µ Type of Construction: Concrete
block
Square footage: 1,342 square feet;
postage stamp sized lot
Whitted Building
o Current Use: a Estimated Tax Value: $2.8 Million
Primary Human Services delivery o Descri tion:
facility for Central/Northern p
Orange County. Type of Construction: Brick and Masonry
Central Library site F Square footage: Approximately 57,000
a Potential uses if retained: square feet without gym
Offices for Housing and
Community Development and
Health Department following
relocation of Library and DSS in
2009.
Recreation offices in gym,
adjacent to main building
Not recommended for ownership
if County exercises option to
purchase Hillsborough Commons
shopping Center in February 2012.
o Capital Investment in facility
(purchase/renovation):
Major renovation in early 1980's
Approximately $3.8 million
renovation and HVAC replacement
in 2002
a Estimated additional costs if used for
potential use:. Not available
911 Center on New Hope
Church Road
o Current Use:
EMS Base
o Potential uses if retained:
EMS Base
Redundant 9-1-1 dispatch center
o Capital Investment in facility
(purchase/renovation): unknown
o Estimated additional costs if used for
potential use: $25,000
o Estimated Tax Value: $415,000
o Description:
Type of Construction:
Wood Construction
Square footage: 6,000 square feet
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129 East King Street,
Hillsborough
a Current Use:
Purchasing offices
o Potential uses if retained:
a Heritage Center
o Capital Investment in facility
(purchase/renovation):
$346,000 purchase price in 2000
Approximately $120,000
renovation costs
o Estimated additional costs if used for
potential use:
$75,000--$100,000 to upfit
warehouse area
o Estimated Tax Value $419,100
o Description:
Brick and masonry
~~ 6,000 square foot
4,000 s.f. conditioned
2,000 s.f. warehouse
Confirmation of Use
Valley Forge Road facilities:
Old Orange Enterprises Building;
intended for use as Value Added
Center Approx. value: $425,000
~. Industrial building leased by
Builders First Source through
2012; one additional 5-year option
through 2017 is available at the
discretion of BFS.
Approx. value: $2.7 Million