AGENDA #4f

 

MEMORANDUM

 

TO:                  Mayor and Town Council

 

FROM:            W. Calvin Horton, Town Manager

 

SUBJECT:      Offer to Purchase a One-Acre Parcel of Town Open Space

 

DATE:                        March 27, 2006

 

 

PURPOSE

 

The purpose of this report is to provide the Council an opportunity to discuss an offer by Peter Slomianyj to purchase a one-acre tract of Town open space for $12,000.

 

The attached resolution would authorize the Town Manager to sell the property for $12,000.

 

BACKGROUND

 

In May 2005, the Council authorized the purchase of six lots of open space, totaling 22.759 acres, for $1,050,000. The purchase included four parcels in the Northside neighborhood that totaled about 9.459 acres. In addition, the purchase included a 12.3 acre tract and a one-acre tract south of the Town limits.

 

On February 13, 2006, Peter Slomianyj petitioned the Council and asked that the Council consider selling him the one acre tract of Town open space for $12,000. Please see the attached copy of the petition.

 

DISCUSSION

 

The one-acre tract, which is identified as Chapel Hill Tax Map 7.128B.29B, is located outside the Town’s Urban Services district.  It is about 1,350 feet from the eastern edge of the right of way of Highway 15-501. Please see the attached map. We believe it does not have legal access to a public street and is probably not developable as a stand-alone lot due to the lack of space for a septic system and poor soils. Please see the attached map.

 

At the time the Town purchased the lot it was appraised at $5,000. We believe the offer of $12,000 is a fair price for this particular parcel. If the Council authorizes the sale the funds would be deposited in the 2003 Open Space Bond Fund to be used for future open space purchases.

 

The property was purchased by the Town from an estate. Although the one-acre lot does not appear to serve any significant purpose as open space it was purchased as a part of a package of six properties. We believe the other five lots do have significant open space benefits.

 

Legal Process to Sell Town Property: State statute § 160A‑269 allows a city to negotiate an offer to purchase property and advertise it for upset bids. As required by law, we placed an advertisement in the Chapel Hill News on March 12, 2006 that contained a general description of the property, the amount and terms of the offer, and a notice that within 10 days any person may raise the offer by not less than ten percent (10%) of the first one thousand dollars ($1,000) and five percent (5%) of the remainder. Prospective bidders had until March 22, 2006 to make an upset bid. No such bids were made. As provided under the law the Council may accept this offer and sell the property or the Council may reject the offer.

 

Removal of Trash: The site has been used in the past to dump trash. If the Council decides not to sell the property we will contact adjacent neighbors and attempt to arrange temporary access to clean up the property.

 

RECOMMENDATION

 

Town Manager’s Recommendation: That the Council adopt the attached resolution which would authorize the Town Manager to sell the property for $12,000.

 

 

ATTACHMENTS

 

  1. Sketch map showing the site (p. 4).
  2. Offer to Purchase (p. 5).