AGENDA #4L
MEMORANDUM
TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manager
SUBJECT: Proposed Agreement for a Multi-Jurisdictional Purchase of Property Adjacent to Erwin Road and Pickett Road
DATE: June 12, 2006
PURPOSE
Adoption of the attached resolution would authorize the Manager to execute an Interlocal Agreement with the City of Durham, Durham County, and Orange County to purchase a 42.83-acre tract of open space located at the point where Erwin Road crosses from Orange into Durham County.
BACKGROUND
In 1988, Duke University identified the 42.83-acre property as surplus and available to sell for income.
Duke University originally agreed to sell the property to the Crosland Development Company. The Durham City/County Subdivision Ordinance allows a public agency to reserve public facility sites for 120 days if they are shown in an adopted plan. Durham County requested the delay to provide time to review the merits of potential acquisition of the property by the government. The deadline was April 8, 2005.
On January 24, 2005, the Council authorized the Town Manager to enter into negotiations with Durham County, the City of Durham, and Orange County managers to investigate the potential acquisition of the parcel.
On March 9, 2005, the Durham-Chapel Hill-Orange County Work Group requested that all of the governments make any formal commitments to a potential purchase prior to the April 8 deadline.
On March 21, 2005, the Council pledged $100,000 to be used as the Town’s contribution to the purchase.
In 2005, the Penny family agreed to sell 23 adjacent acres to the Triangle Land Conservancy and Orange County purchased seven adjacent acres from Duke University.
In 2005, the County of Durham was awarded a Clean Water Management Trust Fund Grant in the amount of $1,112,000 dollars towards the acquisition of the Penny Tract and the Erwin Trace property. Under the proposed agreement the award amount would proportionally reduce the contributions of the participating jurisdictions.
DISCUSSION
Erwin/Pickett Road Property: The property is located near New Hope Creek. The portion of the property in Orange County is included in the New Hope Creek Corridor Master Plan which was adopted by all four jurisdictions in 1991. The Plan also calls for a public access point and trail head on approximately seven acres on the west side of Pickett Road that was recently purchased by Orange County. The Plan does not specifically call for the acquisition of the Durham County portion of the Crosland site, although its preservation would support the goals and intent of the overall Plan.
Penny Property: The Penny family owns a total of 59 acres south of the Erwin Road tract including 20 acres of floodplain land within Orange County that the New Hope Plan proposes to preserve. They also own 39 acres of uplands on both sides of Pickett Road within Durham County. The property includes their personal home and a historically significant house.
Approximately 23 acres of the Penny Tract is under option by the Triangle Land Conservancy. The Conservancy expects to close on the property at the end of June 2006. The Conservancy then plans to sell the property to Orange County, which will then own and manage it.
The Penny family has additionally pledged to grant a 20-acre conservation easement to Durham and Orange Counties. The portion of the Penny Conservation Easement within Durham County would be owned and managed by Durham County and the portion of the Penny Conservation Easement within Orange County would be owned and managed by Orange County.
Proposed Financial Contributions toward the Purchase: Durham County has entered into a contract with Duke University to purchase the Erwin/Pickett Road property for $1,500,000. Durham County has paid $500,000. The remaining $1,000,000 is due at closing which will be on or before April 8, 2008. The various governments and other agencies originally agreed to pay the following amounts toward the purchase:
|
Durham County |
$900,000 |
|
Orange County |
200,000 |
|
Erwin Area Neighborhood Group |
200,000 |
|
Town of Chapel Hill |
100,000 |
|
City of Durham |
75,000 |
|
Triangle Land Conservancy |
25,000 |
|
|
|
|
Total |
$1,500,000 |
Since that time, Durham County received notice of an award of a Clean Water Management Trust Fund Grant in the amount of $1,112,000. However, the grant funds are conditioned upon the donation of additional conservation easements on the Penny lands. The draft agreement would provide for reductions in each of the party’s financial contributions towards the acquisition as a result of the award of this grant.
The grant provides $1,000,000 for purchase of the Erwin/Pickett Road property. The first $500,000 would be used to offset Durham County’s contribution to the purchase of the Property. The remaining $500,000 of Grant Funds would be used to off-set the agreed-upon financial contributions of all four participating governments on a prorata basis based on the total amount of the un-reimbursed contribution by each governmental unit. Each governing unit’s total financial contribution would be reduced to the following amounts:
· Durham County - 52.5 percent contribution equals $151,643
· Orange County – 25.3 percent contribution equals $73,257
· Chapel Hill – 12.7 percent contribution equals $36,629
· City of Durham – 9.5 percent contribution equals $27,471
Under this proposal the Town’s contribution would be reduced from $100,000 to $36,629 for a total savings of $63,371.
The remaining $112,000 from the grant would be utilized solely to reimburse Orange County for expenses related to the acquisition of the Penny Tract.
Additional Obligation to Orange County: At the time the Council agreed to provide $100,000 for purchase of the property, the Council also agreed to pay $25,000 to Orange County to help offset the County’s contribution. Because the Clean Water Management Trust Fund grant has reduced Orange County’s required contribution by $126,700 to $73,300, we no longer believe that the Town’s $25,000 contribution is needed.
Distribution and Ownership of Property: The Property would initially be conveyed to Durham County upon closing. Immediately following the closing, Durham County would deed portions of the Property as follows:
· Orange County would receive the 11 acres lying in Orange County.
· Chapel Hill would receive two acres, subdivided from Durham County’s parcel at a location to be negotiated.
Master Park Planning: Chapel Hill, Durham County, the City of Durham and Orange County would jointly establish a Park Planning Advisory Committee (“Committee”) for the Property and surrounding area. The purpose of the Committee would be to develop recommendations for an overall plan for the property and adjoining properties that comprise the Hollow Rock/Erwin Area portion of the New Hope Plan. The plan would include overall recommended uses and generalized locations for the proposed uses. The recommendations of the Committee would be presented to the public and approved by the participating governing bodies.
The Park Planning Advisory Committee would consist of eleven (11) members appointed as follows:
· Durham County four members
· Orange County four members
· Chapel Hill two members
· City of Durham one member
Members would be required to reside within the jurisdiction of the appointing authority. Attempts would be made to assure that the appointments represent a cross section of the community. All members would have equal rights regardless of whether the matters at issue are located inside or outside the member’s jurisdiction.
Use of the Property: Under terms of the proposed agreement the property would be maintained in a natural scenic condition and restricted from any development or use that would impair or interfere with the conservation purposes of the Property. The following uses would be specifically allowed: open space, walking trails, parking, restroom facilities, environmental or scientific projects or studies, and other similar low-impact activities.
The Property would be open to the public during daytime hours. If necessary to qualify for state or federal grants, the property may be subject in the future to further restrictions.
RECOMMENDATION
Town Manager’s Recommendation: We recommend that the Council adopt the attached resolution, authorizing the Manager to execute an Interlocal Agreement related to the purchase of a 42.83-acre property formally known as Erwin Trace, located near New Hope Creek; payment of funds as required by the Interlocal Agreement; and acceptance of title to two acres of land.
ATTACHMENT
