AGENDA #14b
TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manager
SUBJECT: Transfer of the Scarlette Drive Property
DATE: January 10, 2000
The attached resolution would authorize the Manager to initiate the transfer of the Scarlette Drive property to the Orange Community Housing Corporation.
In order to proceed with the development of the Scarlette Drive property as a land trust, we recommend that the Council authorize the Manager to initiate the legal procedure to transfer the property to the Orange Community Housing Corporation. The Council may use the procedures of G.S. 160A-279, Sale of Property to Entities Carrying out a Public Purpose. This process would include a published notice in the newspaper informing the public of the Town’s intent to transfer the property and how it would be used.
At the time of transfer to Orange Community Housing Corporation, the Town would receive a Promissory Note and Deed of Trust on the property. The Deed of Trust would specify that the property be used for the purposes of developing an affordable homeownership land trust project on the property. In turn, the Orange Community Housing Corporation would transfer the land to the Community Land Trust in Orange County.
If the Council chooses to proceed with the transfer of the property to the land trust we recommend that we develop a three-party Performance Agreement among the Town, the Community Land Trust and the Orange Community Housing Corporation. This Agreement would identify the Orange Community Housing Corporation’s responsibilities for developing the townhomes on the property, and the Community Land Trust in Orange County’s responsibilities for maintaining the property as affordable housing . We would also include in the Performance Agreement that the Town would be notified of future transfers of property so we could verify that the new owners would meet the income qualifications of the program (earn less than 80% of the area median income by household size).
That the Council (1) authorize the Manager to initiate the transfer of the Scarlette Drive property to the Orange Community Housing Corporation who in turn will convey the property to the Community Land Trust in Orange County; and (2) authorize the Manager to incorporate terms governing the use of the property into a three-party Performance Agreement to be developed among the Town, the Orange Community Housing Corporation and the Community Land Trust in Orange County.
A RESOLUTION AUTHORIZING
TRANSFER OF PARCELS 7.27A.B.7 AND 7.27A.B.8 LOCATED AT THE CORNER OF SCARLETTE
DRIVE AND LEGION ROAD TO THE ORANGE COMMUNITY HOUSING CORPORATION AND THE
COMMUNITY LAND TRUST IN ORANGE COUNTY (2000-01-10/R-25)
WHEREAS, on May 24, 1995, the Council asked the Manager to survey Town owned properties and to prepare a report evaluating whether any undeveloped properties may not be needed for Town purposes; and
WHEREAS, on April 26, 1996, the Scarlette Drive site, located at Tax Map 7.27A.B.7 and 7.27.B.8, was identified as a candidate for resale, reuse or for construction of affordable housing; and
WHEREAS, the Orange Community Housing Corporation has been granted a Special Use Permit to develop fourteen townhomes on the Scarlette Drive property; and
WHEREAS, the Scarlette Drive Townhomes will be the first project of the Community Land Trust in Orange County and is to be developed to further the public purpose of providing affordable housing to lower-income households;
NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council authorizes transfer of ownership of parcels 7.27A.B.7 and 7.27.B.8 located at the corner of Scarlette Drive and Legion Road to the Orange Community Housing Corporation using the provisions of G.S. 160A-279, Sale of Properties to Entities Carrying out a Public Purpose; in turn the Orange Community Housing Corporation will transfer the land to the Community Land Trust in Orange County;
BE IT FURTHER RESOLVED that the Council authorizes the transfer of the property subject to deed restrictions requiring the property be used for the purposes of developing an affordable homeownership land trust project on the property; and
BE IT FURTHER RESOLVED that the Council authorizes the Manager to incorporate terms governing the use of the property into a three-party Performance Agreement to be developed among the Town, the Orange Community Housing Corporation and the Community Land Trust in Orange County.
This the 10th day of January, 2000.