AGENDA #4i
MEMORANDUM
TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manager
SUBJECT: Proposal to Sell 0.4 Acre of Town Land Adjacent to the Bolin Creek Trail
DATE: August 28, 2000
The attached resolution would indicate the Council’s intent to sell approximately 0.4 acre of Town-owned land adjacent to the Bolin Creek Trail to the highest bidder, and would authorize the Manager to take all actions required by State law to sell the property.
In 1991, the Town purchased 10 acres of land, known as the Danziger tract, for construction of Phase II of the Bolin Creek Trail. This land is located north of Franklin Street, east of Elizabeth Street and the Village Green condominiums, south of Bolin Creek, and west of Meadowbrook Street. Please see the attached map. The Town paid $100,000, or $10,000 per acre for this tract using 1989 Park Bond funds.
In 1998, the Town completed construction of the Bolin Creek Trail, which parallels Bolin Creek from Airport Road to the Community Center Park.
In 1998, the Council approved the sale of 0.2 acre of property to the owners of the Café Driade and authorized the construction of a trail to join the Café to the Bolin Creek Trail. The land purchased from the Town is currently being used by the Café as an outside seating area that overlooks the Bolin Creek valley and trail. Both the land sale and the trail construction were completed in 2000.
In April 2000, the principals of the Curve Inn LLC, who are the owners of the Café Driade property, petitioned the Council to purchase an additional 0.4 acres of Town land adjacent to the Bolin Creek Trail (Danziger tract) and to the parcel owned by Curve Inn LLC. Please see the attached copy of their April 4, 2000 letter. The petitioners would use the additional property to increase the overall acreage of their adjacent property. This would be done in order to meet minimum floor area ratio requirements for the purpose of constructing an office building on the site.
The 0.4 acre of Town property in question is primarily a steep slope directly above the Bolin Creek Trail. The tract is contiguous to the Café Driade property line and is adjacent to the existing Café Driade building. As proposed by the petitioners, the 0.4-acre parcel would not be disturbed or developed in any manner.
We believe that, if the following restrictions were required, this property could be sold in a manner that would financially benefit the Town without impacting the open space area or negatively affecting persons using the Bolin Creek Trail. If the Council chooses to pursue a possible sale of this property we would recommend the following conditions:
· The petitioners would pay the cost of the initial legal advertising.
· The eventual purchaser would pay all direct costs of the transaction, including appraisals, surveying, recordation fees, and other costs, whether or not the sale ultimately occurs.
· If the sale occurs, the purchaser would pay the higher of either fair market value as determined by a professional appraiser licensed in North Carolina or the Town’s purchase price of $10,000 per acre.
· Deed restrictions would be placed on the 0.4-acre tract that would prevent any tree cutting, extension of utilities or other land disturbances, except that removal of diseased or dangerous trees would be permitted. Other activities could be allowed with the permission of the Town.
Proposed Office Building: If the land were eventually sold to the petitioners, the Town would have no obligation, related to this proposed land sale, to approve any development. The owner would still have to follow the appropriate process for approval of any new structure on the combined properties. However, by combining the acreages of both properties the petitioners could potentially increase the maximum floor area of any proposed new building.
Although we understand that the developer is contemplating building an office building, we have not received an application for additional development on this site.
Possible Use of Proceeds: The original source of funds for the purchase of the Danziger tract came from 1989 Parks Bond funds. If the Council chooses to sell this parcel, the funds must be used for some sort of parks or open space capital project. The Greenways Commission recommended that any funds be used for the Greenways program. Please see attached Greenways Commission recommendations.
Next Steps: If the Council adopts the following resolution indicating the Council’s intent to sell 0.4 acre of Town property, we would anticipate the following process and schedule; as prescribed by North Carolina General Statutes:
· The petitioners would have the property appraised by a professional appraiser licensed in North Carolina. The Town would have the right to approve the appraiser selected by the petitioners.
· The petitioners would place a deposit of 5% of the proposed purchase price with the Town Clerk.
· The Town would place an advertisement in a local newspaper that would describe the proposed transaction and give other interested parties 10 days to submit an upset bid. The petitioners would reimburse the Town for the cost of the advertisement.
· If an upset bid were offered, the Town would follow a procedure that is described in State law §160A-269. The process allows for additional opportunities for parties to bid on the property until such time as no party is willing to offer an additional upset bid.
· At the conclusion of the bid process, the Council could accept the highest offer, or could reject any and all bids.
· If the petitioners have the sole or highest bid they could then design their proposed building and start the development review process. If the Town permits the proposed building the petitioners could then make their final payment (the remaining 95% of the agreed upon price).
· If the development review process were not completed or if the development application were not approved, the petitioners would have the option of completing the transaction or forfeiting their 5% deposit.
Greenways Commission: On June 14, 2000, the Greenways Commission voted unanimously (6-0) to recommend that the Council agree to sell the 0.4-acre tract of Town-owned land with conditions. Please see attached recommendations.
Manager’s Recommendation: That the Council adopt the attached resolution, which would indicate the Council’s intent to sell the 0.4 acre of land with the conditions described above and start the land sale process prescribed by State law, with any proceeds to be used for greenways.
1. Greenways Commission recommendations (p. 5)
2. Vicinity map (p. 6)
3. April 2000 Petition with map (p. 7)
A RESOLUTION INDICATING THE COUNCIL’S INTENT TO SELL 0.4 ACRE OF PROPERTY FOR FAIR MARKET VALUE AND AUTHORIZING THE MANAGER TO FOLLOW THE PROCESS FOR SALE OF LAND AS PRESCRIBED BY STATE LAW (2000-08-28/R7)
WHEREAS, the Curve Inn LLC has offered to purchase 0.4 acres of land owned by the Town of Chapel Hill; and
WHEREAS, the Curve Inn LLC has offered to pay to the Town the fair market value of the land; and
WHEREAS, the Curve Inn LLC has offered to pay for all legal, surveying, and recordation costs associated with sale of the land; and
WHEREAS, the Curve Inn LLC has agreed to accept certain deed restrictions that would go with the land in perpetuity; and
WHEREAS, sale of the land would not diminish the experience of patrons using the Bolin Creek Trail or reduce open space along Bolin Creek;
NOW THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council hereby indicates its intent to sell 0.4 acres of property for the higher of fair market value or $10,000 per acre and other considerations, which include:
· The petitioners would have the property appraised by a professional appraiser licensed in North Carolina. The Town would have the right to approve the appraiser selected by the petitioners.
· The petitioners would pay the cost of the initial legal advertising.
· The eventual purchaser would pay all direct costs of the transaction, including appraisals, surveying, recordation fees, and other costs, whether or not the sale ultimately occurs.
· If the sale occurs, the purchaser would pay fair market value for the property as determined by a professional appraiser licensed in North Carolina.
· Deed restrictions would be placed on the 0.4-acre tract that would prevent any tree cutting, extension of utilities or other land disturbances, except that removal of diseased or dangerous trees would be permitted. Other activities could be allowed with the permission of the Town.
BE IT FURTHER RESOLVED by the Council that any proceeds of the proposed land sale be allocated to the Town’s Greenways program.
BE IT FURTHER RESOLVED by the Council that this sale of land, if completed, does not imply any commitment on the part of the Town to approve development of this or adjacent properties.
This the 28th day of August, 2000.