AGENDA #8
TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manager
SUBJECT: Priorities for Use of 1996 Open Space Bond Funds
DATE: September 25, 2000
Resolution A would authorize the Manager to apply for a Flood Mitigation Assistance grant to purchase 4 flood damaged structures on Dickerson Court, using up to $150,000 in Open Space bond funds for the required 25% local match. The Resolution would also authorize the Manager to begin work on a Flood Hazard Mitigation Plan for the Town.
Resolution B would authorize the Manager to apply for a Clean Water Management Trust Fund grant, using $2,000,000 in Open Space bond funds as a local match, to purchase open space adjacent to Morgan and Wilson Creeks.
Resolution C would authorize the Manager to apply for a Clean Water Management Trust Fund grant, using $1,000,000 in Open Space bond funds as a local match, to purchase open space adjacent to Morgan and Wilson Creeks.
Resolution D would authorize the Manager to continue investigation of other potential properties including those mentioned in this report.
Resolution E would direct the Manager to report back to the Council in October with additional information and recommendations.
The Manager recommends adoption of Resolutions A, B, and D.
The Council has spent approximately $398,000 of the 1996 Open Space bond funds authorized by the voters with $2,602,000 remaining in the authorization.
On June 12, 2000, the Council authorized the Manager to prepare an analysis of undeveloped land in terms of its suitability for promoting non-automobile community connectivity and/or preserving entranceway corridors, scenic vistas, environmentally sensitive areas, Resource Conservation District land, community open space and neighborhood open space. The resolution also authorized the Manager to either request the services of the County’s land acquisition specialist or use the services of a real estate professional. The County has indicated its willingness to share the services of its land acquisition specialist.
We believe that whenever possible we should try to leverage additional funds by applying for grants.
We have identified 9 options for expenditure of the remaining funds. We have recommended that four of the identified projects be bundled into three overall projects for the purpose of applying for grants.
The top priority would be the purchase and eventual demolition of 4 structures on Dickerson Court, within the Bolin Creek floodway. The land would revert to open space. The grant application for this project must be submitted by September 27. Resolution A would authorize the Manager to submit an application that is currently being prepared.
The next most time-sensitive project would involve purchase of open space along Morgan Creek and Wilson Creek. If the Council is interested in pursuing this idea we would have to perform a survey of property owners and submit a Clean Water Management Trust Fund grant application by December 1. Resolution B would authorize the Manager to poll potential sellers and, if there is enough interest, submit a Clean Water Management Trust Fund grant application.
If the Council adopts Resolution D we would also investigate other properties identified in this Report, although our priorities would be those projects that we have determined are time sensitive.
In November 1996, Chapel Hill voters approved $3,000,000 in general obligation bonds for purchase of open space.
In November 1997, the Council approved a schedule to sell open space bonds, revised most recently to include:
· $ 265,000 in FYs 1997-98 and 1998-99
· $1,650,000 in FYs 1999-00 and 2000-01
· $1,085,000 in FYs 2001-02 and 2002-03
In January 1998, the Council purchased approximately 6 acres of open space adjacent to Cleland Road, Roberson Drive and Oakwood Drive for $265,000.
In May 1998, the Council purchased 9.7 acres of property for $191,500, for a future fire station and open space. Approximately 6.7 acres of the site can be assigned to our open space inventory. We estimate that $127,500 of the purchase price will be charged to the year 2000 Open Space bond sale. When the final plat for the station is approved, this figure will be finalized.
On May 26, 1998, the Council authorized the Manager to use Open Space bond funds to purchase properties needed for the Lower Booker Creek Trail project. All easements and properties have been acquired using approximately $5,000 in Open Space bond funds.
In November 1998, the Greenways Commission adopted a list of recommended open space target properties. A further discussion of these tracts is found below. The Commission’s recommendations are attached.
On June 28, 1999, the Council adopted a resolution, setting out guidelines for the Manager to follow in recommending acquisition of particular parcels. The resolution states the Council’s goals of preserving:
The resolution also authorizes the Manager to use the following as a basis to investigate and identify potential properties and easements for purchase. The Greenways Commission identified these properties in November 1998.
1. All properties required for the completion of the Lower Booker Creek Trail project. Status: All properties have been acquired.
2. Land required to secure public access to the Merritt Pasture. Status: The Report from the Merritt Pasture Access Committee is being presented tonight. All options would require an easement from Duke Energy.
3. All properties needed to link the Bolin Creek Trail to Umstead Park. Status: Exact properties needed would be determined by an engineering study of the proposed trail corridor.
4. Property needed for a future trail adjacent to Morgan Creek. Status: We recommend that these properties be included in any future grant application.
5. Property in northwest Chapel Hill, particularly that located between the Greene Tract and Parkside Subdivision. Status: No longer possible because the target property has been purchased by a developer.
In January 2000, the Council rejected an offer to sell to the Town open space property adjacent to Tanyard Branch.
On January 10, 2000, the Council authorized the Manager to investigate the potential of purchasing 8.48 acres of property located at the intersection of Mount Carmel Church Road and Bennett Road, adjacent to Town open space purchased as part of the Southern Fire Station property. Conditional negotiations with the owners of that land are ongoing.
On March 27, 2000, the Council established a goal of making more effective use of the Town funds allocated for purchase of open space.
On June 12, 2000, the Council adopted a resolution authorizing the Manager to prepare an analysis of undeveloped land in terms of its suitability for promoting non-automobile community connectivity and/or preserving entranceway corridors, scenic vistas, environmentally sensitive areas, Resource Conservation District land, community open space and neighborhood open space. The resolution also authorized the Manager to either request the services of the County’s land acquisition specialist or use the services of a real estate professional. The County has indicated its willingness to share the services of its land acquisition specialist.
On July 5 the Council authorized the Manager to pursue a possible purchase of the Whitfield property utilizing HUD Disaster Recovery Grant funds of $112,000. See the attached Stormwater Management Conservation Report.
To date, $1,815,000 of the 1996 Open Space bond funds authorized by the voters have been sold, with the remaining $1,850,000 scheduled for sale in early 2002.
As of this time, we have spent approximately $398,000 with $2,602,000 remaining in the authorization.
Because of development pressure and inflation in the land market, the Council has indicated an interest in expediting development of a plan to spend the remaining bond funds. We have identified 9 options for expenditure of the remaining funds.
The options are ordered below by time constraints. Those that require immediate action are listed first.
See map #1. A row of four houses on Dickerson Court is located within the Bolin Creek floodway. These consist of 3 single-family units and one duplex. The houses are on the west side of the creek, north of Community Center Park, and south of Franklin Street. They have been identified in the Stormwater Management Conservation Area Report that was presented to the Council on July 5. These homes were most recently damaged in the July 2000 flood. Two are currently vacant. The Bolin Creek Greenway runs along Dickerson Court for lack of any off-street trail.
Time Constraints: Our Hazard Mitigation Assistance grant application must be submitted by September 27 and funds allocated by FEMA no later than September 30, 2000.
Hazard Mitigation Plan: FEMA requires that any community applying for a Flood Hazard Mitigation Assistance grant have an adopted Flood Hazard Mitigation Plan. Although we have many different documents that deal with various hazards including flooding, Chapel Hill does not have such a plan. We believe that FEMA may approve our application if we indicate that we will immediately begin the process to compile a formal Plan. Resolution A includes language that would authorize the Manager to begin work on a formal Flood Hazard Mitigation Plan.
Potential Benefits:
Potential Costs:
2. PRESERVATION OF THE WILSON CREEK WATERSHED
See map #2. We believe that a unique opportunity exists to preserve a significant portion of the remaining open space along Wilson Creek east of Highway 15-501. This stream drains into Jordan Lake and affects the reservoir’s water quality. This area has been identified in the Stormwater Management Conservation Area Report. We propose that funds be used to purchase large tracts of property along the stream.
Time Constraints: Clean Water Management Trust Fund grants are due by December 1, 2000.
Potential Benefits:
Potential Costs:
3. PRESERVATION OF THE MORGAN CREEK WATERSHED
See map #3. We believe that a unique opportunity exists to preserve a significant portion of the remaining open space along the portion of Morgan Creek that lies south of Fordham Boulevard and east of Smith Level Road. The Town already owns most of the property along the stream east of the target tracts. The stream drains into Jordan Lake and affects the reservoir’s water quality. This option would address two of the 1998 Greenways Commission recommendations: access to Merritt Pasture and purchase of open space along Morgan Creek. This area has been identified in the Stormwater Management Conservation Area Report. We propose that funds be used to purchase large tracts of property along the creek.
Time Constraints: Clean Water Management Trust Fund grants are due by December 1, 2000.
Potential Benefits:
Potential Costs:
See map #4. We have identified a 10-acre property at the junction of Bolin, Booker, and Little Creeks, east of Fordham Boulevard and adjacent to a 50-acre tract of Town-owned open space. This undeveloped property is in the Stormwater Management Conservation Area Report. This property is currently being appraised.
Time Constraints: If the owner is unwilling to sell we would need to find a willing seller of flood prone property (without structures) and finalize an agreement no later than March 2001 in order to be eligible to use the Town’s HUD Disaster Grant funding.
Potential Benefits:
Potential Costs:
See map #5. We have identified several tracts adjacent to Dry Creek, south of I-40 and adjacent to Town-owned open space. It is identified as a significant biological area in the Triangle Land Conservancy’s Inventory of Biological Areas of Orange County. This undeveloped property is in the Stormwater Management Conservation Area Report, dated July 5, 2000.
Time Constraints: None known
Potential Benefits:
Potential Costs:
See map #6. This would involve the purchase of at least one property along Bolin Creek, north of Fordham Boulevard and west of Estes Drive. This property is an undeveloped tract with a pond.
Time Constraints: None known
Potential Benefits:
Potential Costs:
See map #7. This would involve the purchase of several small easements and possibly one house along Bolin Creek, from Airport Road to Umstead Park. This project was identified on the Greenways Commission’s 1998 list of recommended priorities as well as the Stormwater Management Conservation Area Report.
Time Constraints: Project should be coordinated with OWASA’s design of the Bolin Creek Interceptor sewer in this area.
Potential Benefits:
Potential Costs:
See map #8. This would involve purchase of the vacant properties north of Estes Drive and east of Airport Road. These properties currently have very limited development potential because of the proximity of UNC’s Horace Williams Airport. Federal regulations and the Town’s Airport Hazard Zone regulations severely limit what improvements can be made to these tracts.
Time Constraints: Properties would be developable if the airport is closed.
Potential Benefits:
Potential Costs:
See map #9. This would involve the purchase of a large tract of land on the east side of Highway 54, adjacent to Meadowmont. We believe that while this is a very important parcel of open space it may be better to pursue this tract at some future date.
Time Constraints: None known
Potential Benefits:
Potential Costs:
The Town currently has $2,602,000 available for open space purchases. In today’s real estate market that amount is a relatively small amount if the Council desires to preserve large areas of open space. We believe that, depending on which option the Council chooses, the Town should try to leverage addition funds by applying for various grants. Below we discuss the chances of securing additional grant funds with each of the options for use of Open Space bond funds.
If the Council agrees that our overall strategy should be to leverage additional funds through the use of grants we recommend that the majority of the remaining funds should be targeted toward one or two projects that would produce multiple benefits.
Option 1 – Allocate Funds for the following Projects:
Town Open Potential
Projects in Option 1 Space Funds Grants
Dickerson Court 1 $100,000 - 150,000 $100,00 - 600,000
Little Creek Property 2 $25,000 – 50,000 $112,000
Morgan Creek 3 $500,000 – 1,000,000 $500,000 – 1,000,000
Wilson Creek 3 $1,000,000 – 1,500,000 $1,000,000 – 1,500,000
Reserve for Other Projects 4 $402,000 – 477,000
Total Proposed Expenditures $2,602,000 $2,212,000 – 2,712,000
1 Town would pay 25% of project budget.
2 Grant amount is set. Exact amount of Town funds dependent upon appraisal of property. Appraisal is expected in late September.
3 Morgan Creek and Wilson Creek projects would be submitted under one $2,000,000 Clean Water Management Trust Fund grant application with a proposed overall Town match of $2,000,000.
4 Remaining funds would be determined by costs of the initial four projects.
This project would allow the Town to remove 4 structures from the Bolin Creek floodway, extend Community Center Park’s open space, and locate the Bolin Creek Trail off of Dickerson Court.
Grant Potential: We are currently working to determine if this project would be eligible for Flood Mitigation Assistance funds. Allocation of funds by FEMA must be accomplished no later than September 30, 2000.
Next Steps: If the staff of the Flood Mitigation Assistance program indicates that this is an eligible project we could receive a grant that would provide 75% of the acquisition, renter relocation, and demolition costs of the project. If the Council agrees with this option we would execute an agreement with FEMA and begin the process of acquiring the properties. The owner has already expressed an interest in selling the structures and property. We do not have a project budget as of this time, however we believe that the Town’s share could range from $80,000 – 150,000 depending on a number of factors such as appraisals, need for asbestos removal, demolition process, and relocation costs. Resolution A would authorize the Manager to apply for a Flood Mitigation Assistance grant utilizing Town Open Space bond funds as the required 25% local match.
Morgan and Wilson Creek Project
Wilson Creek: This project would have the greatest potential for preserving large tracts of open space, wildlife corridors, wetlands, riparian buffer, and entranceway. In addition, the Town could acquire property and/or easements needed for the proposed Wilson Creek Trail.
Morgan Creek: This project would allow the Town to complete acquisition of much of the land along Morgan Creek between Smith Level Road and NC 86. The target tracts would involve purchase of large tracts of open space, wildlife corridors, and riparian buffer. In addition, the Town could acquire property and/or easements needed to extend the future Morgan Creek Trail west to Frank Porter Graham School and the Carrboro Town limits.
Grant Potential: We believe that Board of Trustees of the Clean Water Management Trust Fund may choose to distribute most of their available funds to eastern North Carolina in the next grant cycle. However, we still recommend that an application be submitted. We could re-submit at a later time if our first effort is not successful.
We believe that this project would be our best candidate for a Clean Water Management Trust Fund grant. The Clean Water Management Trust Fund Board has in the past approved large grants if the areas preserved are significant in size. We believe that there are several factors that might increase our chances of receiving a Clean Water Management Trust Fund grant:
Next Steps: Resolution B authorizes the Manager to contact landowners along Morgan and Wilson creeks to determine if there is sufficient interest in selling property for open space purposes. The resolution would also authorize the Manager to apply for a Clean Water Management Trust Fund grant of $2,000,000, utilizing $2,000,000 in Town Open Space bond funds as a local match, if there is sufficient landowner interest.
This 10-acre property at the junction of Bolin, Booker, and Little Creeks, is an undeveloped property adjacent to a 50-acre tract of Town-owned open space. Purchase would allow us to preserve a lot with high flood potential as well as expand Town controlled properties along Little, Bolin, and Booker Creeks.
Next Steps: We have already contacted the owner of this tract. It is anticipated that the appraisal will be completed and delivered by the end of September, and we would discuss a price with the Town Council at that time. We will determine if there is sufficient interest from the owner of the 10-acre tract by early October. If the owner is interested we will complete the acquisition. If the owner is not interested we will contact other landowners and report back to the Council as soon as possible with recommendations to commit the funds prior to the deadline of March 2001.
The estimated $402,000 – 477,000 in remaining funds could be used to purchase land within the Airport Hazard Zone, along Bolin Creek, or in other areas where opportunities may arise.
Grant Potential: We believe that some of the properties that have been identified so far may be eligible for grants. Future opportunities could be evaluated on a case-by-case basis.
Next Steps: We would contact the owners of these various tracts and determine the amount of interest in selling open space to the Town.
Option 2 – Allocate Funds for the following Projects:
Town Open Potential
Projects in Option 2 Space Funds Grants
Dickerson Court $100,000 - 150,000 $100,00 - 600,000
Little Creek Property $25,000 – 50,000 $112,000
Morgan Creek 1 $250,000 – 500,000 $500,000 – 1,000,000
Wilson Creek 1 $500,000 – 750,000 $1,000,000 – 1,500,000
Reserve for Other Projects 2 $1,402,000 – 1,477,000
Total Proposed Expenditures $2,602,000 $2,212,000 – 2,712,000
1 Morgan Creek and Wilson Creek projects would be submitted under one $2,000,000 Clean Water Management Trust Fund grant application with a proposed overall Town match of $1,000,000. The amount of the Town match is $1,000,000 less than in Option 1.
2 Remaining funds would increase over Option 1 by a total of $1,000,000. This amount of increase is the result of the lower Town match proposed for the Morgan Creek/Wilson Creek Project Clean Water Management Trust Fund grant application.
Resolution C would authorize the Manager to apply for a potential Clean Water Management Trust Fund grant of $2,000,000 for the Morgan Creek/Wilson Creek project using only $1,000,000 of local match. This amount might reduce our chances of receiving a grant and would result in the preservation of fewer acres along Morgan and Wilson Creeks. However, this approach would leave an additional $1,000,000 for projects in other parts of Town.
Option 3 – Direct the Staff to Study Additional Options and Report to the Council in October 2000
With the adoption of Resolution E, the Council could request additional research and a new report with recommendations in October. The Council could provide additional guidance to direct our research.
We believe that the Council’s power of eminent domain may be the only practical way of preserving certain tracts of land. Because of the high real estate costs in the Chapel Hill area, some owners may be very reluctant to sell. Indications are that certain landowners are holding some tracts as long-term investments, gambling that in the future the properties may be re-zoned to higher densities and land-use regulations may be relaxed.
Our interpretation of North Carolina statutes related to use of Open Space bond funds is that any property purchased must be located within the Town limits. Some of the properties identified in this memorandum are located outside of the current Town limits. These include all tracts within the Wilson Creek and Dry Creek sites. We believe that one of the following strategies should be used if the Council chooses to purchase open space in these areas using Open Space bond funds:
Greenways Commission Recommendation: The Commission met on September 13, 2000 and voted unanimously (6-0) to support all of the recommended acquisitions with the exception of the Airport Hazard Zone properties. The Commission noted that the Airport Hazard Zone properties are not on the Town’s adopted Greenways Plan. Please see attached memorandum.
Parks and Recreation Commission Recommendation: The Commission met on September 20, 2000 after distribution of this item. We will distribute the Commission’s recommendations separately.
Manager’s Recommendation: That the Council adopt:
ATTACHMENTS
A. Summary of Possible Grant Resources (p. 20)
B. Site Location map for Possible Acquisitions (p. 21)
C. Maps of 9 potential projects (p. 22).
D. Stormwater Management Conservation Report, July 5, 2000 (begin new page 1).
E. Greenways Commission Recommendations (p. 31).
RESOLUTION A
A RESOLUTION AUTHORIZING THE MANAGER TO APPLY FOR A FLOOD MITIGATION ASSISTANCE GRANT FOR THE PURCHASE OF LOTS AND STRUCTURES ON DICKERSON COURT (2000-09-25/R-8a)
WHEREAS, Chapel Hill voters authorized the expenditure of $3,000,000 in Open Space bonds in 1996; and
WHEREAS, the FEMA provides Flood Mitigation Assistance grants to communities for the purpose of purchasing flood prone structures; and
WHEREAS, land purchased using Flood Mitigation Assistance funds must be reverted to open space; and
WHEREAS, 4 structures on Dickerson Court have been repeatedly flooded; and
WHEREAS, the area would benefit the Town as open space and trail corridor;
NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Manager is authorized to submit a Flood Mitigation Assistance grant for the purchase of the lots and structures at 105, 106, 107, and 108/109 Dickerson Court, using up to $150,000 in Open Space bond funds for the required 25% local match.
BE IT FURTHER RESOLVED that the Manager is authorized to begin work on a formal Flood Hazard Mitigation Plan for the Town of Chapel Hill.
BE IT FURTHER RESOLVED that the Manager, or his designee, is authorized to be the Town's Official Agent, to execute for and in behalf of the Town of Chapel Hill, for this Flood Mitigation Assistance grant application.
This the 25th day of September, 2000.
RESOLUTION B
A RESOLUTION AUTHORIZING THE MANAGER TO SURVEY LANDOWNERS ALONG MORGAN CREEK AND WILSON CREEKS, AND IF APPROPRIATE, APPLY FOR A CLEAN WATER MANAGEMENT TRUST FUND GRANT WITH A $2,000,000 LOCAL MATCH (2000-09-25/R-b)
WHEREAS, Chapel Hill voters authorized the expenditure of $3,000,000 in Open Space bonds in 1996; and
WHEREAS, the State of North Carolina provides Clean Water Management Trust Fund grants to communities for the purpose of preserving the waters of the State; and
WHEREAS, there are large tracts of undeveloped open space adjacent to both Wilson Creek and Morgan Creek; and
WHEREAS, preservation of these tracts would help preserve water quality, provide open space for the citizens of Chapel Hill, preserve scenic entranceways, and provide greenway corridors;
NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Manager is authorized to contact landowners who own property adjacent to Wilson and Morgan Creeks to determine if there is sufficient interest to apply for a Clean Water Management Trust Fund grant.
BE IT FURTHER RESOLVED by the Council of the Town of Chapel Hill that if the survey of landowners indicates that there is sufficient interest in selling open space to the Town, the Town Manager is authorized to submit a Clean Water Management Trust Fund application requesting $2,000,000, with a $2,000,000 local match utilizing Open Space bond funds.
This the 25th day of September, 2000.
RESOLUTION C
A RESOLUTION AUTHORIZING THE MANAGER TO SURVEY LANDOWNERS ALONG MORGAN CREEK AND WILSON CREEKS, AND IF APPROPRIATE, APPLY FOR A CLEAN WATER MANAGEMENT TRUST FUND GRANT WITH A $1,000,000 LOCAL MATCH (2000-09-25/R-8c)
WHEREAS, Chapel Hill voters authorized the expenditure of $3,000,000 in Open Space bonds in 1996; and
WHEREAS, the State of North Carolina provides Clean Water Management Trust Fund grants to communities for the purpose of preserving the waters of the State; and
WHEREAS, there are large tracts of undeveloped open space adjacent to both Wilson Creek and Morgan Creek; and
WHEREAS, preservation of these tracts would help preserve water quality, provide open space for the citizens of Chapel Hill, preserve scenic entranceways, and provide greenway corridors;
NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Manager is authorized to contact landowners who own property adjacent to Wilson and Morgan Creeks to determine if there is sufficient interest to apply for a Clean Water Management Trust Fund grant.
BE IT FURTHER RESOLVED by the Council of the Town of Chapel Hill that if the survey of landowners indicates that there is sufficient interest in selling open space to the Town, the Town Manager is authorized to submit a Clean Water Management Trust Fund application requesting $2,000,000, with a $1,000,000 local match utilizing Open Space bond funds.
This the 25th day of September, 2000.
RESOLUTION D
A RESOLUTION AUTHORIZING THE MANAGER TO INVESTIGATE THE POTENTIAL OF USING OPEN SPACE BOND FUNDS TO PURCHASE VARIOUS OPEN SPACE TRACTS THROUGHOUT THE TOWN (2000-09-25/R-8d)
WHEREAS, Chapel Hill voters authorized the expenditure of $3,000,000 in Open Space bonds in 1996; and
WHEREAS, the Council has authorized the Manager to provide a plan to expedite purchase of open space; and
WHEREAS, the Greenways Commission and the Town staff have identified potential properties;
NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Manager is authorized to contact landowners of properties in the following areas to determine their interest in selling property for the purpose of preserving open space:
· Bolin Creek
· Horace Williams Airport Hazard Zone
· Dry Creek
This the 25th day of September, 2000.
RESOLUTION E
A RESOLUTION AUTHORIZING THE MANAGER TO FURTHER INVESTIGATE OPTIONS FOR USE OF OPEN SPACE BOND FUNDS (2000-09-25/R-8e)
WHEREAS, Chapel Hill voters authorized the expenditure of $3,000,000 in Open Space bonds in 1996; and
WHEREAS, the Council has authorized the Manager to provide a plan to expedite purchase of open space; and
WHEREAS, the Greenways Commission and the Town staff have identified potential properties;
NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Manager is authorized to contact landowners of properties in the following areas to determine their interest in selling property for the purpose of preserving open space:
· Bolin Creek
· Horace Williams Airport Hazard Zone
· Dry Creek
This the 25th day of September, 2000.