AGENDA #4d

 

MEMORANDUM

 

TO:                  Mayor and Town Council

 

FROM:            W. Calvin Horton, Town Manager

 

SUBJECT:       Proposed Sale of Town Property

 

DATE:             August 26, 2002

 

 

The attached resolution would indicate the Council’s intention to sell a 1,767 SF (.04 acre) portion of Cedar Falls Park to James H. Hilkey and Cynthia L. Wilhelm in order to resolve an existing boundary encroachment.  The resolution would authorize the Manager to advertise the proposed property sale for potential upset bids and schedule an agenda item for possible Council action at the Council’s September 23, 2002 regular meeting.

 

BACKGROUND

 

In the early 1970s a house and driveway was built on the 53,543 SF lot 2 Block J of the Lake Forest Subdivision, which is now owned by James H. Hilkey and Cynthia L. Wilhelm.  The lot is further identified as Chapel Hill tax map 7.41B..8.  At that time a driveway was partially constructed within the Cedar Falls Park property.

 

Cedar Falls Park was purchased and developed in the1970’s.  Since the development of the park we have discovered that there are at least two private encroachments onto the park property including the property that is now owned by James Hilkey and Cynthia Wilhelm.

 

DISCUSSION

 

In May 2002 James Hilkey and Cynthia Wilhelm requested that the Town sell to them a 1,767 SF portion of Cedar Falls Park in order to resolve their current property line conflict with the Town’s Cedar Falls Park.  Please see the attached map.  They have agreed to pay fair market value for the property and all costs of preparing and recording any required deed and/or plat.

 

We believe that this proposal would not significantly affect the open space area of Cedar Falls Park because the land that would be sold has been altered by the current driveway encroachment for about 30 years.

 

Fair Market Value and Possible Use of Funds: The Hilkey/Wilhelm property was appraised in 1998 with a value of $200,000 for the property, or $3.61 per square foot.  We believe that the park land immediately adjacent to their property would appraise at or near the same value.  Based on that appraisal the value of the proposed area of sale would be $6,600.

 

Because Cedar Falls Park was purchased with Parks general obligation bond funds in the 1970s we believe that proceeds from the sale should be used for some type of Parks related capital expenditure.  We propose that an amendment to the Small Parks line item, which is currently unfunded, of the Capital Improvement Program budget be brought to the Council if the sale is approved and implemented.

 

Additional Options: There are two additional alternatives available to the Council although we believe that these are not practical or desirable.  These options include:

• The Town could offer the adjacent owners an encroachment agreement.  Under the terms of such an encroachment agreement the Town would be able to require that the adjacent owner’s improvements be removed if the land were ever needed by the Town.  However, we do not believe that it would be practical for the owners to remove the encroachments now or in the future.
• Another option would be for the Council to direct the staff to require that the private improvements be removed from this strip of public property. Again, we do not believe that this is a practical or desirable option for either the owners of the adjacent property or their neighbors.

 

NEXT STEPS

 

If the Council adopts the attached resolution we would follow the provisions of NC G.S. § 160A-269 governing the sale of public property.  The attached resolution would authorize the Manager to advertise the proposal in a local newspaper with 10 days’ public notice.  The notice would describe the property to be sold, the amount and terms of the offer, offer an opportunity for another bidder to present an upset bid, and announce the Council's intent to authorize the sale at its September 23 regular meeting.

 

RECOMMENDATIONS

 

Manager’s Recommendation: That the Council adopt the attached resolution, which would authorize the Manager to advertise the proposed property sale as required by NC G.S. § 160A-269 and schedule an agenda item for possible Council action at the Council’s September 23, 2002 regular meeting.

 

ATTACHMENTS

 

1.      Sketch showing lot 2 Block J of the Lake Forest Subdivision with the proposed property to be sold (p. 4).

A RESOLUTION AUTHORIZING THE MANAGER TO GIVE PUBLIC NOTICE AS REQUIRED BY N.C.G.S. § 160A-269 FOR A PROPOSED SALE OF TOWN PROPERTY TO JAMES H. HILKEY AND CYNTHIA L. WILHELM (2002-08-26/R-3)

 

WHEREAS, improvements associated with lot 2 Block J of the Lake Forest Subdivision, further identified as Chapel Hill tax map 7.41B..8, were built upon property owned by the Town; and

 

WHEREAS, a sale of 1,767 SF (+/-) of Town property to James H. Hilkey and Cynthia L. Wilhelm would resolve the boundary encroachment that has been in effect for at least 30 years; and

 

WHEREAS, it is in the best interest of the Town and James H. Hilkey and Cynthia L. Wilhelm to resolve the property line issue;

 

NOW, THEREFORE, BE IT RESOLVED that the Council indicates its intent to sell 1,767 SF (+/-) of property currently identified as being a part of Cedar Falls Park to James H. Hilkey and Cynthia L. Wilhelm in order to resolve a long-standing property encroachment issue.

 

BE IT FURTHER RESOLVED by the Council that the Manager is authorized to advertise the proposed sale as required by N.C.G.S. § 160A-269, giving 10 days’ public notice for potential upset bids, and schedule an agenda item for possible Council action at the Council’s September 23, 2002 regular meeting.

 

This the 26^th day of August 2002.