TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manager
SUBJECT: Proposed Sale of Town Property
DATE: September 23, 2002
The attached resolution would authorize the Manager to sell a 1,767 square foot (.04 acre) portion of Cedar Falls Park to James H. Hilkey and Cynthia L. Wilhelm for $6,600 in order to resolve an existing boundary encroachment.
The attached budget ordinance would use the proceeds from the land sale to increase the Small Parks Improvement portion of the Capital Improvements Program by $6,600.
In the early 1970s, a house and driveway were built on the 53,543 square foot 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, resulting in an unauthorized encroachment onto Town property.
On August 26, 2002, the Council adopted a resolution authorizing 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. Sale of the property would eliminate the present encroachment.
The proposed land sale was advertised in the September 8, 2002 edition of the Chapel Hill News. No upset bids were received.
DISCUSSION
In May 2002, James Hilkey and Cynthia Wilhelm requested that the Town sell to them a 1,767 square foot 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 tax value of the house and the land is $559,000. The Hilkey/Wilhelm property (land only) 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. The attached budget amendment would transquare footer the funds from the sale of the land to the currently unfunded Small Parks line item, within the Capital Improvements Program budget.
Additional Options: There are two additional alternatives available to the Council although we believe that these are not practical or desirable. These options include:
If the Council adopts the attached resolution we would ask James Hilkey and Cynthia Wilhelm to prepare the necessary legal documents and schedule a closing.
Manager’s Recommendation: That the Council adopt the attached resolution, which would authorize the Manager to sell a 1,767 square foot (.04 acre) portion of Cedar Falls Park to James H. Hilkey and Cynthia L. Wilhelm for $6,600 in order to resolve an existing boundary encroachment. In addition, the Manager recommends that the Council enact the attached budget ordinance, which would increase the Small Parks Improvement portion of the Capital Improvements Program by $6,600.
ATTACHMENTS
1. Sketch showing lot 2 Block J of the Lake Forest Subdivision with the proposed property to be sold (p. 5).
A RESOLUTION AUTHORIZING THE MANAGER TO SELL A 1,767 SQUARE FOOT (.04 ACRE) PORTION OF CEDAR FALLS PARK TO JAMES H. HILKEY AND CYNTHIA L. WILHELM FOR $6,600 IN ORDER TO RESOLVE AN EXISTING BOUNDARY ENCROACHMENT (2002-09-23/R-2)
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 square foot (+/-) 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; and
WHEREAS, James H. Hilkey and Cynthia L. Wilhelm have agreed to pay all legal and survey costs associated with the sale;
NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council authorizes the Manager to sell a 1,767 square foot (.04 acre) portion of Cedar Falls Park to James H. Hilkey and Cynthia L. Wilhelm for $6,600 in order to resolve an existing boundary encroachment.
This the 23rd day of September, 2002.
AN ORDINANCE TO AMEND “THE ORDINANCE CONCERNING APPROPRIATIONS AND THE RAISING OF REVENUE FOR THE FISCAL YEAR BEGINNING JULY 1, 2002 (2002-09-23/O-1)
BE IT ORDAINED by the Council of the Town of Chapel Hill that the Budget Ordinance entitled “An Ordinance Concerning Appropriations and the Raising of Revenue for the Fiscal Year Beginning July 1, 2002” as duly adopted on July 26, 2002 be and the same is hereby amended as follows:
ARTICLE I
Current Revised
APPROPRIATIONS Budget Increase Decrease Budget
CAPITAL IMPROVEMENTS
FUND 818,480 6,600 825,080
ARTICLE II
Current Revised
REVENUES Budget Increase Decrease Budget
CAPITAL IMPROVEMENTS
FUND 818,480 6,600 825,080
This the 23rd day of September, 2002.