AGENDA #15
TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manager
SUBJECT: Priorities for Use of 1996 Open Space Bond Funds
DATE: November 11, 2002
The attached resolution would authorize the Manager to expand the search for open space properties from the specific areas authorized by the Council in 2000 to include any potential open space within the Town limits or extraterritorial jurisdiction (ETJ), as long as the properties address one of the primary goals identified by the Council.
In November 1996, Chapel Hill voters approved $3,000,000 in General Obligation bonds for purchase of open space.
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 authorized the Manager to use the following specific acquisition targets as a basis to investigate and identify potential properties and easements for purchase. We include the status of each potential acquisition.
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: All properties have been acquired.
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. We made a conditional offer for one tract of land in 2002 but the owner was not interested in selling.
4. Property needed for a future trail adjacent to Morgan Creek.
Status: We expect to begin the start of the Morgan Creek Trail Conceptual Plan process this month. We expect that process to identify all needed properties. However, we have identified two properties that we believe would provide both open space and greenway benefits along Morgan Creek. Title issues have prevented us from closing yet on one 12-acre tract already authorized for acquisition by the Council
5. Property in northwest Chapel Hill, particularly that located between the Greene Tract and Parkside Subdivision.
Status: This acquisition is no longer possible because the target property has been developed. The Town acquired a portion of the property through the development review process.
In January 2000, a property owner offered to sell to the Town open space property off Nunn Street Extension adjacent to Tanyard Branch. The property consisted of non-conforming lots on the west side of Tanyard Branch. The Council declined to accept the offer because the asking price was significantly higher than the appraised value of the land. The owner has since built residential units on some of the parcels.
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 the policy objectives adopted in June 1999. 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 initially agreed to share the services of its land acquisition specialist; however, we have not received assistance from the County as of this time and believe that the job demands on that person have made this approach unlikely to succeed. Instead, we have relied on the assistance of Audrey Booth, a citizen volunteer who has extensive experience in local greenways and Triangle Land Conservancy projects.
On September 25, 2000, the Council adopted resolutions authorizing the Manager to:
Status: The land and structures were purchased with $101,000 of Open Space bond funds and $207,000 in FEMA funds. The houses were removed and the property returned to open space status.
Status: Please see Attachment A for a complete discussion of the process we followed in an attempt to purchase properties adjacent to Morgan and Wilson creeks. At the time grant applications were due we could not find landowners willing to sign offers to sell. The Clean Water Management program now requires that grantees have evidence that the owners of target properties are willing to sell at fair market value. Since that time the Craige family donated one 8.48 acre parcel and we have successfully made contact with the owners of two other properties. As noted above, title issues have not yet been resolved for 12 acres along Morgan Creek already approved for acquisition by the Council. We are currently negotiating with the owners of a second tract along Morgan Creek.
Status: We have continued to investigate possible acquisitions including all properties identified by the Council on September 25, 2000. We have been successful in obtaining several tracts including a number of donations. In addition to the properties that we have already acquired or for which we have a signed offer, we have made fifteen conditional offers to purchase properties along Bolin Creek (1), Dry Creek (3), and Morgan Creek (11). However, thirteen of those offers have been rejected. We are currently talking with the two remaining landowners along Morgan Creek noted above. Please see Attachment A for a complete status report on properties identified by the Council on September 25, 2000.
In April 2002, the Council adopted a goal of using the remainder of the 1996 Open Space bond fund.
Potential for Purchasing Land within the Town’s Extraterritorial Jurisdiction (ETJ): We initially believed that language in State law controlling the uses of Open Space bond funds prevented us from using these funds to purchase land outside of the Town limits. After subsequent research on this issue the Town Attorney has determined that we can use Open Space Bond funds to purchase land within the Town’s extraterritorial jurisdiction as long as the ETJ area was established pursuant to the authority granted by State Statute 160A-360. We would not be able to purchase open space property in any ETJ areas established by local act, but all of Chapel Hill’s ETJ was established under authority of the cited statute.
Budget: The Council has already sold $1,815,000 in open space bonds. The final bond sale of $1,185,000 is anticipated to take place in early 2003.
The Council has spent approximately $1,592,000 of the 1996 Open Space bond funds authorized by the voters with $1,408,000 remaining in the authorization. A complete list of properties purchased is included in Attachment B.
Current estimates indicate the need for approximately $475,000 – $500,000 to close on properties for which we are negotiating but do not yet have a signed Offer to Sell. If these negotiations are successful, our estimates accurate, and the Council approves the acquisitions, we would have about $908,000 - $933,000 available to spend on additional acquisitions. Please see the budget summary below:
Original Bond Authorization $3,000,000
Bond Funds Spent as of November 2002 -1,592,000
Estimated cost for properties under negotiation -500,000
Total Remaining Funds $908,000
We believe that the Town should continue to try to leverage additional funds by applying for various grants from agencies such as the Clean Water Management Trust Fund, FEMA, and other State and federal organizations as opportunities arise.
Potential Expanded Search for Properties: Previously, we concentrated acquisition efforts in areas where the Council gave specific authorization. We believe that we have exhausted the opportunities in those areas. We believe it would be appropriate for the Council to expand the search for open space properties to include any open space, anywhere within the Town limits or extraterritorial jurisdiction, which serve one of the primary goals identified by the Council.
Both the Greenways and Parks and Recreation Commissions voted to support this strategy. However, the Greenways Commission also recommended that the Bolin Creek and Morgan Creek greenway corridors receive priority status. In general, we agree with the Greenways Commission’s recommendation. However, we are already in negotiations with the landowners of the two largest viable tracts of concern to the Commission. The remaining parcels needed for greenways will likely be scattered, small and in most cases will likely involve acquisition of easements rather than fee simple purchase of a complete parcel. With both the Bolin Creek and Morgan Creek projects, all target properties cannot be determined until the planning processes are complete. The Morgan Creek Trail process should be underway this November. We do not know when the Bolin Creek Trail planning process will begin, because the project’s funding is linked to the Orange County Parks bond.
We propose that the Council authorize us to take the following steps:
We would plan to continue to work with Audrey Booth who has extensive experience with local greenways and Triangle Land Conservancy projects.
Greenways Commission Recommendation: The Commission met on September 25, 2002, and voted unanimously (4-0) to recommend that the Council:
· Authorize the staff to contact landowners anywhere within the Town limits as long as the properties meet the policy objectives established by the Council in June 1999.
· Pursue opportunities within the Town’s extraterritorial jurisdiction and outside of the Urban Services boundary as long as the properties meet the Council’s policy objectives and provisions of State law.
· Make the Morgan Creek and Bolin Creek greenway corridors the Council’s top priorities.
Parks and Recreation Commission Recommendation: The Commission met on October 16, 2002, and voted unanimously (7-0) to recommended that the Council authorize the Manager to investigate potential open space parcels anywhere in the Town or the Town’s ETJ as long as the properties meet the Council’s earlier adopted criteria for purchase of open space.
Manager’s Recommendation: That the Council adopt the attached resolution authorizing the Manager to expand the search for open space properties to include any open space, anywhere within the Town limits or in appropriate areas of the Town’s extraterritorial jurisdiction (ETJ), which serves one of the Council’s 1999 policy objectives.
ATTACHMENTS
A RESOLUTION AUTHORIZING THE MANAGER TO EXPAND THE SEARCH FOR OPEN SPACE PROPERTIES TO INCLUDE ANY OPEN SPACE, ANYWHERE WITHIN THE TOWN LIMITS OR EXTRATERRITORIAL JURISDICTION, WHICH SERVES ONE OF THE PRIMARY CATEGORIES ALREADY IDENTIFIED BY THE COUNCIL (2002-11-11/R-14)
WHEREAS, Chapel Hill voters authorized the expenditure of $3,000,000 in Open Space bonds in 1996; and
WHEREAS, most landowners have declined the Town’s requests to consider selling open space properties to the Town; and
WHEREAS, the number of remaining open space tracts is limited; and
WHEREAS, the Council has unspent and uncommitted fund authorization remaining from the 1996 Open Space bonds;
NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Manager is authorized to expand the search for open space properties to include any open space, anywhere within the Town limits or in appropriate areas of the Town’s ETJ, as long as the properties address one of the following primary categories already identified by the Council:
BE IT FURTHER RESOLVED by the Council that the Manager is authorized to continue monitoring land acquisition opportunities along Morgan and Wilson Creeks.
This the 11th day of November, 2002.
STATUS REPORT ON PROPERTIES IDENTIFIED BY THE COUNCIL ON SEPTEMBER 25, 2000
REFERENCE NUMBERS CAN BE FOUND ON THE MAP TITLED: “CONTEXT FOR POTENTIAL LAND ACQUISITION – REVISED”
Properties # 1-10 - Morgan and Wilson Creek: The Craige property at the corner of Bennett and Mt. Carmel Roads was donated to the Town. We contacted the owners of the remaining 11 properties along Morgan and Wilson Creek by letter in October 2000. The letter included a form and a stamped, self-addressed envelope. They were asked to indicate on the form whether or not they were interested in talking about selling property to the Town. One owner returned the form and indicated that they had no interest. A follow up letter was mailed in November. At that time no one responded. Audrey Booth, a volunteer from the Greenways Commission contacted several of the owners.
Property #1 – We are currently negotiating with the owners.
Property #2 – We sent two letters and met with the owner of the property. We found the owner was not interested in selling. The owner has subsequently submitted a development application for the property.
Property #3 - We sent two letters and tried unsuccessfully to contact the owner by telephone. This property has since been purchased by a developer. We believe that purchase of this land is unlikely.
Properties #4, 5, 8, and 9 – We sent two letters to each of the property owners. The owner of #5 responded and informed us that they were not interested in selling. Audrey Booth met with a representative of the owner of property #9. We found no interest among any of the property owners in selling to the Town. A developer has acquired options on these properties. We believe that purchase of these properties by the Town is unlikely.
Properties #6 and 7 – These properties are owned by the same person. We made two attempts to contact the owner by letter. Subsequently both staff and Audrey Booth met with the owner without success.
Property #10 – We made two attempts to contact the owner by letter without success. Audrey Booth met with the owner but could not interest the owner in the idea of selling to the Town.
Property #11 - Lloyd Property (north side of NC 54, next to Meadowmont): The Council appointed a sub-committee to approach the owner of the property. The owner’s representative would not discuss sale of the land.
Property #12 - Emerson/Davis Property (Bolin Creek): We have not yet approached this owner. A closer evaluation showed only limited use for open space/greenways purposes. However, we will further evaluate the property to determine its benefit for stormwater purposes.
Property #13 - Dickerson Court Properties: Purchased 4 lots and 4 structures (5 units) with $101,000 of Open Space bond funds and $207,000 in FEMA funds.
Property #14 - Airport Hazard Zone: Council indicated a lack of interest in these properties at the September 25, 2000 meeting. Will contact
Property #15 - Dry Creek Properties: Developer signed purchase agreement before we could approach the owner. However, an opportunity may still exist because the developer proposed and withdrew two development approaches. These properties have not yet been developed. We intend to approach the owner again.
Property #16 - Umstead Property (Bolin Creek): We attempted to acquire this property in the summer of 2001. We commissioned an appraisal and made a preliminary offer for 5.76 acres on the south side of Umstead Drive. The appraisal stated an opinion of value of $305,000, or $52,951 per acre. The family rejected this offer and stated that they were not interested in selling to the Town.
Property #17 - Gattis-Whitfield Park and Conservancy: This 10-acre parcel was purchased with some Open Space Bond funds, but primarily with HUD Disaster Recovery Grant funds.