STAFF REPORT
Operations Committee, August 2, 2006
Request to Sell Real Property via
Upset Bid – 1.32 acre Portion of Horton PDD
(PR07-04)
Consideration of a request
to sell a 1.32 acre portion of Weycroft Open Space via upset bid for the Horton
PDD BMP’s
Speaker: Doug McRainey
From: Mary G. Henderson, Parks, Recreation and Cultural Resources Director
Prepared by: Doug McRainey, Parks Planning Manager
Approved by: William B. Coleman, Jr., Town Manager
Approved by: Benjamin T. Shivar, Assistant Town Manager
Staff has received a request from Village Investments, LLC, developer of the Horton PDD in western Cary, to convey a small (1.32 acres) portion of the Town-owned land to them for the purpose of locating two environmental detention structure (BMP’s). The Horton Property PDD is 36.02-acre planned residential development, which was approved in 2005. The master plan provides for a maximum of 98 single-family dwelling units. The property is adjacent to but north of Amberly PDD and Weycroft PDD. This property is located within the Town’s adopted Northwest Area Plan.
The Horton PDD is located on the north side of the Nancy Branch. The Town recently took ownership of 13.03 acres of open space along both sides of Nancy Branch from the Weycroft PDD. Weycroft PDD was also approved in 2005 and is located on the south side of Nancy Branch. As a condition of the Weycroft rezoning approval, the developer agreed to donate approximately 13 acres of open space along either side of the Nancy Branch. The northern edge of this land has a common boundary with the southern edge of Horton PDD. Village Investments has requested to purchase 1.32 acres of this property to construct required two BMP’s.
The property that was conveyed to the Town from Weycroft includes 200’ of buffer along either side of the Nancy Branch, as recommended in the adopted Northwest Area Plan. The two proposed BMP’s would not impact the 100’ buffer. Village Investments, LLC has proposed acquiring the 1.32 acres for $113,520 (appraised value of the property is $80,000 per acre).
Village Investments, LLC has submitted a bid deposit of $5,676 which is 5 percent of the total price of $113,520. Staff proposes to sell this property via the upset bid process in accordance with NCGS § 160A-269. The bid will be advertised to see if another bid is received that would raise this original offer. Any upset bids received in this manner would continue to be advertised until no more bids were received. Because of the site’s location relative to the Village Investments LLC property, staff does not anticipate receiving any additional bids.
Fiscal Impact: If this property is sold, at least $113,520 will be available for future open space purchases.
Staff Recommendation:
Staff recommends adoption
of the attached Resolution Authorizing Upset Bid Process and appropriation of
$113,520 to WT1078 for future open space purchases if no further bids are
received.
Resolution Authorizing Upset Bid Process
WHEREAS, the Town of Cary owns certain property, [property description]; and
WHEREAS, North Carolina General Statute §160A-269 permits the city to sell property by upset bid, after receipt of an offer for the property; and
WHEREAS, the City has received an offer to purchase the property described above, in the amount of $113,520 submitted by Village Investments, LLC; and
WHEREAS, Village Investments, LLC has paid the required five percent (5%) deposit on his offer;
THEREFORE, THE TOWN COUNCIL OF THE TOWN OF CARY RESOLVES THAT:
1. The Town Council authorizes sale of the property described above through the upset bid procedure of North Carolina General Statue §160A-269.
2. The town clerk shall cause a notice of the proposed sale to be published. The notice shall describe the property and the amount of the offer, and shall state the terms under which the offer may be upset.
3. Persons wishing to upset the offer that has been received shall submit a sealed bid with their offer to the office of the town clerk within 10 days after the notice of sale is published. At the conclusion of the 10-day period, the city clerk shall open the bids, if any, and the highest such bid will become the new offer. If there is more than one bid in the highest amount, the first such bid received will become the new offer.
4. If a qualifying higher bid is received, the town clerk shall cause a new notice of upset bid to be published, and shall continue to do so until a 10-day period has passed without any qualifying upset bid having been received. At that time, the amount of the final high bid shall be reported to the Town Council.
5. A qualifying higher bid is one that raises the existing offer by not less than 10 percent (10%) of the first $1,000.00 of that offer and five percent (5%) of the remainder of that offer.
6. A qualifying higher bid must also be accompanied by a deposit in the amount of five percent (5%) of the bid; the deposit may be made in cash, cashier’s check, or certified check. The Town will return the deposit on any bid not accepted, and will return the deposit on an offer subject to upset if a qualifying higher bid is received. The Town will return the deposit of the final high bidder at closing.
7. The terms of the final sale are that
· The Town Council must approve the final high offer before the sale is closed, which it will do within 30 days after the final upset bid period has passed, and
· The buyer must pay with cash at the time of closing.
8. The Town reserves the right to withdraw the property from sale at any time before the final high bid is accepted and the right to reject at any time all bids.
9. If no qualifying upset bid is received after the initial public notice, the offer set forth above is hereby accepted. The appropriate Town officials are authorized to execute the instruments necessary to convey the property to Village Investments, LLC.
Adopted _________________
____________________________
Mayor
Attest:
___________________________
Town Clerk
