Title
Vote to adopt a resolution declaring a 1.038-acre county-owned property surplus located at 333 New Elam Church Road and authorize its sale to the North Carolina Department of Transportation at the negotiated purchase price of $225,000
Abstract
Introduction & Background: The North Carolina Department of Transportation (NCDOT) is in the process of planning and designing transportation improvements along US 1 to provide for ongoing industrial development in the Moncure area. In preparation for these improvements, NCDOT is acquiring the land necessary to facilitate these improvements and to secure the requisite rights-of-way for the same. The county-owned 1.038 parcel located at 333 New Elm Church Road has been identified as one such property requiring NCDOT acquisition to make these planned improvements. Two aerial maps identifying this property are provided as illustrations of the location and general vicinity of this parcel in relation to US 1. Additionally, a Plan Sheet is provided that illustrates the location of this parcel in relation to the proposed transportation improvements in this area.
Discussion & Analysis: Located on the subject property is a water tower that is no longer in use. Considering the increased industrial activity and the anticipation of increased residential population growth in this area, the county recognizes the potential need to erect a new water tower in this area to serve future water supply demands. The relative location and elevation of the subject property is ideal for the placement of an elevated water tank to provide the surrounding area with future water supply demands. To maintain its ability to provide for future water supply demands in this area, the county will need to secure an alternative site of similar elevation within the general vicinity of this parcel. Through negotiations, NCDOT is offering $225,000 ($50,000 above initial offer).
North Carolina General Statute (NCGS) 153A-176 notes that a county may dispose of any real property belonging to it according to the procedures prescribed in Chapter 160A, Article 12. Chapter 160A, Article 12, Section 274 authorizes the county to sell to any other governmental unit any interest in real or personal property. Action under this authority shall be taken by the governing body of the county. In the case of the county, the County Board of Commissioners.
Included with this agenda item is a resolution authorizing the sale of the subject property to the NCDOT as provided herein.
How does this relate to the Comprehensive Plan: Plan Chatham calls for the diversification of the county’s tax base and the creation of in-county jobs to reduce dependence on residential property taxes, which will decrease out-commuting and increase economic opportunities. Further, the county’s Comprehensive Plan speaks to the provision of infrastructure to support desired development and economic objectives. The proposed road infrastructure improvements in the Moncure area by NCDOT are intended to increase the capacity and access to existing roadways in the area, which will promote these goals.
Budgetary Impact: The initial budgetary impact will increase the expected operating revenue within the Utility Enterprise Fund. The long-term budgetary impact is undetermined. The county will, at some point, need to acquire property to place an elevated water tank on to serve the surrounding area, which is anticipated to grow in population, uses, and density. The cost of acquiring the alternative site for the water tank is speculative. If the county were able to purchase a suitable property for this purpose (proximity and elevation) at or below the purchase price of the subject property, there would be no net negative budgetary impact. There is, however, the potential that the purchase of the alternative property will cost more than the revenue generated with the sale of the subject property. This may be a result of having to purchase a property larger than the existing county-owned property, or a result of market forces that may increase the cost of property in this area.
Recommendation/Motion: Motion to adopt a resolution declaring a 1.038-acre county-owned property surplus located at 333 New Elam Church Road and authorize its sale to the North Carolina Department of Transportation at the negotiated purchase price of $225,000.