Town of Cary
North Carolina

Staff Report

Proposed Sale of Real Property located at 215 Dry Avenue

Information

Department:Transportation and FacilitiesSponsors:
Category:Conveyance

Attachments

  1. Offer to Purchase
  2. 215 DRY AVENUE MAP
  3. Resolution

Speaker:  Donna Lunsford, Transportation and Facilities

 

Executive Summary: The Town has received an offer from Ralph Mazza, Kathleen Mazza, and Sheila Valentine to purchase a 0.09 acre vacant Town owned property at 215 Dry Avenue for the current assessed tax value of $1,080 ('Property').  The Property abuts property that they each own. The Town has no plans for future public use of the Property, zoned Town Center (TC) District, Low Density Residential-12 (LDR-12) subdistrict.  If Council is interested in selling Property, state law authorizes sale in accordance with the upset bid process set forth in N.C.G.S. § 160A-269.   

 

Recommendation: Staff recommends Town Council adopt the attached Resolution (1) declaring Property as surplus property; (2) authorizing the sale of Property under authority of N.C.G.S 160A-269, the statutory upset bid procedures; and (3) authorizing acceptance of the Bid if it is not upset and if it upset, acceptance of the final high bid, and execution of a quit-claim deed by the Town Manager or Deputy Town Manager. 

Body

BackgroundThe Town owns Property, a 0.09-acre parcel of property located at 215 Dry Avenue.  The Property appears to have been originally intended for use as an alley when the surrounding subdivision was developed, but the Town has taken no action to open it to the public.  Ralph Mazza, Kathleen Mazza, and Sheila Valentine (“Offerors”) contacted the Town stating their desire to purchase Property for inclusion into their adjacent properties and gave the Town a signed ‘Offer to Purchase’ Property for $1,080 (“Bid”), the current tax value for the Property.

 

 

Council has the authority under N.C.G.S. 160A-269 to sell Town property by upset bid. Under the upset bid procedure, if Council receives an offer to purchase property which the Council proposes to accept, Council may adopt a Resolution proposing to accept the bid and set out details for the sale. Council must require the Offerors to deposit five percent of their bid with the Clerk and publish notice describing the bid.  Upon publication of the notice, others have an opportunity to ‘upset’ the bid by raising the bid amount by at least 10 percent of the first $1,000 of the bid and 5 percent of the remainder. The new bidder must then make a deposit with the Clerk and notice of the increased bid is published, creating a new “upset” opportunity.  This process continues until a ten-day period passes without an upset bid being received.  Council may retain authority to approve or reject the final upset Bid amount or Council may authorize acceptance of the Bid and any subsequent upset upon adoption of the Resolution.

 

Discussion:  The Buyers submitted a written offer to purchase the subject property for $1,080 along with a $54 deposit as required by 160A-269 with the request that, as allowed by law, the Town convey the one half of the Property that abuts the Mazza property to Mazza and the one half of the Property that abuts Valentine property to Valentine. Staff has identified no current or future proposed Town use of the Property and has determined that there would be no negative impacts to the Town if the Property is sold. 

 

If Council proposes to accept the Bid, Council must adopt a Resolution.  Staff proposes the attached Resolution, which declares the Property surplus, describes the Property and the Bid amount and terms, establishes the deposit terms, details the upset bid procedures and time periods, requires a published notice of the Bid and upset sale under the upset process, and states that an upset bid may be received within ten days from the date the notice is published.  Upon the receipt of an upset bid, that upset bid becomes the new offer and new notice published.  At such point as no upset bids are received within 10 days, the final bid may be accepted.  Council has authority to accept any final bid, but, given the size of Property and to expedite a sale, the Resolution has been drafted to also accept the Bid, or any qualifying upsetting bid from any bidder, once the upset process is concluded. 


Fiscal Impact:  

The Offeror’s Bid is $1,080 for the Property.  As a condition of any acceptance of the Bid, the successful buyer is responsible for all costs associated with the transaction, including advertisement and recording costs, and if the successful bidder is the Offerors, the survey and legal descriptions to divide the Property in half between the Offerors.  The Property is a nonconforming parcel and its conveyance relieves the Town of any future maintenance expenses while at the same time returning the Property to the tax base.  The sale will generate a total of $10.84 in property tax revenue based upon a 2018 Wake County tax rate of $0.654 and Town of Cary tax rate of $0.35.  Of this amount, $3.78 would be directed to the Town of Cary with the remainder to Wake County. 

 

Next Steps: If Council adopts the resolution and the declaration of surplus property, a Notice of the Upset Bid will be published for 10 days according to N.C.G.S.§ 160A-269. If no upset bids are timely received, the Property will be conveyed to Ralph and Kathleen Mazza and Sheila Valentine, in a form compliant with 160A-269. If the Offeror’s Bid is upset within the time allotted by the statute, the process will continue and the final qualifying bid will be accepted at the conclusion of the respective upset period and conveyed to the high bidder in a form compliant with 160A-269.