Title
Land Acquisition - Cornelius High School Agriculture Building
Action
ACTION:
Authorize the County Manager to negotiate and execute a Memorandum of Understanding and any other agreements necessary between and/or amongst the County, Charlotte-Mecklenburg Historic Landmarks Commission (“HLC”), the Town of Cornelius (“Town”), and the Cornelius History Museum, LLC (“Museum”) to fund the purchase, renovation, operation, and maintenance of the Historic Cornelius Agriculture Building and grounds ( +/- 0.33 acre portion of Tax Parcel 005-201-29):
1) From the Town of Cornelius for a purchase price of $176,300 using HLC’s Revolving Fund Account; and
2) From HLC to the Museum for a purchase price of $180,000 per terms of a 5-year, three percent (3%) amortized loan from HLC to the Museum
Staff Contact: John Howard, Historic Preservation Manager, Historic Landmarks
Presentation: Yes
BACKGROUND/JUSTIFICATION:
The County, HLC, the Town of Cornelius, and the Cornelius History Museum wish to enter a four-party Memorandum of Understanding (“MOU”) for the purchase, renovation, operation, and maintenance of the Historic Cornelius Agriculture Building. The proposal is for the building to be owned, operated and event programmed by the Museum.
The Cornelius High School Agriculture Building, as it was known during the early 20th century, is located at 21126 Catawba Avenue in the heart of downtown Cornelius and on the campus of the current Cornelius Elementary School. During the 1920s and 1930s, the Mecklenburg County Board of Education saw the need to educate students in new technologies that were changing the agriculture industry such as mechanized farming and the use of herbicides and fertilizers. With funding from the federal Public Works Administration, the Board of Education constructed the building between 1937 - 1938 to serve then current and aspiring farmers. The Classical Revival-styled building was designated a local historic landmark in 2020.
The HLC was approached by the Town and the Museum with a proposal to renovate the building and put it to use as a museum, community/event center, and non-profit office space. The arrangement will include that the building is to be owned and operated by the Museum and will include use restrictions to limit uses to those that are civic, government, or non-profit. To accomplish this, the various parties involved will carry out the obligations in the MOU and complete a series of real estate transactions including but not limited to:
• The purchase of a portion of Tax Parcel 005-201-29 consisting of +/- 0.33 acres (“the Property”), from the Charlotte-Mecklenburg Board of Education by the Town of Cornelius for a purchase price of $176,300; and
• Following purchase of the Property by the Town, HLC to purchase the
Property from the Town for a purchase price of $176,300 using funds from HLC’s Revolving Fund Account; and
• HLC to deed the Property to the Museum for a purchase price of $180,000 per the terms of a loan agreement between the HLC and the Museum. The loan agreement will be for a term of five (5) years at three (3%) percent interest.
o The deed between HLC and the Museum will include a use restriction, an automatic reversion upon default by the Museum clause, and a Right of First Refusal in favor of HLC.
The Museum estimates that it will need $2,000,000 to complete the renovation of the building and establish a small endowment for the continued operation of the space. Thus far, the organization has secured commitments totaling $1,300,000 including $500,000 in a State grant and the proposed funding from HLC’s revolving fund. If successful, the Museum expects to open the building in 2028. If approved, the Board will need to decline its statutory right of first refusal to the Property from CMS when the item is brought before the Board for consideration at a later date.
PROCUREMENT BACKGROUND:
N/A
POLICY IMPACT:
N/A
FISCAL IMPACT:
Funding for this acquisition will come from HLC’s Fiscal Year 2025 Revolving Fund Account.