Title:
Historic Dowd House and Former Fire Station 10 MOUs
Summary
ACTION:
1. Authorize the County Manager to negotiate and execute a Memorandum of Understanding and all other documents necessary between the County, Charlotte-Mecklenburg Historic Landmarks Commission, and OZF Properties, LLC for the conveyance of tax parcel 067-061-05 and a portion of Tax Parcel 067-061-06 to the Charlotte-Mecklenburg Historic Landmarks Commission for a price of not less than $313,310;
2. Authorize the County Manager to negotiate and execute a Memorandum of Understanding and all other documents necessary between the County, Charlotte-Mecklenburg Historic Landmarks Commission, and Red Leg 6, LLC for the conveyance of tax parcel 067-061-02 to the Charlotte-Mecklenburg Historic Landmarks Commission for a price of $345,000; and
3. Authorize the County Manager to negotiate and execute a Donor Agreement Form between the Charlotte-Mecklenburg Public Library and Mecklenburg County for the donation of historic memorabilia and artifacts from the Historic Dowd House to Robinson-Spangler Carolina Room
Staff Contact: Jacqueline McNeil, Asset and Facility Management
Presentation: Yes
BACKGROUND/JUSTIFICATION:
In September 2018, the County and Charlotte-Mecklenburg Historic Landmarks (HLC) released a Request for Qualifications/Proposal (RFQ/P) for qualified parties to submit proposals to purchase and redevelop the Historic Dowd House and former Fire Station 10 in the Historic Camp Greene neighborhood of west Charlotte. Prior to the RFP's release, the County received steady interest from various individuals in purchasing the property. To allow all interested parties the opportunity to potentially purchase and redevelop the property, the County determined that releasing a RFQ/P was the best course of action. Prior to releasing the RFP, the County held community engagement sessions in the Campe Greene neighborhood and developed conditions of the sale to protect the neighborhood's ability to have continued access to the Dowd House due to its significance in the Camp Greene neighborhood and Charlotte's history.
Two respondents submitted proposals, and the County held discussions with those prospective buyers. OZF Properties, LLC submitted a proposal to renovate the Dowd House as well +/- 9,000 SF of currently vacant adjacent land with plans to use the property as the headquarters of the owner's commercial real estate firm. Red Leg 6, LLC submitted a proposal to renovate former Fire Station 10 with plans to use the property for leased offices. Discussions among the County, HLC, and the prospective buyers led to the following major agreement points:
OZF - the Historic Dowd House
Property:
• OZF will purchase the existing Historic Dowd and surrounding land on Tax Parcel 067-061-05 as well as +/- 9,147 SF of Tax Parcel 067-061-06.
• The purchase of a portion of Tax Parcel 017-061-06 is dependent upon the City of Charlotte releasing a restriction on the property that the land be used for park purposes.
Purchase price:
• The purchase price for the property is +/- $313,310 (with final purchase price based on a survey).
• OZF will deposit a $5,000 earnest money deposit.
Appraised value:
• The appraised value of Tax Parcel 067-061-05 (current Dowd House) is $340,000. The appraised value of the adjacent vacant land is $13,310 (for 9,147 SF).
• The purchase price reflects the requirement that the public have access to the property in perpetuity and was deemed appropriate by an independent third-party appraiser.
Conditions of sale:
• The historic designation on the Dowd House shall remain in perpetuity.
• The deed to the property will state that the Camp Greene Neighborhood Association (or successor organization) is allowed to hold monthly meetings at the property in perpetuity.
• The deed to the property will state that the Camp Greene Neighborhood Association (or successor organization) is allowed to hold an annual celebration at the property in perpetuity.
Closing condition:
• Closing on the property is conditioned upon successful rezoning of the property by the City of Charlotte.
Assignment of MOU:
• If Red Leg 6, LLC is unable to implement the conditions of the MOU among the County, HLC, and Red Leg, then the MOU may be assigned to OZF; in which case, OZF will be responsible for implementing the conditions of the original MOU among the County, HLC, and Red Leg .
Red Leg 6 - Former Fire Station
Property:
• Red Leg 6 will purchase the building and surrounding land on Tax Parcel 067-061-02.
Purchase price:
• The purchase price for the property is $345,000
• Red Leg 6 will deposit a $5,000 earnest money deposit.
Appraised value:
• The appraised value of the property is $420,000. The purchased price reflects necessary environmental remediation activities the new owner will have to undertake.
• Cost estimates for remediation activities were verified by the buyers' third-party consultants as well as third-party consultants and staff for the County's Asset and Facility Management Department and Park and Recreation Department.
Conditions of sale:
• Prior to purchasing the property a historic designation will be placed on the exterior of the building.
Closing condition:
• Closing on the property is conditioned upon successful rezoning of the property by the City of Charlotte.
Park Improvements
• In addition to the above property improvements to be made by the prospective buyers, the County will be providing parkland amenities on Tax Parcel 067-061-01 and the remaining portion of Tax Parcel 067-061-06.
In May 2019, County staff conducted a meeting with members of the Camp Greene neighborhood. At that meeting, neighborhood residents expressed concern about the proposals and did not support the County moving forward. At the Board's May 21 meeting, staff briefed the Board on the RFP process and the neighborhood meeting that was held. The Board directed staff to hold additional meetings with the neighborhood to see if consensus could be reached.
Following the May 21 Board meeting, County staff held an additional meeting with the Camp Greene neighborhood on June 10. At that meeting, 60% of those in attendance voted to move forward with the proposals. On July 11, County staff held another meeting with the Executive Board of the Camp Greene Neighborhood Association. Following this meeting, the full membership of the Camp Greene Neighborhood Association discussed the Dowd House and Fire Station 10 proposals at its July 16 meeting. At the July 16 meeting, 85% of the residents in attendance voted to support the proposals.
If approved, the County, HLC, and the prospective buyers will finalize MOUs between the parties, and the property will be transferred to HLC. Upon completion of all the conditions of the MOUs, including historic designation for the fire station and successful rezoning of the properties, ownership of the properties will be conveyed to the prospective buyers.
PROCUREMENT BACKGROUND:
N/A
POLICY IMPACT:
N/A
FISCAL IMPACT:
N/A