S ECD - Eno River Association purchase of Eno Confluence property & conservation easement

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2 . The Eno River Association intends to acquire the property and manage it for resource conservation and low-impact public recreation and education. Orange County's interests in the property will be represented through a conservation easement granted by the Association to the County, thereby adding perpetual use restrictions intended to protect the future use of the property as slow-impact park and natural area. The State of North Carolina will also hold a conservation easement on a portion of the property within 300 feet of the Eno River corridors. Upon approval by the Board, a closing on the property purchase is expected to occur on December 18, 2007. The conservation easement would be granted to the County by mid- to late 2008 but not later than December 31, 2008 as set forth in the attached agreement between the County and the Eno River Association. FINANCIAL IMPACT: The Association has a contract to purchase the property for $1,104,700 ($10,000/acre) plus option fees totaling up to $259,128 and payable over athree- year period ending October 2009. Funding for the purchase would come from the NC Clean Water Management Trust Fund ($656,400), the Upper Neuse Clean Water Initiative ($110,470), Orange County ($250,000), and $132,110 in private funds raised by the Eno River Association. An additional estimated $13,000 in transaction and other project costs would be paid by the Eno River Association and state Clean Water grant. Because the Association intends to close by December 18, 2007, the option fees will be reduced significantly with an anticipated savings of approximately $190,000. The total • project cost, therefore, would be approximately $1,187,000. The County's portion of the purchase price would be $250,000 (or $2,273/acre). Funds would be paid from the County's 2001 Parks and Open Space bond (Lands Legacy). A total of $5.25 million has been appropriated from this source, with $2.42 million spent thus far. A capital project ordinance will be presented at a subsequent meeting for this purchase. Orange County would be granted a conservation easement in exchange for its contribution of funds for the land acquisition. The attached agreement stipulates that the Eno River Association will grant a conservation easement to the County the sooner of the closing on the NC Clean Water Management Trust Fund grant or December 31, 2008. RECOMMENDATION: The Manager recommends that the Board~approve the resolution authorizing the following: a) the County's contribution of $250,000 toward the purchase of the Eno Confluence property with a transfer of funds for a closing on the purchase expected to occur on or about December 18, 2007; and b) the County entering into an agreement with the Eno River Association that stipulates the Eno River Association will grant a conservation easement to the County on or before December 31, 2008; and c) the Chair and the Clerk to sign said agreement, subject to final review by staff and the County Attorney; and d) the Chair and the Clerk to sign the conservation easement agreement, subject to final . review by staff and the County Attorney.