Agenda - 03-23-2000 - 3 - Laserfiche WebLink

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2 If the maximum amount is received from both grants, the Orange County portion would cost $104,580. In addition, the agreement gives Orange County the right to reduce its total acreage to be acquired from 135 acres to 109 acres in the event that grant funds are not awarded for this project from the NC Clean Water Management Trust Fund by May 31, 2000. An initial payment for the majority of the property (including the entire Orange County portion) would be due October 31, 2000 and a final payment for the remaining 85 acres (all in Durham County) would be due July 31, 2001. A small portion of Orange County's acquisition costs (e.g., survey, environmental assessment, legal fees) could be delayed until after July 2001, at which time Orange and Durham will reconcile all cost outlays associated with the project to the agreed 35/65 apportionment. An inter -local agreement will be developed to address the acquisition, development and future management of the proposed park property. Durham County approved the letter of intent to enter into the option agreement on March 13, 2000. The Triangle Land Conservancy and Eno River Association boards have also approved of the agreement. Finally, staff has learned from an informal contact with the Clean Water Management Trust Fund that the staff to the CWMTF board will recommend approval of a grant for this project. While not a guarantee, the chances of receiving a grant are greatly enhanced by the endorsement from the staff. FINANCIAL IMPACT: The cost of the option agreement is $30,000, of which Orange County's share would be $9,000. (Durham County will pay $18,000 and TLC /ERA will pay $2,000.) Those funds would be paid from the ERC fund, and may be applied to the purchase price. The potential funding scenarios for the total project, including projected reductions in net costs from potential grants, are shown in the attached spreadsheet. County funds to purchase the property could come from some combination of the ERC fund (FY 00 -01), the Recreation and Parks payment -in -lieu funds, or other sources as deemed appropriate. RECOMMENDATION: The Manager recommends that the Board discuss the letter of intent and, if acceptable, instruct staff to prepare an item for the March 23 work session to formally adopt the letter of intent to execute the option agreement, and authorize payment of the option amount of $9,000.