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2 <br />In November 2010 the Orange County Schools Board of Education submitted a request to <br />purchase the site for a sum of $100,000. The Board of Education proposed that the purchase <br />be funded by reducing the school system's pay-as-you-go capital funds from the County by <br />$25,000 for each of four years. <br />Sale of property by the County to a School Board is allowed pursuant to North Carolina <br />General Statutes. The Board of Commissioners approved the sale in principle during a work <br />session on November 18, 2010. <br />The Manager recommends the Board also consider along-term lease arrangement with the <br />school in lieu of outright sale. Recommended terms would be a 20-year lease at $1 per year <br />with the Schools assuming ail maintenance and operational responsibilities. This would allow <br />use of the facility by the Schools, preserve the County's long-term options should conditions <br />change within the lease period and would not impact the Schools' future pay-as-you-go funding <br />allocation. Should the Board prefer this approach, staff will negotiate with the Board of <br />Education staff and bring forward a lease for approval by the respective Boards. <br />FINANCIAL IMPACT: Pay-as-you-go capital funding to Orange County Schools would be <br />reduced by $25,000 in FY 2013, FY 2014, FY 2015 and FY 2016 if the property were to be sold <br />to the Board of Education. tf the lease option is approved, the Board of Education would not <br />experience a reduction in revenue. Operational costs to the County and Schools would not be <br />materially different in either scenario. <br />RECOMMENDATION(S): The Manager recommends the Board consider the transfer <br />alternatives for this property and provide the appropriate direction to staff. <br />