Minutes 10-21-2014 - Laserfiche WebLink

Browse Search

Commissioner porosin said if there is no deed restrictions on the property there is nothing to prevent the home owner from selling it again. Robert Dowling clarified that there will always be a restrictive covenant on the property. He said if the CHT did not step in to buy the property, then the bank takes it without restriction. He said the restrictions are in place, and are only terminated if CHT does not step in to prevent a foreclosure. He said the banks will only lend with no restrictions. He said he was not suggesting that they forego the 99 year affordability. Chair Jacobs asked about the possibility of an affordable housing bond that includes setting aside $1 million for loans to CHT buyers so that banks do not have to be involved. Robert Dowling said this s a good idea. Commissioner McKee said this will take the 99 year restriction off for the banks, but CHT and the County can still impose the affordability time frame. Robert Dowling said the CHT will continue to do business as usual with a 99 year affordability clause; but they will agree to sign a collateral agreement with the bank, and if CHT does not step in, the bank gets the fee simple loan in the event of a foreclosure. Commissioner McKee suggested that the percentage numbers in Commissioner Gordon's email should be made available to the public. Commissioner Gordon asked for input from John Roberts on the fee simple interest and the maintenance of the 99 year affordability. John Roberts said the risk is not about losing the 99 year affordability. He said the risk is that there is would be a spate of foreclosures, and the County would have to come up with hundreds of thousands of dollars to keep the 99 year affordability. He said this is a financial risk to the County. Commissioner Rich acknowledged Chair Jacobs idea, and she said CHT is always trying to think of creative ideas. Commissioner Rich called the question. VOTE: UNANIMOUS b. Southern Branch Library Letter of Intent Approval The Board considered authorizing the Chair to execute a Letter of Intent with regard to the Southern Branch Library upon the approval of the County Attorney. Jeff Thompson reviewed a map of the property. He said the letter of intent is a non- binding agreement. He reviewed the following information from the abstract: BACKGROUND: On May 13, 2014, the Board of County Commissioners authorized staff to engage in negotiations with Main Street Partners of Chapel Hill, LLC ("Main Street") regarding the potential location of the Southern Branch Library on property adjacent to the 300 Main development located in Carrboro known as the Butler Property. The attached Letter of Intent is drafted to frame the future negotiations for the definitive agreements necessary for the potential development and construction of a Southern Branch Library. The County's execution of this Letter of Intent does not bind the County to locate the Southern Branch Library on the Butler Property nor does it obligate the County to enter into definitive agreements with Main Street in the future. FINANCIAL IMPACT: Execution of this Letter of Intent and the subsequent negotiation of the