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1 <br />ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />Action Agenda <br />Item No <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: August 5, 1991 <br />SUBJECT: Application for Local Government Commission Approval of <br />Installment Purchase - Southern Human Services Center Land <br />---------------------- <br />DEPARTMENT Finance PUBLIC HEARING YES NO X <br />---- ----- ----- --- <br />ATTACHMENT(S) INFORMATION CONTACT <br />Proposed Resolution (under separate Ken Chavious, ext 2450 <br />cover) TELEPHONE NUMBER <br />Hillsborough 732 -8181 <br />Chapel Hill 968 -4501 <br />Mebane 227 -2031 <br />Durham 688 -7331 <br />PURPOSE: To authorize the County Finance Officer to submit an <br />application to the Local Government Commission soliciting approval of <br />the County's installment purchase agreement for a portion of the <br />purchase price of the land that will be used for the Southern Human <br />Services Center. <br />BACKGROUND: On May 21, 1991, the Board of Commissioners approved the <br />purchase of 34.1 acres of land in the vicinity of Homestead Road to be <br />used as the site for construction of the new Southern Human Services <br />Center. Payment terms included a $550,000 cash payment at closing with <br />the balance to be paid through a 59 month installment contract with the <br />landowner. The parameters of the installment purchase contract are <br />such that there is no legal requirement for the LGC to either review or <br />approve this installment purchase. However, the LGC has expressed a <br />strong desire to review any installment purchase involving real estate <br />upon which local government buildings are to be constructed. <br />Furthermore, LGC approval would be required in this instance were <br />financing being handled by a financial institution rather than by a <br />private individual. <br />In view of the stated wishes of the LGC and in order to provide an <br />additional level of security concerning this transaction, staff <br />recommend that the County ask the LGC to review this installment <br />purchase to give it a formal stamp of approval. The application must <br />be completed and received by the LGC by August 13, 1991 in order to be <br />considered at the September 3, 1991 meeting of the LGC. This schedule <br />will allow time for LGC approval before closing on the property. <br />RECOMMENDATION(S): The Manager recommends that the Board: authorize <br />the County Finance Officer to submit the application to the LGC for <br />approval of the installment purchase arrangement on the Southern Human <br />Services property; and approve the attached resolution to that effect. <br />