Agenda - 04-15-2025; 6-b - Purchase of Property for the Crisis Diversion Facility

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1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: April 15, 2025 Action Agenda Item No. 6-b SUBJECT: Purchase of Property for the Crisis Diversion Facility DEPARTMENT: Asset Management Services (AMS) ATTACHMENT(S): INFORMATION CONTACT: 1. Locator Map Travis Myren, County Manager, 919- 2. Conceptual Site Plan 245-2308 3. Purchase and Sale Contract Alan Dorman, AMS Director, 919-245- 2627 PURPOSE: To: 1) Review and approve the Purchase and Sale Contract for a 5-acre parcel of land located off Waterstone Drive in Hillsborough to build a Crisis Diversion Facility; and 2) Authorize the County Manager to execute all necessary documents to close on the property upon final review by the County Attorney. BACKGROUND: In the FY 2024-34 Capital Investment Plan, the Board approved $2,047,155 to design a Crisis Diversion Facility and $22,952,845 to construct it in FY 2025-26. Additionally, in the FY 2024-34 CIP, the Board approved $1,100,000 to acquire land for the facility. After an extensive search, the County identified a property near UNC Hospital in Hillsborough as the best option for the Crisis Diversion Facility (Locator Map at Attachment 1). This property is considered ideal because of its proximity to UNC Hospital, is already zoned for hospital use, and is of sufficient size to allow for an attractive one-story facility with grounds for a large courtyard and healing garden, as shown in the conceptual site plan (Attachment 2). The rezoning of the property for hospital use was based on the developer's previously approved Master Plan with the Town of Hillsborough and will save the County significant time in developing the site. The County has already performed extensive due diligence on this property and found no issues of concern. The review process included a phase I environmental assessment, a geotechnical survey, and a review of the title records. Additionally, a preliminary site plan review was completed with the Town of Hillsborough and no items of concern were found. After extensive negotiation with the owners, Capkov Ventures, Inc., the County has agreed to purchase the property for $1,350,000. The terms of the purchase include $25,000 in earnest money, a 60-day inspection period, and that the County will close on the property by June 30, 2025. The agreement allows the closing date to be extended by two (2) 30-day periods, with an additional fee of $10,000 per extension. The extension fees and the earnest money would be credited to the sale when the County closes on the property.