Agenda - 12-02-2002-9c - Laserfiche WebLink

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4 Potential Cost The most recent appraisal of the property is $1.35 million. To staffs knowledge, the owners have not identified a new purchase price. If the eventual purchase price is $1,350,000, and the $200,000 Clean Water grant is approved, an additional $1,160,500 would be needed for the purchase ($1,150,000 plus an additional $10,500 for closing and transaction costs1). It shoo/d be noted that, if the eventua/ purchase price exceeds the appraised va/ue, the Town and County wi// have to consider the propertys significance as compared to the potentia/tota/funding. One question that arises is what amount of match is "needed" with the smaller grant award ($200,000 as opposed to $989,000). Unfortunately, that is a difficult question to answer. Having experience with two previous County Clean Water grants, there is officially no local match required for Clean Water grants. However, it is widely known that provision of a match greatly enhances the success of the application. The County's practice has been to offer a match of 30-50% for our two successful grant applications. However, the unknown in this case is the lack of identified funding to fully acquire the property -the combination of grant and requested County match are in themselves not sufficient to meet the expected purchase price. As such, it is possible that a lowering of the local match might affect the grant award. Carrboro has asked Orange County to designate the $750,000 originally identified for Carrboro greenways in the 2001 bond for this purchase. The table on the following page shows the CIP funding stream for the 2001 bond allocated to greenways. As noted, the funding sources mentioned to date do not appear to be sufficient to raise all of the expected funds for purchase. Carrboro has indicated an intent to apply for other grants and work with local groups to raise money for the remaining purchase amount. 1 -The tentative $200,000 Clean Water grant includes $10,500 that is to go toward transaction costs and environmental assessments. This means that $189,500 of the grant would go to the purchase price)