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Resolution Authorizing the City Manager to Enter into a Purchase and Sale Agreement of Surplus Property Located at 1702 Burnett Boulevard to the North Carolina Department of Transportation
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Department: |
Economic Development |
Meeting Date: |
8/5/2025 |
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Contact Name: |
Aubrey Parsley |
Public Hearing: |
No |
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Contact Phone: |
910-200-8382 |
Advertising Date/Advertised By: |
N/A |
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Attachments: |
Attachment #1: Resolution Authorizing Sale of Surplus Property to NCDOT |
PURPOSE:
The purpose of the resolution is to authorize the City Manager and City Attorney to enter into agreements necessary to sell an approximately 3.756 acre portion of surplus City property located at 1702 Burnett Boulevard (the “Property”).
BACKGROUND:
1702 Burnett Boulevard is a 5.540-acre tract of City-owned land that currently houses operational functions of the Parks and Recreation Department. A new Parks Maintenance Facility (the “Project”) is to be constructed at the corner of Melton Road and River Road. The Project will include an approximately 15,780 square foot administrative building, a 7,680 square foot vehicle shed, a 1,530 square foot potting shed, a 960 square foot cold frame, and a 2,860 square foot greenhouse. These facilities will replace and enhance the City’s operational capabilities. As a result of the anticipated new facility, City Council declared 1702 Burnett Boulevard to be surplus property in February of 2023.
The North Carolina Department of Transportation (“NCDOT”) has planned improvements to roadway facilities under project U-5734: Improvements to South Front Street (U.S. 421 Truck Route). U-5734 will widen South Front Street between the Cape Fear Memorial Bridge and Burnett Boulevard from a 2-lane roadway to a 4-lane median-divided roadway. U-5734 will also include a multi-use path on the east side of South Front Street, and will relocate and separate a portion of an industrial lead railroad track to the west side of South Front Street. The existing South Front Street, Burnett Boulevard, and Carolina Beach Road intersection will be converted to a double-quadrant intersection.
U-5734 is planned and programmed, but not fully funded. Nevertheless, NCDOT seeks to acquire the property needed for the completion of U-5734 at this time, and has made a contingent offer to the City in the amount of $4,251,800 for the Property (3.756 acres out of the 5.540 acres owned by the City at 1702 Burnett Boulevard), as well as an $8,150 contingent offer for a temporary construction easement, both of which are shown on the map attached hereto. NCDOT’s offer is contingent on the formal approval of its board of directors.
As a part of the acquisition of the Property, NCDOT is also offering a leaseback on the Property to allow for the City’s continued operations during construction of the Project. NCDOT currently anticipates that construction on U-5734 will begin in 2029. The annual leaseback amount is expected to generate expenses of approximately $156,000 in year one and $164,000 in year two.
budget
BUDGET IMPACT:
Approximately $4,250,000 in one-time revenues.
recommendation
RECOMMENDATION / ACTION REQUESTED:
Passage of the resolution is recommended.