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Resolution to Authorize an Upset Bid Process for 305, 315, and 319 Chestnut Street
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LEGISLATIVE INTENT/PURPOSE:
WHEREAS, the City of Wilmington owns approximately 1.65 acres of real property located at 305, 315, and 319 Chestnut Street (Parcel IDs R04817-015-003-000, R04817-015-006-000 & R04817-015-007-000) hereinafter referred to as “the Property”; and,
WHEREAS, N.C.G.S. §160A-269 permits the City to sell property by upset bid, after receipt of an offer for the property; and,
WHEREAS, the City has received an offer to purchase the Property described above, in the amount of $1,700,000, submitted by Cape Fear Holdings, LLC; and,
WHEREAS, Cape Fear Holdings, LLC has included in the bid a provision which would restrict the principal use of the Property to a retail grocery supermarket for a duration of at least 10 years; and,
WHEREAS, Cape Fear Holdings, LLC has paid the required five percent (5%) deposit on the offer, which is requisite to begin the upset bid process.
THEREFORE, BE IT RESOLVED:
THAT, City Council authorizes sale of the Property through the upset bid procedure of N.C.G.S. §160A-269.
THAT, the City Clerk shall cause a notice of the proposed sale to be published, describing the property and the amount of the offer and shall state the terms under which the offer may be upset.
THAT, persons wishing to upset the offer that has been received shall submit a sealed bid utilizing the form available online at www.wilmingtonnc.gov/bids <http://www.wilmingtonnc.gov/bids> or in person at 929 N. Front Street to the office of the City Clerk within 10 days after the notice of sale is published.
THAT, at the conclusion of the 10-day period, the City Clerk shall open the bids, if any, and the highest such bid will become the new offer. If there is more than one bid in the highest amount, the first such bid received will become the new offer.
THAT, if a qualifying higher bid is received, the City Clerk shall cause a new notice of upset bid to be published, and shall continue to do so until a 10-day period has passed without any qualifying upset bid having been received. At that time, the amount of the final high bid shall be reported to the City Council.
THAT, a qualifying higher bid is one that raises the existing offer by not less than ten percent (10%) of the first $1,000 of that offer and five percent (5%) of the remainder of that offer.
THAT, a qualifying higher bid must also be accompanied by a deposit in the amount of five percent (5%) of the bid; the deposit may be made by certified check or money order. The city will return the deposit on any bid not accepted, and will return the deposit on an offer subject to upset if a qualifying higher bid is received.
THAT, the terms of the sale are described in detail on the aforementioned bid form, and City Council must approve the final high offer before the sale is closed, which it will do within 30 days after the final upset bid period has passed.
THAT, the City reserves the right to withdraw the Property from sale at any time before the final high bid is accepted, and also reserves the right to reject all bids at any time.
THAT, if no qualifying upset bid is received after the initial public notice, the offer set forth above is hereby accepted, and the City Manager and City Attorney are hereby authorized to execute the instruments necessary to convey the property to Cape Fear Holdings, LLC.