TO: Mayor and Members of City Council
THRU: Douglas J. Hewett, City Manager
Lachelle H. Pulliam, City Attorney
FROM: Jeffrey Yates, Interim Finance Director/Assistant City Manager
Kecia N. Parker, NCCP, Real Estate Manager
DATE: September 23, 2024
RE:
Title
Property City Leases from Outside Parties and Purchase Potential
end
COUNCIL DISTRICT(S):
Council District(s)
All Districts
b
Relationship To Strategic Plan:
Goal II: Responsive City Government Supporting a Diverse and Viable Economy
Executive Summary:
The purpose of this agenda item is to provide a report regarding the property the City leases from an outside party and the potential and possible need of purchase.
Background:
At the August 5, 2024, City Council work session, staff was directed to identify the properties that the City currently leases from an outside party and identify any that may be available for purchase. Staff identified and reviewed nine leases. The attached spreadsheet depicts these properties along with relevant data.
Staff was also asked to identify how a fund could be established for current and future use when the need arises to purchase property without substantial notice.
Issues/Analysis:
Staff reviewed the properties currently being leased and determined that of the nine there is only one that is an option to purchase. The property identified as the Cross Creek District Substation at 6147 Raeford Road was offered to the City for purchase after the current lease was renewed. The purchase price identified was $1,750,000.00. Currently this purchase has not had a budget identified. The three other substations are not at locations in which the police department is interested in purchasing.
Two of the leases are with other governmental agencies that prevent the property from being purchased. One is with a private college that jointly utilizes the property, and another is the with the hospital system. These joint ventures make it unlikely that there is a possibility of purchase, and the locations would not be advisable to relocate.
The last of the nine is the Festival Park Plaza building that houses city staff. The City could possibly try to purchase this building although it is not currently listed on any websites as for sale.
Budget Impact:
The budgetary impact depends on several factors, including debt funding, use of fund balance, or other operating revenues, based on the nature and use of the property.
Options:
1. Receive the report.
2. Do not receive the report.
3. Provide additional direction to staff.
Recommended Action:
Staff recommends that Council receive the report and provide additional direction to staff as to Council’s interest, if any.
Attachments:
List of Properties Where City is Lessee