[Durham INC] BOCC Reg Mtg, Mar 12: DPS offer of 4x tax assessed price for school land

Mon Mar 9 22:09:44 EDT 2009

Hi folks--

Please note that, despite what the County webpage says, this weeks' Board of County commissioners' meeting was moved to March 12 (7 PM, 200 East Main). 

On the agenda is the DPS (Durham Public Schools) offer to purchase several environmentally sensitive tracts (on Scott King Road in South Durham) for FOUR TIMES their tax assessed value (tax assessment dated Jan 1, 2009). I know that properties often appraise for more than their tax assessed values, but four times!!?? 

DPS is always in panic mode because we need more land for schools and WE NEED IT NOW (yesterday, actually). But their fear of losing a purchase deal should not trump the need for them to spend taxpayer money wisely, particularly in the current economy.

It wouldn't surprise me if, especially in times like these, certain land-owners' agents target gov't agencies like DPS because they expect they will not do (do not have the resources to do) the homework that private developers must do in order to make money.

Durham citizens had hoped that this land might be bought as a conservation easement. It might have cost Durham significantly less if it had been:

Durham Open Space (DOS) HAS to barter for land,
because they can't afford to pay more than its worth (they can't afford to pay ANYTHING with this years' $0 budget), and I can tell
you that they have gotten land for less than the original asking price. I know of at least one tract for which the owner's agent called DOS with an offer, and DOS took the cautious, 'let's wait and do some homework' route. Later, area residents informed that the land doesn't perk and that it would be very difficult to
sell for residential or commercial development, a tid-bit that stands to reduce the asking price substantially.

It seems that, at least in this case, DPS hasn't even thought about the prospect of getting a better price. They
are in such a panic to JUST GET LAND. 

But that's MY money they're
spending, and I sure wouldn't pay 4 x the tax assessed value of any
property without having a damned good reason....actually, even then I'm sure that my husband would talk some sense into me ;)

I appreciate you all reading the following news articles and communicating any concerns you may have with the BOCC (Board of County Commissioners, 

commissioners at durhamcountync.gov) before the meeting this Thursday night:

http://blogs.newsobserver.com/bullseye/dps-wants-29m-for-scott-king-site
[Note: The $860,000 tax assessed value of the property is an overestimate due
to the presumption of parcels not included (see attached table for
exact figures)]

http://www.newsobserver.com/news/story/1425006.html

See also the Herald Sun article cut and pasted below...

Melissa

Melissa Rooney
mmr121570 at yahoo.com

___________________________

[Note: The Scott King land was appraised by Jarvis Martin, a current Planning
Commissioner, who has done land appraisals for Durham in the past.
However, Mr. Martin lists SRA as his designation (a highly regarded
designation for residential property), not MAI (which designation
includes commercial, industrial, residential and 'other' properties): http://www.americanappraisals.com/sra_explained.htm

It would be good to know the date of the appraisal. While it has been argued that the Patterson
and Perimeter lots (in this area) sold in 2007 for more than their
assessed values – one at about 23% above and the other at 150% above
its assessed value -- we are far from the economic climate and
real-estate market of 2007.]

			School officials come under fire after asking for OK to buy land

			By Matthew E. Milliken : 

			The Herald-Sun

			mmilliken at heraldsun.com

			Mar 6, 2009

DURHAM -- School officials came under heavy criticism Thursday morning
when they asked Durham County commissioners for approval to buy land
for new construction. 

Superintendent Carl Harris and Assistant Superintendent Hugh Osteen
were hoping to get the go-ahead on a $2.8 million purchase of 48 acres
south of Scott King Road, in southern Durham near Herndon Road. Durham Public Schools hopes to build future Elementary School C and/or Middle School A on the site.     

Some commissioners had expressed concerns about this acquisition before
it was brought to the full board. It didn't take long for opposition to
surface. 

Commissioner Ellen Reckhow began by pointing out that the potentially sensitive natural site is bordered on two sides by Army Corps of Engineers
land, on which hunting is allowed. The land also is crossed by a gas
line and high-power electrical lines and has a narrow "peninsula"
jutting from its southwest corner that would be hard to use. 

"I doubt we're going to get full utilization out of this site," Reckhow said.     

Osteen replied that it was common for parcels to have unusual shapes.
Eliminating hunting in the area would provide a safety benefit not only
for the school but for the nearby American Tobacco Trail, he noted.     

"We will be leaving as much buffer as we can," he said in response to safety concerns over the electrical lines.     

He also said that only one school might be built on the site, not two. That would allow much larger buffers.     

"If we're putting only one school there, we're paying an awful pretty penny," Reckhow observed.     

She added: "I think even one school would be challenging given what you have on the spot."     

The commissioner also questioned why the proposed purchase price,
although about $300,000 less than the appraised value, is 3.5 times the
assessment listed on the tax books. She said that the appraiser had
compared the property to sites that have less restrictive zoning. 

Reckhow also questioned the road improvements and amount of bussing required to serve the site.     

Harris tried to reassure Reckhow.     

"No matter where we site a school, we're going to be dealing with the issues you mentioned," the superintendent said.     

School administrators have sought a location to build on for more than
a year, Harris added. Property is hard to find and expensive to buy. 

Osteen said the district had tried but failed to buy a different site when the seller received a more generous offer.     

Commissioner Becky Heron also questioned the purchase price and the
environmental impact construction there might have. And she and
Commissioner Joe Bowser complained about having been misled years ago
when buying an expensive 37.5-acre site for Creekside Elementary that
they are now being told can't accommodate a full-size middle school. 

Heron suggested that if the land is bought, the district could assuage
concerned environmentalists by buying nearby property for conservation
purposes. 

School officials will review all of the comments and bring the matter back to the board in April or May.     

Funding for the purchase is already in hand thanks to proceeds from bond issues. 

____________________

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