Betsy Kerrison Property Acquisition - PowerPoint Presentation

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Betsy Kerrison

Property Acquisition

Town of Kiawah Island

Municipal Campus Site

October 28, 2014

October 30, 2014

IntroductionThe Town has been evaluating the acquisition of real property since January 2014 given Municipal center congestionInvestigated on and off island propertiesPurchase of property on Betsy Kerrison identified as solution Key issue is sewer availabilityResolution required five month due diligence period ended October 20

thConfidentiality Agreement cancelled on October 21st Public information meetings scheduled October 22

nd

Town of Kiawah Municipal Center The Town has grown in size and scope during the last several yearsKiawah’s Municipal Center is owned by the Town, was built in 1997 and is shared with KICAIt is significantly inadequate for current and future needsGiven limited space an expanded or new site is needed

Town of Kiawah Municipal Center Town Hall has been expanded twice. Houses Town operations, Kiawah Island Community Association and Charleston Convention and Visitors Bureau.

Addition of building services staff last year leaves no additional space for operations, service delivery, customers or meeting accommodations

Town of Kiawah Municipal Center Half of the building is leased to KICACenter was built as a low budget facility is outmoded and not ADA compliantTown Hall is 13,462 sq. ft.; cost $550,000Limited parking for both entities, visiting public and customers

Shortage of conference roomsLack of an elevator inhibits second floor use for public and staff

Municipal OperationsOver the past several years the Town’s scope and depth of operations has grown significantly:business licensing

code enforcementwildlife research & managementMunicipal CourtBuilding Services

(added in 2013

)

Freshfields

Annexation

Potential

acquisition of KIU

must also be considered

These

new and expanded services have served to build the Town revenues.

Current

Municipal reserves total $17 million

Town Council 2014 Strategic ObjectiveTown Property Acquisition“Purchase property that will meet future Town needs which may include additional parking, existing building expansion, Town Hall annex or a new Municipal Center.”

Achieving Strategic ObjectiveTown has actively searched for property in 2014 on Island and off IslandTown Council discussed locations, price and negotiating strategy in executive sessionEvery executive session pertaining to property acquisition was duly noted on Council agendasTown and owner were bound by a confidentiality agreement

The Freedom of Information ActThe Freedom of Information Act, 30-4-10, provides for public business to be performed in an open and public manner.

The Act, makes it possible for citizens, or their representatives, to learn and report fully the activities of their public officials.The Act also recognizes that certain matters, to be properly handled, resolved or negotiated are exempt from disclosure and may be discussed in executive sessions.

Council utilized these exemptions to negotiate and resolve matters related to the pending contract to acquire real property.

FOIA Exemptions 30-4-40Documents of and documents incidental to proposed contractual arrangements and incidental to proposed sales or purchases of

property:

these

documents are

exempt

from

disclosure until a

contract is entered into

or the property is sold or

purchased

;

contract

for the sale or purchase of real estate

remains

exempt from disclosure until the deed is

executed

.

Expansion OptionsExpand Existing buildingPurchase new site

Marginal Site size, 3.5 acres Insufficient Land for Parking Currently leasing property for overflow parkingExpanding building impractical

On island

p

roperty available for purchase is very costly

Property adjacent to Kiawah is available for a fraction of cost but has no public sewer service

Cannot locate Town Hall behind gate to maintain privacy provided by gates

New Site LocationProperty available on Betsy Kerrison Parkway adjacent to Roundabout Contiguous to Town boundariesSite is 21 acres with 18 acres of highlandNegotiated price is $2 millionNote: Property has been on the market since 2013 and we are aware of other potential buyers

New Site Purchase ProcessSatisfy all contingencies of purchase through a due diligence period Hold a series of Public Information MeetingsExecute a Purchase Agreement

Affirmative vote of Council to acquire propertyPurchase property and record deedAnnex Property into the Town

New Site Evaluation Steps Obtain acceptable Clean Phase One Environmental Study

Prepare topographical survey of site and roadwayConduct traffic study

Identify all

utility easements

Remove all encumbrances

on the

property

Design and locate an

acceptable sewer

system

Prepare DHEC application for septic system approval which requires satisfactory soil percolation test

Due diligence period took about 150 days, June –

October.

DHEC Requirements DHEC application required the following:s

ite plan and footprint of proposed/existing structuresenvironmental studyproposed septic system loads, size and location

proposed or existing wells; (including wells on adjoining property

)

proposed

building

location to

road and property

lines

copy

of deed describing boundaries or

plat

The property

was

staked and marked with a DHEC placard as a condition of their review

DHEC Required Site Plan

Next StepsPublic Information MeetingsOctober 28th at 7pm

October 30th at 2pm

Council Vote on Property Purchase

November

4

th

at 2pm

Transaction Closing

November 7

th

Next StepsWith property ownership, the Town will proceed with evaluation of a new Municipal CenterThe public will be kept apprised and provide inputKICA has expressed interest in continuing utilization of the existing Municipal site

Betsy Kerrison Property Acquisition

Questions and Answers