Real Property Acquisition Talking Points

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Betsy Kerrison
Property Acquisition
Town of Kiawah Island
Municipal Campus Site
October 28, 2014
October 30, 2014
Introduction
• The Town has been evaluating the acquisition of real
property since January 2014 given Municipal center
congestion
• Investigated on and off island properties
• Purchase of property on Betsy Kerrison identified as
solution
• Key issue is sewer availability
• Resolution required five month due diligence period
ended October 20th
• Confidentiality Agreement cancelled on October 21st
• Public information meetings scheduled October 22nd
Key Points to Remember
• The Betsy Kerrison property has NOT been
purchased
• Final actions to be taken after full public
disclosure
▫ Vote to purchase property November 4th
▫ Property closing November 7th
▫ Property Annexation December 2nd
• Town will take possession of property in January
Key Points to Remember
• The Betsy Kerrison property is
located at the entrance of Kiawah.
• If we own it, the Municipal Center
we build will represent the
Kiawah brand; well designed,
landscaped and maintained.
Town of Kiawah Municipal Center
• The Town has grown in size and scope during
the last several years
• Kiawah’s Municipal Center is owned by the
Town, was built in 1997 and is shared with KICA
• It is significantly inadequate for current and
future needs
• Given 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 KICA
• Center was built as a low budget facility is
outmoded and not fully ADA compliant
• Town Hall is 13,462 sq. ft.; cost $550,000
• Limited parking for both entities, visiting public
and customers
• Shortage of conference rooms
• Lack of an elevator inhibits second floor use for
public and staff
Municipal Operations
• Over the past several years the Town’s scope and depth
of operations has grown significantly:
▫ business licensing
▫ code enforcement
▫ wildlife research & management
▫ Municipal Court
▫ Building 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 Objective
• Town 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 Objective
• Town has actively searched for property in 2014
on Island and off Island
• Town Council discussed locations, price and
negotiating strategy in executive session
• Every executive session pertaining to property
acquisition was duly noted on Council agendas
• Town and owner were bound by a confidentiality
agreement
The Freedom of Information Act
• The 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 30-4-40
• Documents 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 Options
Expand Existing building
Purchase new site
• Marginal Site size, 3.5 acres
• On island property 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
• Insufficient Land for Parking
• Currently leasing property for
overflow parking
• Expanding building
impractical
New Site Location
• Property available on Betsy Kerrison Parkway
adjacent to Roundabout
• Contiguous to Town boundaries
• Site is 21 acres with 18 acres of highland
• Negotiated price is $2 million
Note: Property has been on the market since 2013 and we are aware
of other potential buyers
New Site Purchase Process
• Satisfy all contingencies of purchase through a
due diligence period
• Hold a series of Public Information Meetings
• Execute a Purchase Agreement
• Affirmative vote of Council to acquire property
• Purchase property and record deed
• Annex Property into the Town
New Site Evaluation Steps
 Obtain acceptable Clean Phase One
Environmental Study
 Prepare topographical survey of site and
roadway
 Conduct 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:
 site plan and footprint of proposed/existing structures
 environmental study
 proposed 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 Steps
• Public Information Meetings
▫ October 28th at 7pm
▫ October 30th at 2pm
• Council Vote on Property Purchase
▫ November 4th at 2pm
• Transaction Closing
▫ November 7th
Next Steps
• With property ownership, the Town will
proceed with evaluation of a new
Municipal Center
• The public will be kept apprised and
provide input
• KICA has expressed interest in continuing
utilization of the existing Municipal site
Key Points to Remember
• The Betsy Kerrison property has NOT
been purchased
• Final actions to be taken after full public
disclosure
▫ Vote to purchase property November 4th
▫ Property closing November 7th
▫ Property Annexation December 2nd
• Town will take possession of property in
January
Key Points to Remember
• The Betsy Kerrison property is
located at the entrance of Kiawah.
• If we own it, the Municipal Center
we build will represent the
Kiawah brand; well designed,
landscaped and maintained.
Betsy Kerrison
Property Acquisition
Questions,
Comments and
Answers
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