Prior to recommending that the HLC make an offer to buy any property, the Projects Committee must complete the Due Diligence checklist. Once the required checklist information is presented to the Projects Committee, discussion can then be held on a possible offer to purchase consistent with the Guidelines on the purchase of property.
Projects Committee discusses property to determine interest in pursuing property consistent with the Guidelines and preliminarily determine future use(s) to justify Due Diligence procedure. This will be in the form of a motion topursue purchase. If motion passes, present to HLC as seconded motion to pursue purchase. If the HLC passes the seconded motion, proceed to Step Two.
Step Two: Conduct Due Diligence:
The following information should be obtained if possible:
1) Identification of the property with address, tax map number, and ownership history;
2) Opinion on eligibility for National Register listing with comments from SHPO if feasible;
3) Survey and Research Report;
4) Asking price, including any negotiable terms or items and Multiple Listing History, if applicable;
5) Appraisal, including all comps for area (active and closed within past year);
6) GIS Review of surrounding property uses, zoning, and adjoining property owners;
7) Environmental review (including any projected costs for removal, abatement, etc.):
- Lead paint
- Fuel tanks
- Sewer/septic systems
- Municipal/well water systems
8) Current zoning and any zoning issues as to projects use;
9 Traffic review with NCDOT and CDOT, including Outer Belt and Thoroughfare reviews;
10) Inspections for water, pest, fire or other damage;
11) Structural inspection(including any projected costs to repair);
12) Land use plan(consult with Planning Commission regarding planned use for area);
13) Minimum of two bids or estimates for renovation/stabilization costs consistent with projected use;
14) Market analysis, including a highest and best use study with input from Committee’s discussion in Step One; and
15)Where property donated or sold with accompanying agreements regarding zoning opposition, easements, etc., determine the exact nature of those agreements and any cost associated with meeting those agreements.
Once the Due Diligence information is obtained and presented to the Projects Committee, the Committee then decides whether to recommend that the HLC purchase the property. Along with recommendation, the Committee must present the HLC with the projected use of the property and any estimated costs associated with acquisition, stabilization, zoning, restoration. The Committee may also wish to present a suggested price range.