Mebane’s city council voted unanimously to purchase a house and lot at 200 South Fifth Street, across from city hall, for $325,000.
The council voted 5-0 Monday afternoon, during its monthly meeting that had been rescheduled due to inclement weather, to use fund balance (i.e., “rainy-day” savings) within the city’s general fund to cover the purchase price.
The property is currently used as the dental practice for Dr. David Hoyle. Hoyle, who is planning to retire, has asked for 90 days to vacate the premises after the purchase closes, as outlined in the terms of the purchase agreement with the city. The former house had been used as a dentist’s office for 40 years – for most of that time by Dr. D. Michael Modlin.
The property includes a 912-square foot dwelling originally built on three-tenths of an acre in 1948 and subsequently converted into an office, according to Alamance County tax records, which list the total taxable value at $183,125.
While the city’s staff had been concerned about parking constraints at city hall, Mebane city manager Richard White, III said Monday afternoon that it’s possible the property could be used for offices or a future city building.
“We’ll be evaluating it, and as you know, we’re doing staffing studies, as well,” White told the council. “We’re out of space in city hall and also [the] planning and inspections building.”
The city’s staff began discussing the possibility of purchasing the property from the current owner, Janice Hoyle of Janice Properties, LLC, after learning that “certain utilities were going to be relocated on the property,” specifically, a small utility box, Mebane officials told the council Monday.
Mebane city councilman Jonathan White pointed to the tax value for the property and asked how the proposed $325,000 purchase price had been established. Alamance County tax records list the latest assessed tax value at $183,125, or $141,875 less than the asking price. “The owners had not actually put it up for sale, but were talking about selling it, when we had this impromptu or accidental conversation?” he asked the city’s attorney.
The attorney confirmed that was how the conversation arose, adding that other houses along South Fifth Street, “two and three blocks away, have sold for $2 and $3 million apiece.” The city had paid $60,000 to purchase property west of the city’s Wastewater Resource Recovery Facility (WRRF), which had a tax value of $15,000 or $16,000, the attorney pointed out, telling the council, “Location, location, location, I guess, as they say in real estate.”
“So it’s possible we’re not buying it just for parking,” mayor Ed Hooks told the council. “There’s a possibility of having that house as some offices, or maybe moving that and building something on it. It’s not defined in this purchase just as a parking lot.”
Mayor pro tem Tim Bradley added, “I think a lot of companies and governmental agencies have gotten locked in where they are. I think this gives us an opportunity to make sure that doesn’t occur. It would be a whole lot more difficult to move our administration if we had to grow that much. The way things are going, it seems like we might. It seems to be it’d be a missed opportunity.
“I know, for example, when we bought the property for the [Mebane Arts and Community Center], we were offered 36 acres for $5,000 apiece, and several council members pushed for that,” Bradley continued. “It didn’t pass; if we’d had that acreage, it would’ve really helped us in the future with ball fields and trying to expand our rec program. It seems to me this is a logical purchase, and with its location near the downtown, I don’t think it’s a bad investment if we ever decided we want to move and get rid of the governmental complex property.”
Councilman White countered, “It like it’s a lot of money, but I do agree with the missed opportunity possibility, and I think that’s pretty compelling.”
The motion to purchase the property and authorize a budget amendment to transfer funds from fund balance to the general fund passed unanimously, 5-0.
