American Legion Post No. 6 officials agreed to sell its large Chapel Hill property.
Woodfield Acquisitions, an affiliate of Raleigh-based Woodfield Investments, has agreed to a contract with the legion to purchase the entire property on Legion Road.
The final contract calls for a $10 million price tag for the estimated 36.2 acres of Legion-owned property in Chapel Hill. Post officials say the current building needs an estimated $500,000 in repairs.
The acquisition is moving forward after the Town of Chapel Hill opted to forego its right of first refusal to purchase the property. The legion agreed to offer the town the right to purchase the acreage in 2005 in exchange that the town no longer consider the plot for a school site.
The decision to waive that right came at an early-November meeting that has now become the subject of public outcry.
A copy of the contract laying out the agreement for sale was put before the Town Council through a letter to Town Manager Roger Stancil on September 30. That contract offered the town its right of first refusal to purchase the property for $9 million. The letter also allowed the town 60 days from the date of the letter to agree to the purchase price or forego its right to purchase the property.
The Chapel Hill Town Council then met on November 9 before the 60-day period expired on November 29. At that early-November meeting, the Town Council voted unanimously to authorize Stancil to “negotiate and execute an agreement to forego exercise of right of first refusal to purchase the property in exchange for commitments regarding certain public amenities,” according to closed session minutes released last Thursday.
In the closed session minutes, it is noted that Stancil said that the town “did not have $10 million to buy the property” and advised the town could make better use of other town-owned property.
The town officially signed an agreement with Woodfield Acquisitions on November 20 to allow Woodfield to proceed with its pursuit of the property. A memorandum of understanding between the town and Woodfield details that the developer will be responsible for construction of a two-lane road providing access to Ephesus Church Road and construction of a trail that will be open to the public.
These projects are contingent on the developer being able to obtain entitlements for the development of approximately 600 apartment units along with retail and office space, according to the memo.
Site plan for American Legion property. Photo via Memorandum of Understanding.
The general sale of the property is contingent on the developer being permitted to build no less than 400 units and related amenities, according to the contract between Woodfield and the legion.
The contract laying out the sale of the property states that the closing date cannot be extended beyond two years, meaning that if Woodfield is not able to receive the permit for the development in that time period, the sale could fall through.
The decision by the town to not purchase the property has been the subject of discussion, even with a 14-year-old Chapel Hillian sending an e-mail to the Town Council asking them to purchase the property.
The timing of the decision has also drawn criticism. On November 3, for the first time in more than 50 years, an incumbent Chapel Hill Mayor lost their re-election bid along with two members of the Town Council. Less than a week later, on November 9, the town voted to forego its right of first refusal. But the contract that was put before the town in late-September allowed a 60-day window for the town to purchase the property. That window expired on November 29, before the new Mayor and Town council were sworn in on December 2. And that edition of the Town Council would still have to find $9 million to purchase the property.
Any developments proposed by Woodfield will still have to go through the standard approval process before the new mayor and council. Woodfield owns several properties throughout the Triangle and is under construction right now of Gateway development in Durham.
The legion has been on its current property since the early-1960s, according to officials.
Woodfield will hold a community meeting at the American Legion, on Legion Road, for Wednesday, January 13, according to the Chapel Hill News.
