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May 17, 2004 Page 438 the double-wide and $20,000.00 on one acre of property, stating she had purchased the mobile home for $34,000.00 and the land for $14,000.00. She also disputed the $2,000.00 value of a fireplace that she stated was an insert. Further, Ms. Barnhardt stated that Gary Nelson of Nelson Properties, Inc., has purchased a nun~er of the double-wide homes in the Farm Hill community for rental property. She complained that the renters were destroying the neighborhood and devaluing her property. Chairman Freeman asked Brent Weisner, Tax Administrator, to address the replacement cost issue. He said the replacement value is a component of the valuation of property and the market value of the property is determined by using the replacement cost less depreciation. There was no one else to address the Board, and Chairman Freeman closed that portion of the meeting at 6:54 p.m. (E) OLD BUSINESS (E-l) Cabarrus Bank & Trust Buildin~ Revised Proposals Jonathan Marshall, Commerce Director, reported the three bidders for the Cabarrus Bank and Trust Building (First Union Building) had revised their proposals based on comments from the Board at a meeting on March 8, 2004. Also, Ware Bonsall Architects has submitted a proposal ($4,800.00) to study the potential reuse of the building for offices currently located in the Courthouse. Mr. Marshall identified the following three bids that had varying terms and conditions: Salloum Ventures, LLC $1,155,000.00 (Alternate 1 Straight Purchase) and $1,300,000.00 (Alternate 2 - County Lease Back Option); Norcom Properties $1,200,000.00; and Danny G. Bost, LLC $1,130,000.00. Further, he discussed the possibility of selling the property through Preservation North Carolina to establish protective covenants on the building and assist the purchasers with tax credits or through an upset bid process. In response to questions by the Board, County Attorney Porter advised that the bids or letters of intent were offers and were equally binding but were not considered to be contracts. Mr. Day reported a prior general architectural study of the building had determined that the space was not well suited for use by Courthouse offices. He stated he supported that assessment and recommended the sale of the building with the proceeds earmarked for school capital in the FY 2005 County budget. Mr. Day also discussed the possibility of a negotiated sale through Preservation North Carolina or through an upset bid process. Due to the interest in the property, he recommended the upset bid process with a stipulation that any exterior renovations would 'be done to the standards of the Secretary of Interior's guidelines for historic structures. Commissioner Privette made a motion authorizing the County Manager to set up the upset bid process to sell the Cabarrus Bank and Trust Building to the highest bidder (Norcom Properties), including the removal of Item 15 (one and one-half percent fee to Preservation North Carolina) from the Letter of Intent, the addition of a general requirement that exterior renovations would be performed to the standards of the Secretary of Interior's guidelines for historic structures and for the County Manager and County Attorney to negotiate the remaining issues. Commissioner Carruth seconded the motion. Mr. Danny Bost objected to the use of the upset bid process. He stated in his opinion the bid process should be open to the three bidders in order to be fair to all. Ms. Porter reviewed the terms of the Letter of Intent from Norcom Properties, including the following: $10,000.00 earnest money that is refundable; 90-day inspection period; 45-days to submit rezoning requests; closing to occur 60 days after inspection; and assignment rights. There was discussion regarding the proposed upset bid process and the terms outlined in the Letter of Intent from Norcom Properties. It was noted during discussion that the North Carolina General Statutes require a five percent bid deposit in the upset bid process and this provision would need to be included in the Letter of Intent. Commissioner Carruth suggested the following conditions for the sale of the building: minimum bid of $1.2 million; 60 days to close; 90 days due diligence period; building exterior to meet the standards of the Secretary of