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<br />Commerce <br />Department <br /> <br />Memo <br /> <br />To: Board of Commissioners <br />From: Jonathan B. Marshall, Commerce Director <br />cc: John Day, County Manager <br />Date: December 1, 2005 <br />Re: Pitts School Road school site <br /> <br />The Board of Commissioners approved in principle a proposal by Portrait Homes to sell Cabarrus <br />County a school site off Pitts School Road. The proposal included the property plus additional <br />improvements necessary to construct the school for a price of $1.7 million. Portrait Homes estimated <br />the value of the land and improvements to be $2,060,750 and requested that the difference in value be <br />credited towards any school adequacy advancement that may be required as part of development <br />approval. <br /> <br />County staff met with representatives from Portrait Homes, Cabarrus County Schools, the project <br />architect (MBAJ), and the project engineer (Turnbull-Sigmon) to review the estimated costs. In addition, <br />County appraisal staff reviewed the land prices presented by Portrait Homes and compared those to <br />comparable sales in the area. The original estimated costs provided by Portrait Homes are attached as <br />is the expanded cost review provided by Turnbull-Sigmon. <br /> <br />The overall review of prices yields a total project cost of $1 ,970,681 based on a couple of assumptions. <br />The development cost estimated by the engineer is $1,198,744, and the land cost of $512,000 was <br />verified by County appraisers. It is assumed that a 5% development oversight fee ($59,937) is <br />acceptable to the Board, and that $200,000 for off-site road improvements is also acceptable as long <br />as evidence of actual expenditures is provided for those improvements. Based on this amount, a <br />Consent Agreement could be approved for Portrait Homes that includes a $270,681 credit towards <br />school adequacy payments. The total amount of the school adequacy payments would be dependent <br />upon the total number of units constructed within the project, and Portrait Homes would be responsible <br />for payment of any amount above $270,681. A Consent Agreement reflecting these terms is attached. <br /> <br />If you have any questions about this please do not hesitate to contact me. <br /> <br /> <br />G-./~ <br />