THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Friday, September 6, 1996 TAG: 9609060511
SECTION: FINAL PAGE: B1 EDITION: NORTH CAROLINA
SOURCE: BY PAUL SOUTH, STAFF WRITER
DATELINE: MANTEO LENGTH: 96 lines
The governing board of this Roanoke Island community rejected a move to rescind the provisional sale of a 5.2-acre tract of land to a Wilson developer, despite opposition expressed by angry residents.
The land, behind Chesley Mall, will be purchased by Hubquarter Partners unless a higher counter-offer for the land is made by 5 p.m. Monday. The tract may be used for a 100-unit apartment complex.
Town Commissioner Dellerva Collins made a motion to throw out the sale, after citizens spoke for more than 90 minutes on the issue. Despite a second from Commissioner Edward Etheridge, the motion failed, 3-2.
About 40 citizens jammed commission chambers to speak against the sale.
Opponents criticized the way the sale was handled. Under North Carolina law, municipalities can sell real property in one of three ways: through an auction, via sealed bid or through a negotiated offer.
Under the third method, which was used for the sale, the town must advertise a provisional acceptance of the offer, and provide 10 days from the date of advertisement for a counter offer, known as an ``upset bid.''
Jack Steele, a resident of the nearby Croatan Townhomes, said that while the sale may have been legal, it was not right.
``Even though your attorney says you can do this, it's a question of what you should do,'' the 66-year-old former newspaper editor said. ``It's probably not a violation of the state's sunshine law. I really do support a public hearing, because I disagree with the way this was done.''
Others argued that the land was worth far more than the $175,000 offered by Hubquarter. In a letter to the town, former Mayor Mollie Fearing said the buyers were getting ``the greatest land deal since Teapot Dome.''
Fearing said the tract, unlike land on the north end of Roanoke Island, has ready access to water and sewer service. However, she said, 1/2-acre lots in the north end are selling for $35,000.
Still others, including Angel Ellis Khoury, said the use of the property for apartments was inconsistent with the town's Land Use Plan.
``The Land Use Plan recognized the change in old downtown, and provided for this land to serve as a new commercial core,'' Khoury said. ``I don't know of a compelling reason for the town to divest itself of this land.''
However, a majority of commissioners stood behind the decision. Mayor Lee Tugwell said the sale will generate much-needed capital improvement funding for the town, specifically for a new public works building and money for the town's coming centennial celebration.
``I hope we get another offer,'' Tugwell said. ``This is not a done deal. But the fund balance for the town has gone down every year I've been on the board. I don't want to stick this money in the general fund to go for the day-to-day operation of the town. I'd like for the money to go into the capital fund for capital projects, so that we don't have to raise taxes.''
Tugwell said the sale of the property was discussed in an open session of the board.
Commissioner Curtis Creech said the sale will bring some $500,000 to $600,000 for the town, including some $200,000 for improvements to the town's water and sewer system, largely from hookup fees paid by the developer.
Creech said because of low demand for real estate, both commercial and residential, the probability of a higher price for the land was unrealistic.
``Real estate is not `money in the bank,' '' Creech said. ``Lots on the north end of Roanoke Island that listed for $30,000 when they went on the market you can't sell now for $24,000. Commercial real estate that was selling for $10 a square foot in the '80s,you can't get $6 a foot for now.''
He also sought to dismiss rumors that the apartments would be used for low-cost housing.
``These units will rent for $400 to $500 per month,'' Creech said. ``These will be working people who will be a benefit to the town.''
Creech has been criticized for his role in the sale. Creech said he contacted Realtors and other individuals about the property after being asked to do so by the board of commissioners.
``This is going to be a nice apartment project,'' Creech said. ``I think this is going to be a big benefit to the town. But there are people who think I'm a criminal.''
Collins and Etheridge, however, questioned the transaction.
``I think because there's a cloud over this, we need to look at it again,'' Etheridge said. ``If there's a way we can go back and undo what we've done, we'd make a whole lot of people in Manteo happy.''
Collins said panel needed to discuss the matter again.
``We did not sit down as an entire board and discuss the sale of property,'' Collins said. ``If we did, no one sat down and shared it with me.''
But Commissioner Melvin Jackson chided critics of the land sale.
``You're not giving us any credit for trying to do what's right,'' Jackson said. ``They're going to spend $10 million on Ice Plant Island, and that will bring 30 to 35 new employees. We need housing for these people. We're working to do what's best.''
Former Commissioner Edward Greene, however, urged the board to plan with an eye to the future.
``I pray that this board will find it in its heart and soul to have a vision for the future,'' he said. ``I believe that the message I got when this board was elected was open government. I think people have a problem with the fact that this decision was made at a special meeting. I would hope that you would address those concerns.''
Prior to Wednesday's vote on Collins' motion, Manteo Town Attorney Dan Merrell told commissioners that if they rejected the $175,000 bid without receiving a counter offer, they could face legal action. by CNB