The accompanying Ordinance 2020-02, if approved by the Board of Commissioners, will authorize the purchase by the City of 52 (+/-) acres which is a portion of the property along Old Smyrna Road commonly referred to as Windy Hill Farm (see attached area map). The ordinance will authorize the City to enter into a Contract for Sale with Sensing Enterprises and The Conservation Fund, and it will also authorize the City's acceptance of the assignment of The Conservation Fund's obligations as Purchaser pursuant to the Contract.
As background, the City Manager was originally approached in early 2019 by representatives of the Sensing family about their future plans for the entire approximately 90 acre Windy Hill Farm property and whether the City had any interest in purchasing all or a portion of the property for use as a City park. The land is located south of Old Smyrna Road at its intersection with Jones Parkway. The overall property is currently used for agricultural purposes and includes the Windy Hill home which was built in 1825 and is listed on the national historic register.
The Sensing family has a genuine desire to see the land preserved permanently while, at the same time, receiving a fair economic return without requiring the property to be developed into another subdivision. At the outset of discussion, City staff was clear that the City did not have an interest in acquiring the historic home or the primary farm-related structures and outbuildings. Instead, our interest was primarily in the open pasture areas that would be suitable for passive park development. As a result, the Sensing family is planning to place the remaining property not under consideration for purchase by the City in a conservation easement and market that property for sale to a third party for continued use as a residential home and associated farming activities. For the past several months, the staff and family have been working with representatives of The Conservation Fund (TCF), a national nonprofit organization committed to land preservation and facilitating acceptable agreements between interested parties.
At this time, the staff believes that a fair and acceptable agreement for all parties is in place to allow this land purchase to move forward. We believe the proposed land acquisition is in keeping with the policy goals in the Brentwood 2030 Plan for development of a park in a currently underserved area of the City and, if approved, would increase the amount of City owned park land from 966 acres to 1,018 acres.
The advantages of the proposed land purchase are summarized below followed by the major components of the land purchase agreement. In addition, a map is attached that identifies the general location of the land, which will be subject to minor adjustment with the completion of the land survey.
Advantages of Land Purchase
- Acquisition of the land allows the City to increase the amount of quality, permanent open space in the community in an underserved area of town that is directly accessible to multiple established residential neighborhoods consisting of over 1,900 homes.
- With the eventual build-out of the City and ever-increasing land values, purchase of the land now while it is still available for preservation makes long-term financial sense.
- While the City is only acquiring a portion of the full property, the family's intent to place a conservation easement on the remainder of the property ensures permanent preservation of the entire property and the historically significant home.
- The Old Smyrna Road corridor is a designated historic corridor that the City wishes to see remain rural in character. This property is the only remaining undeveloped property along this historic corridor that is currently zoned R-2, which would allow for development at a one unit per acre density level. All other properties along the historic corridor are zoned AR, which requires a minimum one unit per three acres density.
Major Components of the Land Purchase
- Of the approximately 90 acres known as Windy Hill Farm, the City will purchase 52 (+/-) acres consisting primarily of the open pasture land to the west and south of the historic home and associated farm buildings and pond. The location of the proposed acreage is shown on the attached map.
- Based upon the results of an independent appraisal, the purchase price will be $100,000/acre, with the final acreage amount to be determined by a survey that establishes an agreed upon boundary between the area to be purchased by the City and the remainder of the property.
- The Sensing family will maintain ownership of the remaining portion of Windy Hill Farm with the intent of placing a conservation easement on the property and selling it to a third party in a private transaction.
- An initial payment of one-half of the final purchase price (estimated at $2.6 million assuming a total purchase price of $5.2 million for 52 acres) will be made by the City before June 30, 2020 in FY 2020 and the final payment for the remainder of the purchase price will be made in January 2021.
- Due to the strong financial position of the City, the initial payment in FY 2020 will be funded from surplus reserves in the fund balance of the General Fund. This will reduce the fund balance from $40.7 million to $38.1 million which, at 95% of the $40.3 million FY 2020 General Fund operating budget, is well above the minimum 40% in the City's budget management policies. The final payment will come from an additional $1 million in General Fund reserves in FY 2021, $1.45 million in County Adequate Facilities Tax funds, and $150,000 in funds raised by the non-profit Brentwood Green Space organization.
- The City will be responsible for any applicable roll back property taxes (estimated at $50,000), and will seek reimbursement from TDEC for the rollback taxes as provided for in state law. Note that this same arrangement was applied in the Smith Park property purchase.
- The Conservation Fund (TCF) will facilitate the land transaction by entering into an agreement with the Sensing family to purchase the property. TCF will, in turn, assign its rights and obligations to the City, and title to the 52 (+/-) acres to the City on or before closing date.
- Prior to closing, the City will undertake at its expense the survey of property, a Phase I environmental assessment, and title search. Any significant title or environmental discrepancies found that cannot be rectified immediately by the Sensings will allow the City the right to cancel the land agreement. The City will also purchase title insurance to protect the City in case there is a third party claim or dispute of ownership to a portion of the property after purchase.
- TCF has assisted the City in the preparation of the legal documents (acceptable to the City Attorney) for the land sale/purchase agreement.
- To recognize the history of the property and the Sensing family's stewardship of it for 45 years, the City has committed in the agreement to name the new park "Windy Hill Park."
- The City agrees to a restriction that limits the new property to public use and prevents the City from selling the property to a private party. The restriction does not preclude a future sale or transfer of the property to another public entity.
- The agreement also provides that the use of the property shall be for a passive public park to include such uses as bike and pedestrian trails, playground, open natural areas, and associated uses such as bathroom facilities. Development of athletic fields for organized sports activities would be prohibited and lighting would be limited to parking areas and consistent with dark sky requirements.
- The City agrees to limit motorized use of trails to maintenance and emergency vehicles.
- The City agrees to construct a fence along the boundary between the park and the remaining Windy Hill Farm property where a fence does not exist today. Also, the City agrees to plant a landscape screen/buffer along the boundary line in areas where existing landscaping does not exist today.
- The City agrees not to construct any new structures within 50 feet of the new common property line west of the creek running through the property or within 100 feet of the new common property line east of the creek. When the Master Plan is developed, the City will also try to keep trails at least these same distances away from the common property line if at all possible.
- The City agrees to allow for two pedestrian access points from the remaining portion of the property to the park property that can be secured by the owner of the remaining property.
- The City agrees that at the time the property is developed and opened for public use, there shall be installed a marker to acknowledge the Sensing family history on the property and its part in preserving the property for permanent public use.
The City is fortunate that its conservative financial management over the years will allow us to undertake this important project with no property tax increase while maintaining a strong financial position for the General Fund. Just as in the past when the City took the bold steps to purchase 160 acres for what is now Crockett Park and 400 acres for what is now Smith Park, now is the right time to buy land of this quality and quantity while it is still available. It will be too late 10-20 years from now to find land of this quality, size, and location for permanent preservation as public open space.
If the purchase is approved, the City will assume some initial costs associated with basic property upkeep estimated at $15,000 annually, plus some one-time costs in FY 2021 for fencing and boundary landscaping. It is expected that full development of the property as a park will not occur for several years given other capital improvement priorities of the City in the next few years.
If Ordinance 2020-02 is approved on First Reading, the proposed park will be presented to the Park Board and Planning Commission on March 2, 2020 for formal review and recommendations to the City Commission. Second and final reading of the Ordinance is scheduled for the March 9, 2020 Board meeting. Closing on the land transaction is scheduled on or before June 24, 2020.
Please contact the City Manager if you have any questions. |
The purchase price is estimated at $5.2 million based upon a price of $100,000 per acre and assuming the area to be purchased equals 52 acres. The actual area may be slightly more or less than 52 acres based on a final survey of the agreed upon boundary line, so the final purchase price will be adjusted accordingly. The source of funds is proposed to be a combination of General Fund reserves, County Adequate Facilities Tax revenues, and private funding raised by Brentwood Green Space. The purchase amount will be split into two equal payments - one in FY 2020 at the time of closing and one in FY 2021 to be paid in January 2021.
In addition to the purchase price, the City will incur additional miscellaneous costs associated with survey work, environmental assessments, title insurance, and other related closing costs. These costs are estimated to be less than $100,000 collectively, and will be accounted for in the FY 2020 Capital Projects Fund budget through available unallocated funds. |