Item:
Title
DCVB Activities with Proceeds from County Payment for 101 E. Morgan St.
Body
Date Of BOCC Meeting: March 8, 2018
Request for Board Action:
Agenda Text
The Board is requested to receive this update from the Durham Convention and Visitors Bureau (DCVB) and ask any questions they wish.
Durham County purchased the building at 101 E. Morgan St. in August 1994 for $536,500 using certificates of participation that were paid down over a twenty year time period. The County purchased it for DCVB use because it was unclear if DCVB's legal status enabled it to own real property. DCVB entered into a long-term lease arrangement with the County, and lease payments from the DCVB were essentially equivalent to what twenty year's worth of mortgage payments (principal and interest) would have been on the building. DCVB also paid for all of the maintenance required over the 22 years they occupied the building (before their 2016 move to the W. Main St. offices).
On Nov.14, 2011, the BOCC agreed to convey ownership of the building to DCVB since they in essence had already paid us back for it. There was general agreement that because DCVB never received the benefit of building ownership (i.e. the money they would have received upon selling it when they moved), the County would compensate them in some other way. Due to ongoing legal questions, however, that conveyance was never finalized. Instead, at their Sept. 6, 2016 meeting, the BOCC agreed to pay the DCVB an amount equivalent to the current appraised value of the building, which at that time was $1,021,641, through three payments over three years. The DCVB, in return, was to come back and provide a report of what they intended to do with the funds, which is the purpose of this agenda item.
Alignment with Strategic Plan: An adequately funded and properly functioning DCVB is a powerful tool for economic and workforce development and community prosperity.
Resource Persons: Drew Cummings, Chief of Staff...
Click here for full text