02/13/13 — Fast facts: surplus property sales

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Fast facts: surplus property sales

By From staff reports
Published in News on February 13, 2013 1:46 PM

The Goldsboro City Council agreed during the first day of its retreat to sell of two pieces of surplus property it purchased using Occupancy Tax money: one that was proposed to be the site of a civic center and another proposed to be the site for an Air Force Museum.

If the City Council were to sell the properties, the return would go directly back into the Occupancy Tax Fund

Here's how, according to appraisal values, the sales could shake out:


Location: Southeast corner of the intersection of Wayne Memorial Drive and New Hope Road

Purchased: November 2001 at price of $2.2 million

Most recent appraisal value: $3.165 million.

Summary: If the council sold the entire 19.5 acres of property, the return on investment would be just less than $1 million, but if the property were subdivided, it could be worth even more.

The six-acre corner lot is appraised to be worth $2.156 million while the remaining property was appraised at $1.854 million.

If the city were to subdivide and sell both properties, its return on investment would be a little more than $1.8 million.

Verdict: The council decided to place signs on the property and will entertain offers on it in whole or in part.



Location: Southwest corner of the intersection of Spence Avenue and East Ash Street (Former Arts Council of Wayne County Building)

Purchased: July 2011 at price of $500,000

Most recent appraisal value: $455,000

Summary: If the council sells it for its appraisal value, the city would lose $55,000. The property without the 14,000-square-foot building is worth $518,000, but demolition of the building is estimated to cost $310,000, again leading to a direct loss, this time of about $292,000.

The city also has options to purchase two adjacent properties to make the property more lucrative for a developer. Those properties would cost $223,000 combined and would balloon the value of the property as a whole to $592,000, a direct loss of $131,000.

If both buildings were demolished, the full property is estimated to be worth $604,000, although the city has no estimate as to how much the second building demolition would cost, meaning the direct loss with that option would be $206,000, plus the cost of the additional demolition.

Verdict: The council decided to demolish the building, advertise the property as for sale and seek to extend the additional property option for six months to entice a developer.