Memo-05-08-2018-Item-9c

May 8, 2018

MEMO TO:        Mayor Barber and Board of Commissioners

FROM:             Frank A. Rush, Jr., Town Manager

SUBJECT:       Capital Project Ordinance Amendment – Islander Drive Land Acquisition

The Board of Commissioners is asked to approve the attached capital project ordinance amendment for the Islander Drive Land Acquisition project at the May 8 meeting.  The attached ordinance amendment adjusts line item amounts in the project budget in order to facilitate the close-out of the capital project ordinance, and appropriates the remaining balance for the upcoming Islander Drive streetscape improvements and Western Ocean Regional Access improvements.

The original project budget appropriated a total of $700,000 for acquisition of 1.8 acres at 203 Islander Drive and the subsequent clean-up of the abandoned go-kart track and bumper boat features.  The actual cost of the acquisition and clean-up, along with associated acquisition expenses (surveys, appraisals, legal, etc.) was $690,154, leaving a remaining balance of $9,846.  These funds will be transferred out, and added to the new capital project ordinance that will soon be established for the upcoming Islander Drive streetscape improvements and Western Ocean Regional Access improvements.  The new capital project ordinance will also incorporate approximately $113,000 of profit from the land sale, an additional $50,000 of Town funds associated with the land sale, and $100,000 of State grant funds to provide approximately $263,000 for the planned improvements.   

The new capital project ordinance will also incorporate the reimbursement of Carteret County and the Town’s Future Beach Nourishment Fund for the original land acquisition cost.

I recommend approval of the attached capital project ordinance amendment.  Upon approval of this amendment by the Board, this capital project ordinance will be closed-out.