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File #: 15-19390    Version: 1 Name:
Type: Business Item Status: Agenda Ready
File created: 12/15/2022 In control: City Council Business Meeting
On agenda: 1/23/2023 Final action:
Title: Central Avenue Property Transaction
Attachments: 1. 5516 Central Avenue_Map, 2. Resolution to Sale


Central Avenue Property Transaction




A.                     Adopt a resolution approving the sale of city-owned property located at 5516 Central Avenue (Parcel Identification Number 103-021-02) to Starmount Management, LLC for $2.76 million, and


B.                     Authorize the City Manager, or his designee, to negotiate and execute all documents necessary to close the transaction as authorized.



Staff Resource(s):

Tracy Dodson, City Manager’s Office

Todd DeLong, Economic Development

Andrew Kelly, City Attorney’s Office



§                     In 2018, the City of Charlotte acquired approximately 3.89 acres at 5516 Central Avenue for $2.2 million that included a 36,348 square foot building.

§                     The city planned to consolidate the Innovation & Technology staff on the site, but a significant investment would be required to make the building suitable for this purpose.

§                     Starmount Management, LLC, a Charlotte-based management services company (“Starmount”), contacted the city regarding their desire to acquire the property to develop a Pediatric and Adolescent Behavioral Health Facility (the “Facility”) and Training Program. Starmount expects to create 124 jobs (95 full-time) as a result of operating the Facility and Program. 

§                     The offer from Starmount includes the following terms:

-                     Purchase price of $2.76 million ($25,000 Earnest Money Deposit);

-                     Due diligence period of 90 days (with possibility of two 30 day extensions);

-                     Closing to occur within 30 days after the expiration of the due diligence period; and

-                     The conveyance is subject to the city keeping a right to re-acquire the Property for the purchase price plus three percent per year if Starmount does not begin the process to redevelop the property within three years from the closing date.

§                     Starmount has also agreed to commit to a Training Program, the terms which require Starmount to:

-                     Initiate a training program for paid interns within 5 years from the closing date;

-                     Hire a minimum of 10 individuals each year for at least five years; and

-                     Pay $170,000 to the city if any of the Training Program terms are not fulfilled. 

§                     The Property was appraised on July 20, 2022; fair market value was estimated to be $2.93 million.

§                     This acquisition will allow Starmount to support their mission through:

-                     Job creation;

-                     Employee education and training;

-                     Employee mentorship program;

-                     Community support and giveback; and

-                     Providing a service that is in short supply.

§                     The Planning Commission reviewed the Property for sale in September 2022.


Fiscal Note

Funding:  Revenue from the sale will be deposited to the General Capital Investment Plan




Property Map