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Commissioners approve land purchase for crisis diversion facility and hire Gilbane as construction manager at risk
Summary
The board approved acquisition of a 5-acre parcel near UNC Hospital for a crisis diversion facility and authorized a construction-manager-at-risk contract with Gilbane for preconstruction services; the construction vote included a budget amendment and passed 5-1.
Orange County commissioners approved a purchase-and-sale agreement for a five-acre parcel adjacent to UNC Hospital and authorized hiring Gilbane Building Company for construction-manager-at-risk (CMAR) preconstruction services to advance a planned crisis diversion facility.
Land purchase: Alan Dorman, director of asset management services, told the board staff sought a property near UNC Hospital that was already zoned for hospital use and suitable for a one-story facility. The county—s negotiated purchase price is $1,350,000, with a 60-day inspection period and a $25,000 earnest-money deposit. The contract requires closing by June 30, 2025. As part of the negotiated terms, the county may need to provide a payment-in-lieu to the Town of Hillsborough for future roadwork; staff estimated that payment at about $35,000.
Dorman explained that the county would acquire a portion of the parcel and work with the current owner (identified in the presentation as Kapkoff) on shared stormwater easements and a declaration governing maintenance of shared infrastructure; those easements were part of the purchase negotiation and are expected to be finalized while the county completes due diligence. Commissioners discussed parking plans and the potential that the adjacent parcel may be developed later by the private owner.
Construction procurement and CMAR selection: The board also considered a request to engage Gilbane Building Company as construction manager at risk for the project. County staff summarized the procurement: an RFQ attracted eight firms; three finalists were interviewed; a selection panel recommended Gilbane on the basis of healthcare and institutional experience, preconstruction skills and inclusion commitments. Staff said Gilbane—s preconstruction fee is approximately $179,000 and described the CMAR approach as providing earlier cost estimates, value-engineering advice, construction sequencing expertise and the ability to recommend a guaranteed maximum price (GMP) before construction begins.
Budget amendment and vote: County staff presented a budget amendment (labeled 8A in the packet) that reallocated funds to cover land acquisition, permitting, closing costs and the preconstruction work. During discussion commissioners asked detailed questions about timing, contingency for unforeseen conditions (for example, rock or long-lead material lead times), and exposure to national tariff volatility. Gilbane representatives described the firm—s experience managing supply-chain and price volatility through early procurement and staged estimating milestones.
On the purchase-and-sale contract for the five-acre site, the board approved moving forward and authorized the county manager to execute closing documents following final County Attorney review (voice vote recorded as "approved" in the minutes). On the CMAR contract and associated budget amendment, the board approved authorizing the county manager to execute the contract and the budget amendment; the recorded vote on the CMAR motion was 5-1 (Commissioner Portiaskan recorded as voting no). The meeting minutes show the motion for the CMAR and associated budget amendment passed with that 5-1 tally.
Why this matters: The county has sought a nearby, hospital-zoned parcel for a crisis diversion facility to provide an alternative to emergency-room or law-enforcement responses for behavioral-health crises. Early CMAR preconstruction services are intended to refine budget estimates, reduce downstream change orders and provide a recommended GMP before the board commits to full construction funding.
Next steps and conditions: Staff said due diligence and easement agreements will be completed during the 60-day inspection period; the architect (CPL) will complete site plans for Hillsborough review in early May. Gilbane—s preconstruction work will continue with design finalization; staff told the board that the board will receive an itemized GMP recommendation and a full construction budget for separate board action prior to starting building work.
Speakers and technical details used in this article are taken from the meeting transcript and staff presentations.
