Forsyth County begins upset-bid process for Tanglewood property after review finds village offer tied to sewer reserve funds unlawful

Deputy County Manager Cal Haney told the Forsyth County Board of Commissioners that the village of Clemons submitted an offer to buy county-owned land at Tanglewood Business Park that was funded from a sewer capital reserve account, and county and utilities attorneys concluded that the proposed use of those funds would be unlawful.

The board spent more than an hour discussing next steps. Commissioners debated whether to set a formal offer period to solicit other proposals, how long to delay publication so prospective buyers could assemble financing, and whether to signal openness to uses beyond limited light industrial zoning. Supporters of moving forward said the upset-bid process often yields higher offers and provides an efficient path for interested buyers; others said the county should avoid rushing and risk losing the existing offer.

After discussion, Vice Chair Whisenhunt moved, and a second carried, to proceed with option b: publish the negotiated offer for upset bids but delay publication for 14 days and then open a 10-day upset-bid period. County staff and counsel told the board that at the end of the upset-bid process the board would still have the discretion to reject the offer.

Haney said staff had reviewed the village's proposal with the county attorney and the utilities commission attorney and that the proposal involved transferring funds from a sewer reserve account that, under the interlocal agreement and the account's governing language, is limited to capital projects for the village's water and sewer system. "That money can only be used within the village of Clemons," Haney said. The county concluded the proposed funding source was not permissible for purchase of county property.

Board members asked for clarification about past deal attempts and the property's valuation. Staff said the tax value is roughly $3,000,000 (from memory) and that a broker opinion of value prepared during a commercial site study was roughly $4,000,000; staff cautioned that county property valuations are not the same as market appraisals. One commissioner described the parcel as a "white elephant" and urged the county to "cut our losses."

The motion to proceed with option b, including the 14-day delayed publication and subsequent 10-day upset-bid window, carried unanimously.

What happens next: staff will delay publication of the current negotiated offer for two weeks, then begin the 10-day upset-bid period; any resulting offer would return to the board for final action and the board may accept or reject it.

Sources: Deputy County Manager Cal Haney; county staff briefing to the Forsyth County Board of Commissioners.