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Redevelopment Commission tables decision on 821 West Street after deed-restriction dispute
Summary
After debate over whether a purchaser had been made aware of deed restrictions, the New Bern Redevelopment Commission voted to table any buyback of 821 West Street to its May regular meeting to give the buyer time to clarify intent and paperwork.
The New Bern Redevelopment Commission on March 11 tabled consideration of a repurchase of 821 West Street after commissioners and staff identified gaps between the executed paperwork and deed restrictions and said they wanted further clarification from the buyer.
Commissioners heard that an earlier purchaser (referred to in the record as Mr. Ramos/Arenas) sold the parcel and later indicated he wished to sell it back to the commission because he had been unaware of certain deed covenants attached to the property. Staff and the city attorney said the deed includes a reversion clause if construction does not commence within 24 months. A staff memo from Zeb recorded the buyer’s stated willingness to adhere to covenants that were described as including single-family use, commencement of construction within 12 months, restrictions on junk vehicles and outbuildings.
At the meeting, realtor Steve Cho, appearing on behalf of the owner, said the owner “wasn't really aware” of differing time frames and covenants that appeared in the paperwork and that the owner would prefer selling back to the commission rather than transferring the lot to a church that would be bound by residential-use stipulations.
Commissioners discussed options: repurchasing the parcel, allowing the owner more time or leniency, or taking no action and permitting the deed’s reversion if the owner fails to commence construction. The city attorney explained the commission’s existing legal tools, including that the deed’s reversion could allow the commission to reacquire the lot in two years if no construction begins.
Given remaining questions about what the purchaser was told and which documents the purchaser had actually signed, a motion to table the item to the commission’s first May regular meeting was made, seconded and passed by voice vote. The commission directed staff to continue refining purchase protocols and public-facing forms so bidders understand deed covenants and to invite the buyer to appear or otherwise clarify his intent before the May meeting.
Next steps: the commission will place 821 West Street back on the sellable-lots inventory if the owner pursues sale options; staff will include the parcel in its ongoing inventory analysis and present updated purchase forms and visual lot inventories to clarify restrictions for prospective buyers.
