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Council approves purchase of 202 South 5th Street with seller financing and LGC review
Summary
Council authorized staff to file for Local Government Commission approval and proceed to purchase 202 South 5th Street for $1,046,000 with seller financing ($677,931 at 3% over 10 years); staff said current tenants will remain under assigned leases and the city expects to occupy some offices after closing.
The Mebane City Council voted to pursue purchase of the commercial building at 202 South 5th Street for $1,046,000, using seller financing for $677,931 at 3% over 10 years, subject to due diligence and Local Government Commission (LGC) approval.
City attorney and staff walked the council through the financing structure and lease implications. Staff said there are three tenants in the building; two have multi‑year leases and one is month‑to‑month. If the purchase closes, the city would assume the leases and be able to occupy two or three offices initially while other tenant leases expire or are renegotiated. Staff also said they obtained a local banking comparison showing the 3% seller financing is at or below market for the city’s circumstances.
A reporter asked about the timing and public notice; staff said the LGC hearing is expected in April and closing could occur in late April or early May if approved. Council approved the related resolutions authorizing the LGC filing and authorizing the purchase subject to LGC approval; the motions passed by voice vote.
