There’s a busy new real estate broker on Oak Island, one which entered the market with a bang by selling four lots and buying seven others at one sitting.
Oak Island town council jumped into the real estate business during its regular monthly meeting Tuesday night, voting 3-2 to buy seven lots at the northeast corner of East Oak Island Drive and Middleton Avenue. Council also voted 3-2 to sell town-owned land in the block of East Oak Island Drive between 41st and 42nd Streets.
In both cases, councilor Jeff Ensminger offered the motion, which was joined by Mary Snead and Charlie Coffee. Reece Simmons and Dara Royal cast opposing votes.
Ensminger’s motion for the Middleton Avenue lots was actually for a resolution to finance the purchase price of $1.295 million, or $185,000 per lot. The deal had previously been negotiated, but not funded. The town already owns property at the southeast and southwest corners of that intersection and plans use the southeast corner for a sewer pump station.
Coffee questioned whether all seven lots were necessary to preserve green space on what will be part of the second bridge corridor. He suggested buying the lots and then considering selling some of them at a later date.
“That was my intent all along. I believe two lots is probably all we really need,” Ensminger said.
Some citizens made negative comments about the purchase during the public hearing, saying the town shouldn’t buy land without a clear plan for the property.
King’s Lynn resident and planning board member Bruce Hatter said the purchase went “way beyond using taxpayers’ money in a prudent manner.” He also pointed out that he made similar comments when the purchase first came before council this past October. Council voted against financing the purchase at that time.
Simmons recalled that in October he said he would not vote to spend money on new initiatives until the town’s stormwater issues had been addressed. He also said he was skeptical about going into the real estate business.
“Green space is nice but I’m looking for dry space first,” he said.
But board member Mary Snead said she didn’t want to vote against the purchase for fear of going into debt, and she reminded the board that the town passed on an opportunity to buy beach property known as The Point, at the west end of Oak Island. That land is now being developed for single-family homes.
Town manager Jerry Walters recommended council buy the land, and explained that using the southeast Middleton corner for a pump station would probably save the taxpayers $500,000.
Later in the meeting, Ensminger made the motion to sell the property in the 4100 block of East Oak Island Drive. Part of his motion also provided that the proceeds be applied toward building the town’s sewer system.
“That’s a nice piece of green space,” Simmons said immediately following Coffee’s second to the motion. He added that there are many trees on that property.
After little discussion, council passed the measure and then looked to town attorney Roger Edwards for advice on how best to sell it. Edwards explained that under state law the town could use either a public auction or sealed bid process.
Council wanted to know if minimum prices could be set, and Edwards said the board could set the terms of sale. After some debate on the different methods, Ensminger made a motion the town use the sealed bid process.
Walters and Edwards were directed to have the property appraised and set a minimum reserve price for the land.
Once the sealed bids are filed, council will have the opportunity to accept or reject the highest offer.
After the meeting, Ensminger explained his reasons for seeking both land transactions. He noted that the lots on Middleton Avenue will be part of the second bridge to Oak island corridor.
“That is going to be the entrance to our town for the second bridge and I’d like to see it clean and green,” he said.
He added that he’ll continue to look over the town’s real estate holdings and could make additional motions to sell off other property in the future. And as for the land in the 4100 block of East Oak Island Drive, sometimes called The Compound because of an low stone wall framing the property, Ensminger said that land wasn’t bought for the trees.
“We bought that because there was a problem with the houses,” he said. He added that the town has looked at using that property for town buildings, but that hasn’t worked out.
Town council did discuss the property when considering locations for the new police department.
