New Hanover's supervisors hope to finance a recent real estate purchase with a federal loan. During Thursday's public meeting, the board will consider an ordinance to borrow $460,000 from the U.S. Department of Housing & Urban Development to cover the purchase of a one-acre property next to the township's headquarters, according to information posted on its Facebook page.

            The land could provide space for a potential future expansion of the municipal building, or public works operations – both located at 2943 North Charlotte St. – according to the social media post. The township completed its purchase of the property at 2951 North Charlotte St. on Jan. 8, according to a HUD settlement statement from Manager Jamie Gwynn.

            The township's purchase from Allen Bardar and Eleanor Celmer, using its money from its general fund, is intended as a temporary funding step, according to the Dec. 10 memo from the manager to the supervisors. It states that the cost would be converted into long-term financing.   

            The municipality plans to [[ + ]] incorporate the project's debt into its existing debt structure – funded through the debt service fund – beginning with the 2026 payment year. The financing will be structured as a taxable loan to preserve the township's flexibility to allow for a potential sale or other disposition.

            Because the parcel effectively adjoins the municipal building – separated only by a 25-foot strip of township-owned land – the supervisors viewed this as a rare opportunity to secure the only practical expansion area next to the complex before it is developed or purchased by someone else, according to a separate memo from Gwynn to the elected officials.

            Acquisition of the property would allow for any potential municipal building expansion in a way that would prevent the disruption of services. It would also allow additional space for the township's public works operations, which are nearing capacity for staffing, equipment and storage needs, according to the document.

            The previous property owners listed it for sale on Nov. 7 with an asking price of $399,000. The four-bedroom Cape Cod home – built in 1954 – was last appraised and assessed at $131,870 in June 1997, according to Montgomery County property tax records.

            Elwood H. and Edna Kulp, the home's initial owners, sold it to Lester and Melody Reighard in October 2011 for $139,000. Bardar bought it in June 2017 for $215,000, according to the website.

            The board's original discussion emphasized the value of the land. An informal analysis of the property by the township indicated that a lot line change may be possible to reduce the retained residential portion to approximately one-half acre, according to one of the memos.

            It states that the members could retain the property longer-term as an asset, rent it and

apply rental revenue toward debt reduction, and consider the lot line change at a later

date. This option preserves flexibility, while the former may reduce township exposure by limiting the duration of any landlord responsibilities.