Title
Consider/Discuss/Act on a Resolution Authorizing the Sale of Four Parcels of Land to the Texas Transportation Commission for the Construction of the State’s FM 546 Project, Which Land Contains 2.656 Acres of Land in the S. McFarland Survey, Abstract No. 558, and the W.S. Richardson Survey, Abstract No. 747 (collectively “Parcel 2”), 4.812 Acres of Land in the S. McFarland Survey, Abstract No. 558 (“Parcel 4”), and 0.166 Acres and 0.164 Acres of Land Situated in the G. Pilant Survey, Abstract No. 69 (“Parcel 13” and “Parcel 14,” Respectively), Totaling Approximately 7.798 Acres of Land Generally Located East of Highway 5 and South of Mill Street Continuing Southeasterly to Country Lane/Airport Drive; and Authorizing the Interim City Manager to Execute Deeds and Documents Regarding the Sale of Said City-Owned Property to the State of Texas
Summary
MEETING DATE: August 3, 2015
DEPARTMENT: Development Services/Engineering
CONTACT: Mark Hines, PE, Director of Engineering
RECOMMENDED CITY COUNCIL ACTION:
• Approval of Resolution.
ITEM SUMMARY:
• This item authorizes the sale, at fair market value, of four parcels of land totaling approximately 7.798 acres to the State of Texas for use as Right-of-Way (ROW) in the construction of FM 546 a new 4-lane roadway generally located east of Highway 5 and south of Mill Street continuing southeasterly to Country Lane/Airport Drive, and further authorizes the Interim City Manager to execute all necessary deeds and documents for the sale of said property.
BACKGROUND INFORMATION:
• TxDOT is currently planning for the construction of FM 546 from Highway 5 east to Airport Drive.
• On January 6, 2015, McKinney City Council adopted a Resolution which authorized the Interim City Manager to execute an agreement with TxDOT to participate in ROW acquisition for the FM 546 Project. The City paid 10 percent of the funds needed to acquire the ROW for the Project. TxDOT is contributing the remaining 90 percent to acquire the necessary ROW including the City of McKinney and McKinney Economic Development Corporation parcels.
• TxDOT is currently in the process of acquiring ROW and easements necessary for the Project to begin utility relocations. Construction is scheduled to begin in April, 2016.
• TxDOT wants to acquire four parcels of City-owned land for use as ROW and identified as Parcel 2, Parcel 4, Parcel 13 and Parcel 14, on the attached Parcel Location Map.
• TxDOT submitted an appraisal for each parcel and the Texas Transportation Commission approved and the State extended an offer in the full amount of its fair market value to purchase all four parcels from the City, in a total amount of $531,261.00, as follows:
o Parcel 2: 2.656 acres appraised value of $337,651.00;
o Parcel 4: 4.812 acres appraised value of $146,964.00 ($133,461.00 of the appraised value is for the Cost to Cure, see below);
o Parcel 13: 0.166 acres appraised value of $29,291.00; and,
o Parcel 14: 0.064 acres appraised value of $17,355.00.
• The City confirmed that the State’s offer for the property equaled its fair market value by ordering review appraisals of TxDOT’s appraisals.
• Parcel 4 was previously leased from the City by North Texas Municipal Water District (“NTMWD”) and used as a landfill.
o The landfill was closed in 2014.
o NTMWD currently has a 30 year easement over the property to conduct post closure maintenance and monitoring.
o In order to accommodate the Project, NTMWD will need to apply for permit modifications regarding the landfill with the Texas Commission on Environmental Quality to reduce the permit boundary, relocate three gas monitor probes, relocate a security fence and relocate a groundwater monitor well.
o NTMWD submitted a cost estimate to TxDOT to relocate the aforementioned infrastructure in the amount of $133,461.00 as the Cost to Cure, which amount is included in TxDOT’s appraisal and offer to the City for Parcel 4.
• This agenda item authorizes the sale of the four parcels of land to the State for the fair market values identified above, and further authorizes the Interim City Manager to execute all documents necessary to the sale of said City-Owned land to the State of Texas associated with the construction of the FM 546 Project.
FINANCIAL SUMMARY:
• In accordance with Texas Local Government Code Section 272.001(b)(5), the sale is exempt from competitive bidding requirements.
• Funding from the sale will be placed in the General Government Capital Project Fund.
BOARD OR COMMISSION RECOMMENDATION:
• N/A