Title
Consider/Discuss/Act on a Resolution Authorizing the Sale of Three Small Parcels of Land Located in the William Davis Survey, Abstract No. 248 to the Texas Transportation Commission for the Construction of the State’s Highway 5 Project, Which Parcels of Land Consist of 0.0035 Acres (151 Square Feet) of Land Located at the Northwest Corner of State Highway 5 and Davis Street (“Parcel 55”), 0.0042 Acres (183 Square Feet) of Land Located at the Northeast Corner of State Highway 5 and Davis Street (“Parcel 56”), and 0.0023 Acres (100 Square Feet) of Land Located at the Northwest Corner of State Highway 5 and Hunt Street (“Parcel 63”), All Totaling Approximately 0.0100 Acres of Land; and Authorizing the City Manager to Execute Deeds and Documents Regarding the Sale of Said City-Owned Property to the State of Texas
Summary
COUNCIL GOAL: Operational Excellence
(2B: Balance available resources to accommodate the growth and maintenance needs of the city)
MEETING DATE: January 18, 2022
DEPARTMENT: Development Services/Engineering
CONTACT: Gary Graham, PE, PTOE, Director of Engineering
RECOMMENDED CITY COUNCIL ACTION:
• Approval of Resolution.
ITEM SUMMARY:
• This item authorizes the sale, at fair market value, of three small corner clip parcels of land totaling approximately 0.0100 acres to the State of Texas for use as Right-of-Way (ROW) in the reconstruction and/or widening of SH 5 from Spur 399 to south of County Road 275, and further authorizes the City Manager to execute all necessary deeds and documents for the sale of said property.
BACKGROUND INFORMATION:
• TxDOT is currently planning for the reconstruction of SH 5 from Spur 399 north to Powerhouse Street.
• On October 4, 2021, McKinney City Council adopted a Resolution which authorized the City Manager to execute an agreement with TxDOT to participate in ROW acquisition for the State Highway 5 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 parcels.
• TxDOT is currently in the process of acquiring ROW and easements necessary for the Project. Construction is tentatively scheduled to begin April 2024.
• TxDOT finds it necessary to acquire three parcels of City-owned land for use as ROW which are identified as Parcel 55, Parcel 56 and Parcel 63, on the attached Property Location Map. The three parcels are small corner clips.
• TxDOT submitted an appraisal for each parcel and extended offers approved by the Texas Transportation Commission on behalf of the State of Texas in the full amount of the fair market value to purchase from the City, in the following amounts:
o Parcel 55: 0.0035 acres appraised value of $3,344.00.
o Parcel 56: 0.0042 acres appraised value of $3,662.00.
o Parcel 63: 0.0023 Acres appraised value of $2,086.00.
• The City had review appraisals completed by a certified appraiser for the three appraisals submitted by TxDOT. The review appraisals confirmed that the offers extended by TxDOT constituted the fair market value for the subject parcels.
• The total purchase price for the three parcels is $9,092.00.
• In addition to the offer to purchase, TxDOT has requested a Possession and Use Agreement (PUA) for each parcel. TxDOT is offering an additional $3,000.00 a parcel for each signed PUA. The Possession and Use Agreement will allow TxDOT to enter onto the parcel, for work related to the project, prior to closing on the purchase.
• The total amount received from the 3 sales ($9,092.00) and PUAs ($9,000.00) is approximately $18,092.00.
• This agenda item authorizes the sale of the three parcels of land to the State for the fair market values identified above, and further authorizes the 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 State Highway 5 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