Title
Consider/Discuss/Act on a Resolution Authorizing the Sale of Land to the City of Celina, which Land Contains 1.00 Acre Situated in the Coleman Watson Survey, Abstract No. 945, Generally Located at the Southwest Corner of FM 2478 (Custer Road) and PR 5434 in an Unincorporated Area of Collin County; and Authorizing the City Manager to Execute Deeds and Documents Regarding the Sale of Said City-Owned Property to the City of Celina
Summary
COUNCIL GOAL: Direction for Strategic & Economic Growth
MEETING DATE: October 20, 2020
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 of 1.00 acre of land (Property) owned by the City of McKinney (McKinney) for Fair Market Value to the City of Celina (Celina), said Property being generally located at the southwest corner of FM 2478 and PR 5434 in an unincorporated area of Collin County and the extraterritorial jurisdiction of the City of Celina, and further authorizes the City Manager to execute all necessary deeds and documents for the sale of said property to Celina.
BACKGROUND INFORMATION:
• McKinney acquired the systems and assets of the Danville Water Supply Company in 2011. The subject Property was acquired as part of the 2011 transaction.
• Celina recently contacted McKinney expressing an interest to purchase the Property to be used and maintained as open space or small park.
• McKinney City Council previously approved the sale of the Property to Celina in 2016 for use as a proposed fire station site. Celina did not complete the purchase, in part, due to the deed restrictions for municipal use.
• Under Chapter 272 of the Texas Local Government Code, there are exceptions to the notice and bidding requirements when a political subdivision sells property to another political subdivision, including:
o McKinney can sell the Property for Fair Market Value (FMV), as determined by an appraisal obtained by McKinney.
o McKinney ordered an appraisal from CBRE Valuation and Advisory Services to determine the fair market value of the property. The appraisal indicated a value of $125,500.00 for the 1.00 acre parcel.
• Although Celina has advised McKinney that they intend to use the Property as open space or small park, McKinney will have no control over the use of the Property once it is sold for Fair Market Value.
• McKinney has no current or proposed use for the Property. The Property is located outside the McKinney Limits and McKinney ETJ.
• The 1.00 acre site is currently improved with a non-operational water tower. In order to utilize the property for any other use than a water tower site, the tower will need to be demolished at a cost of approximately $27,000.00. The cost to demolish the non-operational water tower was included in the fair market value evaluation by the appraiser (subtracted from the concluded land value).
• In that McKinney currently has no current or future planned use for the parcel, together with the risks associated with an unsupervised non-operational water tower, maintenance and mowing of the Property, staff recommends selling the parcel to Celina.
• This agenda item authorizes the sale of the Property to Celina for the appraised FMV of $125,500.00 and further authorizes the City Manager to execute all documents necessary for the sale of said McKinney-Owned land to Celina.
FINANCIAL SUMMARY:
• In accordance with Texas Local Government Code Section 272.001(b)(5), the sale is exempt from competitive bidding requirements.
• Funds received from the sale of the Property will be placed in the Water/Wastewater Fund.
BOARD OR COMMISSION RECOMMENDATION:
• N/A