Title
Consider/Discuss/Act on a Resolution Authorizing the Sale of Two Parcels of Land Located in the Samuel McFarland Survey, Abstract No. 558 to the State of Texas for the Construction of the State’s Highway 5 Project, Which Parcels of Land Consist of approximately 1.646 Acres of Land Located on the West Side of State Highway 5 South of its intersection with Harry McKillop Boulevard (“Parcel 6”), and approximately 2.943 Acres of Land Located on the East Side of State Highway 5 South of its intersection with Harry McKillop Boulevard (“Parcel 7”), Both Totaling approximately 4.589 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: March 21, 2023
DEPARTMENT: Development Services/Engineering
CONTACT: Gary Graham, PE, PTOE, Director of Engineering
Todd Wright, Real Estate Acquisitions Administrator
RECOMMENDED CITY COUNCIL ACTION:
• Approval of Resolution.
ITEM SUMMARY:
• This item authorizes the sale, at fair market value, of two parcels of land totaling approximately 4.589 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 north to Powerhouse Street, 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 ten percent (10%) of the funds needed to acquire the ROW for the Project. TxDOT is contributing the remaining ninety percent (90%) 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 two parcels of City-owned land for use as ROW which are identified as Parcel 6 and Parcel 7, on the attached Property Location Map.
• TxDOT submitted an appraisal for each parcel and extended offers 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 6: 1.646 acres appraised value of $73,474.00.
o Parcel 7: 2.943 acres appraised value of $149,534.00.
• The City has previously obtained appraisals prepared by a licensed real estate appraiser confirming the fair market value of the Property.
• The total purchase price for the two parcels is $223,008.00.
• 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 for the signed PUA for Parcel 6 and $13,671.30 for the signed PUA for Parcel 7. 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 two sales ($223,008.00) and PUAs ($16,671.30) is $239,679.30.00.
• This agenda item authorizes the sale of the two 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