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Consider/Discuss/Act on a Resolution Authorizing the City Manager to Enter into a Real Estate Purchase Agreement for Property Located at 1620 W. Virginia St., McKinney, Texas
Summary
MEETING DATE: July 16, 2013
DEPARTMENT: Purchasing
CONTACT: Debbie Nye, Purchasing Manager
RECOMMENDED CITY COUNCIL ACTION:
· Approval of Resolution
ITEM SUMMARY:
· Purchasing held an online auction for the sale of real property located at 1620 W. Virginia St., McKinney, Texas (formerly Westwood Apartments tract)
- Online auction closed on July 9, 2013
- Highest bid was received from Asa Heidarian in the amount of $479,100.00 and bidder has tendered $50,000 cash earnest money, pending City Council authorization of a purchase agreement
BACKGROUND INFORMATION:
· The property was obtained in a tax foreclosure sale in 2012. The City has also expended $496,820.60 in demolition and related costs on the property. A contract was negotiated with Rene' Bates Auctioneer, Inc. to perform an online auction for 5% of the gross sales price as the agreed compensation.
FINANCIAL SUMMARY:
- Proceeds from the auction will be applied to the following outstanding taxes/fees/costs in the order listed below:
Taxes - $195,630.30 (includes City's portion: approx. $44,000)
Court Costs - $1,314.00
Constable fees - $34,053.13
Publication fees - $538.65
Auctioneer Services - $23,955.00
Approximate Closing costs - $1,000.00
- Estimated remaining proceeds to be paid to City of McKinney on or after Closing are as listed below:
At Closing (General Fund) - approx. $222,600.00
After Closing from tax assessor/collector as ad valorem taxes (General Fund) - approx. $44,000.00
BOARD OR COMMISSION RECOMMENDATION: N/A