CC MEETING: May 26, 2020
DATE: May 19, 2020
TO: Erin Rinehart, City Manager
FROM: Ravi Shah, Director of Development Services
Marc Guy, Assistant City Manager
Title
Consider A Resolution Authorizing The City Manager To Negotiate And Execute The Purchase Of An Approximately 121-Acre Tract Of Land Currently Owned By The North Texas Tollway Authority, And Located At The Southwest Quadrant of IH-35E And President George Bush Turnpike (PGBT), In An Amount Not To Exceed $3,450,000.00.
Body
BACKGROUND:
On October 16, 2019, the NTTA Board of Directors adopted a resolution declaring a list of properties that were under NTTA ownership to be surplus real estate. The NTTA Executive Director was authorized to execute documents and take other actions necessary to begin the disposition process.
One of NTTA’s surplus properties is in Carrollton and is located at the southwest quadrant of IH-35E and President George Bush Turnpike (PGBT). The property is approximately 121 acres in size and consists of four (4) parcels.
The property is not currently being used by NTTA. Further, NTTA has determined that there are no further transportation-related uses planned and that the property is not needed for current or future tollway maintenance operations.
This property is on the west side of IH-35E and directly across from Trinity Mills Station. Because of its connection to Trinity Mills Station via the recently completed Dickerson Parkway, this property will add land mass and future value to the growth and expansion potential of the Trinity Mills Station/TOD area. Although the property has several challenges to be overcome for development, the acquisition of this site will allow the present and future City Councils an opportunity to direct and influence the character and quality of the future use and development of a highly visible and strategic area.
The NTTA executive staff has been advised of Carrollton’s interest in acquiring this property. NTTA recently conducted an appraisal of the property, which determined that its fair-market value is $3,430,000 ($0.65/SF using the sales comp method).
The City will agree to purchase the property in its “as is” condition. All survey, title policy, and closing costs will be paid by the City.
The NTTA Board of Directors will adopt a resolution affirming the sale once the attached resolution is approved by City Council.
FINANCIAL IMPLICATIONS:
The purchase price for this property is $3,430,000. Estimated closing costs are $20,000. Funding for the purchase is available from the Strategic Community Reinvestment Fund. This action item is to purchase the property. No decisions are being made regarding the future use of the property.
STAFF RECOMMENDATION/ACTION DESIRED:
Staff recommends City Council approve a resolution authorizing the City Manager to negotiate the purchase of the southwest quadrant of IH-35E and President George Bush Turnpike from NTTA in an amount not to exceed $3,450,000.00.