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File #: RS-23-090    Version: 1 Name: Purchase of Real Property within the City of Killeen
Type: Resolution Status: Passed
File created: 4/19/2023 In control: City Council Workshop
On agenda: 5/23/2023 Final action: 5/23/2023
Title: Consider a memorandum/resolution authorizing the purchase of real property located in downtown Killeen.
Sponsors: Development Services
Attachments: 1. Support Letter, 2. Contract, 3. Appraisal, 4. Presentation
Title

Consider a memorandum/resolution authorizing the purchase of real property located in downtown Killeen.

Summary

DATE: May 16, 2023

TO: Kent Cagle, City Manager

FROM: Edwin Revell, Executive Director of Development Services

SUBJECT: Memorandum/Resolution Authorizing the Purchase of Real Property within the City of Killeen

BACKGROUND AND FINDINGS:

Built in 1915, the building located at 324 N. Gray Street originally served as the Lodge Hall. Then from 1937-1941, it served as the Wyatt Bass Grocery Store, and then, more recognizably, as the Hack's Army and then Western Store from the 1950's until the 1980's. The property was identified as a historically significant structure in the City's 2008 Historic Resource Survey.

324 N. Gray Street has been vacant for several years. In recent years a local real estate investor, Shirley Husar, purchased the property with plans of revitalizing the structure. Unfortunately, Ms. Husar passed away at the beginning of 2023. After attempting to sell the property to the private market, her heirs approached the City about its interest in purchasing the property.

City of Killeen staff, including Edwin Revell, Wallis Meshier, Kate Kizito, Leslie Hinkle, Earl Abbott, and KEDC's Scott Connell, toured the building on March 14, 2023.

The city has entered an option period for the property to complete due diligence efforts, such as:
* Ordering an appraisal of the property.
* Obtaining quotes to repair the roof and bring the second-story stair access to code compliance.
* Engaging the Killeen Economic Development Cooperation for the partnership of the rehabilitation and future use of the property.

The current negotiated price of the property is $288,483 for the 7,397 sq/ft building; or $39 per sq/ft.

Benefits to purchasing the property include assurance of quality redevelopment of historically significant structure and the ability to ensure a desired use for a currently vacant property.

THE ALTERNATIVES CONSIDERED:

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