Title
Consider a memorandum/resolution authorizing the sale of City-owned real property at 1506 Leader Drive and 1510 Linda Lane.
Body
DATE: June 17, 2025
TO: Kent Cagle, City Manager
FROM: Holli Clements, City Attorney
SUBJECT: Sale of City-owned real property at 1506 Leader Drive and 1510 Linda Lane
BACKGROUND AND FINDINGS:
In February 2025, City staff identified two parcels of property, in the Sugar Loaf Estates Addition, that it owns in fee simple. The two parcels are addressed as 1506 Leader Drive and 1510 Linda Lane. The property at 1506 Leader is an approximate 10,420 square foot tract and 1510 Linda Lane is a 6,615 square foot tract. Both properties are vacant and undeveloped. The City acquired both parcels in February 2017 from Goodnight Homes.
The City does not have future plans for the properties. Selling the parcels would allow the parcels to be put back on the tax rolls and would put maintenance responsibility on the new owners instead of the City.
Staff engaged a realty company to advertise and list both parcels with the Multiple Listing Service. The properties were listed for sale for a minimum of 30 days. At the end of the 30 days, multiple offers were received. The highest cash offer for each parcel is as follows:
Parcel Highest Offer
1506 Leader Driver $ 15,000
1510 Linda Lane $ 15,000
Both properties have liens recorded by the City of Killeen in connection with the abatement of high grass and weeds prior to the conveyance to the City in 2017. Excluding interest, the liens total $6,531.25 for 1506 Leader Drive and $5,849.00 for 1510 Linda Lane. Article XXI of the Financial Governance Policy allows the City to waive these liens upon a finding that the waiver would constitute a public purpose. Staff believe that, due to the amount of the liens and the value of the properties, waiver of the liens would be a public purpose as it would make the properties more marketable. The proposed sales contract renders both offers contingent on the City waiving those liens.
If approved, the City will convey the properties to the high bidders via a Special Warranty Deed. In accordance with Section 145 of the City Charter, the effective date of the sale will not occur for 30 days following the passage of a resolution authorizing the sale.
THE ALTERNATIVES CONSIDERED:
1. Do not authorize the sale of the properties.
2. Authorize the sale of the properties for a greater amount.
3. Authorize the sale of 1506 Leader Drive for $15,000 and 1510 Linda Lane for $15,000.
Which alternative is recommended? Why?
Staff recommends Alternative 3. Selling the parcels would allow the parcels to be put back on the tax rolls and would put maintenance responsibility on the new owners instead of the City.
CONFORMITY TO CITY POLICY:
This item conforms to all State and City policies. Texas Local Government Code Section 253.014 provides that, if using a real estate broker, a city may sell a tract of real property to a ready, willing, and able buyer who submits the highest cash offer without complying with the notice and public auction requirements required by State Law.
FINANCIAL IMPACT:
What is the amount of the revenue/expenditure in the current fiscal year? For future years?
Although this is not an expenditure, there is a financial impact as the City would receive $24,000 in revenue for the sale of assets should the City Council authorize the sale of property.
The City would expend $6,000 total in brokerage fees. However, those brokerage fees will be paid directly from the sale proceeds.
Is this a one-time or recurring revenue/expenditure?
This is a one-time revenue.
Is this revenue/expenditure budgeted?
Yes
If not, where will the money come from?
N/A
Is there a sufficient amount in the budgeted line-item for this revenue/expenditure?
The total revenue from the land sale is $30,000, with net proceeds of $24,000 after accounting for $6,000 in closing costs. The full revenue will be recorded under the General Fund account 100-49860-100-100-000000, Sale of Assets, while the closing costs will be recorded in the General Fund, Non-Departmental account 100-54250-700-701-000000, Professional Services.
RECOMMENDATION:
Staff recommends that the City Council authorize the sale of 1506 Leader Drive for $15,000 and 1510 Linda Lane for $15,000, authorize the waiver of liens for both properties, and authorize the City Manager, or designee, to execute and deliver all contracts, deeds, filings, closing statements, and any and all additional documents necessary to complete the sale in accordance with the sales contracts and this resolution.
DEPARTMENTAL CLEARANCES:
Legal
Finance
ATTACHED SUPPORTING DOCUMENTS:
Bid Tabulation
Sales Contracts
Deeds
Release of Liens
Maps
Site Photos
Presentation