Title
Consider a memorandum/resolution authorizing the sale of City-owned real property at 1510 Linda Lane.
Body
DATE: August 5, 2025
TO: Kent Cagle, City Manager
FROM: Holli Clements, City Attorney
SUBJECT: Sale of City-owned real property at 1510 Linda Lane
BACKGROUND AND FINDINGS:
In February 2025, City staff identified a parcel of property, in the Sugar Loaf Estates Addition, that it owns in fee simple. The parcel is a 6,615 square foot tract and addressed as 1510 Linda Lane. The property is vacant and undeveloped. The City acquired the property in February 2017 from Goodnight Homes.
The City does not have any plans for the property. Selling the parcel would allow it to be put back on the tax rolls and would put maintenance responsibility on the new owner instead of the City.
Staff engaged a realty company to advertise and list the property with the Multiple Listing Service. The property was listed for sale for a minimum of 30 days. The City received three cash offers in response. However, prior to Council acceptance, all three offerors withdrew their bids. The property was then listed again, and the City received a single cash offer of $13,500 in response.
The City does have liens recorded on the property in connection with the abatement of high grass and weeds prior to the conveyance to the City in 2017. Excluding interest, the liens total $5,849.00. 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 believes that, due to the amount of the liens, waiver of the liens would constitute a public purpose as it would make the properties more marketable. The proposed sales contract renders the offer contingent on the City waiving those liens
If approved, the City will convey the properties to the offeror 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 1510 Linda Lane.
2. Authorize the sale of 1510 Linda Lane for a greater amount.
3. Authorize the sale of 1510 Linda Lane for $13,500.
Which alternative is recommended? Why?
Staff recommends Alternative 3. Staff believes that the offer is a fair market value and selling the property would allow it to be put back on the tax rolls and would put maintenance responsibility on the new owner instead of the City.
CONFORMITY TO CITY POLICY:
This item conforms to all State and Local 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 provided by State law.
FINANCIAL IMPACT:
What is the amount of the revenue/expenditure in the current fiscal year? For future years?
The financial impact includes $13,500 in revenue from the sale of an asset and a $1,500 brokerage fee expense.
Is this a one-time or recurring revenue/expenditure?
One-time
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 for the land sale is $13,500, with net proceeds of $12,000 after accounting for $1,500 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 1510 Linda Lane for $13,500, authorize the waiver of liens for the property, and authorize the City Manager, or designee, to execute and deliver all contracts, deeds, fillings, closing statements, and any and all additional documents necessary to complete the sale in accordance with the sales contract and this resolution.
DEPARTMENTAL CLEARANCES:
Legal
Finance
ATTACHED SUPPORTING DOCUMENTS:
Sales Contract
Deed
Release of Lien
Maps
Site Photos
Presentation