Title
Consider a memorandum/resolution authorizing the City Manager to execute a Special Warranty Deed conveying approximately 0.188 acres of real property out of Lot 1, Block 1 of the Airport Park Addition to Providential Holdings Management, LC. The subject property is generally located on the west side of Rosewood Drive, south of the intersection of Martin Luther King Jr. Boulevard (F.M. 2410), Killeen, Texas.
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DATE: October 1, 2024
TO: Kent Cagle, City Manager
FROM: Edwin Revell, Executive Director of Development Services
SUBJECT: Special Warranty Deed to Providential Holdings Management, LC for approximately 0.188 acres generally located on the west side of Rosewood Drive, south of the intersection of Martin Luther King Jr. Boulevard (F.M. 2410)
BACKGROUND AND FINDINGS:
The purpose of this item is to convey approximately 0.188 acre of property located on the west side of Rosewood Drive south of Martin Luther King Jr. Boulevard (F.M. 2410) to Providential Holdings Management, LC in conjunction with the development of a proposed QT convenience store and gas station.
The City of Killeen acquired the property in 1990 from Purser Construction Company via Warranty Deed (Instrument No. 1990002090). It is currently platted as part of Lot 1, Block 1 of the Airport Park Addition. Providential Holdings Management, LC is the owner of the adjoining 3.646 acre property located immediately to the west of the subject property.
QT South, LLC has submitted plans for a proposed gas station and convenience store in this location. As part of their development proposal, QT requested to purchase the subject property and thereby include it in their site development plans. QT also plans to make improvements to the intersection of Rosewood Blvd. and Martin Luther King Jr. Blvd. valued at approximately $475,000. QT South will also survey and replat the right-of-way for Rosewood Drive between Martin Luther King Jr. Boulevard (F.M. 2410) and East Central Texas Expressway on behalf of the City.
In accordance with Chapter 272 of the Texas Local Government Code, “narrow strips of land” that may not be independently developed, may be sold to an abutting property owner for less than fair market value. QT South, LLC has a Ground Lease Agreement with Providential Holdings Management, LC for a term of fifteen (15) years with to option to extend for ten (10) additional terms of five (5) years each.
If approved, the subject property will be conveyed to Providential Holdings Management, LC for the sum of $10.00. In doing so, the property will go back on to the City’s tax roll, which will generate additional revenue for TIRZ #2.
As required by Section 145 of the City Charter, if authorized, the sale shall not be effective until thirty (30) days have elapsed from the date of this resolution.
THE ALTERNATIVES CONSIDERED:
N/A
Which alternative is recommended? Why?
N/A
CONFORMITY TO CITY POLICY:
The proposed ordinance conforms to all applicable City policies.
FINANCIAL IMPACT:
What is the amount of the revenue/expenditure in the current fiscal year? For future years?
This is not applicable.
Is this a one-time or recurring revenue/expenditure?
This is not applicable.
Is this revenue/expenditure budgeted?
This is not applicable.
If not, where will the money come from?
This is not applicable.
Is there a sufficient amount in the budgeted line-item for this revenue/expenditure?
This is not applicable.
RECOMMENDATION:
Staff recommends that the City Council authorize conveyance of 0.188 acre of property located on the west side of Rosewood Drive south of Martin Luther King Jr. Boulevard (F.M. 2410) by Special Warranty Deed to Providential Holdings Management LP to allow for development of a QT gas station and convenience store, and authorize the City Manager, or designee, to execute and deliver all contracts, deeds, deeds of trust, filing, closing statements, and any and all additional documents necessary to complete the sale in accordance with this resolution.
DEPARTMENTAL CLEARANCES:
This item has been reviewed by Development Services and Legal staff.
ATTACHED SUPPORTING DOCUMENTS:
Special Warranty Deed
Survey
Field Notes
Presentation