6.b.
TCEDC Agenda
- Meeting Date:
- 05/03/2023
- Title:
- Discussion regarding an easement on TCEDC property w/ an option to purchase by Meritage Homes of Texas, LLC.
- Submitted For:
- Kristin Edwards
- Submitted By:
- Kristin Edwards, Economic Development
- Department:
- Economic Development
ACTION REQUEST (Brief Summary)
Discussion regarding granting an easement on property owned by the Texas City Economic Development Corporation, with an option to purchase currently held by Meritage Homes of Texas, LLC.
BACKGROUND
Meritage Homes of Texas, LLC owns 66 acres of land located west of Century Boulevard, above the Mall of the Mainland property. The property was purchased from the Texas City Economic Development Corporation for the purpose of constructing a residential development. Meritage currently has the option to purchase a third piece of property adjacent to their existing land, and the purchase price for the third piece of property (approximately 35.5 acres) is $1,171,500.00.
Independent of the Meritage development, the City’s Planning and Engineering Department is obtaining a right-of-way for a 24-foot force main project, which will provide wastewater service to a significant area of the west side of Texas City.
The property identified for the project is located on the TCEDC-owned property which Meritage has an option to purchase through January 2024. Per the option agreement, Meritage must consent to the easement.
Via the City’s acquisition agent, Meritage stated that the financial impact of the easement to their potential development on the 35.5-acre tract would be $75,000. The City’s acquisition agent suggested that – instead of making a direct payment to Meritage – the City deduct the cost from the purchase price of the third piece of property. This would require an amendment to the option agreement, reducing the purchase price by $75,000.
Staff is in support of this action as it would lessen the possibility of negative fiscal impact to the City.
Independent of the Meritage development, the City’s Planning and Engineering Department is obtaining a right-of-way for a 24-foot force main project, which will provide wastewater service to a significant area of the west side of Texas City.
The property identified for the project is located on the TCEDC-owned property which Meritage has an option to purchase through January 2024. Per the option agreement, Meritage must consent to the easement.
Via the City’s acquisition agent, Meritage stated that the financial impact of the easement to their potential development on the 35.5-acre tract would be $75,000. The City’s acquisition agent suggested that – instead of making a direct payment to Meritage – the City deduct the cost from the purchase price of the third piece of property. This would require an amendment to the option agreement, reducing the purchase price by $75,000.
Staff is in support of this action as it would lessen the possibility of negative fiscal impact to the City.
ANALYSIS
Approve an amendment to the option agreement between TCEDC and Meritage Homes of Texas, LLC, reducing the purchase price by $75,000, and authorize the easement on the TCEDC-owned land to the City of Texas City.