Public Hearing on sale of City property on the north side of the 200 block of Dike Road to an independent foundation (the Texas City Economic Development Corporation) in accordance with State Law. (Management Services)

The city has been working with Mark McKim that is interested in developing in the Cottages for lease on Dike Road.  His plans were viewed at a previous city commission meeting and preliminary zoning was approved.  Mark McKim needs a bit more property to develop the land in a manner that is attractive and meets the standards that the City has required which necessitated the purchase of additional land owned by the City of Texas City. It is land that surrounds the old site owned by Dimitiri and sits adjacent to Lee's Bait shop on the north side of Dike Road in the 200 block (see the attachments of the survey and map of the area).  The City intends to sell the property to the Texas City Economic Development Corporation, an independent foundation.  Under state statutes, the city may sell property directly to an independent foundation that it wants to have developed by contract (Section 272.001(B)(4) of the Local Government Code.  Staff has discussed this with the Attorney General's Office, Zindia Thompson, back in 2012 under a similar situation with the sale of city land.  This was also discussed in 2012 with other staff members as well as other economic development professionals in Texas familiar with the state statutes on sale of City property and economic development.  All agree with the process.  While there is not a definition of "independent foundation" in the state statutes, Ms. Thompson stated that the Economic Development Corporation, by its incorporation under the state statutes, is an independent foundation by definition.  Attached is the outline of the agreement on the requirements of the development of the land and the amount of property to be sold in accordance with a plan (the Livable Center Plan).  This sale would fulfill the plan outlined for the area under the Livable Center Study.  The City Attorney has reviewed and is in agreement with the process and the additional steps taken to be open to the public with the sale.  As in the past, the City will use an appraisal to set the amount for the sale to the TCEDC.

Should City Commission approve, the Texas City Economic Development Corporation will take action to fulfill the agreement by entering into an agreement with the company to develop the property.