(9)(d)
CITY COMMISSION REGULAR MTG
- Meeting Date:
- 06/07/2023
- Title:
- Amend the fiscal year 2022/2023 budget
- Submitted For:
- Laura Boyd
- Submitted By:
- Laura Boyd, Finance
- Department:
- Finance
Information
ACTION REQUEST
Consider approval of a request to amend the fiscal year 2022-2023 budget to appropriate funds for Texas City Economic Development Corporation to purchase property located at 607 6th Street, as well as a Phase I Site Assessment of the facility and other miscellaneous costs to close on the building.
BACKGROUND (Brief Summary)
Per Management Services: The EDC Strategic Plan identified the establishment of a business incubator as a program goal, and during their workshop in February, the group confirmed this project as a priority for 2023. Initially, the thought was to renovate the former Post Office/Public Works building on 6th Street, but after some initial research and cost estimates, staff estimated that the design and renovations could cost between $1.5 million and $2 million.
Fortunately, another piece of property became available on 6th Street which would provide an ideal location for an incubator at a fraction of the cost. The building includes eight offices with space for a reception area, conference room, handouts area and more. The property represents a more cost-effective and faster option for reaching the TCEDC’s goal.
The TCEDC has the opportunity to acquire the property located at 605-607 6th Street to utilize as an incubator. The TCEDC extended an offer to purchase the property for $325,000 which has been accepted by the seller. Further, the City has paid earnest money and an option fee in the amount of $1,500 and now has a 30-day window to conduct inspections and site assessments before purchasing the property.
Currently, the balance of the TCEDC line item for Procurement of Property (801-050-55720) is $288,557.56. Staff is requesting a budget amendment in amount of $42,200 to cover the balance of the purchase costs and other miscellaneous fees including the cost of a Phase 1 environmental assessment.
Fortunately, another piece of property became available on 6th Street which would provide an ideal location for an incubator at a fraction of the cost. The building includes eight offices with space for a reception area, conference room, handouts area and more. The property represents a more cost-effective and faster option for reaching the TCEDC’s goal.
The TCEDC has the opportunity to acquire the property located at 605-607 6th Street to utilize as an incubator. The TCEDC extended an offer to purchase the property for $325,000 which has been accepted by the seller. Further, the City has paid earnest money and an option fee in the amount of $1,500 and now has a 30-day window to conduct inspections and site assessments before purchasing the property.
Currently, the balance of the TCEDC line item for Procurement of Property (801-050-55720) is $288,557.56. Staff is requesting a budget amendment in amount of $42,200 to cover the balance of the purchase costs and other miscellaneous fees including the cost of a Phase 1 environmental assessment.
RECOMMENDATION
Budget Amendment:
Texas City Economic Development Corporation (801) Corporation (050):
Procurement of Property $42,200.00
Unassigned Fund Balance ($42,200.00)
Texas City Economic Development Corporation (801) Corporation (050):
Procurement of Property $42,200.00
Unassigned Fund Balance ($42,200.00)