Resolution - City Manager: Consider a resolution authorizing the Mayor to execute a Real Estate Sales Contract, for the purchase of real property located in Sections 4, 9, 11, 14, 18, 20, 21, and 24, Block S. Lubbock County, Texas, by and between the City of Lubbock and the Arnett Family Partnership, LP, Mary Jane Holmes, Karen Dreyer, Abby Quinn, and Abby Quinn, as Guardian of the Estate of William Flygare, and related documents, for the purpose of developing a future water supply for the City of Lubbock.
Item Summary
This item is the final Real Estate Sales Contract contemplated by the May 14, 2024 Binding Term Sheet between the City of Lubbock and the above-named owners. The terms and conditions within are in compliance with the May 14, 2024 term sheet, with the addition of one clause related to the Guardianship of the Estate of William Flygare.
The 1,471+/- acres of real property are necessary for the future Lake 7 Project, and the purchase is for all real property estates, including surface, mineral, water, and related rights. The City received the final state water rights permit in March 2024, and is in the pre-application stage for the needed United States Army Corps of Engineers permit. Construction is projected to begin by or before 2031.
The purchase price is $15,100,000, and the contract calls for the transaction to close on or before February 14, 2025. Upon closing, the property will be leased back to two of the selling entities who will have the use of the property and be responsible for maintenance, insurance, and related items therein. The City will have full access to the property during the lease term for necessary functions. This purchase represents approximately 85% of the needed acquisitions for Lake 7.
Fiscal Impact
Funding for the $15,100,000 purchase price and related transactional expenses are included in approved Capital Improvement Project 92617, Lake 7 Design and Land Acquisition.