19 - Discuss selling properyt located at 301 Bonham Street

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Item No. 19 � , MMIW�� TO: Mayor, Mayor Pro -Tem & City Council Grayson Path, City Manager FROM: Andrew Mack, AICP Director Planning & Community Development SUBJECT: Discuss selling property located at 301 Bonham Street, and provide direction to staff DATE: October 25, 2021 BACKGROUND Some years back, the building at 301 Bonham collapsed. The city spent approximately $40,000 to clean up the property and filed liens for the work. More recently, the owners of the property offered to donate it to the city in exchange for the city's forgiving all demolition and other liens on the property. The city council agreed to accept the donation because the lot was suitable for free public parking, for which there is a need in the downtown area. Since that time, no further redevelopment of the site was pursued by the City and it remains with building floors and foundations never removed. If the city sells the lot to a third party, there would be nothing the city could do to ensure that the lot remained available for free public parking. However, the City can include language in the public offering of the land sale encouraging the redevelopment of the site for public and private parking use. Recently, two prospective buyers of the property expressed interest in this redevelopment of the property. Private parking use of the site was their interest, but indicated they would allow it to also be used for parking by the public. The land assessed value, according to the Lamar County Appraisal District, is in the mid's 20,000's. The city can, however, set a minimum reserve bid value so as to fully or partially recover its expenses in the site clean- up. Staff believes both factors should be included in the public land sale offering to preserve the public interest and needs for the downtown. In the event that a minimum reserve amount is not met upon receipt of sealed bids, then a lower amount could be considered or other measures may be explored at a future point in time to further benefit the redevelopment plans for this downtown site. Should the council decide to put the property up for sale, the city would be required to put it up for competitive bids. This would involve providing published public notice, the acceptance of sealed bids, and awarding the property to the highest bidder should the minimum reserve, or an amount close thereto be met. RECOMMENDATION Staff recommends directing Staff to proceed with the legal procedure to advertise and accept bids for the sale of City owned property to promote and encourage the redevelopment of downtown property for public and private parking.