12 - LCAD request to approve the purchase of the downtown Peoples Bank BuildingItem No. 12
TO: Mayor & City Council
FROM: John Godwin, City Manager
SUBJECT: LAMAR COUNTY APPRAISAL DISTRICT BUILDING
DATE: May 31, 2019
BACKGROUND: The appraisal district has insufficient room in their current location, which
consists of less than 6,000 square feet and sometimes inadequate parking, security, and privacy.
In response, they have been looking around for quite some time for more appropriate space of
approximately 10,000 SF. Most recently they have considered the Peoples Bank building in
downtown at the corner of 1St SW and Grand (35 South Plaza). That building will become
mostly vacant within the next several months as Peoples consolidates all of its operations and
offices at Collegiate & Lamar.
STATUS OF ISSUE: At its regular meeting of May 29, the LCAD board, including city
representative Ken Kohls, voted to recommend to their customer jurisdictions approval of a
purchase of the downtown Peoples Bank building. Purchase price for the five -story building is
an amount not to exceed $625,000, plus closing costs. Paved parking to the west is also included
in the proposed purchase. The resolution passed by the board also calls for the purchase costs to
be financed. Eleven jurisdictions use the LOAD; eight (or 3/4) must approve the purchase for it to
go through.
BUDGET: NA
RECOMMENDATION: Approve of the real estate purchase.
RESOLUTION BY THE LAMAR COUNTY APPRAISAL DISTRICT FOR
PURCHASE OF LAND AND EWrROVEMENTS FOR THE RELOCATION
OF THE APPRAISAL DISTRICT OFFICE FACILITY AND FOR A LOAN
WHEREAS, the Lamar County Appraisal District ("District") is charged by the Texas Property
Tax Code to appraise and perform other functions authorized or required by law; and
WHEREAS, Texas Property Tax Code §6.05(a) requires that each appraisal district shall
establish an appraisal office; and
WHEREAS, the Board of Directors has determined that the current appraisal office is
insufficient for the needs of the District; and
WHEREAS, the Texas Property Tax Code §6.051 authorizes the Board of Directors of an
appraisal district to purchase or lease real property and construct improvements as necessary to
establish and operate the appraisal office; and
WHEREAS, the District's Board of Directors have determined that the acquisition of land and
improvements located at 35 South Plaza, Paris, Texas described as LOT 1, BLOCK 2, CITY OF
PARIS and parking lot located at 214 SW 1' Street, Paris, Texas described as LOT PT OF 1,
BLOCK 177-A, .485 ACRES, CITY OF PARIS, noted above in this resolution is the most
appropriate and cost effective plan for relocation of the appraisal district office of the Lamar
Count Appraisal District; and
WHEREAS, the Board of Directors proposes for the District to acquire land and improvements
located at 35 South Plaza, Paris, described as LOT 1, BLOCK 2, CITY OF PARIS and parking
lot located at 214 SW 1St Street, Paris, Texas described as LOT PT OF 1, BLOCK 177-A, .485
ACRES, CITY OF PARIS, and pay an amount for these properties not to exceed $625,000.00
not including closing costs, if any, and to borrow an amount not to exceed $625,000.00 for the
purchase of these properties described in this resolution for a permanent loan, subject to approval
by three fourths of the taxing units entitled to adopt resolutions pursuant to the Texas Property
Tax Code §6.051; and
WHEREAS, Texas Property Tax Code §6.051(b) provides that the purchase or lease of real
property by an appraisal district must be approved by three fourths of the governing bodies
entitled to adopt resolutions pursuant to that section; and
NOW THEREFORE BE IT RESOLVED, that on the date shown below, the Board of
Directors of the Lamar County Appraisal District proposes, in accordance with the Texas
Property Tax Code §6.051, to acquire 35 South Plaza and 214 SW 1St Street in Paris, Texas,
described in this resolution, for an amount not to exceed $625,000.00, not including closing
costs, if any and to acquire a permanent loan in an amount not to exceed $625,000.00 for the
purchase of the above properties described in this resolution, all subject to the approval of three
fourths of the taxing units entitled to adopt resolutions pursuant to the Texas Property Tax Code
§6.051 and MUST be voted on and submitted to the appraisal district within 30 days of the
date of this resolution..
BE IT FURTHER RESOLVED, that the Chief Appraiser is directed to notify the presiding
officer of each governing body entitled to vote on the approval of this proposal by delivering a
copy of this resolution together with information showing the costs of other available alternative
to this proposal.
BE IT FURTHER RESOLVED, that the Chief Appraiser is directed to carry out all other
activities in furtherance of this resolution.
Adopted this 29'�," day of May, 2019
Board Memeber
Esimated Cost to entities to Purchase an existing Facility
Estimated Purchase Price: $650,000; Loan amortization = $48,000.00/yr
Assumption: 25 year note at 5.5% interest.
Taxing Unit
Percentage of Appraisal Budget
Pro Rata Share
Per Qtr
City of Blossom
0.3596
$172.61
$43.15
City of Deport
0.1572
$75.46
$18.86
City of Paris
13.9297
$6,686.26
$1,671.56
City of Reno
1.0764
$516.67
$129.17
City of Roxton
0.1533
$73.58
$18.40
Chisum ISD
18.2129
$8,742.19
$2,185.55
North Lamar ISD
18.7684
$9,008.83
$2,252.21
Paris ISD
17.0294
$8,174.11
$2,043.53
Prairiland ISD
3.8196
$1,833.41
$458.35
Paris Junior College
4.2949
$2,061.55
$515.39
Lamar County
19.8420
$9,524.16
$2,381.04
Honey Grove
0.1449
$69.55
$17.39
P = $650,000.00
Rate= 5.5%
Payments= $4,000.00 x 12 = $48,000.00
M
Esimated Cost to entities to Purchase an existing Facility
Estimated Purchase Price: $650,000; Loan amortization = $44,400.00/yr
Assumption: 30 year note at 5.5% interest.
Taxing Unit
Percentage of Appraisal Budget
Pro Rata Share
Per Qtr
City of Blossom
0.3596
$159.66
$39.92
City of Deport
0.1572
$69.80
$17.45
City of Paris
13.9297
$6,184.79
$1,546.20
City of Reno
1.0764
$477.92
$119.48
City of Roxton
0.1533
$68.07
$17.02
Chisum ISD
18.2129
$8,086.53
$2,021.63
North Lamar ISD
18.7684
$8,333.17
$2,083.29
Paris ISD
17.0294
$7,561.05
$1,890.26
Prairiland ISD
3.8196
$1,695.90
$423.98
Paris Junior College
4.2949
$1,906.94
$476.73
Lamar County
19.8420
$8,809.85
$2,202.46
Honey Grove
0.1449
$64.34
$16.08
P = $650,000.00
Rate= 5.5%
Payments= $3,700.00 x 12 = $44,400.00