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09 - Private Tax Re-SalesItem No. 9 Memorandum TO: Mayor, Mayor Pro -Tem & City Council Grayson Path, City Manager FROM: Andrew Mack, Director of Planning and Community Development SUBJECT: PRIVATE TAX RE -SALES DATE: June 12, 2023 BACKGROUND: Tracy Pounders with the law firm of Abernathy Roeder Boyd & Hullett PC has arranged for the private sale of five (5) tax delinquent properties for the total amount of $5.00 to Cultiv8Community as a part of the 5 in 5 Housing Infill Development Program. STATUS OF ISSUE: The sale involves the following properties, all located within the Program Area: • Tract 1: "CITY OF PARIS, BLOCK 233, LOT 12", commonly known as 1221 NW 15TH, Paris, Lamar County, Texas [Lamar CAD #17745, $1.00] • Tract 2: "CITY OF PARIS, BLOCK 269, LOT 12", commonly known as 1351 NE 12th, Paris, Lamar County, Texas [Lamar CAD #18376, $1.00] • Tract 3: "CITY OF PARIS, BLOCK 33-A, LOT 9", commonly known as 133 NE 14Tx, Paris, Lamar County, Texas [Lamar CAD #13870, $1.00] • Tract 4: "CITY OF PARIS, BLOCK 32-B, LOT 9", commonly known as 116 NE 10TH, Paris, Lamar County, Texas [Lamar CAD #13832, $1.00] • Tract 5: "CITY OF PARIS, BLOCK 32-B. LOT 7", commonly known as 1025 E Houston, Paris, Lamar County, Texas [Lamar CAD #13830, $1.00] Cultiv8Communtiy intends to build single family homes on each of these lots. This sale comprises one of the incentives in the Economic Development Agreement and Tax Abatement Agreement (the 5 in 5 agreement) considered in the previous agenda item. BUDGET: The City will receive its prorated share of the proceeds of sale as required by the Texas Property Tax Code and as allowed under a interlocal agreement among the City and the other affected taxing entities. RECOMMENDATION: Approve Resolution consenting to the Private Re -Sale of five Tax Foreclosed Properties to Cultiv8Community as proposed. RESOLUTION NO. A RESOLUTION APPROVING THE RE -SALE OF THREE PROPERTIES, PREVIOUSLY BID -OFF TO THE CITY OF PARIS, TRUSTEE, TO CULTIV8COMMUNITY PURSUANT TO THE 5 -IN -5 INFILL HOUSING PROGRAM WHEREAS, the below described real property or properties (the "Property") was previously bid off and sold to the City of Paris, Trustee, as trustee for itself, Lamar County, Paris ISD and Paris Junior College (hereinafter the "Grantors") at public auction; and, WHEREAS, Texas Property Tax Code Section 34.05(i) provides that tax foreclosed properties previously bid off to taxing units ("Trustee Properties") may be sold by private sale in lieu of a public sale under Texas Property Tax Code Section 34.05(c) & (d) with the approval of all taxing units entitled to receive proceeds from the sale; and WHEREAS all of the taxing units entitled to receive proceeds from the sale of the Property have consented to the private sale of the Property to the Grantee, in advance, as permitted by Section 34.051 of the Texas Property Tax Code; this advance consent is evidenced by that interlocal agreement approved by all Grantors on January 24, 2022, an original being maintained by the City of Paris (approved by: the City of Paris, City Council agenda of January 24, 2022, item 422; Paris Junior College, Regents' agenda of January 24, 2022, item 46; Lamar County, Commissioners Court agenda of January 24, 2022, item #2; and the Paris Independent School District, Trustees' agenda of January 24, 2022, item #4); and WHEREAS CULTIV8COMMUNITY a Texas Non -Profit Cor joration has offered to purchase the Property by private sale pursuant to the 5 -in -5 Infill Housing Program; and, NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS THAT: Section 1. The sale of the following Property to CULTIV8COMMUNITY for FIVE AND NO/100 $5.00 DOLLARS is hereby approved: • Tract 1: "CITY OF PARIS, BLOCK 233, LOT 12", commonly known as 1221 NW 15TH, Paris, Lamar County, Texas [Lamar CAD #17745, $1.001 • Tract 2: "CITY OF PARIS, BLOCK 269, LOT 12", commonly known as 1351 NE 12th, Paris, Lamar County, Texas [Lamar CAD #18376, $1.001 • Tract 3: "CITY OF PARIS, BLOCK 33-A, LOT 9", commonly known as 133 NE 14TH, Paris, Lamar County, Texas [Lamar CAD #13870, $1.00] • Tract 4: "CITY OF PARIS, BLOCK 32-B, LOT 9", commonly known as 116 NE 10TH, Paris, Lamar County, Texas [Lamar CAD #13832, $1.001 Private Proert� Tax Re -Sale Resolution, Page i of 2 • Tract 5: "CITY OF PARIS, BLOCK 32-B, LOT 7", commonly known as 1025 E Houston, Paris, Lamar County, Texas [Lamar CAD 913830, $1.001 PASSED AND APPROVED this day of ATTEST: BY Janice Ellis, City Clerk Private Pro�ert Tax Re -Sale Resolution, Page 2 of 2 2023. CITY OF PARIS, TEXAS BY Reginald B. Hughes, Mayor APPROVED AS TO FORM: Stephanie Harris, City Attorney NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE ANY OR ALL OF THE FOLLOWING INFORMATION FROM ANY INSTRUMENT THAT TRANSFERS AN INTEREST IN REAL PROPERTY BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER'S LICENSE NUMBER DEED WITHOUT WARRANTY (TAX FORECLOSED PROPERTY — PRIVATE RESALE — 5 -IN -5 PROGRAM) Date: 52023 Grantor: THE CITY OF PARIS, as Trustee for itself, Paris Junior College, Lamar County and Paris Independent School District Grantor's Mailing Address (including county): 135 SE l" Street Paris TX 75460 Grantee: Cultiv8Community, a Texas NonProfit Corporation Grantee's Mailing Address (including county): 22524 FM 79 Direct TX 75486 - Consideration: FIVE AND NO/100 DOLLARS ($5.00) and other good and valuable consideration. Property (including any improvements): • Tract 1: "CITY OF PARIS, BLOCK 233, LOT 12", commonly known as 1221 NW 15TH, Paris, Lamar County, Texas [Lamar CAD #17745, $1.00] • Tract 2: "CITY OF PARIS, BLOCK 269, LOT 12", commonly known as 1351 NE 12th, Paris, Lamar County, Texas [Lamar CAD #18376, $1.00] • Tract 3: "CITY OF PARIS, BLOCK 33-A, LOT 9", commonly known as 133 NE 14TH, Paris, Lamar County, Texas [Lamar CAD #13870, $1.00] • Tract 4: "CITY OF PARIS, BLOCK 32-B, LOT 9", commonly known as 116 NE 10TH, Paris, Lamar County, Texas [Lamar CAD #13832, $1.00] • Tract 5: "CITY OF PARIS, BLOCK 32-13, LOT 7", commonly known as 1025 E Houston, Paris, Lamar County, Texas [Lamar CAD #13830, $1.00] Reservations from and Exceptions to Conveyance and Warranty: 1. Rights of the public to any portion of the above described property lying within the boundaries of dedicated or existing roadways or which may be used for road or street purposes. (TAX FORECLOSED PROPERTY — PRIVATE RESALE — 5 -IN -5 PROGRAM), Page l of 4 2. Visible and apparent easements over or across subject property. 3. Rights of parties in possession. 4. Any and all easements, restrictions, covenants, conditions and reservations of record, if any, applicable to the herein conveyed property or any part hereof. 5. Any right of redemption as specified in Chapter 34, Subchapter B, Texas Property Tax Code. 6. All oil, gas, and other minerals reserved by prior grantors. By acceptance of this Deed, Grantee acknowledges and agrees that the Property is being purchased and conveyed "AS IS" with all faults and defects whether patent or latent as of the disclaims�an resentations, warranties or behalf it o title r to the Pro . ert r s �ecifi ates and e other taxing entitles on whose s l ca11 net ves an closing Grantors on behalf of themselves H or otherwise of, as to concerning or with respect to the Property including -without limitation i e n character whether ex press or im died. oral or present fut m ---- guaranties of an m or _ 4 f suitability thereof for anv and all activities and the nature and condition of the ,Pro �ert� and the sus uses which Grantee may elect „to conduct thereon „iithe nature and extent of an�riht-of-way, ease�, ,)osl session,,, lien. encumbrance,,µ license reservation, condition or any other matter relating! in wad to the Prod ert iii°� the compliance of the Pro)erty or its operation an laws ordinances �, . . ' _ ..... . t�' or body,,. iv) the existence ,of any toxic or hazardous slops of an overnment or other authors — ulat or waste in,µ on, under the surface of or about the Propgqy y) mances or r I'l eoloical conditions.bincludid n� without limitation, subsidence subsurface conditions. water table underground water reservoirs, limitationsre ardi the „withdrawal of water and faulting. (vi)whether or not and to the extent to which the Pmro.....o^12 thnth_o.._f is _..... ,.... affected anN, stream surface or underground , body of water, d prone are floodplain, floodw d use restrictions rules wh ch the Pro ert or an� portion thereof matb subtect�ix) he ava lability o and utilities t es to ....m�....�.� ..�.. _..... ._. ' or lap sal flood bazar (vii) ama 1 e viii z t which l y t _ � n. wage. was and electric and .... m — � ycapacities.m�a. o the Pro e4 rte' .... f lit allocated t �. thereof ncludin wthout limitation. the P ncludin r he ut 1 tin ava labso the b the relevant governmental or regulatory authorit �j,usa es of ad oi_nnin -jroppA xi'%. access to the Pro Iq or y portion the ,,,i 1 he.plans and sl ecif cations sizelocati or n rleof d the al n durabil ty structural mte rrt o ieration leasm� title to, ages use. desi � ualit descri �tio e coin �hance with t physical or financial condition of the Property or ani oorton thereof, or an i� ncome, expenses,, ing r to hark, hereof exu�bhenC otent als. s for or lfurtheraims n develoor etme�ertamin propene Prore xiv� the part..�_ M... t _.m.......__l. _ . e 1 nt of the P .. merchantability,` of the „Proy�ert or fitness of the Property for any articular„ lour ose (Grantee affirmm< that Grantee has not wrelied _on Grantors' skill" or pudgy t to selector furnish the Property an art ..... I �purpp§ew,, and that Grantor makes no warrant that the Pro ,)erty, is fit for an for.w..._ particular purpose). Ownership of any single Property conveyed by this deed shall revert to the City of Paris, at its sole option without compensation to the Grantee, should any of the following events occur during the period in which the Grantee has an ownership interest in the Property and during the term of the `5 in 5' Program agreement between the City of Paris and Grantee or Grantee's successors (said agreement is hereby incorporated into this deed by reference as if written word-for-word herein): (1) failure to maintain the property as required by law, evidenced by any affidavit of violation being filed against the Property by the City of Paris (or any other governmental unit) in the deed records of Lamar County, (TAX FORECLOSED PROPERTY — PRIVATE RESALE — 5 -IN -5 PROGRAM), Page 2 of 4 Texas; (2) failure to comply with the requirements of the City of Paris' `5 in 5' Program as evidenced by any affidavit supporting said failure to comply being filed against the Property by the City of Paris in the deed records of Lamar County, Texas; (3) allowing any ad valorem tax on a Property to become delinquent as evidenced by an affidavit of such fact supported by a delinquent tax statement issued by the Lamar County Appraisal District or other tax assessor -collector for the Grantors, and filed in the deed records of Lamar County, Texas; and (4) failure to pay any fee required to be paid by law, evidenced by an affidavit of such fact being filed in the deed records of Lamar County, Texas; before any affidavit relating to contingencies 1-4 above shall be filed in the deed records of Lamar County, Texas, the Grantee shall be given notice of the event causing the reverter and 10 business days to cure (the first day shall be the date the notice is presented to Grantee if hand delivered to the Grantee, otherwise the second business day after the notice is turned over to the United States Postal Service or other delivery service for delivery to the Grantee). All of the taxing units entitled to receive proceeds from the sale of the Property have consented to the private sale of the Property to the Grantee, in advance, as permitted by Section 34.051 of the Texas Property Tax Code; this advance consent is evidenced by that interlocal agreement approved by all Grantors on January 24, 2022, an original being maintained by the City of Paris (approved by: the City of Paris, City Council agenda of January 24, 2022, item #22; Paris Junior College, Regents' agenda of January 24, 2022, item 96; Lamar County, Commissioners Court agenda of January 24, 2022, item #2; and the Paris Independent School District, Trustees' agenda of January 24, 2022, item #4). Grantor, for the consideration and subject to the reservations from and exceptions to conveyance and warranty, grants, sells and conveys to Grantee the property, together with all and singular the rights and appurtenances thereto in any wise belonging, to have and hold it to Grantee, Grantee's successors, or assigns forever WITHOUT WARRANTY. The intent of this Deed Without Warranty is to transfer the property and interests foreclosed on by the Grantor taxing jurisdictions in the Judicial District Courts, Lamar County, Texas, Cause No. 89915, City of Paris v. Unknown Owners of 75 Tract, and no more. 20 When the context requires, singular nouns and pronouns include the plural. IN TESTIMONY WHEREOF, and executed this day of REGINALD B. HUGHES, MAYOR CITY OF PARIS, TEXAS (TAX FORECLOSED PROPERTY — PRIVATE RESALE — 5 -IN -5 PROGRAM), Page 3 of 4 STATE OF TEXAS LAMAR COUNTY BEFORE ME the undersigned authority, on this day personally appeared REGINALD B. HUGHES, as MAYOR, known to me to be the person whose name is subscribed to the foregoing instrument and acknowledged to me that he executed the same for the purposes, consideration, and in the capacity therein expressed. GIVEN UNDER MY HAND AND SEAL OF OFFICE THIS THE DAY OF 20 Notary Public Commission Expires: After recording return to: Cultiv8Community 22524 FM 79 Direct TX 75486 (TAX FORECLOSED PROPERTY — PRIVATE RESALE — 5 -IN -5 PROGRAM), Page 4 of 4