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20 - Donation of certain property adjacent to Boys and Girls Club of the Red River Valleymemorandum Item No. 20 TO: City Council Robert G. Vine, Interim, City Manager FROM: Stephanie H. Harris, City Attorney SUBJECT: Donation of land to the Boys and Girls Club of the Red River Valley for expansion of current facility DATE: August 12, 2024 BACKGROUND: As you are no doubt all aware, the Boys and Girls Club of the Red River Valley (the "Club") operates a facility located at 1530 NE 1St St. at which it provides childcare, recreational, and sports programs benefitting the children, youth and families of Paris and the surrounding area. The Club provides a safe place for youth, including at risk youth, and its programs fulfill a public need. The Club has outgrown its current facility and has commissioned plans for expansion so that it can continue to serve the families it currently serves and expand the programs to serve more families. The land that the Club currently owns on NE 1St St. will not accommodate any expansion of the facility. The City owns property adjacent to the Club on the East (the "Property).' This property has two baseball fields on it, but neither have been used in many years. On December 14, 2020, the Club approached the City Council to request that the City donate the Property to the Club to facilitate the expansion. At that same meeting, Council approved the conveyance subject to the conditions discussed below. The Property has been the subject of many leases over the course of a period of decades, both to the Club and to the Red River Valley Fair Association ("RRVFA"). At one time, the Club leased all of the Property and used the fields in its baseball program. The Club eventually discontinued its baseball program, and on March 27, 2006 the City released the lease with the Club on the property to the far east known as "Reese Field." Prior to that time, going back at least as far as 2001, the City had leased the property to both entities on a rotating basis, under which the Club would have use of it during baseball season, and RRVFA would have use of the property for 1 After replatting as explained below, the Property is described as All of Lot 1, Block 14 of the Replat of the Henry Clements "Fairview Addition" according to the Replat filed of record in Envelope 495B, Lamar County Plat Records. I have included an aerial view of the Property at the end of this Memorandum with an inexact representation of what is to be conveyed. parking during the other months to accommodate parking for Red River Valley Fair and other events. After the City and the Club agreed to end the Club's lease to the Reese Field property, via Resolution 2006-051, City Council approved Addendum Number One to Lease Agreement Dated March 10, 1997, Between the Red River [sic] Fair Association and the City of Paris, Texas which incorporated the Reese Field property into the overall lease between the City and RRVFA. Said lease is set to terminate on March 31, 2027. Consequently, the conveyance of the Property will need to be made subject to this lease with In addition, as a general rule, a municipality may not simply donate real property to a private party; however, this general rule has several exceptions, including conveyance to a nonprofit entity for a public use. This exception is codified in Tex. Local Gov. Code Sec. 253.011, which provides that the deed conveying the property must contain a clause stating that if the grantee ever ceases to use the property for the public purpose, the land automatically reverts back to the ownership of the municipality. Finally, prior to conveying the property to the Club, the Property required subdivision since the fields were part of a larger tract. STATUS OF ISSUE: After several fits and starts, the replat is complete and the Club is ready to move forward with its expansion plans. Before you is a resolution approving the conveyance subject to the reverter requirement on the entire Property and the RRVFA lease on the Reese Field portion, and authorizing the Mayor to execute the No Warranty Deed (Subject to Reverter and Lease) attached thereto. BUDGET: NA RECOMMENDATION: Approve a resolution conveying the property east of the Boys and Girls Club of the Red River Valley to the Club and authorize the Mayor to execute a No Warranty Deed (Subject to Reverter and Lease) and any other documents necessary to effectuate the conveyance. RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS APPROVING THE DONATION OF CERTAIN REAL PROPERTY TO THE BOYS AND GIRLS CLUB OF THE RED RIVER VALLEY; FINDING THAT SUCH DONATION IS FOR A PUBLIC USE; AUTHORIZING THE MAYOR TO EXECUTE A NO WARRANTY DEED TO EFFECTUATE SAID DONATION; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE. WHEREAS, the Boys and Girls Club of the Red River Valley (the "Club") is a non-profit corporation of long standing serving the children and youth of Lamar County through its childcare, recreational, and sports programs; and WHEREAS, such programs have shaped many lives over a period of decades, and the Club provides essential services which greatly benefit the public; and WHEREAS, the Club owns and operates a facility located at 1530 NE 1St St. in the City of Paris (the "Facility"); and WHEREAS, the existing Facility is in need of renovation and is no longer sufficient in size to accommodate the many families in need of its programs, and the Club has commissioned plans to expand and update the Facility; and WHEREAS, the Club does not own real property sufficient to accommodate the planned expansion of the Facility; WHEREAS, the City owns property described as all of Lot 1, Block 14 of the Replat of the Henry Clements "Fairview Addition" which is adjacent to the Club (the "Property") and which has not been used by the City for many years; and WHEREAS, on December 14, 2020, the Club's board of directors approached City Council requesting that the City donate the adjacent Property to the Club to provide the space for the planned expansion; and WHEREAS, at that time, the Property required replatting in order to facilitate such a donation; and, WHEREAS, Texas Local Government Code Sec. 253.001 provides that municipality may convey real property to a qualifying non-profit corporation if the use of the property will be for a public use, provided that the conveying instrument must provide that if the property ceases to be used for said public use, it shall revert back to the municipality; and WHEREAS, on December 14, 2020, City Council voted unanimously to do donate the Property to the Club subject to replatting and the condition that the Property revert back to the city if it ever ceases to be used for a public purpose; and WHEREAS, the replatting process has now been completed; and WHEREAS, the far eastern portion of the Property, formerly known as "Reese Field," is under lease to the Red River Valley Fair Association, and the conveyance of the property must be made subject to that lease; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, THAT: Section 1. That the findings set out in the preamble to this resolution are hereby in all things approved. Section 2. That the programs offered by the Boys and Girls Club of the Red River Valley, a Domestic Nonprofit Corporation, serve a public purpose in providing safe childcare, sports, and recreational activities to the children, youth, and families of the area, including the residents of the City of Paris; that these programs fill a vital public need; and that the use of property for the provision of those services constitutes a public use. Section 2. That the City Council of the City of Paris, Texas, hereby approves the conveyance of the land described as All of Lot 1, Block 14 of the Replat of the Henry Clements "Fairview Addition" according to the Replat filed of record in Envelope 495B, Lamar County Plat Records subject to the following two provisions: a. To satisfy the requirements of Texas Local Government Code Sec. 253.001, the No Warranty Deed (Subject to Reverter and Lease) attached here as Exhibit A, shall contain a reverter clause providing that the Property shall be continuously used by the Grantee for charitable and benevolent purposes supporting the youth of the Red River Valley by providing childcare and recreational opportunities, and should Grantee or a subsequent Assignee cease to use the Property for this purpose, the Property shall immediately revert to the City. b. That said conveyance is subject to the City's lease to the Red River Valley Fair Association of the portion of the Property formerly known as "Reese Field," which lease is set to expire on March 31, 2027. Section 3. That the City Council hereby authorizes the Mayor to execute the No Warranty Deed (Subject to Reverter and Lease) attached hereto as Exhibit A and any other documents necessary to effectuate this conveyance. Section 4. This resolution shall be effective immediately upon passage. DULY PASSED AND APPROVED this 12th day of August, 2024. Mihir Pankaj, Mayor ATTEST: Janice Ellis, City Clerk APPROVED AS TO FORM: Stephanie H. Harris, City Attorney Exhibit A 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 NO WARRANTY DEED (SUBJECT TO REVERTER AND LEASE) Date: June 25, 2024 Grantor: THE CITY OF PARIS, a municipality Grantor's Mailing Address: 135 SE 11t Street Paris, Texas 75460 Grantee: The Boys and Girls Club of the Red River Valley, a Domestic Nonprofit Corporation Grantee's Mailing Address: 1530 NE 11' Street Paris, Texas 75460 Consideration: As a gift to the Grantee, for the Public good, subject to the Fee Simple Determinable Condition detailed below. Property (including any improvements): All of Lot 1, Block 14 of the Replat of the Henry Clements "Fairview Addition" according to the Replat filed of record in Envelope 495B, Lamar County Plat Records. Reservations from and Exceptions to Conveyance and Warranty: Fee Simple Determinable Condition: The property shall be continuously used by Grantee for charitable and benevolent purposes supporting the youth of the Red River Valley by providing childcare and recreational opportunities. If Grantee or its successors and/or assigns (of like charitable nature) fails to use the property for this purpose, this property shall immediately revert to Grantor. Lease: Subject to Lease with Red River Valley Fair Association, a copy of which has been provided. Grantor, for the Consideration and subject to the Reservations from Conveyance and the Exceptions to Conveyance, grants, gives, and conveys to Grantee the Property, together with all and singular the rights and appurtenances thereto in any way belonging, to have and to hold it to Grantee and Grantee's heirs, successors, and assigns forever, without express or implied warranty. All warranties that might arise by common law as well as the warranties in section 5.023 of the Texas Property Code (or its successor) are excluded. When the context requires, singular nouns and pronouns include the plural. THIS INSTRUMENT WAS PREPARED SOLELY FROM INFORMATION AND ON INSTRUCTIONS GIVEN TO US BY OUR CLIENT. NO TITLE OPINION, TITLE EXAMINATION, OR OTHER INFORMATION HAS BEEN FURNISHED TO US IN CONNECTION WITH ITS PREPARATION. THE CITY OF PARIS I Ilya ACCEPTANCE OF GIFT: THE BOYS AND GIRLS CLUB OF THE RED RIVER VALLEY (Acknowledgment) STATE OF TEXAS COUNTY OF LAMAR This instrument was acknowledged before me on 2024 by ..� of the City of Paris, acting in his official capacity for the benefit of T he City of Paris. Notary Public Acknowledgment) STATE OF COUNTY OF This instrument was acknowledged before me on _._, 2024 by of the City of Paris, acting in his official capacity for the benefit of The Boys and Girls Club of The Red River Valley. Notary Public AFTER RECORDING RETURN TO: PREPARED IN THE LAW OFFICE OF: The Boys and Girls Club of The Red River Valley Sydney Young 1530 NE ls` Street 2765 NE Loop 286 Paris, TX 75460 Paris, TX 75460