PRESENTER: Presenter
Matthew Eckmann, Assistant Director of Public Works
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SUBJECT: Title
Discuss and consider the transfer of the real property addressed as 1488 South Seguin Avenue to New Braunfels Utilities and authorizing the City Manager to execute all necessary agreements.
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DEPARTMENT: - City Manager’s Office and Public Works
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COUNCIL DISTRICTS IMPACTED: All
BACKGROUND INFORMATION:
In July 2022, the New Braunfels Police Department vacated the former police headquarters building located at 1488 South Seguin Avenue. The City has determined that there is no further operational use for this building and conveying it for fair market value is in the best interest for the City and its citizens.
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ISSUE:
New Braunfels Utilities (NBU) continues to experience exponential growth in its service area and plans to hire 68 full-time employees in the fiscal years. Additional operational space is needed to accommodate this growth. Additionally, delays in the design and construction of their new Headquarters facility have necessitated the need to find additional space in the interim until that project is completed which is expected in 2027. Shortly after the building was vacated, NBU approached City Staff with an interest in acquiring the site for this use and agreed to compensate the city fair market value which was determined by an appraisal performed by an independent fee appraiser.
FISCAL IMPACT:
NBU has agreed to the fair market value of the property which was assessed at $2,900,000. NBU will make a $400,000 cash down payment at the time of the transfer and the remainder of the $2,500,000 will be credited toward the $5,000,000 balance the City owes to NBU for the transfer of the NBU service center that the City acquired in 2020.
Recommendation
RECOMMENDATION:
Staff recommends approval of the transfer of this real property to NBU.