PRESENTER: Presenter
Karrie Cook, Budget Manager
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SUBJECT: Title
Approval of a FY 2024 Budget Amendment to the newly established Economic Development Corporation Capital Fund to properly account for the purchase of property on 263 Main Plaza and Parkland.
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DEPARTMENT: Non-Departmental
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COUNCIL DISTRICTS IMPACTED: N/A
BACKGROUND INFORMATION:
263 Main Plaza:
On 6/10/2024, City Council approved the purchase of 263 Main Plaza through the Economic Development (EDC) Fund. The Real Estate Transfer Agreement transfers the property at a price of $4,550,000 plus closing costs totaling $21,494 to the City to be used by City for qualified expenditures.
Due to the EDC being a component unit of the City, and in order to recognize the purchase of the property as a City asset, the City needs to recognize the purchase of the property in a City Fund similar to a capital improvement fund. The City has established the Economic Development Capital Fund for this purpose of processing and recording City-owned assets and capital projects that are funded by the EDC, until they are transferred to the City as a City asset.
With the establishment of the new fund, a budget amendment is required to recognize the revenues and expenses that are anticipated for this purchase.
Budget Amendment:
Parkland:
City Council approved the purchase of approximately 130 acres of land, legally described as approximately 62.6 acres out of the O Russell Survey No. 2, Abstract 485 and 3982 Hunter Road - approximately 68.163 acres out of the O Russell Survey No. 2, Abstract 485 for a project authorized under 505.152 of the Texas Local Government Code at its 2/12/24 meeting.
Due to the EDC being a component unit of the City, and in order to recognize the purchase of the property as a City asset, along with the proceeds from the related debt issuance, the City needs to recognize the purchase of the property, and the debt issuance, in a City Fund similar to a capital improvement fund. The City has established the Economic Development Capital Fund for this purpose of processing and recording City-owned assets and capital projects that are funded by the EDC, until they are transferred to the City as a City asset.
With the establishment of the new fund, a budget amendment is required to recognize the revenues and expenses that are anticipated.
Budget Amendment:
ISSUE:
N/A
STRATEGIC PLAN REFERENCE:
☐Economic Mobility ☐Enhanced Connectivity ☐Community Identity
☐Organizational Excellence ☐Community Well-Being ☒N/A
FISCAL IMPACT:
This budget amendment will allow for the proper accounting of the purchase of property on 263 Main Plaza and Parkland. These purchases were previously approved on 2/12/2024 and 6/10/2024, therefore this item will establish the budget in the newly created Economic Development Corporation Capital Fund.
Recommendation
RECOMMENDATION:
Staff recommends approval of this amendment.