AGENDA CAPTION:
Title
Consider approval of Resolution 2018-142R, approving a contract with the San Marcos River Foundation, Inc. for the City to purchase approximately 249 acres of land, commonly referred to as the “Millican Tract,” in the vicinity of Palomino Lane and Country Estates drive for a price of $3,062,700.00 to be reimbursed through a partially forgivable loan from the Texas Water Development Board; authorizing the City Manager to execute said contract and related closing documents on behalf of the City; and declaring an effective date.
Body
Meeting date: August 7, 2018
Department: Eng/CIP
Amount & Source of Funding
Funds Required: $3,062,700
Account Number:
Funds Available: Click or tap here to enter text.
Account Name: TWDB CWSRF Loan proceeds
Fiscal Note:
Prior Council Action: Discussion and approval to apply for Texas Water Development Board funds to purchase the tract.
City Council Strategic Initiative: [Please select from the dropdown menu below]
Stormwater
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Comprehensive Plan Element (s): [Please select the Plan element(s) and Goal # from dropdown menu below]
☐ Economic Development - Choose an item.
☒ Environment & Resource Protection - Public & Private Sector Partnership to Protect Water Quality & proper development in San Marcos and Blanco Rivers
☒ Land Use - Set appropriate density & impervious cover limitations in environmentally sensitive areas to avoid adverse impacts on water supply
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☐ Not Applicable
Master Plan: [Please select the corresponding Master Plan from the dropdown menu below (if applicable)]
Vision San Marcos - A River Runs Through Us
Background Information:
This action is approving a contract with the San Marcos River Foundation for the purchase of the 248 acre “Millican Tract”. In February 2017 the San Marcos River Foundation (SMRF) approached the City regarding purchasing properties for source water protection for the Edwards Aquifer and San Marcos River. The City subsequently applied for and was approved for a loan with loan forgiveness from the Texas Water Development Board (TWDB) for Non-Point Source Protection under the Clean Water State Revolving Fund program. Approval of the contract will allow the City to close on the property and then close on the loan from the TWDB.
Final purchase price of just over $3M is greater than the original discussion price of $2.8M but is less than the appraised value. The price reflects costs that have been incurred by the SMRF since the purchase. The budget with the TWDB has been adjusted to reflect in purchase price increase but the approved loan amount has remained the same. The additional funds have been moved from the contingency and fencing budgets. The loan closing should come to Council in 60-90 days for approval.
Council Committee, Board/Commission Action:
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Alternatives:
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Recommendation:
Approve contract