R2010-129 - 2010-09-27RESOLUTION NO. R2010 -129
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND,
TEXAS, APPROVING BRAZORIA COUNTY APPRAISAL DISTRICT
RESOLUTION NO. 2010 -2.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS:
WHEREAS, 6.051, TEX. TAX CODE authorizes the Board of Directors of an
appraisal district to purchase real property and improvements as necessary to establish
and operate the appraisal office; and
WHEREAS, the Board of Directors of the Brazoria County Appraisal District have
delivered a copy of resolution #2010 -2 setting forth desire to the purchase property situated
in Brazoria County, Texas known as The Snow Building, 500 N. Chenango, Angleton,
Texas 77515; and
WHEREAS, the Board of Directors of the Brazoria County Appraisal District have
also delivered information showing the costs of available alternatives to purchase the
property situated in Brazoria County, Texas, known as The Snow Building, 500 N.
Chenango, Angleton, Texas 77515; and
WHEREAS, 6.051, TEX. TAX CODE requires that an appraisal district's purchase
of such real property and improvements must be approved by three fourths (3/4) of the
taxing units entitled to vote on the appointment of board members; and
WHEREAS, the referenced provisions of the Texas Property Tax Code authorize
the following action.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF PEARLAND, TEXAS:
RESOLUTION NO. 2010 -129
Section 1. That the Brazoria County Appraisal District's proposal to acquire the
real property and improvements situated in Brazoria County, Texas known as The Snow
Building, 500 N. Chenango, Angleton, Texas 77515 is hereby approved.
ATTEST:
PASSED, APPROVED and ADOPTED this the 27 day of September, A.D., 2010.
,e6 ✓/6 ta
YO GLi; 7 T;'C o f
CI j SE ti' TARY
APPROVED AS TO FORM:
DARRIN M. COKER
CITY ATTORNEY
2
TOM REID
MAYOR
BRAZORIA COUNTY APPRAISAL DISTRICT
MEMBERS OF 1 HI!,BOARD CHIEF APPRAISER
Ro'Vin Garrett
Cheryl Evans
William Hasse 500 North Chenango
Jesse Hibbetts Angleton,Texas 77515
Rubye Jo Knight
979-849-7792
Glenn Salyer Fax 979-849-7984
Patricia Taylor
September 14, 2010
Honorable Tom Reid
Mayor of Pearland
3519 Liberty Drive
Pearland, TX 77581-5416
Dear Honorable Tom Reid,
The Brazoria County Appraisal District has entered into an option contract for the
purchase of the Snow Building in Angleton, where we are currently housed. The district
has occupied the first and second floors of the building for,more than 27 years. Section
'6.051 of the Texas Property Tax Code,gives the board the responsibility to maintain
housing for the district, but makes the decision as to whether to act on a purchase the
responsibility of the taxing jurisdictions.
The district board of directors has provided the attached feasibility study considering five
options for housing the district. After analysis of all considerations, it is the opinion of
district administration and the board of directors that the purchase of the Snow Building is
the most viable option.
During the due diligence phase of the earnest money contract, the district board of
directors had physical inspections of the property conducted by licensed professionals,
including, structural, mechanical, electrical and plumbing systems. Also compliancy
studies were completed regarding accessibility issues and asbestos contamination.
Finally, a survey of the property was conducted. All inspections and/or reports appear to
be consistent and typical for a 27 year old building.
Therefore, on September 14, 2010., the Brazoria County Appraisal District Board of
Directors passed the attached resolution to,proceed with the purchase of the Snow
Building and seek the approval of the taxing jurisdictions, pursuant to Section 6.051 of the
Texas Property, Tax Code, copy attached. It is;the opinion of the Brazoria County Board of
Directors that it would be a benefit to the district and tax payers of Brazoria County if the
Snow Building is purchased. It does not appear at this time that purchasing the building
would have any actual impact on the annual budget required to house the district.
x . Q
Your consideration in this matter is required. We ask that you place the attached
Resolution on the agenda for your next meeting and that you file the completed
Resolution with the Chief Appraiser.
According to Section 6.051 (b) of the Texas Property Tax Code, "On or before the
thirtieth day after the date the presiding officer receives notice of the proposal, the
governing body of the taxing unit, by resolution, may approve or disapprove the proposal.
If a governing body fails to act on or before the thirtieth day or fails to file its resolution
with the Chief Appraiser, on or before the tenth day after that thirtieth day, the proposal is
treated as if it were disapproved by the governing body."
Thank you for your consideration in this matter. If you have any questions, please
contact me.
Respectfully,
0)?it'dAQ 6)C1jY\
Cheryl Evans
Chief Appraiser
Brazoria County Appraisal District
Enclosures:
Resolution adopted by Board of Directors of the Brazoria County Appraisal District on
September 14, 2010
Feasibility Study
Copy of Section 6.0501 of the Texas Property Tax Code
Proposed Resolution to be acted on by Taxing Unit
' I
THE STATE OF TEXAS §
COUNTY OF BRAZORIA §
RESOLUTION NO. 2010-2
OF THE BRAZORIA COUNTY APPRAISAL DISTRICT
WHEREAS, Section 6.051 TEX TAX CODE authorizes the Board of Directors of an Appraisal District to
purchase or lease real property and construct or renovate a building or other improvements as necessary to
establish and operate the appraisal office.
WHEREAS,pursuant to resolution#2010-1,the Board of Directors of the Brazoria County Appraisal
District authorized the district to execute an Earnest Money Contract for the purchase of the Snow Building
located at 500 N. Chenango,Angleton,Texas 77515 from Snow&Brooks Properties, a Texas general
partnership,for the purchase price not to exceed $1,400,000.00.
WHEREAS,the Board of Directors of the Brazoria County Appraisal District desires to purchase said real
property for the purpose of housing its appraisal office thereon;
WHEREAS,the referenced provisions of the Texas Property Tax Code authorized the following action:
NOW THEREFORE,BE IT RESOLVED by the Board of Directors of the Central Appraisal District of
Brazoria County:
❑ RESOLVED,that the Brazoria County Appraisal District is authorized to purchase the Snow Building
located at 500 N. Chenango St.,Angleton,Texas 77515. The total cost of such land purchase and building
on the property shall not exceed $1,400,000.00.
❑ RESOLVED,the Board of Directors of the Brazoria County Appraisal District shall notify the presiding
officer of each taxing unit entitled to vote on the approval of the proposal by delivering a copy of the Board's
Resolution,together with information showing the cost of other available alternatives to the proposal.
❑ RESOLVED,that this Resolution is for the purpose of obtaining the required approval of each taxing unit
entitled to vote on the approval of the proposal.
❑ RESOLVED,that the Chief Appraiser is authorized to execute the necessary documents, agreements, or
contracts to carry out the terms and conditions of this resolution.
PASSED,APPROVED AND ADOPTED this 14th day of September ,2010.
‘ 1/ /fr
Chairman the :.ard o 6 Ire 1 ors
Brazoria County Appraisal District
ATTEST:
Y..:
Secretary of the Board of Directors
Brazoria County Appraisal District
(SEAL)
e� Housing Proposal for
o
Brazoria County Appraisal District
G�Y OF ga°ti September 2010
In compliance with Section 6.051(b) of the Texas Property Tax Code, Brazoria County Appraisal
District is seeking approval by the taxing jurisdictions on the proposed resolution to purchase real
property for the purpose of housing the district office.
The attached analysis is offered as information only to be considered by each jurisdiction as
alternative options to the purchase outlined in the resolution adopted July 13, 2010 by the Brazoria
County Board of Directors.
OPTIONS AND CONSIDERATIONS
OPTION: MAINTAIN CURRENT LEASE
A BCAD leases 15,781 square feet in the Snow Building or 67% of the total
building
B Total lease and payment cost$239,904 annually
1) current base lease - $179,904 annually
2) additional expenses - $60,000 annually
C Assuming no changes in the lease the total cost for 15 years - $3,598,560
D Current leased square footage will require additional cost for storage
E Current leased square footage limits expansion
F Possibility that the building could be sold
II OPTION: PURCHASE VACANT LAND AND CONSTRUCT NEW BUILDING
A Minimum of one acre needed
B Construction of 24,000 square foot building
C Cost to purchase 1-3 acre tract estimated at$350,000 to $500,000
D Construction costs estimated to range from $2,500,000 to $3,800,000
III OPTION: NEGOTIATE NEW LEASE AT DIFFERENT LOCATION
A Seek 16,000— 24,000 square foot building to be leased at typical market rents of
$1.20 to 1.50 per square foot per month or$432,000 annually.
B Requires additional cost of build-out on most leases
C Additional costs incurred for relocation of telephones, computers, etc.
D Loss of district funded upgrades to Snow Building
E Significant cost incurred for packing and transportation of government records
IV OPTION: PURCHASE AN EXISTING COMMERCIAL SITE
A Seek 20,000—24,000 square foot building
1) 1524 E. Mulberry (former Wal-mart) sold 2006 at $995,000 w/build-out cost of
approximately $2,464,000 (total estimated cost$3,459,000 per CoStar)
B Renovation/modification costs in compliance with Texas Government Code
Section 2166.001, IAAO Standard on Facilities (2003) and Americans with
Disabilities Act Accessibility Guidelines (ADAAG)
C Additional costs incurred for relocation of telephones, computers, etc.
D Loss of district funded upgrades to Snow Building
E Significant cost incurred for packing and transportation of government records
V OPTION: PURCHASE SNOW PROPERTY(Preferred— currently leased by BCAD)
A Description—three story 24,849 square foot office building with approximately
17,000 square foot of parking
B Renovation/modification minimal in compliance with Texas Government Code
Section 2166.001 and Americans with Disabilities Act Accessibility Guidelines
(ADAAG) with current use continued
C Cost of ownership $1,400,000 (see addendum 1 for breakdown and financing
options)
D Increased expenses for maintenance, etc.
1) utilities—estimated at$17,000 per year
2) insurance— estimated at$14,000 per year
3) maintenance— estimated at$21,000 per year
4) contingency fund- $5,000 per year
E Snow Building appraisals:
a appraised value
1) 2001 fee appraisal approximately$1,300,000
2) 2009 fee appraisal approximately$1,400,000
To summarize: the research conducted by the Brazoria County Appraisal District Board of
Directors and thru due diligence on the part of the Brazoria County Appraisal District, Option V
appears to be the most economically attractive: Option I clearly indicates that the building has
been paid for already-in a 15 year lease period the district spends approximately$3,598,560;
Option II would be the most time restrictive and would incur costs exceeding$3,000,000; Option
ill would be limited to market availability and would incur additional costs with build-out and
relocation costs; and Option IV is limited to market availability and would incur relocation costs.
In conclusion, the inspections of the Snow Building validate that the
quality of construction is above average and any required repairs
would be typical for the maintenance of a 27 year old building. To
continue the current lease will require $239,904 of the district's annual
budget; however purchasing the building would require an estimated
$226,783 annually— approximately $13,121 savings in housing the
appraisal district.
PROJECTED ANNUAL COSTS:
LEASING off...... OWNING :�x_..;'`= {a'� .. .... SAVINGS'
$179,904 $106,283
+$ 60,000 (expenses) +$120,500 (expenses)
$239,904 $226,783 = $13,121
§ 6.051 PROPERTY TAX CODE § 6.051. Ownership or Lease of Real Property
(a)The board of directors of an appraisal district may purchase or lease real property and may
construct improvements as necessary to establish and operate the appraisal office or a branch
appraisal office.
(b)The acquisition or conveyance of real property or the construction or renovation of a building
or other improvement by an appraisal district must be approved by the governing bodies of three-
fourths of the taxing units entitled to vote on the appointment of board members. The board of
directors by resolution may propose a property transaction or other action for which this
subsection requires approval of the taxing units. The chief appraiser shall notify the presiding •
officer of each governing body entitled to vote on the approval of the proposal by delivering a
copy of the board's resolution, together with information showing the costs of other available
alternatives to the proposal. On or before the 30th day after the date the presiding officer receives
notice of the proposal,the governing body of a taxing unit by resolution may approve or
disapprove the proposal. If a governing body fails to act on or before that 30th day or fails to file
its resolution with the chief appraiser on or before the 10th day after that 30th day,the proposal
is treated as if it were disapproved by the governing body.
(c)The board of directors may convey real property owned by the district, and the proceeds shall
be credited to each taxing unit that participates in the district in proportion to the unit's allocation
of the appraisal district budget in the year in which the transaction occurs. A conveyance must be
approved as provided by Subsection(b) of this section, and any proceeds shall be apportioned by
an amendment to the annual budget made as provided by Subsection (c) of Section 6.06 of this
code.
(d)An acquisition of real property by an appraisal district before January 1, 1988, may be
validated before March 1, 1988, in the manner provided by Subsection (b) of this section for the
acquisition of real property.
Added by Acts 1987, 70th Leg., ch. 55, §2,eff. Jan. 1, 1988.