The City Council considered and denied a term sheet to sell property at the northwest corner of Park Boulevard and K Avenue to the Plano Housing Authority (PHA) at its June 8, 2020 meeting.  This proposal would have provided $900,000 in compensation to the City through $45,000 annual installments for the PHA to develop approximately 254 multifamily units of mixed income workforce housing on the property.

Following the June 8, 2020 meeting the City entered into a listing agreement with DFW Lee & Associates to solicit offers for the property from the open market.  The listing was open from July 6 through September 14.  The highest offer received for the property was from the Plano Housing Authority. 

Staff requests approval to negotiate a sales agreement with PHA and authorization for the City Manager, or his designee, to execute all necessary documents to effectuate the sale with the following terms:

• PHA will pay $2,000,000 for the property.
• PHA will obtain a 99 year lease for the adjoining property at 2501 K Avenue to redevelop the current tire shop to an open space that will enhance its planned development.
• The City will provide good, marketable and indefeasible fee simple title to the Property.
• PHA will partner with MVAH Partners and Auxano Development (Partners) to develop a multi-family transit oriented development located next to the Parker Road DART Station with affordable and market rate units.
• PHA and Partners will have a 14-month inspection period to perform due diligence and site assessment and obtain necessary zoning approvals, permits, utility connections, and apply for a reservation of tax exempt bonds from the Texas Bond Review Board for the planned development.  So long as PHA are diligently proceeding with the due diligence and approvals, PHA and Partners shall have one (1) 12-month extension of the inspection period exercisable on 30 days written notice from PHA.
• Closing within 30 days of the end of the Inspection Period.
• A claw back provision providing the City the option to repurchase the property for its sale price less the earnest money paid by PHA if redevelopment activity has not occurred within 90 days after closing.

This item authorizes the City of Plano's sale of property at the northwest corner of K Avenue and Park Boulevard to Plano Housing Authority for a total of $2,000,000. 

Approval of this item supports the Strategic Plan Critical Success Factor of Residential and Commercial Economic Vitality.