The property located in Downtown Plano at 701 E 15th Street adjoins property owned by the City of Plano at 777 E 15th Street for the Neighborhood Services Building as well as property acquired by the City in November 2023 at 708 16th Street and 1509, 1511 & 1513 G Avenue for land assembly purposes.  This location will allow Plano to have significant control over approximately 3.27 acres of property that is primed for redevelopment in the near future. The property owner has agreed to sell the property for $4,600,000 after negotiations with a commercial real estate broker representing the City.  This purchase price is supported by market data, including comparable transactions and capitalization rates identified by a third-party appraiser who prepared a valuation report for the City. 

In addition the City will pay $138,000 at closing, or 3% of the purchase price, to Citadel Partners, LLC for real estate services associated with the transaction, including off-market property prospecting, promoting the sale of the property with Polaris 701E15, LLC’s leadership, purchase/sales agreement negotiation, support to City staff during the due diligence and inspection period and transaction closing assistance.  Citadel Partners will also provide post-closing assistance related to existing lease agreements if desired.

The City is exempt from the competitive bid process for these purchases as allowed by Texas Local Government Code Chapter 252 Subchapter B Section 252.022(a)(6).

Funding for this item is available in the Economic Development Incentive Fund.  Purchase of the property at 701 E. 15^th Street, including real estate services fees, has a total price of $4,738,000.  The TIRZ#2 Board of Directors considered the expenditure of TIRZ#2 funds for this acquisition at its April 24, 2024 meeting.  The Board did not recommend expending TIRZ#2 funds for this acquisition.

Approval of this item will support the City's Strategic Plan Critical Success Factor of being an Excellent, Innovative, and Accountable City Government.