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CITY COUNCIL AGENDA MEMO |
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| | | | | | | | | MEETING DATE: | 10/28/2024 | | DEPARTMENT: | Special Projects | | DIRECTOR: | Peter Braster, Director of Special Projects | | AGENDA ITEM: | Interlocal Agreement with Plano ISD Regarding Surplus PISD Property | | RECOMMENDED ACTION: | Approval of Contract / Agreement |
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| | | | | | | | ITEM SUMMARY To approve an Interlocal Agreement by and between the City of Plano, Texas and Plano Independent School District regarding the proposed sale of real property; and authorizing the City Manager to execute all necessary documents. Approved
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| | | | | | | | BACKGROUND In September 2023, Plano Independent School District (Plano ISD) took action under their Board of Trustee approved Strategic Plan and formed a committee to study and make recommendations regarding the long-term use of district facilities. The year-long study identified four campuses for closure after the 2024-25 school year: Armstrong Middle School, Carpenter Middle School, Forman Elementary School and Davis Elementary School. In May 2024, the School Board approved a resolution outlining the process by which Plano ISD would address any real property which was declared surplus. At its September 17, 2024, work session, Plano ISD's Board of Trustees declared Armstrong Middle School, Davis Elementary School and Forman Elementary School to be surplus property, while electing to retain Carpenter Middle School for potential repurposing for other educational uses in the future. See attached map for location of the three surplus properties.
As part of its process for selling surplus real property, Plano ISD has chosen to first offer surplus property to the municipality in which it is located. Should the municipality decline the offer, surplus property would be placed on the open market to be sold. This interlocal agreement (attached) provides the framework for Plano ISD and the City of Plano to work cooperatively towards the transfer of the three surplus properties to the City. Under the proposed agreement the City will have the following obligations:
- Offer a purchase price for each of the three tracts based on their fair market value determined by a certified appraiser and negotiate in good faith with Plano ISD.
- Obtain Phase I and if necessary Phase II environmental site assessments for each of the three tracts.
- Cooperate with Plano ISD to determine future uses for each of the surplus properties which will benefit the community consistent with properties current setting which will maintain the integrity of each properties surrounding neighborhood.
- Assume responsibility for any future development costs for repurposing the surplus properties.
- Consider honoring the namesake of the schools as part of the future name of property/facilities that may be developed.
Plano ISD will have the following responsibilities under the agreement:
- Negotiate in good faith with the City
- Cooperate with the City to determine future uses for each of the surplus properties
- Undertake the demolition of school buildings on other structures on each of the properties if the demolition would be consistent with identified future uses of the surplus properties and approved by the Plano ISD Board of Trustees.
The term of the interlocal agreement is one year and specifies August 31, 2025 as the intended closing date for the sale of surplus properties by Plano ISD to the City. It does not require Plano ISD to accept an offer from the City, nor does it prevent the City from withdrawing the offer(s). At present, both Plano ISD and City staff believe the fair market value of the three surplus properties to total approximately $13 million based on 2024 Collin Central Appraisal District land valuations.
Plano ISD's Board of Trustees approved the interlocal agreement at its October 22nd meeting. Staff recommends approval of this interlocal agreement as submitted. |
| | | | | | | | FINANCIAL SUMMARY/STRATEGIC GOALS This item has no financial impact.
Approval of this item will support the City's Strategic Plan Critical Success Factors of being an Excellent, Innovative, and Accountable City Government. |
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