Welcome to this meeting of the Denton City Council.

The time is 4 p.m.

We have a quorum, so I'll call this meeting to order.

First item on the agenda is citizen comments on consent agenda items.

Do we have any comments?

Seeing none, we'll move on to item number two requests for clarification on agenda items listed on the agenda for public hearing and individual consideration.

We do have item E will be pulled for a separate vote on the consent agenda.

Any other questions or seeing none?

We'll move on to work session reports number three, item A, ID 25-2294.

Receive a report, hold the discussion, and give staff direction regarding the use and potential disposal of real property tracts owned by the City of Denton.

Good afternoon.

Deanna Cody, Deputy Director for Real Estate.

I'm lucky to be the only one, I guess, is first to provide the council with information on the city's property inventory, the criteria that staff use to identify unneeded or underutilized properties that could potentially be deemed surplus, and the methods of sale that are available to the city to dispose of any surplus real property.

Secondly, staff will be requesting direction from the council on implementing the criteria to identify surplus property going forward and moving forward with the bid sale of the identified surplus properties.

There is a closed meeting placeholder if desired for further property discussions later.

So city the city has approximately 650 acres or tracts of land on 4700 acres in the city inventory.

But also they include city facilities like City Hall, the Development Services Center, Parks and Recreation.

And those are reflected by ownership in the charts.

So last year staff received a consultant recommendation to incorporate a process to evaluate the city's real property assets to identify opportunities for either reuse, repurpose, or to sell some of the properties as surplus.

Additionally, there was an opportunity that was this was an opportunity that was identified by the 2025 budget task force.

Once implemented, it's it will be essential to continue a collaborative review with each operating department, and those efforts will be time to coincide with the city's annual budget process.

The overall goal is to prevent long-term inactive or unprogrammed assets.

And when a property no longer supports those initiatives, it's to develop or determine potential reuse opportunities.

There we go.

Staff has developed criteria to identify surplus property, including considering the physical characteristics of the properties, and whether or not these properties were previously listed for sale and did not sell, and if they were no longer needed for the project for which they were originally acquired.

Staff then collaborated with the operating departments to gain their input on their current or identified future uses that may have been noted or not in a master plan.

And we consulted with the finance department to identify any potential revenue restrictions based on the funding that was used to procure the properties.

So once we've identified the properties, there are two methods that are available to the city to dispose of the surplus properties.

The first is by sealed bid, which is an auction process, and second is by direct sale.

For sealed bid sales or bid sales, the process includes advertising the properties for at least two consecutive weeks in the local newspaper.

Bidders would submit a packet and move through the typical procurement process.

And at closing of the bid, those bids would be compiled and presented to the council to either accept or reject the bid offers.

For direct sales, the process may also include a public notice by advertising in the local paper.

Now that we've looked at the proposed criteria to identify surplus property and the methods of sale that are available to the city to dispose of them.

Here's a list of seven properties in the likely order of sale.

You'll notice there's a star by the first property on the list, and that denotes that staff has received a license application to potentially use the property, but it is going through an evaluation process through staff, and that license would likely require a specific use permit and other board and commission approvals.

Those if the city decided to move in that direction for the license, which they can do, and still move forward with the sale, the timing of the sale could potentially be impacted.

And a close-up of the seven properties, which you each have also received a handout in the legal status report last week.

And so again, I'll say if there were specific questions regarding any of the property, there is a closed meeting option that's available to us.

So moving to staff recommendations, we recommend that we move forward with the stated criteria that's been identified to identify and sell surplus property, that we sell the currently identified surplus property by a sealed bid auction, potentially setting a minimum bid or reserve price, and provide the council.

We will provide the council with uh periodic milestone updates as we move closer to a potential sale, and we will do that through either an informal staff report or through a legal status report.

Ultimately, the staff will bring the result of the bids forward to the city council for consideration, and we anticipate doing that in about four to six months.

If all of the properties were to sell based on staff's estimation, and that's if all of the properties were to sell, the sealed bid could result in between one and two million dollars in revenue.

So finally, again, noting the staff's request for direction, it's direction to accept staff recommendations and proceed with the the process and criteria used to identify surplus property, and secondly, is to sell the properties that we have identified as surplus by the sealed bid process.

And that is the end of the presentation.

Thank you so much.

Questions for staff, Councilmember Beck.

Thank you, Mayor Pratim.

Um if I understand the process correctly, you want direction now, or you want direction in closed.

No, the direction would be given in open in open session.

Okay.

So if we have questions about any particular property, you want us to bring that up and closed.

Specific questions should be addressed in in close.

Okay.

I I do have questions about one of the properties.

Okay.

Councilmember Holland.

Thank you.

open an open session okay so if we have questions about any particular property you want us to bring that up and closed specific questions should be uh addressed and and closed okay i i do have questions about one one of the properties okay council member holland thank you come on there you go um i think advertising the stuff in the newspaper is an antiquated notion um i i think if we were to do that and only do that the world would come down on us and say i didn't have any idea you were gonna sell that property i would have liked to have bid on it i think a big honking sign on the property uh this property available for sale or something to that effect because the people that are driving up and down the road are the are the guys that are most likely going to be interested in that thank you i'm I'm gonna I'm gonna take your nod as a as agreeing with me yes the newspaper is just a the statutory requirement I understand that I understand we do have other uh marketing options available to you we could we could tack it up on the saloon post as well you know there's a lot of ways we could do that um the bid process are are you presuming we do this um so we we take bids and it it's my understanding that when the bids come in and that's a that's a date certain uh four months you said that's gonna be roughly June July that's when we anticipate advertising the properties for sale advertising yes okay there's a packet that each bidder would be expected to complete and they would submit that packet of information and you will have a uh a floor price that you will accept I presume we can we can establish that um a minimum bid price or a reserve we could certainly do that okay but assuming that that bids that come in on this date certain we have to proceed with that at that point right the the council would not be obligated to accept any bids just like any of the other bids um throughout the procurement process if the council was not satisfied with the bid they could reject that bid any of those bids even if it met the criteria of the of the bid is that right yes okay um how does the um c a d price of uh the appraisal uh on the at the c ad affect the the the asking price on this property on these properties it it doesn't necessarily affect the asking price the the central appraisal district value is the value that they use for taxation purposes it could potentially be used as a floor um generally speaking DCAD values are lower than market value so that's what I keep telling okay generally speaking that is what we found to be true okay okay thank you thank you for this uh thank you mayor for Tim uh I would like to go with the staff's recommendation thank you all right thank you any questions I'd like to go with the staff recommendation simply to come back if this is the time for us to get started one time coming council member just yes thank you um uh I also agree with staff's recommendation uh moving forward thank you all right thank you I'll add myself to that as well council member beck would you like to give direction now or wait uh I I I will let's find out if if I can if I can take staff's recommendation on all but one do you you want me to how do you want me to give that I'm I'm just trying to follow process like do you want me to say everything but number I believe that's your can I do that that way option okay then then I I I um agree with staff's recommendation and I just have a question on number two before I can give direction okay all right thanks everybody thank you so much appreciate it uh and with that uh we will go uh with the city council will now at 415 p.m convene in a closed meeting to deliberate the closed meeting item set forth in the agenda which includes the following we're gonna go a little out of order um we're gonna start with number three ID 26-0314 consultation with attorneys under Texas government code section 551.071 followed by number one ID 26-0261 dash deliberations regarding real property under Texas government code section 551072 the time is 630 we have a quorum so I'll call this meeting back to order first thing on the agenda is the pledge of allegiance to the U.S.

Honor the Texas flag.