STRATEGIC PRIORITY: Economic and Neighborhood Vitality
AGENDA DATE: February 26, 2020
COUNCIL DISTRICT(S): 4, 7
DEPARTMENT: Department of Housing & Neighborhood Revitalization
EXECUTIVE: Michael Mendoza
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SUBJECT
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Authorize (1) an amendment to the Purchase and Sale Agreement and the Development Agreement between the Dallas Housing Acquisition and Development Corporation (DHADC) and Marcer Construction Company, LLC (Developer), for the sale and development of eight single family homes pursuant to the Urban Land Bank Demonstration Program to correct errors in the purchase price of each property; and (2) a reimbursement to the Developer in the amount of $45,000.00 by DHADC - Estimated Revenue Foregone: Non-tax City Liens $145,016.26
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BACKGROUND
On June 18, 2003, Governor Rick Perry signed the Urban Land Bank Demonstration Program Act. The Act allows the governing body of a municipality to adopt an Urban Land Bank Demonstration Program in which the officer charged with selling real property ordered sold pursuant to foreclosure of a tax lien may sell certain eligible real property by private sale to a land bank for the purpose of affordable housing development. On January 28, 2004, City Council designated the DHADC as its land bank for the purpose of acquiring, holding, and transferring unimproved real property pursuant to 379C of the Texas Local Government Code by Resolution No. 04-0458.
In June of 2019, Marcer Construction Company, LLC (Developer) submitted a proposal to purchase eight vacant lots from the DHADC. City staff evaluated the proposal pursuant to the standards set forth in the land bank application, which included determining whether Developer met the eligibility standards to be deemed a "Qualified Participating Developer" under Chapter 379C and underwriting the proposal. City staff scored the proposal and compared it with the scores assigned to all other proposals submitt...
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