City To Purchase TxDOT Property

Editor

The city of Canton will be purchasing four acres and facilities located on the old Texas Department of Transportation (TxDOT) site located on east State Highway 64.

This purchase was approved during a meeting last week, where the city council voted to adopt a resolution authorizing the city manager to purchase the four acre tract located on SH 64 east in the D. Towns survey, A-845, and to borrow funds for the purchase and property improvements.

"We have a very unique opportunity," mayor Rusty Wilson said, explaining that the police department facility is rented.

He went on to explain that other portions of the city hall are rented.

In a press release from the city of Canton it states, "The city initiated two appraisals on the site which developed appraised values of $350,000 and $380,000. The original appraised value by the state’s appraiser in 2005 indicated the value at $600,000. A second review of that appraisal decreased the value of the improvements, and the state accepted the $400,000 offer of the city."

The TxDOT property was originally offered in 2007 to the county, Canton ISD and the city. Bids from interested parties were taken on the site which contains several barns, service facilities and structures.

"We are real tight on space as it is now," he continued. "We have an opportunity to purchase the old TxDOT property that is out on 64."

Wilson explained that there is a tower available for installation of radio equipment, area for parking vehicles, and an area for maintenance work.

The press release went on to explain that the city will "borrow $500,000 to purchase and refurbish the primary facility for use as the police station and municipal court. The city’s current police and courts building on Buffalo Street is being leased for $2,750 per month or $33,000 per year. The amount budgeted for lease on the Buffalo Street facility will now be applied to the debt payment.

"Additionally, the city leases a portion of the Spruiell Building for city offices for $1,600 per month or $19,200 per year. At the end of that lease the city will be able to transfer several employees into another building on the TxDOT site and apply the lease payment to the debt payment."

"It has the ability for us to relocate the police department and we will actually own the property with the availability to grow," Wilson said.

Wilson said "the state came to us and wanted more than $600,000 for the property. We felt like that was too much. We had two independent surveys done and they both came back significantly less."

The last survey came back at approximately $380,000.

"We elected to make an offer to the state for $400,000 for that property," Wilson said. "That will allow us, because of the rent that we pay, to subsidize the debt structure on that property. We will be able to pay the debt structure on that for the same monies that we are paying the rent."

"It’s a real good situation for the city," Wilson said.

Although he pointed out they would like the police department to be closer in the city, it will still be located within the city limits, and it is on a major highway.

The office portion of the building, which will be slightly renovated for the police department, Wilson said is in "very good shape."

He went on to say the council will not be moving city hall out to the SH 64 location.

"There is a site there that is high enough altitude that we could put a future water tower out there without having to go out and purchase more land for that," Wilson further noted.

Wilson also mentioned that the lease for the police department is up September 30, and the lease for the city property at the Spruiell Building is up in May.

"Unless we are able to negotiate a term of 60 days, six months or something like that, we may have to sign a lease on that piece for another year," he said.

According to the press release "The TxDOT site was cleared in October of 2006 for any environmental issues by the Texas Commission on Environmental Quality."