ARTICLE III SALE, EXCHANGE, ABANDONMENT, ETC., OF REAL PROPERTY OF CITY [1]

Finding.

If the city council determines that a public right-of-way, alley, easement, or other real property interest owned or held by the city is not needed and will not be needed in the future for public or municipal purposes, the city council may adopt an ordinance vacating or abandoning that public right-of-way, alley, easement, or other real property interest.

Recording.

Upon the adoption of an ordinance vacating or abandoning a public right-of-way, alley, easement, or other real property interest owned or held by the city and upon collection of the abandonment fee, the city shall file notice of such vacation or abandonment in the Dallas County Real Property Records. Recording fees shall be included in the application fee.

Application.

Applications may be filed by a property owner whose property is encumbered or abuts a public right-of-way, alley, easement, or other real property interest, for the abandonment of or vacating of all, or a portion of, the encumbered or abutting public right-of-way, alley, easement, or other real property interest. An application will not be considered if the portion of the area being closed, abandoned, and/or vacated provides the only ingress to or egress from any property. Applications must at a minimum include the following:

A non-refundable application fee as established by section 2-9 of this chapter, which also authorizes additional fees upon application approval, including administrative costs incurred for processing and costs for the market value of any property interest conveyed to the applicant in certain cases;

A metes and bounds legal description of the proposed abandoned/vacated area;

A plat or drawing depicting the area to be abandoned/vacated;

§ 2-7 Provisions for sale or exchange of real property.

Copies of recorded deeds showing current ownership of all property abutting/adjacent/underlying the area proposed to be abandoned/vacated;

(5)

A notarized consent form for all owners of property abutting/adjacent/underlying the area proposed to be abandoned/vacated. The city manager and/or his/her designee may waive this requirement when in his/her opinion, such written consent is not critical and that the abandonment of such public right-of-way, alley, easement, or other real property interest does not adversely affect the property owner(s) or impact their property(s). The city may require additional property owner(s) consent, including but not limited to properties that may not be abutting but would be impacted by the abandonment of the public right-of-way, alley, easement, or other real property interest; and

(6)

A written notice of consent from city departments, public utility companies, and/or franchise owners who may be impacted by the abandonment/vacation of a public right-of-way, alley, easement, or other real property interest, as directed by the city. City departments may approve, deny, or make comment on the request.

(d)

Exchange.

If additional property owned by an applicant in the proposed abandoned/vacated area is needed by the city for public streets or other public purposes, the applicant may be allowed a square foot for square foot credit against the abandonment fee for the area to be abandoned or a credit of equal value. The fair market value of land, an easement, or other real property interest in exchange for a similar real property interest is determined by an appraisal obtained by the city or the value as determined by the county appraisal district in accordance with section 2-9 of this chapter. Exchanges of equal value will still require an application fee.

(e)

Notice.

Not later than the 30^th day before the application is heard by city council, the city shall send written notice of the request to abandon/vacate the proposed area to city departments, public utility companies, and/or franchise owners who may be impacted by the abandonment/vacation of a public right-of-way, alley, easement, or other real property interest, as determined by the city. A utility may include, but not be limited to, an electric, gas, telecommunications, and/or video service utility. The city shall publish notice of the proposed abandonment/vacation of a public right-of-way in a newspaper of general circulation in the county. The notice must be published not later than the seventh or earlier than the 30th day before the date of the hearing.

(f)

Signage.

In the event there is a proposed closure of a right-of-way, the applicant shall place a portable sign no later than the seventh day before the date of the hearing on the property visible to the road notifying the public of the proposed closure in the form approved by the city, at the cost of the applicant.

(g)

Other requirements.

Right-of-way abandonments may require easements to be retained. There may be additional needs for drainage plans or traffic studies with costs to be paid by the applicant. Relocation or removal of existing facilities may be required. Dedication of alternate or replacement rights-of-way or easements, onsite or offsite may also be required. The application will not be approved by council until the facilities have been relocated, removed, or converted to private use, if needed and any dedication of such rights-of-way or easements is filed with the county.

(h)

Plat.

Re-platting may be required for inclusion of the proposed area to be abandoned into the existing lot.

(i)

Expiration of application.

It is the responsibility of the applicant to ensure all requirements, including relocation or removal of existing facilities are met in a timely manner prior to filing of the abandonment. If the requirements are not met and the abandonment is not recorded with the Deed Records, Dallas County, Texas, within twelve (12) months from the date the application was submitted, the application shall expire, and a new application and fee will be required. If the applicant is making progress or valid attempts to comply with the requirements, the applicant may submit a request to extend the time for approval and the director of capital improvements may allow an extension up to six (6) months.

(j)

Indemnification.

As a condition of approval of any abandonment/vacation or consent to abandon, the applicant agrees to indemnify, protect, defend, and hold harmless the city against all suits, costs, expenses, losses, claims, and damages that may arise or occur in connection with the vacation and abandonment.

(Ordinance 2018-10064, § 1, adopted 6/7/2018; Ordinance 2023-10832, § 1, adopted 11/9/2023)

Real property or a real property interest owned or held by the city may be conveyed, sold, transferred, or exchanged in accordance with the City Charter and the laws of the State of Texas.

(Ordinance 2018-10064, § 1, adopted 6/7/2018)

§ 2-8 Provisions for the sale or transfer of real property to non-profit organizations to provide affordable housing, or for another public purpose.

Real property owned by the city, including those properties acquired and held through foreclosure of a tax lien, may be sold, transferred, or otherwise conveyed to a nonprofit organization for the purpose of providing affordable housing, or for another public purpose, by a method of sale described in this section pursuant to Chapter 253 of the Texas Local Government Code.

The city manager, or the city manager's designee, may determine the properties available for sale, transfer, or conveyance under this section. When determining whether a property is available for sale, transfer, or conveyance to a non-profit organization for affordable housing, or for another public purpose, the city manager, or the city manager's designee, may consider the suitability of the site for such uses, including its physical characteristics such as zoning, size, and configuration and the compatibility of such use within the neighborhood, considering adjacent uses, construction types, construction features, and relative values of existing properties.

A nonprofit organization seeking to acquire real property under this section may submit a proposal to the city manager, or the city manager's designee, that includes the following:

Evidence that the requestor is a qualified nonprofit organization;

A plan to develop the property to provide affordable housing, or to use the property in a manner that primarily promotes a public purpose, in compliance with city ordinance, state law, and federal regulations, if applicable;

A timetable showing the commencement of construction, completion of construction, and occupancy by low or moderate income persons, or satisfaction of the public purpose; and

A financial feasibility analysis of the proposed project.

(d)

As a condition of acquiring real property under this subsection, the nonprofit organization may be required to enter into an agreement with the city that regulates the development of the property consistent with the goals and guidelines of the city to provide affordable housing, or for a use that primarily promotes a public purpose of the city.

(e)

Special provisions for real property sold, transferred, or otherwise conveyed under this section:

In the case of properties acquired and held through foreclosure of a tax lien:

All affected taxing units must consent to the sale, transfer, or conveyance of any real property for less than the total amount due under Chapter 34 of the Texas Tax Code.

All sales, transfers, or other conveyances are subject to the statutory right of redemption.

If a proposal is received under this section for less than the total amount due under Chapter 34 of the Texas Tax Code and an interlocal agreement is not in place, then the city may present the proposal to the other taxing units for their consent. Upon consent by the other taxing units, the proposal shall be presented to the city council for consideration.

In the event of multiple proposals for the same property, those proposals will be presented to the city council for consideration with the city manager's recommendation as to which proposal best promotes the goals of the city and meets a public purpose.

An appraisal is not required for real property sold, transferred, or otherwise conveyed under this section.

Nothing herein shall require the city to accept any proposal or offer.

(Ordinance 2018-10064, § 1, adopted 6/7/2018)

§ 2-9 Administrative fee—Amount.

Application fee.

The city manager, or the city manager's designee, may charge a non-refundable administrative fee in the amount of two thousand and eight hundred dollars ($2,800.00) to cover the city's cost in processing and reviewing any request for the sale, exchange for, vacation, or abandonment of real property or a real property interest.

Administrative fees.

In addition to the application fee, additional costs, including, but not limited to, the appraisal of real property, environmental assessment, and survey costs may be charged by the city manager, or the city manager's designee, as may be reasonable or necessary to effectuate the sale, exchange for, vacation, or abandonment of real property or a real property interest under this article. The city shall not be obligated to pay or refund any fees or costs in the event the sale, exchange for, vacation, or abandonment of real property or a real property interest is denied by the city council, or the application is expired.

Abandonment fee.

Before the city files an approved abandonment of all or a portion of the public right-of-way, alley, easement, or other real property interest in the deed records, the applicant shall pay, subject to other sections of this chapter, a fee for the value of the property being abandoned equal to the square footage of the area abandoned multiplied by the market value of the area per square foot and in the manner as follows:

Valuation date.

The valuation date for determining market value of the area proposed to be abandoned is the date the abandonment application is decided by the city council.

Market value.

Market value of the proposed area to be abandoned may be determined by city staff using the appraised land value per square foot, as determined by the appraisal district, of a fee simple interest in a useable tract of the applicant's abutting property as though it were an assembled portion of the applicant's abutting property, or an appraisal by an independent appraiser if the estimated value is less than fifty thousand dollars ($50,000.00). If the estimated value is greater than fifty thousand dollars ($50,000.00), then an independent appraisal is required to determine market value with fees to be paid by the applicant. If the appraisal is disputed by the applicant, the city manager or his/her designee may obtain a new appraisal, the cost of which must be paid by the applicant. The city manager or his/her designee shall make the final determination of market value.

Appraisals.

Any independent appraisal used to establish fair market value must be performed within one hundred eighty (180) days before the application is decided by the city council. If the city manager or his/her designee determines the market value of the proposed area to be abandoned has significantly changed since the date of the last independent appraisal, then the city manager or his/her designee may require a more current appraisal at the applicant's expense.

Credit for rights retained.

If property rights are retained by the City in the proposed area to be abandoned, the appraiser may, if warranted, discount the market value accordingly.

(5)

Exceptions.

An abandonment fee will not be charged, but application fees will still be assessed, for the following:

Exchanges of property of equal value.

Land not capable of being used independently as zoned (or as reasonably capable of being zoned in the future) or under applicable subdivision or development ordinances.

Easements or other similar real property interests dedicated by plat.

Any exceptions allowed by statute.

(Ordinance 2018-10064, § 1, adopted 6/7/2018; Ordinance 2023-10832, § 1, adopted 11/9/2023)

§ 2-10 Opinion of the city attorney.

For real property or a real property interest that is vacated, abandoned, sold, transferred, exchanged, or otherwise conveyed pursuant to this article, the city attorney shall determine the type of conveyance or other instrument to be executed by the city prior to the solicitation of formal bids or proposals.

(Ordinance 2018-10064, § 1, adopted 6/7/2018)

§ 2-11 Relocation assistance program.

The city shall provide relocation advisory services for an individual, a family, a business concern, a farming or ranching operation, or a nonprofit organization entitled to such services, as prescribed by the Federal Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, 42 U.S.C.A. 4601 et seq. (the "Federal Act"), in connection with the city's acquisition of real property or real property interests. The relocation advisory services to be provided shall be in conformity with the Federal Act.

The city, as a cost of acquiring real property or real property interests, shall pay moving expenses and rental supplements, make relocation payments, provide financial assistance to acquire replacement housing and compensate for expenses incidental to the transfer of the property, in the amounts as prescribed by the Federal Act, if an individual, a family, the personal property of a business, a farming or ranch operation, or a nonprofit organization is displaced in connection with the acquisition and is entitled to such payments pursuant to state or federal law.

Expenditures made pursuant to this section may not exceed payments authorized by the Federal Act.

(d)

A person or party who is dissatisfied with the determination of eligibility or computation of relocation payments and/or the provision of relocation support services has a right to a review of such determination regarding relocation assistance benefits. All persons or parties determined to be eligible or ineligible for relocation assistance benefits shall receive a written notice informing them of this right of review and the procedures to follow in requesting a review, in connection with the city's acquisitions of real property or real property interests. The procedures for an initial review and a final review are as follows:

Applications for initial review of the determination of relocation entitlements must be filed with the city's department director responsible for the relocation at issue, or his/her designee (the "director") on or before sixty (60) calendar days after the person or party receives notice of the determination of relocation entitlements or ineligibility for such entitlements. The application for initial review shall include all information and other items supporting the claim of the person or party filing such application (the "information").

The director will promptly and carefully review the facts in an attempt to resolve the matter. The person or party making application for initial review will be notified in writing of the results of the director's review on or before thirty (30) calendar days after the filing of the application for initial review, as provided in subsection (d)(1) of this section.

A person or party who remains dissatisfied after the director's initial review may request that the director's decision be reviewed by the relocation review committee (established herein under subsection (e)) by submitting a written request of same, together with the information and any other relevant facts and materials, to the director on or before twenty (20) calendar days after the director's decision in the initial review process, as provided in subsection (d)(2) of this section.