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March 20
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SUBJECT: CRITERIA FOR ESTABLISHING PURCHASE PRICE FOR STREET
AND ALLEY VACATIONS
Under Section 272,001(b) of the Texas Local Government Code, a municipality is able to sell its
easement interest in streets and rights of way for less than fair market value to the abutting
property owner who owns the underlying fee to the property. Based upon State law, on April 6,
1999, the City Council adopted a Policy Regarding Valuation of Street Vacation Transactions in
Central City Redevelopment Neighborhoods ("Central City Vacation Policy") (M&C G-12532).
The 1•9• Policy allows the waiver of the purchase price for the abutting property owner who
owns the underlying fee interest for Central City Redevelopment projects. The adopted policy
does not address waiver requests where there is no redevelopment project. The adopted policy
also fails to address the legal requirement that fair market value be charged when the property is
owned in fee by the City.
In 2006, staff presented several Mayor and Council Communications (M&Cs) that recommended
waiver of purchase price for street and alley vacations including projects for Texas Christian
University and City Center (formerly Tandy Center). The rationale for waiver of fair market value
was that the right-of-way (street or alley) easement was originally dedicated by plat or separate
instrument at no cost to the City.
Staff from the Economic and Community Development Department, the Development
Department, the Real Property Management Division and the Law Department studied the
Central City Vacation Policy and its effect on redevelopment in the entire city, In addition, staff
reviewed whether the easement interest should be vacated at no cost if the interest was
dedicated at no cost.
All vacations will still require Plan Commission recommendations and City Council approval.
If you have any questions, please feel free to contact Bob Riley, Development Director, at
817,392a8901.
Charles R, Boswell
City Manager
1 SSUED BY THE CITY MANAGER FORT WORTH, TEXAS