HomeMy WebLinkAboutIR 6961 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 6961
A"R V(R.O
soar To the Mayor and Members of the City Council August 14, 1984
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i.�i \rE�"XVP/1y Subject: SALE OF CITY-OWNED PROPERTY - G.S.I.A. M&C L-8139
Under City Secretary Contract No. 11107 dated June 5, 1980, the City
granted an Option to Centreport Development Company for the purchase of
certain City-owned real estate formerly known as Greater Southwest
International Airport (G.S.I.A.) . The total acreage to be sold under
the agreement is 1222.259 acres. Based on the installment sale rules of
the City's independent auditors a profit of $9,555,348 will be realized
on the transaction during a twelve year period. The adjusted cash price
at closing was determined to be $14,775,541 and, with the purchase price
escalating at 7.50% per year, the adjusted deferred purchase price at
the end of the twelve years was calculated to be $26,517,054. The
agreement provided for an immediate option payment of $1,500,000, with
annual contract payments beginning in June, 1981. Fbr the first nine
years, the City is to receive an annual contract payment of $1,434,193;
for the last three years, the City will receive annual contract payment
of $4,181,306. The City also is to receive an annual possession fee of
$100 per acre for land not yet purchased. The disposition of the
proceeds frcm the sale are governed by a City Council approved plan
adopted May 8, 1979 (M&C G-4167), before the sale was finalized.
Centreport Development Company has met all of its required obligations
�- under the Option and has previously taken title to 196.438 acres. The
are now proposing to take title to a 5.449 acre tract of land being part
of Block 303A, Area 3, Section 1, Centreport Addition and a portion of
Cambridge Road, out of the property being parts of Release Parcels 30,
31, 40 and 41 (exhibit. E) in the Option Agreement. The takedown is in
accordance with the executed City contract.Under the annual payment plan
and the approved takedown plan Centre has $4,214,878 on deposit with the
City to apply to future takedowns.
All takedowns are reviewed by the Real Property Division, Department of
Law and the City Treasurer before the deed to' a particular parcel is
prepared for execution.
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Should additional information be desired, it will furnished upon
request.
rt L. Herchert
City Manager
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ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS