HomeMy WebLinkAboutIR 7792 INFORMAL REPORT TO WY COUNCIL MEMBERS No. 7792
6 ATE%
To the Mayor and Members of the City Council Jauum7 18, 19%
Subject: PROPOSED SALE OF JUSTIN TIME
Baek�tround of Justin Time Airfield
The 50-acre tract of land known as Justin Time Airfield was acquired in 1.988 with
Federal funds under a grant from the Federal Aviation Administration (FAA). The
tract was owned by seven property-owners and its acquisition was necessary due to
conflicting aircraft traffic patterns with Alliance Airport.
The tract is located 2 miles north of State Highway 114 and 1.5 miles west of FM 156
on Sam Reynolds Road, approximately 4 miles northwest of Alliance Airport in
Denton County.
Grant Participation
The grant agreement with FAA provided funding for acquisition of the 50-acre tract
which contained six residences and eight large aircraft hangars. The total acquisition
cost, including land, improvements, relocations, appraisals, closing costs and staff
salaries was $1,960,371.21. (The local cost was $11,483.86.)
Income and EXpenses
Each improvement has been continuously under lease since its purchase by the City.
The City has been responsible for maintaining the improvements, mowing 43 acres
of grass, and maintaining the access road. Maintenance performed since the
purchase has been limited to that necessary to keep the promises in a reasonably
rentable condition, however, the improvements have deteriorated considerably since
the purchase and are expected to continue to deteriorate at a rapid rate.
The current balance in the rental account for the tract is approximately $45,000.00.
It has been estimated that needed repair work will cost approximately $33,000.00,
which includes removal of four underground fuel tanks. In addition to actual
expenditures for maintenance, City staff spends a significant amount of time
managing the property.
Federal Obligation
All net income from the rental and sale of the property is obligated by the Federal
grant to be deposited in the City's Aviation Fund Account, to be used for the
maintenance, development and operation of the City's airports. The property must
ultimately be sold to fully satisfy the Federal obligation.
ISSUED BY THE CITY MANAGER FORT WORTH,TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7792
To the Mayor and Members of the City Council Page 2 of 2
*e January 18, 1994
x JanuaSubject:
'""Recommended Sale
An in-house study was conducted to determine the feasibility of selling the property.
The study concluded that the City should sell the entire property, as is, at the
earliest possible date.
If the City Council has no objection, the Department of Engineering will invite bids
for the sale of the property for a minimum bid price of$418,000.00 which has been
determined, by staff appraisal, to be the value of the land and improvements. The
City will reserve the right to reject any and all bids and to retain all appropriate
navigation and other easements as necessary.
The sale will be subject to Council approval.
o b
rTerrlell-
City Manager
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—ISSUED BY THE CITY MANAGER FORT WORTH,TEXAS