Exhibit C Sale of Fee Simple Property Policy

Purpose

Adopted by the Waco City Council on September 19, 2023

The purpose of this policy is to outline the City’s policy and some of its procedures for the sale of fee simple property. It is the intent of the City of Waco that this policy furthers the City’s goals to place fee simple property back on the tax rolls, encourage revitalization of the City, and ensure the appropriate development.

I. Definitions

  1. Adjoining Landowners: Landowners whose property borders the property in question.

  2. City-Owned Facility Property: Property that is the site of a city facility or is planned for development as a city facility. This property is not for sale.

  3. Disqualified Buyer: is defined as a person or entity that:
    1. is delinquent on any tax account for City of Waco, a school district located in the city limits of Waco, McLennan County College, or McLennan County;
    2. owes past due amounts owed to the city of Waco for mowing, water bills, library fines, hotel sales tax, abatement of other nuisances by the City or demolition of substandard structures; or
    3. has received a notice of violation or a citation regarding any building in the City or inspection code and/or ordinance from the City of Waco and such notice or violation has not been resolved; or
    4. City of Waco employees or their immediate family.

  4. Fee Simple Property: Property acquired by the City through a method other than tax foreclosure (i.e. gift, bequest, purchase).

  5. Minimum Bid: The lowest acceptable price set for the property.

  6. Property Manager: The person who is charged with operating the day-to-day functions and oversight of the fee simple properties.

  7. Tax Foreclosed Property: Property acquired by the City, in trust, through the tax foreclosure process.

Administration

  1. Fee simple properties, except for City-owned Facility Properties, will be managed by the City of Waco Property Manager.

  2. A separate policy, adopted by the City Council, governs the sale of tax foreclosed properties.

  3. Fee simple property will be sold in accordance with the procedures outlined in this policy and with any applicable state law including provisions of the Texas Local Government Code, Property Code, and Tax Code.

  4. Under Chapter 272 of the Texas Local Government Code, sales of fee simple properties must be by notice and bidding unless an exception exists under state law.

  5. Under Chapter 272 of the Texas Local Government Code, sales of fee simple properties must be sold at fair market value.
    1. The fair market value may be determined by the price obtained by the City at a public auction for which notice to the general public is published according to Chapter 272 of the Texas Local Government Code.
    2. State law contains exceptions for the requirement of fair market value, including when the City is conveying real property:
      1. to an abutting property owner who owns the underlying fee simple to the property interest the City is conveying;
      2. to an entity for the development of low-income or moderate-income housing;
      3. to an institution of higher education to promote a public purpose related to higher education; or
      4. to another political subdivision carrying out a purpose that benefits public interest and will revert to the City if the acquiring political subdivision ceases to use the land or interest in carrying out the public purpose.

  6. If a fee simple property’s zoning is in conflict with the City of Waco’s comprehensive plan, the Property Manager shall submit the fee simple property to the Planning Department for a zoning change. Conveyance of the property shall only occur after the property’s zoning is in conformance with the City of Waco’s comprehensive plan.

  7. The Property Manager may establish a minimum bid for a property. The property manager should consider fair market value and recovery of expenses (e.g., re-platting, surveying, title search) in determining the minimum bid.

  8. The City Council may grant exceptions to this policy.

III. Terms of Fee Simple Property Sales

  1. All fee simple properties shall be sold "AS IS" with no warranty, either expressed or implied.
    1. The City will make no guarantee as to the availability of utilities to the property.
    2. No warranty, written, expressed or implied, will be made regarding the property as to the suitability of use of for building/construction of any structure(s), suitability for habitation, compliance with City codes, or clear title. It is the sole responsibility of the bidder or buyer to examine the property, research building codes, encumbrances, zoning designations, physical location, and all other aspects of the property prior to submitting a bid on that property. The bid documents, or the offer to purchase if a bid is not required, shall contain all of the above disclaimers. The bidder/buyer shall agree to these terms.

  2. All sales are completed with the execution of a deed stating the property is sold "AS IS."

  3. The Offer To Purchase and the resulting deed shall include language guaranteeing the City's retention of all existing easements and rights of way related to the property.

  4. Offers to Purchase property will not be accepted from any Disqualified Buyer, and properties will not be sold to any Disqualified Buyer.

  5. As a component of selling a property, the City may require a Development Agreement that will be submitted simultaneously with the sale being submitted to the City Council for approval.

  6. It is the buyer’s responsibility to provide a development plan and construction timeline within one hundred eighty (180) days of purchase.

IV. Procedures for Sale of City Owned Property

  1. The City of Waco will advertise in select City medias. The "Request for Bid" will specify:
    1. the address of the property;
    2. a minimum bid price for the property;
    3. the date the bids will open in the Purchasing Department; and
    4. any restrictions on the property.
  2. All bids must be submitted by the close of the bid date and time by electronic or paper submission as set forth below:

    By Electronic Submission:
    City’s Bonfire e-Procurement electronic Bid/Proposal Portal

    By Paper Submission:
     City of Waco Purchasing Services
    1415 N. 4th Street Waco, Texas 76707

    This may be done by Bonfire e-Procurement electronic submission, in person or by delivery service.

    If bids are submitted by courier (Federal Express, UPS), they must be delivered to: City of Waco Purchasing Services, 1415 N. 4th Street , Waco, Texas 76707.

    PLEASE NOTE: the United States Postal Service does not deliver to the street address.

    Bids must be physically in the City’s Purchasing Office in order to be considered. Bidders may not rely on mailing of the bid to constitute on time arrival for the bid opening. If the bid has not been received in the Purchasing Office by the scheduled opening time, it cannot be considered, regardless of what time it was posted.

  3. All Bids must be submitted by the City’s Bonfire e-Procurement Portal or on an official Bid Form (paper), delivered to Purchasing Services.

  4. All bids must be either in the form of a Bonfire e-Procurement electronic submission or (in paper form) sealed in an envelope by the bidder with only the name of the bidder and the property address written on the envelope.

  5. All bids will be opened in public in the Purchasing Services Office at a date and time specified in the "Request for Bid".

  6. The City Council of the City of Waco reserves the right to review each and every bid and to award the property to bidder submitting the bid which is deemed most acceptable. The City Council further reserves the right to reject any and all bids if no bid is deemed acceptable.

  7. Right to Decline sale: regardless of the sale method, the Property Manager is authorized to decline to sell a property in the event he/she has plausible reason to believe the interested buyer may be attempting to circumvent City of Waco policy related to property sale or buyer use. There exists the potential for a Disqualified Buyer to acquire a property by having another individual buy it and then sell it to the Disqualified Buyer. Example: An interested buyer owes past due taxes. A second party may purchase the property and later sell it to the Disqualified Buyer. This type of sale is prohibited by this policy.

V. Responsibilities of the Property Manager

  1. The Property Manager of the City of Waco shall perform or direct the performance of a variety of tasks associated with the sale, management and oversight of City-owned properties in order to further the City's goals of housing, economic and community development.

  2. The responsibilities of the Property Manager shall include the following:
    1. manage and maintain the entire City-owned real property inventory;
    2. serve as the City representative by responding to any public inquiries concerning the available property list;
    3. monitor all direct and public sale processes to ensure that City policies remain consistent;
    4. with respect to each property sale, the Property Manager will:
      1. make maps for the property that identify potential issues such as the likelihood of flooding, rights of way, easements, encroachments, the status of the current availability of utilities, and any other issues determined to be a potential problem;
      2. meet with the Engineering Division of the Public Works Department and the Water Utilities Department to identify potential issues such as the likelihood of flooding, rights of way, easements, encroachments, the status of the current availability of utilities, and any other issues determined to be a potential problem;
      3. meet with the Engineering Division of the Public Works Department and the Water Utilities Department to determine the need to retain easements; and
      4. if the property is near an existing City-owned Facility Property, contact the department(s) occupying that facility to see if the property needs to be retained.

    5. prepare proposed sale packets for City Council Review after an offer of purchase or high bid has been received.

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