HomeMy WebLinkAboutR-2003-29 approve purchase of office building by HCAD
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RESOLUTION NO. ~f)D:3'~O(
RESOLUTION APPROVING PURCHASE OF OFFICE BUILDING BY HARRIS
COUNTY APPRAISAL DISTRICT.
WHEREAS, Section 6.05(a) of the Texas Tax Code authorizes the board of directors of an
appraisal district to purchase or lease property and to construct improvements as necessary to
establish and operate the appraisal office; and,
WHEREAS, Section 6.05(b) of the Texas Tax Code provides that the acquisition of real
property or the construction or renovation of a building or other improvement by an appraisal
district must be approved by the governing bodies of three-fourths of the taxing units entitled to
vote on the appointment of appraisal district board members; and,
WHEREAS, the City of La Porte is a taxing unit entitled to vote on the appointment of
members of the board of directors ofthe Harris County Appraisal District (HCAD); and,
WHEREAS, at its regular monthly meeting held October 15,2003, the board of directors of
HCAD adopted Resolution No. 2003-8 proposing acquisition by lease-purchase agreement and
renovation of an office building located at 13013 Northwest Freeway, Houston, Harris County,
Texas (the "Building") for the purpose of establishing and operating the appraisal office therein;
and,
WHEREAS, the board of directors ofHCAD has delivered a copy of Resolution No. 2003-8
To the presiding officer of the governing body of the City of La Porte together with information
showing the costs of other available alternatives to the lease-purchase ofthe Building; and,
WHEREAS, the City Council ofthe City of La Porte believes the acquisition ofthe Building
is in the best interest ofHCAD and the taxing units it serves; now, therefore,
BE IT RESOLVED BY the City Council OF THE City of La Porte:
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That the proposal by the board of directors ofthe Harris County Appraisal District to acquire
and improve the building located at 13013 Northwest Freeway, Houston, Harris County, Texas, be,
and it is hereby, in all things approved.
PASSED AND APPROVED, this J~
ATTEST:
day ofL{){)I.)iJJJJ.;.W, 2003.
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rman L. Malone
Mayor
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REQUEST FOR CITY COUNCIL AGENDA ITEM
Agenda Date Requested:
Appropriation
Requested By:
Source of Funds:
N/A
Department: Figaate
Account Number: N/A
Report:
Resolution: XX Ordinance:
Amount Budgeted: N/A
Exhibits:
HCAD Letter
Amount Requested: NIl\.
Exhibits:
Resolution
Budgeted Item: YES ~Q
Exhibits
SUMMARY & RECOMMENDATION
Section 6.051, of the Texas Property Tax Code, provides that the acquisition of real property by an appraisal district
must be approved by the governing bodies of three-fourths of the taxing units entitled to vote on the appointment of
board members. An entity that fails to indicate approval is considered to be a no vote. The law contains a strict time
frame in which taxing unit approval can occur, and must take place within 30 days after the appraisal board of
directors fonnally approves the proposal. Harris County Appraisal District formally approved the proposal on
October 15, 2003, and is now asking that the City of La Porte approve the resolution to authorize them to purchase
an office building located at 13013 Northwest Freeway, Houston, Texas.
This proposal is for a lease-purchase of a building located at 13013 Northwest Freeway, which can be purchased at
the end of the lease for $100. This move will save approximately $500,000 annually, which will reflect in the City
of La Porte's pro-rate share of their budget.
Action Required bv Council:
Approve resolution authorizing the purchase of an office building by Harris County Appraisal District
Approved for City Council Aeenda
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Date
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Mailing Address:
P.O. Box 920975
Houston, TX n292-0975
Harris County Appraisal District
2800 North Loop West, Houston, Texas
Telephone: 713-812-5800
Information Center: 713-957-7800
E-Mail: jrobinson@hcad.org
Office of Chief Appraiser
September 24, 2003
Presiding Officers and Members of the Governing Bodies
of Taxing Units in Harris County
Ladies & Gentlemen:
I am writing in behalf of the appraisal district's board of directors to ask that your
governing body adopt a resolution authorizing the Harris County Appraisal District to
proceed with the lease-purchase of a headquarters building. We anticipate a significant
annual savings in our annual operating expense if we are able to relocate from our present
leased space into the lease-purchased building at 13013 Northwest Freeway in Houston.
Section 6.051, Tax Code, provides that the acquisition of real property by an appraisal
district must be approved by the governing bodies of three-fourths of the taxing units
entitled to vote on the appointment of board members. An entity that fails to indicate
approval is considered to be a no vote. The law contains a strict time frame in which
taxing unit approval can occur, and must take place within 30 days after the HCAD board
of director's formally approves the proposal at its October 15, 2003 meeting.
Attached to this letter is an outline of the lease-purchase proposal and sample copies of
resolutions authorizing the appraisal district to move forward with the transaction.
Resolution A is designed to be used if your approval meeting occurs before HCAD's
October 15 meeting. Resolution B is designed to be used if the approval meeting occurs
after October 15.
In addition to saving money, this transaction will enable us to better serve the citizens of
Harris County. We urge you to place the approval item on your agenda and act favorably
on it no later than 30 days after October 15.
Please do not hesitate to contact me at 713-957-5291 if you have questions.
Sincerely,
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Jim Robinson
Chief Appraiser
Building acquisiIion cover 1eIIer.docv4
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are that the total annual cost of the new building will be considerably less than the
amount currently budgeted for space. A table illustrating the comparison is shown
below.
Existing space
2004 Budget
13013 NW
Freeway
Office Space
Electricity and Water
Building and Fixture Maintenance
Casualty &. liability Insurance
Reserve fund for replacements
Total
$ 3,653,599.00 $ 2,275,644.00
$ 112,900.00 $ 278,320.00
$ 85,000.00 $ 638,960.00
$ 65,000.00 $ 62,720.00
$ 196,000.00
$ 3,916,499.00 $ 3,451,644.00
Note: Under the Brookhollow lease, the district is only responsible for utility
and expense costs In excess of $6.00 per square foot.
Advantages of this facility
In addition to lower overall cost, the primary advantages of the 13013 Northwest
Freeway building will be:
· We will be able to consolidate nearly all of our hearings and public infonnation
facilities on the first floor. Currently, in peak hearing season, we have property
owners and consultants on six different floors, which is a logistical and security
nightmare. The new building will be much more customer friendly.
· The district will own the building at the end of the lease.
· The location, approximately 3 miles from the current facility, fronts directly on a
major highway and is easily accessible from all parts of the county.
· The building will provide room for expansion, should it be necessary.
· The building will be fully ADA compliant. The current facilities are not.
· Separate ~arehouse space will not be needed.
· The lower cost of ownership, as opposed to the present lease arrangement, will
reduce the cost of appraisal district operations and result in a savings to each
participating taxing unit.
What the jurisdictions need to do
Section 6.051, Tax Code, provides that the acquisition of real property by an appraisal
district must be approved by the governing bodies of three-fourths of the taxing units
entitled to vote on the appointment of board members. An entity that fails to indicate
approval is considered to be a no vote.
Time is also of the essence. The HeAD board plans to fonnally approve the proposal at
its October 15, 2003 meeting. After the approval, the chief appraiser will send you
formal notification of the purchase. Your governing body may approve the purchase at
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any time between now and the 30th day after the date you receive the formal notification,
but it must act before that 30th day, and must file its resolution with the chief appraiser on
or before the 10th day after the governing body votes. Failure to act within these time
frames is considered a "no" vote.
We have enclosed two sample resolutions:
Resolution A is designed to be used if your approval meeting occurs before HeAD's
October 15th meetinlo Resolution B is designed to be used if the approval meeting occurs
after the October 15 meeting.
Please call Jim Robinson, Chief Appraiser, at 713-957-5291 if you have questions or
need assistance.
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