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REQUEST FOR PROPOSAL (RFP) - COMMERCIAL PROPERTY PURCHASE

Author: 
kbryson

FORNEY ECONOMIC DEVELOPMENT CORPORATION
REQUEST FOR PROPOSAL (RFP)
COMMERCIAL PROPERTY PURCHASE

 

GENERAL INFORMATION

Forney Economic Development Corporation (FEDC) is a non-profit economic development corporation officially established in 1994.   FEDC operates in accordance with the laws and statutes outlined in Chapters 501, 504 and 505 of the Texas Local Government Code.  FEDC does have the ability to sell real property for economic development purposes and projects.  With that understanding and upon acquisition from the City of Forney, Texas, FEDC intends to sell a parcel of land, approximately 2.84 acres in size, located at the southeast corner of US Highway 80 and FM 548 in Forney, Texas to the most qualified respondent fulfilling specific requirements denoted herein.  This described parcel will hereafter be referred to as the “Property.”  

BACKGROUND

Nearly four years ago, the City of Forney initiated an effort to purchase the Property from the Texas Department of Transportation (“TXDOT”).   TXDOT utilized the property as a staging area for equipment and supplies for several years following the realignment of US Highway 80 in the area.  In November 2014, TXDOT declared the property as “surplus.” 

The TXDOT Real Estate Management & Development Division was created to optimize TXDOT’s real estate portfolio and streamline the sales process of high-value, underutilized properties across the state.  By statute, government entities with condemning authority (e.g. city, county, ISD) have a priority right to purchase TXDOT surplus property.  Once the property was identified by TXDOT for disposition, the local governmental entities were notified of their priority to purchase the property at fair market value as determined by TXDOT.  The City of Forney expressed interest and also contacted officials at the Union Pacific Railroad, Kaufman County and Forney ISD. Union Pacific Railroad, Kaufman County and Forney ISD offered no interest in the purchase.  The City of Forney moved forward with the purchase procedure. 

The City of Forney intends to purchase the property from TXDOT. FEDC will thereafter purchase the property from the City of Forney and intends to sell the property to the most qualified respondent per specific requirements denoted herein. 

NOTE: The compressed timeline associated with the sale of this property is necessitated by TXDOT rules and regulations.  The City of Forney must provide payment to TXDOT within 60 days of notification of TXDOT sale approval.  That notification was received by the City of Forney on Friday, March 27, 2015.

KEY DATES

  • April 7, 2015 – Staff  updates Forney City Council in Executive Session
  • April 9, 2015 – FEDC to take action on purchase/sale agreement with City of Forney
  • April 10, 2015 thru April 29, 2015 – FEDC to solicit and accept responses to RFP
  • April 30, 2015 – FEDC to hold special meeting to review all RFP submittals and select most qualified purchaser
  • May 1, 2015 – Prospective buyer must escrow $500,000
  • May 5, 2015 – Forney City Council to consider action on agreement between City of Forney and FEDC.  Forney City Council to consider action on property purchase from TXDOT
  • May 6, 2015 – If purchase is approved by City Council, City of Forney to wire purchase funds to TXDOT
  • June 15, 2015 (NO LATER) – FEDC to close on property with selected purchaser

 

RESPONDENT REQUIREMENTS

  • Minimum sales price: $1,650,000
  • Prospective buyer must be an “end-user” and not a “land-banker”
  • End user must have the ability to deposit $500,000 in escrow on or before May 1, 2015
  • Feasibility period will be compressed and will not contain a financing contingency
  • End-user must have the ability to close no later than June 15, 2015
  • Upon closing, end-user/purchaser will receive “Deed Without Warranty”
  • Deed without Warranty will contain a right of reverter clause requiring end-user to fulfill the economic development purposes, including the commencement of construction within one (1) year. The right of reverter will terminate after one (1) year.
  • End-user must be a retail establishment and provide estimated totals of capital investment, yearly sales tax generation and number of employees (full-time equivalents)
  • Convenience store with gas pumps is acceptable; however end-user must satisfy all applicable zoning and building codes in its development of the Property
  • End-user must be a complementary retail establishment to the existing market
  • Site allows for ingress/egress on US Highway 80
  • Site DOES NOT allow for left turn access from FM 548, “right in-right out” is acceptable on FM 548

SUBMISSION GUIDELINES

  • To receive the complete RFP packet please contact FEDC at 972-564-5808 or kbryson@cityofforney.com
  • Complete packet will be provided by electronic mail via Dropbox.com
  • Complete packet will include:  survey of the property, Phase I and Phase II environmental reports, copy of most recent appraisal, aerial photo of the property and Purchase and Sale Agreement
  •     “The community is real supportive of new business coming in. The city itself has great ideas on what’s coming ahead. I would advise anyone to look at moving into the Forney area.
    - Patrick McCrea
    Owner, Doe Belly’s Catfish Café
  •     Working with the City of Forney has been a pleasure. The City’s proactive response to any problem Steve Silver Company has encountered is refreshing. Glad to call Forney our home.
    - Jud Preskitt
    Vice President, Steve Silver Company
  •     Smurfit Kappa’s Forney Mill has been operating in Forney for over forty years.  Forney is a great place to do business with an excellent, well-educated workforce and a supportive, forward-thinking city government.
    - Dave Nelson
    Vice President of Paper Operations, Smurfit Kappa North America
  •     OGW is a proud member of the Forney business community. The EDC, City Government, and the community as a whole are very open and supportive of growing businesses.
    - Holly Dempsey
    COO, OGW, LLC