Res 2006-128 - Laserfiche WebLink

Home Browse Search

I I I 150 RESOLUTION NO. 2006 - 128 R A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN MARCOS, TEXAS, REAFFIRMING THE CITY'S OPPOSITION TO REAL ESTATE PURCHASES BY THE TEXAS GENERAL LAND OFFICE IN SAN MARCOS FOR THE PURPOSE OF LEASING FOR PRIVATE DEVELOPMENT WITHOUT NOTICE OR APPROVAL BY LOCAL TAXING ENTITIES; URGING THE TEXAS MUNICIPAL LEAGUE TO SUPPORT LEGISLATION TO ADDRESS THIS ISSUE; AND DECLARING AN EFFECTIVE DATE. RECITALS: 1. The City of San Marcos has approximately 4,460.48 acres of public, tax exempt properties, representing 25.1 % of all property within the City limits. 2. The Texas General Land Office (the "GLO") has purchased two tracts of prime real estate in San Marcos (totaling over 600 acres) on behalf of the Permanent School Fund, and the GLO is apparently considering leasing some of the property to private, commercial enterprises for purposes of development. 3. Under the State Constitution and State Statutes, as interpreted by the Attorney General in Opinion No. JM-1049 (1989), the state's interest in land is not taxable even when it is leased for private commercial development, and the only interest in such land that is taxable is the market value of the lease; and the market value of such leases is usually only a small fraction ofthe market value of the land and improvements. 4. These actions by the GLO substantially remove property from the tax roll, depriving cities, school districts and counties of property tax revenues they would receive were the developments to be privately owned, and place extraordinary burdens on local governments by requiring them to provide numerous services such as law enforcement, fire protection, public education, and infrastructure maintenance without needed property tax revenues, and thereby shift the cost for providing these services to existing taxpayers, including homeowners and businesses. 5. In addition, these investments by the GLO could allow the GLO to determine whether developers must comply with local development regulations, which could deprive municipalities of the ability to ensure compatible land development within the city limits, and a level playing field for developers, under local regulations. 6. The City Council adopted a resolution on June 6, 2006 opposing the purchase of real property in San Marcos by the GLO for the purpose of leasing for private development, and urging the Texas Municipal League to investigate the GLO's real property acquisition practices, and the Texas Municipal League has responded by making contacts and arranging for and attending meetings with key GLO personnel, including Jerry Patterson, Commissioner of the