MIDLAND ISD reviews district land and properties as staff weigh sales to help close $41.5 million shortfall
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Summary
District staff presented an inventory of underused properties and preliminary recommendations to sell or repurpose assets — including apartment holdings, school sites and the golf-course lease — to address an estimated $41.5 million budget gap. Trustees treated the presentation as informational; no sales or approvals were made.
MIDLAND ISD staff presented trustees with a review of district-owned real estate on Wednesday and outlined preliminary recommendations for possible sales or repurposing to help address a roughly $41.5 million projected shortfall.
Courtney (identified in the record as a district staff member) led the slide presentation and said staff had identified properties that could produce one-time revenue and others that should be held for long-range planning. “These are not action items,” she said, asking trustees to provide feedback while staff prepared formal recommendations.
Tucker (finance staff) provided illustrative fiscal impacts and noted how Texas recapture rules affect net proceeds: selling a 40-acre parcel south of Travis Elementary for an estimated $1.6 million would yield a small net general-fund benefit after recapture; Tucker stated the district’s estimated annual net benefit from such a sale would be about $34,100.
Key properties discussed (staff-reported figures):
- A nearly 40-acre parcel south of Travis Elementary, appraised at about $1.6 million; staff noted four pipelines cross that site and said an alternate location for a planned transportation (bus) annex may be less expensive.
- Two apartment complexes (Town and Country; Simpatico). Town and Country is roughly 24 units; staff said the district paid about $1.8 million for the complex and invested roughly $1.1 million in renovations; the property generated roughly $56,000 in property taxes in 2024 and incurred roughly $11,000 in insurance. Simpatico cost about $1.3 million with roughly $1.3 million in renovations; Simpatico houses Encore Academy (a special‑education program) and staff said they have plans to relocate Encore before any sale.
- Andre Gill Sports Complex (including a parcel referred to in staff slides as the “boneyard”) and the golf-course acreage leased to First Tee (the lease covers roughly 25.91 acres). Staff said First Tee’s lease could complicate a sale but that the district could give the lessee 60 days’ notice of intent to sell; trustees discussed potential agreements to preserve community and athletics access if a sale occurs.
- Legacy freshman campus and parts of Midland High School, both of which ranked high on the district’s facility‑condition index; appraisals and demolition/renovation options will be evaluated closer to when bond projects are complete (staff suggested 2028 as a potential timeframe for some disposals).
- A 65.51‑acre tract south of I‑20 (purchased January 2023 for $4.9 million) the district recommends retaining for long‑range planning because of scarce available land in that part of town.
Courtney and Tucker said staff have already sold nearly $2.5 million in properties in recent years and that the slides presented potential revenues of just under $20 million across multiple parcels if market conditions and appraisals align. They cautioned those figures are contingent on actual offers and on recapture calculations that reduce net general‑fund benefits.
Trustees and commenters raised multiple concerns: losing long‑term land equity, the district’s obligation to athletic teams (golf and soccer), the disposition of special‑education programming housed in district-owned apartments and the administrative time required to manage housing assets. Trustee questions asked staff to provide more detailed profit-and-loss figures for the apartment complexes, to quantify staff time devoted to housing operations and to present specific proposals (including temporary relocation plans for programs) at the February meeting.
Courtney said formal board approval would be required to put any property on the market; Mike Leazer, the district attorney in the record, confirmed the sale process requires board initiation and additional legal steps. Staff recommended bringing several items — the Bunch Elementary tract, transportation complex options and apartment proposals — as discrete action items to the board for February consideration.
No property was listed for sale or authorized during the meeting; trustees treated the presentation as an informational step in a planning process that staff said will return with details and proposed motions for future board action.