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Montgomery council approves transfer of downtown property to MEDC after heated debate
Summary
Council voted to transfer a 6,000-square-foot building at 203 and 213 Prairie Street to the Montgomery Economic Development Corporation for marketing and sale; the transfer price, appraisal, and process prompted objections from some council members.
Montgomery — The Montgomery City Council voted Aug. 26 to authorize an interlocal agreement with the Montgomery Economic Development Corporation (MEDC) concerning city-owned property at 203 and 213 Prairie Street (ZIP corrected to 77356 in council action). The vote approves transferring the property to MEDC for the purpose of marketing and sale under terms discussed at the meeting.
Council materials and speakers stated the city purchased the 6,000-square-foot building on the site in May 2022 for $992,000. At the Aug. 26 meeting staff presented terms under which the MEDC would receive authority to market and sell the property; the transfer discussion referenced an offer price of $833,000 that would be used to settle outstanding amounts the city owes on the property. Staff and proponents said MEDC, as a development corporation, can actively market the property through real-estate channels and retain any proceeds above the outstanding balance for downtown projects.
Several council members objected to the mechanism and to the below-appraisal transfer price. One councilmember noted the property’s appraised value in staff materials as $917,000 and called the proposed transfer a “workaround” of the city’s public-bid requirements; that speaker said the arrangement felt unethical even if it might be legal. Supporters on council replied that the MEDC is a city-related development corporation that can market and sell the property more effectively than a minimal classified bid notice and that money raised would remain available for local redevelopment projects.
After discussion the council approved the interlocal agreement with MEDC, with the amendment correcting the ZIP code to 77356. The motion passed by voice vote.
Ending: Staff said MEDC would proceed to market the property and that proceeds would be handled under the interlocal agreement; the council record shows no final sale price at this meeting and indicates the city receives proceeds as specified in the agreement once sold.
