The Conroe City Council voted Tuesday to accept staffs recommendation to sell 5.67 acres of the former Sam Houston Elementary School to the Overland Group for $4.3 million, with the sale contingent on the buyers ability to secure state grant funds.

City staff told the council two offers were received and recommended sale to Overland. City staff said the purchase agreement includes a contingency: if Overland does not obtain the anticipated grant funding the property would revert to the city. "After complete discussion and review of 2 offers that were submitted, the staff would recommend selling the 5.67 acres of the property for $4,300,000 to the Overland Group, and this is subject to the funding that we are aware that they are seeking and should they not receive the funding, the property will revert back to us," city staff member Nancy McCheska said during the meeting.

Council voted to accept the staff recommendation; the motion carried after no council member announced a personal conflict. City attorney Mike Garner advised the council that the Texas Local Government Code chapter 171 rules on conflicts apply and that members Harrell and Arthur did not appear to have a conflict under that statute as described at the dais.

The body also adopted a separate resolution expressing the councils support for the Overland Groups grant application to the Texas Department of Housing and Community Affairs. City staff and council members noted the grant application is competitive and that the sale will not finalize if the grant is not awarded. "This is a contingency contract," a staff member said during the discussion; "if the funding does not come out then the property will not be sold and it would still be on the market."

Why it matters: The vote ends months of public discussion about downtown redevelopment and the future use of the school property. Some speakers at Tuesdays public comment urged preservation of the site for arts and community uses; others expressed concern about transparency and potential conflicts of interest. City officials said the sale and the state grant application are intended to support a redevelopment plan but cautioned there is no guarantee of funding.

What the council approved

- Sale of 5.67 acres of the Sam Houston Elementary School property to the Overland Group for $4,300,000, contingent on Overlands grant funding.
- A companion resolution expressing council support for the Overland Groups application to the Texas Department of Housing and Community Affairs.

Next steps and caveats

Councilmembers and staff emphasized the contingency. If the buyer does not receive grant funding the city will retain the property. The council also said it will continue discussions with other interested parties if the sale does not proceed.

Voices at the meeting

Several residents urged the council to explore alternatives that would preserve the site for arts uses. A cultural-development consultant previously estimated major redevelopment scenarios could cost tens of millions of dollars; speakers said financing and ongoing operating costs were a concern for a public owner.

Ending note

Council members noted the sale decision is conditioned on external funding and that the city will continue to review alternatives if the grant application is unsuccessful.