The Sweetwater City Council voted Jan. 13 to pursue an interlocal agreement with other taxing jurisdictions that would enable the city to convey certain tax‑foreclosed residential lots at less than fair market value to developers who agree to build on them.

City staff told the council the city has torn down more than 70 residential properties since December 2019 and currently holds roughly 120 trustee properties acquired through sheriff's sale. Under the proposed interlocal agreement, the city would seek signatures from the county, the hospital district, the school district and the West Texas Groundwater district to permit conveyance at prices below fair market value so the city can negotiate future incentive agreements with developers.

Staff explained that the lots’ fair market values are modest — roughly $1,500–$2,000 per lot — and that interested developers plan to invest about $150,000 in improvements per lot. The interlocal would be the first step; a later step would present the specific incentives and conveyance terms, including development timeframes (staff said developers would have 240 days to build as part of an agreement).

Council approved the item by voice vote after brief Q&A. City staff said the council will review the interlocal agreement language and the timeframes when it is returned for final approval.

What happens next: staff will present the interlocal agreement language to the other taxing jurisdictions and return to council with specific conveyance and incentive agreements for approval.