2005 Texas Local Government Code CHAPTER 253. SALE OR LEASE OF PROPERTY BY MUNICIPALITIES

LOCAL GOVERNMENT CODE

CHAPTER 253. SALE OR LEASE OF PROPERTY BY MUNICIPALITIES


	§ 253.001. SALE OF PARK LAND, MUNICIPAL BUILDING SITE, OR 
ABANDONED ROADWAY.  (a) Except as provided by Subsection (b), the 
governing body of a municipality may sell and convey land or an 
interest in land that the municipality owns, holds, or claims as a 
public square, park, or site for the city hall or other municipal 
building or that is an abandoned part of a street or alley.  A sale 
under this section may include the improvements on the property.
	(b)  Land owned, held, or claimed as a public square or park 
may not be sold unless the issue of the sale is submitted to the 
qualified voters of the municipality at an election and is approved 
by a majority of the votes received at the election;  provided, 
however, this provision shall not apply to the sale of land or 
right-of-way for drainage purposes to a district, county, or 
corporation acting on behalf of a county or district.
	(c)  To effect the sale, the governing body shall adopt an 
ordinance directing the municipality's mayor or city manager to 
execute the conveyance.
	(d)  The proceeds of the sale may be used only to acquire and 
improve property for the purposes for which the sold property was 
used.  Failure to so use the proceeds, however, does not impair the 
title to the sold property acquired by a purchaser for a valuable 
consideration.
	(e)  Subsection (b) does not apply to a conveyance of park 
land that:        
		(1)  is owned by a home-rule municipality with a 
population of less than 80,000 and that is located in a county 
bordering the Gulf of Mexico;
		(2)  is one acre or less;                                                     
		(3)  is part of a park that is 100 acres or less;                             
		(4)  is sold or is conveyed as a sale to the owner of 
adjoining property;  and
		(5)  is conveyed pursuant to a resolution or an 
ordinance that:             
			(A)  is adopted under this section;                                          
			(B)  requires the sale to be with an owner of 
adjoining property for fair market value as determined by an 
independent appraisal obtained by the municipality;  and
			(C)  has an effective date before December 31, 
1995.                       
	(f)  The election requirements of Subsection (b) do not apply 
to a conveyance of a park if:
		(1)  the park is owned by a home-rule municipality with 
a population of more than one million;
		(2)  it is a park of two acres or less;                                       
		(3)  the park is no longer usable and functional as a 
park;                 
		(4)  the proceeds of the sale will be used to acquire 
land for park purposes;
		(5)  a public hearing on the proposed conveyance is 
held by the governing body of the home-rule municipality and that 
body finds that the property is no longer usable and functional as a 
park;  and
		(6)  the park is conveyed pursuant to an ordinance 
adopted by the governing body of the home-rule municipality, unless 
within 60 days from the date of the public hearing the governing 
body of the home-rule municipality is presented with a petition 
opposing the conveyance which contains the name, address, and date 
of signature of no less than 1,500 registered voters residing 
within the municipal limits of the municipality;  then, the 
governing body of the home-rule municipality shall either deny the 
conveyance or shall approve the conveyance subject to the election 
required in Subsection (b);  or
		(7)  the conveyance involves an exchange of two 
existing parks, situated within a home-rule municipality with a 
population of more than one million, that together total 1.5 acres 
or less in size, that are located within 1,000 feet of each other, 
that are located in an industrial area, that have been found in a 
public hearing to no longer be usable and functional as parks, and 
that are conveyed pursuant to an ordinance, adopted by the 
governing body of that municipality, that has an effective date 
before December 1, 1993.
	(g)  A sale made under Subsection (e) is exempt from the 
notice and bidding requirements in Chapter 272.
	(h)  Expired.                                                                  
	(i)  Subsection (b) does not apply to a conveyance of park 
land that is:     
		(1)  owned by a home-rule municipality with a 
population of more than 625,000;
		(2)  less than three acres and part of a larger park 
that is located in a flood plain or floodway;
		(3)  not actively used for recreational purposes;                             
		(4)  sold or conveyed as an interest in land to the 
owner of an interest in the adjoining property;  and
		(5)  conveyed pursuant to a resolution or an ordinance 
that has an effective date before December 31, 2004.

Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.  Amended 
by Acts 1989, 71st Leg., ch. 328, § 14, eff. Sept. 1, 1989;  Acts 
1989, 71st Leg., ch. 597, § 1, eff. Aug. 28, 1989;  Acts 1993, 
73rd Leg., ch. 179, § 1, eff. May 17, 1993;  Acts 1995, 74th Leg., 
ch. 344, § 1, eff. Aug. 28, 1995;  Acts 1997, 75th Leg., ch. 33, 
§ 1, eff. Sept. 1, 1997;  Acts 1999, 76th Leg., ch. 62, § 
13.18, eff. Sept. 1, 1999;  Acts 2001, 77th Leg., ch. 754, § 1, 
eff. Sept. 1, 2001.


	§ 253.002. TRANSACTIONS CONCERNING AN ISLAND, FLAT, OR 
SUBMERGED LAND.  (a) A municipality may sell, convey, lease, or 
provide an option to all or a part of an island, flat, or submerged 
land the municipality owns and may make development plans and 
contracts for these purposes, at the times and on the terms that the 
governing body determines are proper and in the public interest, if 
the state or the Republic of Texas relinquished its interest in the 
land to the municipality before April 23, 1953.
	(b)  For a home-rule municipality the charter of which 
authorizes a referendum on such a transaction, the governing body 
may make the transaction without advertising or receiving bids, but 
the transaction may not take effect unless either it has been 
approved at a referendum ordered for that purpose or the period for 
the submission of a petition for a referendum on the transaction has 
expired.
	(c)  This section does not grant or convey to a municipality 
title to oil, gas, or other minerals.
	(d)  This section prevails over any conflicting charter 
provision of a home-rule municipality.

Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.                    


	§ 253.003. PURCHASE AND SALE OF FEDERAL PROPERTY.  (a) 
The governing body of a municipality with fewer than 10,000 
inhabitants may purchase for municipal purposes any real property, 
including improvements on the property, that the federal government 
offers for sale to the municipality.
	(b)  If the purpose for which property purchased under this 
section ceases to exist or if the property is no longer needed for 
the purpose, the governing body may sell and convey the property for 
the highest obtainable price.

Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.                    


	§ 253.004. GRANT OR LEASE OF PROPERTY FOR JUVENILE 
BOARD.  A home-rule municipality by grant or lease may donate to 
the county in which the municipality is located any unimproved land 
for use by a juvenile board of the county.

Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.                    


	§ 253.005. LEASE OF OIL, GAS, OR MINERAL LAND.  (a) Except 
as provided by Subsection (b), a municipality may lease oil, gas, or 
mineral land that it owns, in the manner and on the terms that the 
governing body of the municipality determines, for the benefit of 
the municipality.  A lease under this section is not a sale under 
the law governing the sale of municipal land.
	(b)  A municipality may not lease under this section a 
street, alley, or public square in the municipality.
	(c)  A well may not be drilled in the thickly settled part of 
the municipality or within 200 feet of a private residence.

Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.                    


	§ 253.006. LEASE OF MUNICIPAL HOSPITAL OR SWIMMING 
POOL.  (a) The governing body of a municipality with a population 
of 65,000 or less may lease all or part of a hospital owned by the 
municipality, to be operated by the lessee as a public hospital.
	(b)  The governing body of any municipality may lease a 
swimming pool owned by the municipality, to be operated by the 
lessee as a public swimming pool.
	(c)  A lease under this section must:                                          
		(1)  be authorized by ordinance or resolution adopted 
by the governing body;
		(2)  be executed on behalf of the municipality by the 
mayor and the municipal secretary or clerk;
		(3)  be impressed with the municipal seal;  and                               
		(4)  cover a period of not more than 50 years.                                
	(d)  A lease under this section is subject to the terms 
agreed to by the governing body and the lessee.

Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.                    


	§ 253.007. SALE OR LEASE OF COMPUTER SOFTWARE BY CERTAIN 
MUNICIPALITIES.  (a) This section applies only to a municipality 
that has a population of more than 5,000.
	(b)  A municipality that independently or in conjunction 
with any person develops automated information systems software may 
contract with a person for the sale, lease, marketing, or other 
distribution of the software.  Any release of municipally developed 
automated information systems software must be under a contract 
that provides that the municipality will receive a royalty, license 
right, or other appropriate compensation for developing the 
software.  The provisions of Chapter 552, Government Code, 
governing the cost of making copies of public records do not apply 
to automated information systems software subject to a contract 
under this section.
	(c)  In this section, "automated information systems 
software" means any procedure or software that is designed, 
operated, or maintained to collect, record, process, store, 
retrieve, display, or transmit information.
	(d)  Notwithstanding any other provision of this section, 
this section does not apply to the cost of production for public 
inspection or copying of public records collected, assembled, or 
maintained through use of the software, which cost is governed by 
Subchapter F, Chapter 552, Government Code, without regard to the 
cost of developing the software.

Added by Acts 1993, 73rd Leg., ch. 505, § 1, eff. Aug. 30, 1993.  
Amended by Acts 1993, 73rd Leg., ch. 428, § 7, eff. Aug. 30, 
1993;  Acts 1995, 74th Leg., ch. 76, § 5.95(88), (100), eff. 
Sept. 1, 1995.


	§ 253.008. SALE OF REAL PROPERTY BY PUBLIC AUCTION.  (a) 
The governing body of a municipality may sell real property owned by 
the municipality by public auction or by sealed bid under Section 
272.001.
	(b)  To sell real property by public auction, the governing 
body of a municipality shall publish notice of the auction before 
the 20th day before the date the auction is held.  The notice for 
sale of the real property must be published once a week for three 
consecutive weeks before the date the auction is held in a newspaper 
of general circulation in the county in which the municipality is 
located and, if the real property is located in another county, in a 
newspaper of general circulation in the county in which the real 
property is located.  The notice must include a description of the 
real property, including its location, and the date, time, and 
location at which the auction is to be held.

Added by Acts 1993, 73rd Leg., ch. 206, § 1, eff. Aug. 30, 1993.  
Renumbered from V.T.C.A., Local Government Code § 253.007 by 
Acts 1995, 74th Leg., ch. 76, § 17.01(39), eff. Sept. 1, 1995.


	§ 253.009. CONVEYANCE OF ADJOINING PROPERTY TO MUNICIPAL 
DEVELOPMENT CORPORATION.  (a) A municipality may convey to a 
municipally created economic development corporation, including a 
development corporation organized under the Development 
Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil 
Statutes), real property that has been conveyed by gift to the 
municipality or conveyed to the municipality as part of a legal 
settlement and that is adjacent to an area designated for 
development by the corporation.
	(b)  A municipality may convey property under Subsection (a) 
for any fair consideration approved by the governing body of the 
municipality.  For a conveyance under this section to be effective, 
the governing body must adopt an ordinance that:
		(1)  describes the property to be conveyed;                                   
		(2)  requires the conveyance to comply with the 
requirements of Section 5.022, Property Code, except a covenant of 
general warranty is not required;  and
		(3)  states the consideration paid.                                           
	(c)  A municipality may convey the property under this 
section without complying with the other notice or bidding 
requirements prescribed by other law, including Section 272.001.

Added by Acts 1999, 76th Leg., ch. 1186, § 1, eff. June 18, 1999.          


	§ 253.010. SALE OF REAL PROPERTY TO CERTAIN NONPROFIT OR 
RELIGIOUS ORGANIZATIONS.  (a) Notwithstanding any other provision 
of law, the governing body of a municipality may provide for the 
manner in which any land acquired by the municipality may be sold if 
the land is sold to:
		(1)  a nonprofit organization that develops housing for 
low-income individuals and families as a primary activity to 
promote community-based revitalization of the municipality;
		(2)  a nonprofit corporation described by 26 U.S.C. 
Section 501(c)(3) that: 
			(A)  has been incorporated in this state for at 
least one year;            
			(B)  has a corporate purpose to develop affordable 
housing that is stated in its articles of incorporation, bylaws, or 
charter;
			(C)  has at least one-fourth of its board of 
directors residing in the municipality;  and
			(D)  engages primarily in the building, repair, 
rental, or sale of housing for low-income individuals and families;  
or
		(3)  a religious organization that:                                           
			(A)  owns other property located in the 
municipality that is exempt from taxation under Section 11.20, Tax 
Code;  and
			(B)  has entered into a written agreement with the 
municipality regarding the revitalization of the land.
	(b)  A municipality operating under this section may by 
ordinance determine the individuals and families who qualify as 
low-income individuals and families under Subsection (a)(1) or (2).  
In adopting an ordinance under this subsection, the municipality 
shall consider median income of individuals and median family 
income in the area.

Added by Acts 1995, 74th Leg., ch. 550, § 1, eff. June 13, 1995.  
Amended by Acts 1997, 75th Leg., ch. 712, § 1, eff. June 17, 
1997;  Acts 1999, 76th Leg., ch. 181, § 1, eff. Aug. 30, 1999;  
Acts 1999, 76th Leg., ch. 817, § 3, eff. Sept. 1, 1999.  
Redesignated from V.T.C.A. Tax Code, § 34.015 and amended by 
Acts 2001, 77th Leg., ch. 1420, § 18.005, eff. Sept. 1, 2001;  
Acts 2001, 77th Leg., ch. 1430, § 33, eff. Sept. 1, 2001.


	§ 253.011. CONVEYANCE TO NONPROFIT CORPORATION FOR PUBLIC 
USE.  (a) In this section, "nonprofit organization" means an 
organization exempt from federal taxation under Section 501(c)(3), 
Internal Revenue Code of 1986, as amended.
	(b)  This section does not apply to a municipality with a 
population of 1.9 million or more.
	(c)  A municipality may transfer to a nonprofit 
organization, for consideration described by this section, real 
property or an interest in real property without complying with the 
notice and bidding requirements of Section 272.001(a) or other law.
	(d)  Consideration for the transfer authorized by this 
section shall be in the form of an agreement between the parties 
that requires the nonprofit organization to use the property in a 
manner that primarily promotes a public purpose of the 
municipality.  If the nonprofit organization at any time fails to 
use the property in that manner, ownership of the property 
automatically reverts to the municipality.
	(e)  The municipality shall transfer the property by an 
appropriate instrument of transfer.  The instrument must include a 
provision that:
		(1)  requires the nonprofit organization to use the 
property in a manner that primarily promotes a public purpose of the 
municipality;  and
		(2)  indicates that ownership of the property 
automatically reverts to the municipality if the nonprofit 
organization at any time fails to use the property in that manner.
	(f)  Provided, however, that if the real property to be 
transferred lies outside the municipality's corporate limits and 
outside the county where 80 percent of the municipality's residents 
reside, the municipality must obtain the consent of the county 
commissioners court in the county where the real property is 
located.

Added by Acts 2001, 77th Leg., ch. 784, § 1, eff. Sept. 1, 2001.