Discuss and consider a resolution approving the Central Appraisal District of Johnson County's proposal to purchase, renovate and finance the acqusition of an office building located at 240 N. Burleson Blvd., Burleson, Texas, for the use as the Central Appraisal District of Johnson County office, as authorized by Section 6.051 of the Texas property code.

Staff Report & Agenda Item Details

The Central Appraisal District of Johnson County (JCAD) is requesting approval from its participating taxing units to purchase and renovate an existing commercial building located at 240 N. Burleson Blvd. in Burleson for use as its appraisal district office. Pursuant to Section 6.051 of the Texas Property Code, JCAD's proposed purchase of real property must be approved by three-fourths of the taxing units entitled to vote on the appointment of the JCAD Board of Directors. Taxing units are requested to approve or disapprove the proposal within 30 days of receiving notice. JCAD has negotiated a purchase price of $6.5 million and proposes financing 100% of the purchase price through a mortgage, with existing reserves used for approximately $900,000 in anticipated finish-out costs. JCAD anticipates no budget increase related to the acquisition for 2027; however, its proposal estimates an approximately 12% increase in annual CAD expenses beginning in 2028 to accommodate mortgage payments. JCAD notes that potential sublease revenue could reduce the estimated increase to approximately 8.5%.