CHAPTER 253. SALE OR LEASE OF PROPERTY BY MUNICIPALITIES
LOCAL GOVERNMENT CODE
TITLE 8. ACQUISITION, SALE, OR LEASE OF PROPERTY
SUBTITLE A. MUNICIPAL ACQUISITION, SALE, OR LEASE OF PROPERTY
CHAPTER 253. SALE OR LEASE OF PROPERTY BY MUNICIPALITIES
Sec. 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) or (j) 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.
(j) Subsection (b) does not apply to a conveyance of park land
that is:
(1) owned by a home-rule municipality with a population of less
than 100,000;
(2) one-third acre or less;
(3) part of a park that is five acres or less; and
(4) sold or conveyed as a sale to the owner of adjoining
property as provided by a resolution or ordinance that has an
effective date before December 31, 2007.
(k) A petition for the judicial review of the sale of park land
under Subsection (j) must be filed on or before the 30th day
after the date the ordinance or resolution is adopted. A
petition filed after the period prescribed by this subsection is
barred.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Amended by Acts 1989, 71st Leg., ch. 328, Sec. 14, eff. Sept. 1,
1989; Acts 1989, 71st Leg., ch. 597, Sec. 1, eff. Aug. 28, 1989;
Acts 1993, 73rd Leg., ch. 179, Sec. 1, eff. May 17, 1993; Acts
1995, 74th Leg., ch. 344, Sec. 1, eff. Aug. 28, 1995; Acts 1997,
75th Leg., ch. 33, Sec. 1, eff. Sept. 1, 1997; Acts 1999, 76th
Leg., ch. 62, Sec. 13.18, eff. Sept. 1, 1999; Acts 2001, 77th
Leg., ch. 754, Sec. 1, eff. Sept. 1, 2001.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
633, Sec. 1, eff. June 15, 2007.
Sec. 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, Sec. 1, eff. Sept. 1, 1987.
Sec. 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, Sec. 1, eff. Sept. 1, 1987.
Sec. 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, Sec. 1, eff. Sept. 1, 1987.
Sec. 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 lease under this section a street, alley,
or public square in the municipality if the lease prohibits the
lessee from using the surface of the land for drilling,
production, or other operations. In this subsection, "public
square" does not include a dedicated public park.
(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, Sec. 1, eff. Sept. 1, 1987.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
446, Sec. 1, eff. June 19, 2009.
Sec. 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, Sec. 1, eff. Sept. 1, 1987.
Sec. 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, Sec. 1, eff. Aug. 30,
1993. Amended by Acts 1993, 73rd Leg., ch. 428, Sec. 7, eff. Aug.
30, 1993; Acts 1995, 74th Leg., ch. 76, Sec. 5.95(88), (100),
eff. Sept. 1, 1995.
Sec. 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, Sec. 1, eff. Aug. 30,
1993. Renumbered from Local Government Code Sec. 253.007 by Acts
1995, 74th Leg., ch. 76, Sec. 17.01(39), eff. Sept. 1, 1995.
Sec. 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 (Subtitle C1, Title 12), 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, Sec. 1, eff. June 18,
1999.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 3.17, eff. April 1, 2009.
Sec. 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, Sec. 1, eff. June 13,
1995. Amended by Acts 1997, 75th Leg., ch. 712, Sec. 1, eff. June
17, 1997; Acts 1999, 76th Leg., ch. 181, Sec. 1, eff. Aug. 30,
1999; Acts 1999, 76th Leg., ch. 817, Sec. 3, eff. Sept. 1, 1999.
Redesignated from Tax Code, Sec. 34.015 and amended by Acts 2001,
77th Leg., ch. 1420, Sec. 18.005, eff. Sept. 1, 2001; Acts 2001,
77th Leg., ch. 1430, Sec. 33, eff. Sept. 1, 2001.
Sec. 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, Sec. 1, eff. Sept. 1,
2001.
Sec. 253.012. CONVEYANCE TO ECONOMIC DEVELOPMENT CORPORATION BY
CERTAIN MUNICIPALITIES. (a) In this section, "economic
development corporation" means a Type A corporation governed by
Chapter 504 or a Type B corporation governed by Chapter 505.
(b) This section applies only to a municipality with a
population of 20,000 or less.
(c) A municipality may transfer to an economic development
corporation, 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 a transfer authorized by this section is
in the form of an agreement between the parties that requires the
economic development corporation to use the property in a manner
that primarily promotes a public purpose of the municipality. If
the economic development corporation 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 economic development corporation 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) A municipality may not transfer property to an economic
development corporation under this section if the municipality
acquired the property through eminent domain.
Added by Acts 2009, 81st Leg., R.S., Ch.
1158, Sec. 1, eff. June 19, 2009.