Published: May 21, 2008 09:52 am         

Brazos board moves to protect PK Lake lessees

Directors adopt five protections they hope will ease leaseholders’ concerns in the event of all-inclusive land sale.

From Staff Reports

WACO, Texas – The Brazos River Authority Board of Directors passed Tuesday a resolution guaranteeing lease and purchase protections for leaseholders of BRA property at Possum Kingdom Lake.

The resolution was passed as a follow up to the board’s instruction to staff to investigate the potential of an all-inclusive sale of BRA property at the lake.

“We hope this resolution will reassure lessees that the BRA board has listened to the concerns and is working to guarantee their stability at Possum Kingdom Lake should we decide to move forward with an all-inclusive sale,” said Christopher DeCluitt, presiding officer for the Brazos River Authority. “The board sincerely hopes to make any sale of leased land at PK an agreeable situation for all involved.”

The resolution enumerated five specific protections for lessees to be included in any package offered for bid including:

• A third-party purchaser must acknowledge and accept the terms and conditions of all existing leases on lands that are part of the sale.

• The third-party purchaser must maintain the lease rate methodology adopted by the BRA board in July 2007 for eight years. Rates may be based upon assessed rather than appraised values, at the option of the third party purchaser.

• The third party purchaser must provide each lessee a period of eight years to purchase their leasehold property from the third party purchaser, or its successor.

• The purchase price of any sale to the lessee will be for the value of the leased land only and will not include the value of improvements such as homes, docks and patios. The cost of the land purchase will be for no more than the fair market value of the unencumbered fee simple estate.

• The third-party purchaser will extend the term of any lease as necessary to allow each lessee the full eight-year period of time to purchase their leased lot.

In addition to the protections, the board passed a resolution effective May 20 placing a temporary moratorium on new leases, including those requested for financing purposes. Leases that will expire this calendar year will be renewed for one-year extension agreements. All leases in process before May 20 will be completed and not subject to the lease moratorium.

In other business Tuesday, the board voted to:

• Seek proposals from real estate firms to assist the Brazos River Authority in managing, marketing and evaluating bids for the sale of Brazos River Authority real property interests at Possum Kingdom Lake.

• Negotiate and execute a contract for surveying services at Possum Kingdom Lake.