Our Commissioners are on the verge of spending $12.5 million of our tax dollars on a park purchase (with a five day closing) according to the Austin American Statesman. As of this date the purchase has not yet closed. We were told in the article that the developer who was selling his land was in dire straits and had to sell immediately. Logically we should ask if we are paying a fair price for the park. Why is 60% of the park budget being used to benefit 1% of the Wilco (Williamson County) population, and should we trust that the county appraiser has arrived at a fair market value for the land? We would like to believe that the commissioners who voted for the "Road to Nowhere" are following the proud Republican tradition of limiting government, being fiscally responsible and supporting an individual's property rights. Unfortunately this may not be the case. But of course we all can make mistakes.
If this is such a good deal, why are other developers, who are stuck with land they can’t develop in our down real estate market, coming to the county with comments such as “Buy my property instead. I can make you a better deal“. We know that the county is now looking at land south of Highway 29. Most people shopping for real estate look at all the suitable properties first, pick one property and then close on it. It appears that our commissioners are going about this purchase backwards. The north property seems to be the defacto choice. How sincerely are other properties being looked at? Would any other options have been seriously considered if the public had not become involved when told of the purchase? Are our tax dollars being well spent here? How many of us (taxpayers and voters) were even aware this deal was in the works? Why did the commissioners want this deal closed in five days? Could any of us close a real estate deal in five days? Why the rush? This whole process seems hushed, rushed and backwards.
Now, ask yourself if the commissioners are using the same backward thought process to figure out where the road is going to go. Commissioner Long told us that the Campo statistics were all wrong and had to be refigured. Of course we are told the "Road to Nowhere" is needed based on those same "inaccurate" Campo studies. This can be addressed later; we need to get back to the park.
This proposed park property is on the 2008 tax rolls for $6,128,922.00 which is less than half of the $12.5 million proposed purchase price. The excuse we were given is that we should not be surprise by this since the tax rolls are always a "little" off. Of course our homes and properties actual value and tax valuation are usually pretty much in agreement. The proposed park's tax valuation is less than half what our Commissioners and County Judge agreed to purchase the park for. How many of us (taxpayers and voters) get this much wiggle room on our property valuations?
As stated before, the seller indicated he was selling the land to Wilco because the real estate market is so bad his land could not be developed. We know the seller bought the property in 2006 for $6.3 million when the market was strong enough to develop the property. Now, the market is not strong enough to develop, but somehow the property has doubled in value? Smells fishy, but wait, it gets worse.
LET'S DIG A LITTLE DEEPER
As black-and-white as both conditions are, let's break them down for those not accustomed to reading legal documents. This means the developer, God bless 'em, held back an adjoining parcel and agreed to give Wilco a 16 acre right-of-way for the proposed highway on property he did not sell. This raw land the developer held back is currently worth about $8,000 an acre. If the "Road to Nowhere" is routed north, this would turn into commercial property. Based on what land is going for on the current Hwy 29 (the closest current comparison), this property will be worth between $150,000-$200,000/acre. Keeping it toward the low side, this developer just made a 20 fold gain if we suppose the following:
If the 2008 Wilco tax rolls have the property appraised at $6,128,922.00 and the 2006 purchase price was $6.3 million, one could be generous and say today's value is approximately $9.5 million. At a $12.5 million county agreed purchase price, that’s a $3 million gain. Add that to the $4.3 million commissioner power ball above and that’s a $7.3 million gain for a developer who was drowning in a property he couldn’t develop or sell last month. We should all commiserate for his poor fortunes, and wish such misfortune to all our friends.
Of course our commissioners could say that they voted for the park without the 16 acres so the park would look more square-shaped. Didn't they realize the developer could be holding back land that would skyrocket in value as commercial property? Someone get the Lysol.
So, we the tax payers in north Liberty Hill get a park most of us don't really need because we live on large plots already, a probable 20% loss of home and property equity, our peaceful country atmosphere is gone due to noise and light pollution, and our schools are degraded because of loss of tax revenue. But look at the bright side, all that heavy traffic coming out of Bertram won't tie up traffic for hours.
Although thousands of us will lose in many ways, our tax dollars will improve the situation for one single person - the developer. America is a capitalist country and we can't begrudge a developer an honest profit, BUT when we are dealing with this much money and this large of a percentage of the park budget, there are still serious questions that deserve more than a PR spin and a 5 day "rush job".
This election year Williamson County Republicans will need to solicit the Pct. 3 Democratic candidate Greg Windham’s and sitting Republican County Commissioner Birkman's opinion on this debacle. Fixing this short sighted disaster will probably be high on their priority list as an embarrassing mess to be repaired. Aside from this, we would also be curious to hear their position on another item near and dear to our hearts, property rights.
Thank the Lord this is an election year.