Untitled Texas Attorney General Opinion
GA-1084
| Tex. Att'y Gen. | Jul 2, 2014Background
- Ivanhoe, a Type-A municipality incorporated in 2009, seeks to address authority to sell real property in the middle of a city street.
- The tract includes a building formerly used as a guardhouse, a city street, and improvements such as a community sign funded by IPOIA.
- A quitclaim deed in 2013 transferred the developer's interest in the street and structures to the City; IPOIA wishes to buy the tract and continue using the sign.
- The City asks whether constitutional provisions and statutes prohibit selling the building/land in a street, and whether open bidding/notice are required prior to sale.
- The Attorney General notes factual details are uncertain and not resolved in an opinion, so only general legal principles are discussed.
- General-law municipalities may lease, grant, or convey real property to carry out a municipal purpose, with street ownership framed as trustee for the state/public.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Can a municipality lawfully sell a building in a street under Texas law? | Ivanhoe seeks sale under general authority to convey real property for a public purpose. | Sale must conform to constitutional/statutory constraints and may require public purpose and return benefit. | Yes, if the sale serves a legitimate public purpose and provides return public benefit; otherwise, restricted by law. |
| Do Article III, section 52(a) and Article XI, section 3 prohibit such a sale without compensation or public benefit? | Conveyance must be lawful and not gratuitous if properly beneficial to the public. | Constitutional provisions bar gratuitous transfers; public purpose and return benefit are required. | Not prohibitive if the transaction serves a public purpose and provides a return public benefit. |
| What procedural requirements (notice/bidding) apply to the sale? | General practice is to follow notice and sealed bidding for land sales. | There are exceptions allowing sales without bidding depending on circumstances (abutting-owner strips, nonprofit conveyances, etc.). | Sale generally requires notice/bidding, with exceptions depending on specific statutory provisions and property details. |
Key Cases Cited
- Tex. Dep't of Transp. v. City of Sunset Valley, 146 S.W.3d 637 (Tex. 2004) (streets held as trustee for state/public interest)
- Mission v. Popplewell, 294 S.W.2d 712 (Tex. 1956) (limits on municipal street control and property interests)
- Barrington v. Cokinos, 338 S.W.2d 133 (Tex. 1960) (public transfers must serve public purpose and provide benefit)
- Tex. Mun. League Intergov'tl Risk Pool v. Tex. Workers' Comp. Comm'n, 74 S.W.3d 377 (Tex. 2002) (public-purpose/public-benefit test governs conveyances to private entities)
- Geodyne Energy Income Prod. P'ship I-E v. Newton Corp., 161 S.W.3d 482 (Tex. 2005) (quitclaim deeds convey only grantor rights, not full property)
- Miller v. R.R. Comm'n of Tex., 185 S.W.2d 223 (Tex. Civ. App.-Austin 1945) (illustrates municipal ownership nuances and public easement considerations)