Maverick County Hospital District Board proceeds with decision to sell or lease Bibb Street Property

By: Jose G. Landa
Copyright 2013 Eagle Pass Business Journal, Inc.

Maverick County Commissioner Precinct 1 Gerardo “Jerry” Morales last minute offer to continue temporarily leasing the Bibb Street real property owned by the Maverick County Hospital District and which houses the County Commissioner Precinct 1 Office, the Justice of the Peace Precinct 1 Judge Kina Mancha’s Office, the Texas A & M University Colonias Program Office, and the Wintergarden Women’s Shelter Office for $250 per month plus expenses backfired at the Maverick County Hospital District (MCHD) Board of Directors Regular Meeting held on Wednesday, December 11, 2013, as it failed for lack of a second to the motion.

The Maverick County Hospital District Board of Directors generously and benevolently leased to Maverick County for six years at only a $1 a year their Bibb Street real property and improvements to house the County Commissioner Precinct 1 Offices. Subsequently, Maverick County added the offices of Justice of the Peace Precinct 1 Kina Mancha’s Office and subleased additional office space without the written consent of the Maverick County Hospital District Board of Directors to non-profit organizations working in providing services to county residents. Due to the severe financial budget losses sustained by the Maverick County Hospital District during the past several years, the Board of Directors decided to lease or sell the Bibb Street property offering it first to Maverick County almost a year ago.

Maverick County by and through County Judge David R. Saucedo and County Commissioner Jerry Morales advised the Maverick County Hospital District that the County did not have funds to purchase or lease the property at a fair market value or rate. Since Maverick County’s response was that it could not purchase or lease the real property at fair market value, the Maverick County Hospital District Board of Directors approved a six-month extension of the lease to Maverick County for $1 to allow the County time to either pursue funding to purchase the property or evaluate what monthly rent it could offer the Hospital District for renting the Precinct 1 Offices. At several Maverick County Hospital District Board meetings this year, County Judge Saucedo told the Hospital District Board that the County could only afford to pay $1 per year rent plus maintenance expenses. In light of Maverick County’s inability or failure to present a reasonable and viable purchase or lease proposal, the Maverick County Hospital District Board of Directors approved to place the Bibb Street property for sale or lease at fair market value and have it appraised to determine its value while granting Maverick County another six months lease extension for $1 until December 31, 2013 and give Maverick County additional time to either make a reasonable offer to purchase or rent the property and/or find alternative office space for the Precinct 1 Offices and non-profit organizations.

Maverick County Judge David R. Saucedo, County Commissioner Jerry Morales, and Maverick County Hospital District Chief Executive Officer Elcira Bares continued to have discussions and meetings to find an amicable and reasonable solution to the leasing or purchase of the Bibb Street property to Maverick County despite the Hospital District’s Board of Directors having previously approved to sell or lease the property. The Maverick County Hospital District Board’s Finance Committee at one of its committee meetings approved to present to its full Board of Directors and Maverick County a proposal to continue temporarily leasing the Bibb Street Precinct 1 Offices for only $500 per month plus the maintenance expenses. At the November 12, 2013, Maverick County Hospital District Board of Directors meeting, County Judge David R. Saucedo and County Commissioner Jerry Morales declined the generous $500 per month rent proposal from the Maverick County Hospital District Board of Directors stating that the County could only afford to pay $1 plus the maintenance expenses. Since Maverick County turned down the generous $500 per month plus maintenance expenses proposal from the Maverick County Hospital District Board of Directors, the Hospital District Board’s previous approval to proceed to sell or lease the Bibb Street property at fair market value remained in effect.

On December 2, 2013, County Commissioner Jerry Morales wrote a letter to Elcira Bares, CEO, of the Maverick County Hospital District stating “I would like to inform you that after reviewing and evaluating our circumstances I therefore like to offer Maverick County Hospital District (“MCHD”) an annual commercial rental of $3,000.00 annually ($250.00 per month) based on our financial feasibility and financial capacity.”

Commissioner Jerry Morales proposal to the Hospital District was placed and discussed at the December 11, 2013 Board Meeting. MCHD Board of Trustee Joaquin L. Rodriguez made a motion to approve Commissioner Jerry Morales’ proposal but the motion failed for a lack of a second. Board Chairman Juan Manuel “Chuco” Farias nor Trustee Ricardo E. Calderon seconded Rodriguez’s motion. Board Vice-Chairman and Maverick County Treasurer Rito Valdez,III, and Trustee Humberto Duran did not attend the Hospital District Board meeting. Trustee Calderon asked MCHD CEO Elcira Bares how much money had the Hospital District paid for the real estate appraisal done on the Bibb Street property by certified appraiser Randall Banks and Bares replied the District had paid $1,200 for the appraisal. The Randall Banks appraisal opined that the Bibb Street property has a total of 3,789 square feet of space and if it was leased at a median price of .85 cents per square foot, the fair market value rent of the Bibb Street property is $3,221 per month plus maintenance expenses. Commissioner Morales’ $250 per month plus expenses proposal was obviously very low. Bares also advised the Board that the Hospital District had already placed a sign for sale on the Bibb Street property and that seven persons interested in the property had called to inquire about the property. Calderon noted that the seven inquiries about the Bibb Street property is an indication that there is a lot of interest in the community to purchase or lease the property at fair market value. In light of Trustee Rodriguez’s motion dying for a lack of a second, the MCHB CEO and Legal Counsel, Celeste Lira of Brin & Brin of San Antonio, Texas, were instructed to proceed with the previously approved Board decision to sell or lease the Bibb Street property at fair market value in accordance with state law.

Maverick County had many opportunities to negotiate and reach a reasonable lease amount and agreement with the Maverick County Hospital District. The Maverick County Hospital District and its Board of Directors have been very generous to Maverick County allowing the County to lease the Bibb Street property for the past six years at $1 per year plus maintenance expenses. Maverick County should have accepted the Hospital District’s Finance Committee proposal last month of paying $500 per month plus maintenance expenses and would not have to be vacating the Bibb Street Precinct 1 Offices by December 31, 2013.