DEPARTMENT: EastPoint & Real Estate Services Offices
DEPARTMENT HEAD: Mike Etienne
COUNCIL DISTRICTS IMPACTED: 9
SUBJECT: Disposition: ROW Closures (unimproved portions of Anchor Drive, Link Drive and Lima Drive established by Lockhill Estates No. 2 plat)
SUMMARY:
Consideration of an ordinance authorizing the closure of a 0.5774 acre unimproved portion of Anchor Drive, a 0.4638 acre unimproved portion of Anchor Drive, a 0.6025 acre unimproved portion of Link Drive and a 1.264 acre unimproved portion of Lima Drive established by subdivision plat of Lockhill Estates No. 2 in Council District 9 as requested by LDK Realty.
BACKGROUND INFORMATION:
LDK Realty Investments, LLC., is acquiring properties within the Lockhill Estates No. 2 subdivision. The subdivision was platted in 1950, however, it was never constructed. LDK Realty plans to develop the area and complete construction of the roadways, drainage, sanitary sewer, water and dry utility infrastructure. Infrastructure also includes constructing the extension of Silver Oaks Drive to access property from West Avenue. The proposed level of investment is $15,100,000.00 with construction beginning in Summer 2014.
This ordinance will authorize the closure of a 0.5774 acre unimproved portion of Anchor Drive, a 0.4638 acre unimproved portion of Anchor Drive, a 0.6025 acre unimproved portion of Link Drive and a 1.264 acre unimproved portion of Lima Drive established by subdivision plat of Lockhill Estates No. 2 in Council District 9 as requested by LDK Realty.
LDK Realty will assemble the unimproved right-of-ways, and then re-plat the properties as Castle Hills Subdivision. LDK will then construct a gated community consisting of seventy-three homes.
ISSUE:
Consideration of an ordinance authorizing the closure of a 0.5774 acre unimproved portion of Anchor Drive, a 0.4638 acre unimproved portion of Anchor Drive, a 0.6025 acre unimproved portion of Link Drive and a 1.264 acre unimproved portion of Lima Drive established by subdivision plat of Lockhill Estates No. 2 in Council District 9 as requested by LDK Realty.
The unimproved right-of-ways will not be constructed as shown within the Lockhill Estates No. 2 plat. LDK Realty plans to assemble and reconfigure the properties within Lockhill Estates No. 2, so it is necessary for the city to close, vacate and abandon its interest in the right-of-ways as they exist in the Lockhill Estates No. 2 plat, before LDK can reconfigure and re-plat the subdivision as Castle Hills Subdivision.
LDK Realty Investments is acquiring properties within the Lockhill Estates No. 2 subdivision. LDK plans to develop a gated community consisting of seventy-three (73) single-family homes between 2,000-3,000 square feet, valued between $225,000 to $275,000. The proposed level of investment is $15,100,000.00 with construction beginning in Summer 2014.
ALTERNATIVES:
City Council could choose not to close, vacate and abandon these unimproved rights-of-way, however the city would remain responsibility of the rights-of-way; LDK Realty would not be able to develop the properties, as intended, and the properties would not be placed on the tax rolls.
FISCAL IMPACT:
The property was appraised for a total of $125,800.00 by Sandison Appraisal, LLC. The property is within the Inner City Revitalization Infill Policy Area and qualifies for a 25% fee waiver ($31,450.00) based on the proposed level of investment of $15,100,000.00. In addition, staff recommends an additional 25% waiver as a contribution to the construction of Silver Oaks public right-of-way. In total, staff recommends a 50% fee waiver ($62,900.00). The property value less the fee waiver is $62,900.00. The appraisal costs were $3,600.00, and recording fees are $200.00, both of which will be covered by LDK Realty Investments, LLC. The total cost for these closures is $66,700.00 which will be deposited into the General Fund in accordance with the FY 2014 Adopted Budget.
In compliance with Chapter 37 of the Municipal Code, Section 37-2, fair market value was based upon an Independent State of Texas Certified Professional Appraisal.
RECOMMENDATION:
Staff recommends approval of this request to close, vacate and abandon unimproved portions of Anchor Drive, Link Drive and Lima Drive within the Lockhill Estates No. 2 plat in Council District 9 as requested by LDK Realty Investments, LLC.
The Planning Commission reviewed this request at its regular meeting on May 14, 2014.