DEPARTMENT: Center City Development and Operations
DEPARTMENT HEAD: Lori Houston
COUNCIL DISTRICTS IMPACTED: 2
SUBJECT: Sale of City-Owned Real Property
SUMMARY:
Consideration of an ordinance authorizing the disposition of the following unimproved real properties comprising approximately 0.6785 acres of land area owned by the City of San Antonio in Council District 2 and authorizing its sale to Terramark Urban Homes for $123,000.00:
1. 130 North Swiss: New City Block 590, Block 3, Lot S 45 Ft of N 95 Ft of 18 and 19 ARB A-29
2. 134 North Swiss: New City Block 590, Block 3 Lot N 50 Ft of 18 and 19
3. 139 North Swiss: New City Block 590, Block 3, Lot 3
4. 126 North Cherry: New City Block 590, Block 3, Lot S 47.52 Ft of N 87.52 Ft of 1 and 2 ARB A16
5. 402 North Center: New City Block 590, Block 3, Lot N 40 Ft of 1
6. 406 North Center: New City Block 590, Block 3, Lot N 40 Ft of 2
BACKGROUND INFORMATION:
These six (6) properties were originally owned by the St. Paul Area Development Corporation (SPADC) and were purchased with Community Development Block Grant (CDBG) funds provided by the City of San Antonio's Office of Grants Monitoring and Administration (GMA). SPADC acquired the properties with the intent to construct an elderly assisted living center.
In December 2009, by board resolution, SPADC was dissolved as an organization and the assisted living center facility was never constructed. The properties subsequently reverted back to City ownership. In an effort to spur redevelopment in the area, these six (6) properties were collectively advertised by the City of San Antonio through a Request for Proposal (RFP) process on October 30, 2013. The City's interest was to dispose the properties for residential or mixed-use development opportunities. With respect to future land use, the lots are located within the Dignowity Hill Neighborhood Plan area and are detailed for low density mixed use.
Four respondents formally issued responses to the RFP and all were subsequently reviewed for viability and content. Of the four responses received, two firms were selected for an interview. The selection process was overseen by an Assistant City Attorney and a representative from the City's Transportation & Capital Improvements Department and the review committee was comprised of the Director of Planning and Community Development, the Director of the Center City Development and Operations Department, the Grants Manager from the City's Grants Monitoring and Administration Division, and the City's Downtown Real Estate Manager.
The selected bidder, Terramark Urban Homes, is recommended by staff to be awarded the properties for an amount equivalent to their Bexar County Appraisal District tax value of $123,000.00. The property is within the Center City Housing Incentive Policy (CCHIP) incentive tier, the Inner City Reinvestment/Infill Policy (ICRIP) area and Inner City Tax Increment Reinvestment Zone (TIRZ 11), the project is eligible for incentives in the approximate amount of $173,000.00, and the developer is planning to invest nearly $3,000,000.00 in the project.
Terramark's proposal includes up to 16 owner-occupied detached townhomes to be developed on the subject properties. Per the agreement with Terramark Urban Homes, the design of the townhomes must be approved by the Historic & Design Review Commission and the Center City Design Center, with input from the Dignowity Hill Neighborhood Association. Anticipated construction is expected to commence in late 2014.
The City of San Antonio's Planning Commission approved the sale of the property at its regular meeting on May 14, 2014.
ISSUE:
This ordinance authorizes the disposition of city-owned unimproved property located at
130 North Swiss, 134 North Swiss, 139 North Swiss, 126 North Cherry, 402 North Center, and 406 North Center and authorizes its sale to Terramark Urban Homes for $123,000.00. The sale of these properties presents an opportunity for redevelopment on the near East Side as well as removes property that the City will need to maintain from its inventory.
ALTERNATIVES:
The winning RFP response includes the construction of new housing stock in an area that is experiencing revitalization and capital inflow. City Council can decide not to authorize the sale of these properties, however, the land will remain vacant and another option will need to be identified for development.
FISCAL IMPACT:
In compliance with Chapter 37 of the Municipal Code, Chapter 37-2 (2), fair market value was based on the Bexar Appraisal District-assessed values in the vicinity.
The Bexar Appraisal District's value of the properties is approximately $123,000.00. The City of San Antonio and Terramark Urban Homes (purchaser) have agreed on a sales price of $123,000.00. The property will be placed on the tax rolls and generate revenue for the taxing entity. The revenues from this sale will be deposited within the Inner City Incentive Fund.
RECOMMENDATION:
Staff recommends the approval of an ordinance authorizing the disposition of the city-owned, unimproved parcels located at 130 North Swiss, 134 North Swiss, 139 North Swiss, 126 North Cherry, 402 North Center, and 406 North Center in Council District 2, and authorizing its sale to Terramark Urban Homes.