DEPARTMENT: Center City Development and Operations Department
DEPARTMENT HEAD: John Jacks
COUNCIL DISTRICTS IMPACTED: 1
SUBJECT:
Hemisfair Property Conveyance
SUMMARY:
An ordinance authorizing the conveyance by the City of San Antonio of real property consisting of a total of 0.052 acres of property located adjacent to Hemisfair Park and Hemisfair Parkland in Council District 1 and authorizing an amendment to the Master Lease Agreement and Master Agreement to reflect as such.
BACKGROUND INFORMATION:
Hemisfair Park Area Redevelopment Corporation (HPARC) was established on August 13, 2009 to manage and oversee the planning, development, construction, managing, and financed projects within Hemisfair. On February 9, 2012, City Council approved the Hemisfair Master Plan to restore connectivity and revitalize the area into a vibrant, urban district with multiple uses.
On December 5, 2013, City Council passed and approved a dedication of 18.47 acres of public parkland within Hemisfair consisting of six tracts of land known as Hemisfair Parkland. A Master Agreement between the City and HPARC was executed to manage the redevelopment in accordance with the Hemisfair Master Plan.
In addition, on December 18, 2013, the City conveyed 14.15 acres of land through seven tracts of land situated within Hemisfair to the Hemisfair Park Public Facility Corporation (PFC) to develop a series of public-private partnerships with real estate developers in accordance with the Hemisfair Master Plan. A Master Lease Agreement between the Hemisfair PFC and HPARC was executed to further the redevelopment of the PFC Tracts in accordance with the Hemisfair Master Plan.
The existing PFC Tracts and Parkland Tracts are depicted in Attachment I.
ISSUE:
On January 28, 2016, the Hemisfair Park PFC approved a Development Sublease Agreement between AREA Real Estate, LLC and HPARC to construct a 163 mixed income residential unit apartment with a 418 space parking garage and 3,200 square feet of ground floor retail on PFC Tract 4.
The City currently owns 0.052 acres of property that is directly adjacent to and contiguous with the northern edge of PFC Tract 4, which was intended to be included in the December 2013 conveyance of PFC Tract 4 to the Hemisfair PFC. The 0.052 acres of property is essential for AREA Real Estate, LLC’s planned development of PFC Tract 4 as the Acequia Lofts P3 Development project as approved by City Council (acting as the PFC Board of Directors) on January 28, 2016. See Attachment II.
This ordinance shall authorize the conveyance of the 0.052 acres of property to the Hemisfair PFC, and shall amend the Master Lease Agreement between the Hemisfair PFC and HPARC and the Master Agreement between the City, Hemisfair PFC, and HPARC, to include the conveyed tract.
ALTERNATIVES:
City Council could choose not to convey the tract; however, disapproval of conveyance would negatively impact the existing Acequia Lofts P3 Development and cause delays to other future Hemisfair development efforts including Civic Park and future P3 developments.
FISCAL IMPACT:
This ordinance will transfer responsibility for maintenance of the subject tract to the Hemisfair PFC and HPARC. The City will not receive revenues from the conveyance of the property.
RECOMMENDATION:
Staff recommends the transfer of ownership of the 0.052 acre parcel of property from the City of San Antonio to the Hemisfair Park PFC as PFC Tract 4A. Additionally, staff recommends amending the Master Agreement and Master Lease Agreement to include the conveyed tract.