DEPARTMENT: EastPoint and Real Estate Services
DEPARTMENT HEAD: Mike Etienne
COUNCIL DISTRICTS IMPACTED: 1
SUBJECT: Disposition: Sale of City-owned Property located at 604 S. Alamo Street
SUMMARY:
An ordinance to declare as surplus the City's former Fire Station No.7, located at 604 S. Alamo Street, described as Lot 4, Block 4, NCB 13815, in Council District 1, and authorize its sale to Andrew Goodman for $850,007.00 and authorizing the negotiation and execution of an agreement with the Fire Museum Society for a matching funds donation in an amount not to exceed $150,000.00 from the sale proceeds.
BACKGROUND INFORMATION:
Under Municipal Code, all City property must be declared as surplus prior to the disposition of the property. Under this process, a request to declare property as surplus is submitted to the Office of EastPoint and Real Estate Services. The request and exhibits are then sent to City departments and utilities which provide services or construct infrastructure on the property. The departments and utilities respond if there is a need for the property or if the property can be disposed. Appraisals and surveys are completed if the property is determined to be surplus. The property is then presented to City Council for final authorization to declare the property as surplus and dispose of the property in accordance with Chapter 272 of the Local Government Code.
Andrew Goodman (Petitioner) is requesting that the City of San Antonio declare as surplus and sell an improved tract of City-owned real property known as 604 S. Alamo Street, in City Council District No. 1. The two-story facility consists of 5,327 square feet and sits on 0.10 acres. The former Fire Station was built in 1924 and decommissioned in 2005. The new Fire Station No. 7 is located at 1414 S. St. Mary's Street. Since 2005, the facility was used as storage by the Fire Museum, but the San Antonio Fire Department has now deemed the site vacant and surplus to its needs. In accordance with Chapter 272 of the Local Government Code, the subject property was advertised to the general public in the San Antonio Express-News on Friday, April 25, 2014 and Sunday, April 27, 2014 for sealed bids. The property was also advertised on the City of San Antonio's website. A total of six bids were received and the City accepted a winning bid of $850,007.00 from Andrew Goodman. If approved, Andrew Goodman plans to renovate the property and open a restaurant at the site.
ISSUE:
This ordinance will declare as surplus former Fire Station No.7, an improved tract of real property known as 604 S. Alamo Street described as Lot 4, Block 4, NCB 13815 and authorize its sale to Andrew Goodman, for $850,007.00. The property was appraised for $797,000.00. The former Fire Station No.7 was constructed circa 1924 and was decommissioned in 2005. The building is currently vacant and has significant deferred maintenance. Disposition of the property will facilitate its timely renovation and bring additional retail to the area. With this agreement, the buyer has 18 months to renovate the property and obtain a certificate of occupancy. Petitioner, a private business owner, plans to renovate the property and open a restaurant at the site.
This action is consistent with the City Code and Ordinances, which require City Council approval for the disposition of any surplus City-owned real property.
ALTERNATIVES:
The alternative is to not approve the sale of this property. Staff does not recommend this alternative since the property would remain vacant and unused. Also, the City would have to continue its liability and maintenance of the vacant property, and would not return the property to the tax rolls. In addition, Andrew Goodman would not be able to renovate the property and open a restaurant at the site.
FISCAL IMPACT:
In compliance with Chapter 37 of the City Code, Section 37-2, fair market value of the subject property was based upon an independent State of Texas Certified Professional Appraisal Report in the amount of $797,000.00 by Noble & Associates, Inc. on December 13, 2013. The City accepted a sealed bid from Andrew Goodman in the amount of $850,007.00; and authorizing the negotiation and execution of an agreement with the Fire Museum Society for a matching funds donation in an amount not to exceed $150,000.00 from the sale proceeds. Upon Council approval of this sale, the Fire Museum Society has up to 18 months to raise the funds. The balance of the remaining funds will be deposited into the General Fund in accordance with the FY 2014 Adopted Budget.
RECOMMENDATION:
Staff recommends approval of this request to sell an improved tract of City-owned real property known as 604 S. Alamo Street to Andrew Goodman for $850,007.00 and authorizing the negotiation and execution of an agreement with the Fire Museum Society for a matching funds donation in an amount not to exceed $150,000.00 from the sale proceeds.
The City of San Antonio's Planning Commission will consider this request at its regular meeting on August 13, 2014.