DEPARTMENT: Center City Development and Operations
DEPARTMENT HEAD: Lori Houston
COUNCIL DISTRICTS IMPACTED: 2
SUBJECT:
Sale of OUR SA Properties
SUMMARY:
This ordinance authorizes the sale of two real estate parcels located at 103 Connelly legally described as Lot 17, Block 2, NCB 1492; and Hedges, legally described as Lot 13, Block 3, NCB 1495 in Council District 2.
BACKGROUND INFORMATION:
On February 2013, the Office of Urban Redevelopment of San Antonio (OUR SA) Board of Commissioners approved a Resolution to begin the disposition of all of OUR SA surplus properties which included 103 Connelly and a 0.2813 acre property on Hedges Street in District 2.
103 Connelly consists of 0.3742 acres of undeveloped property at the SW corner of Hedges and Connelly in District 2. The Hedges property is directly east and across Connelly and consists of 0.2813 acres of undeveloped property at the SE corner of Hedges and Connelly in District 2. OUR SA acquired both properties in 1986. The surrounding land uses include a mixture of light industrial manufacturing and shipping, commercial, religious, as well as single family residential. The properties are zoned I1 which allows for light industrial uses. The properties have been vacant since acquisition and currently have a combined BCAD appraised value of $20,370.
Area stakeholders were consulted on the best community use of the property and several options were explored, but the acreage, zoning, and surrounding uses limited the utility of the property. Staff also approached the adjacent owners with the opportunity to purchase the properties but found no interest.
Public notice was made for the sale of the properties in accordance with City policy and one bid to purchase both properties for $16,000 was received in January 2015 by JMI Inc.
In February 2015, the Board voted to approve the sale of both properties to JMI which was then subsequently approved by the Planning Commission on March 25, 2015.
JMI Inc. is a demolition, site preparation, and debris removal business that operates within a few short blocks of the subject properties. With the purchase of these properties, JMI will be able to relocate and expand their operation to a larger area and hire an additional 6 to 8 employees over the next 15 months. The sites will be used for a principal office and equipment and material storage. This use is compatible with the surrounding businesses and the area land use plan. JMI has agreed to screen the residential-facing side of the property with solid fencing and close the purchase of the property within 90 days of final Council approval.
ISSUE:
JMI has made an offer to purchase both properties for $16,000 to establish a principal business location within District 2 and create jobs on an otherwise vacant and underutilized property.
ALTERNATIVES:
Staff has explored multiple options for alternative uses of the site but given the surrounding uses, zoning, and acreage, staff agrees that the project proposed by JMI represents the most compatible use of the site. The City may elect not to allow for the sale of this property and require the OUR SA to hold and maintain the property for alternative uses.
FISCAL IMPACT:
There is no fiscal impact associated with this disposition. The properties were acquired using CDBG funds and therefore the proceeds from the sale will be considered program income and returned to Planning and Community Development for future use.
RECOMMENDATION:
Staff recommends approval of the sale of 103 Connelly and the Hedges property to JMI Inc. for their use as offices and secured storage.