DEPARTMENT: Office of EastPoint and Real Estate Services
DEPARTMENT HEAD: Mike Etienne
COUNCIL DISTRICTS IMPACTED: 5
SUBJECT:
Disposition: Sale of City owned property at Teresa Street and IH 35 S; and Closure of portion of Rochambeau Street Public Right of Way
SUMMARY:
Consideration of the following ordinances:
A. An ordinance declaring as surplus a vacant 0.160 acre tract of City owned land located at Teresa Street and IH 35 S in Council District 5 and authorizing its sale to JMB SA Properties, LLC for a total of $69,870.00.
B. An ordinance authorizing the closure, vacation and abandonment of 0.055 acres of Rochambeau Street Public Right of Way, located at the intersection of Rochambeau and Cottonwood Avenue, in Council District 5, as requested by JMB SA Properties, LLC for a fee of $16,200.00.
BACKGROUND INFORMATION:
A. JMB SA Properties, LLC (Petitioner) is requesting that the City of San Antonio declare as surplus and sell a parcel of land located at Teresa Street and IH 35 S (access road) as shown on attached Exhibit A. The subject property is an unimproved 0.160 acre tract of land (6,987 sq. ft.). The Petitioner owns the abutting property at 361 Teresa Street and plans to build a new Subway restaurant. The combined land area would allow for the intended development.
In accordance with City policy, the subject property was advertised to the public in The Hart Beat on August 13, 2014 and August 15, 2014. Petitioner was the sole bidder.
B. JMB SA Properties, LLC (Petitioner) is requesting the closure, vacation and abandonment of a portion of Rochambeau Street Public Right of Way as shown on attached Exhibit A. Both the Petitioner's property and the surplus property (item A above) abuts the proposed closure. The subject ROW is 0.055 of an acre (2,399 sq. ft.) and is an undeveloped paper street. If approved, the Petitioner plans to combine land with his property and the surplus property (item A) for the development of a new Subway restaurant.
In accordance with City policy, since the subject property is a closure, vacation and abandonment of a Street Public Right of Way a bidding process is not required.
ISSUE:
A. This ordinance will declare as surplus a vacant 0.160 acre tract of City owned land located at Teresa Street and IH 35 S and described as the remaining portion of Lots 13 and 14, Block 1, NCB 6673 and remaining portion of Lot 12, Block 8, NCB 2838 in Council District 5 and authorize its sale to JMB SA Properties, LLC for a total of $69,870.00.
The Petitioner owns the abutting property at 361 Teresa Street and plans to build a new Subway restaurant. The combined land area would allow for the intended development.
B. This ordinance will authorize the closure, vacation and abandonment of 0.055 acres of Rochambeau Street Public Right of Way, adjacent to NCB 2838, in Council District 5, as requested by JMB SA Properties, LLC for a fee of $16,200.00.
The Petitioner's property and the surplus property (item A above) abuts the proposed closure. The subject ROW is an undeveloped paper street. If approved, the Petitioner plans to combine land with his property and the surplus property (item A) for the development of a new Subway restaurant.
ALTERNATIVES:
City Council could choose not to approve these requests; however, this will disallow JMB SA Properties, LLC from utilizing and developing property. And the City's liability would continue along with the obligation for maintenance.
FISCAL IMPACT:
A. The fair market value of this property is $62,900.00, which was established by an appraisal performed by Debra Runyan, MAI on April 29, 2014. The City of San Antonio and the buyer have agreed on a sales price of $69,870.00. This fund will be deposited into the General Fund in accordance with FY 2015 Adopted Budget.
B. The fair market value of the Right of Way is $21,600.00, which was established by an appraisal performed by Debra Runyan, MAI on April 29, 2014. The value was reduced by 25% in accordance with the reduction provided by the Inner City Reinvestment/Infill Policy (ICRIP). The City will collect $16,200.00 for this property. This fund will be deposited into the General Fund in accordance with FY 2015 Adopted Budget.
The properties will be placed on the tax rolls, which will generate revenue for the City of San Antonio as well as other taxing entities.
RECOMMENDATION:
Staff recommends approval of these ordinances to sell City-owned real property located at Teresa Street and IH 35 S; and to authorize the closure, vacation and abandonment of a portion of Rochambeau Street Public Right of Way in Council District 5.
The City of San Antonio's Planning Commission will consider these requests at its regular meeting of January 14, 2015.