DEPARTMENT: Center City Development and Operations
DEPARTMENT HEAD: Lori Houston
COUNCIL DISTRICTS IMPACTED: 2
SUBJECT:
Disposition of City owned property at 531 North Center Street
SUMMARY:
An ordinance declaring as surplus a 0.2583 acre property located at 531 North Center Street in Council District 2 and authorizing its sale to Mr. Lou Miller for $13,500.
BACKGROUND INFORMATION:
The 531 North Center Street property includes two historic structures, located on 0.2583 acres in Council District 2. The two historic structures on the property are believed to have been constructed in the 1920's and have fallen into disrepair. The property, including the two homes, was initially canvassed in June 2010 by the City in the interest of disposing the property in its entirety to an entity that could redevelop the property. In October 2013, the City issued an RFP to sell the property for its redevelopment. One bid was received from Mr. Miller.
Mr. Miller plans to renovate and reuse the structures as commercial office space to accommodate a job/entrepreneur mentoring and training program for high school and college students. Staff recommended proceeding with the sale of the property.
The declaration of the property as surplus has been approved through the canvassing process. The property's appraised market value is $13,500.00 and Mr. Miller has agreed to the purchase price of the appraised market value. Per the agreement, construction must commence within 9 months of the sale after a due diligence period of 90 days.
If the construction commencement timeline is not met, the property will revert back to the City.
The City of San Antonio's Planning Commission approved the sale of the property at its regular meeting on May 14, 2014.
ISSUE:
This City-owned property has been through the canvassing process and been determined to be surplus to City needs. The sale of this property will benefit removing blight from the neighborhood and will contribute to the area's overall economic vitality.
ALTERNATIVES:
This City-owned property includes two residential structures that have fallen into disrepair over time. City has been in discussions with a buyer who has pledged to redevelop the property. City Council can decide not to authorize the sale of this property; however the historic homes will remain vacant and continue to deteriorate and negatively impact the neighborhood.
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 value of the property is $13,500.00. The City of San Antonio and purchaser have agreed on a sales price of $13,500.00. 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 General Fund.
RECOMMENDATION:
Staff recommends the approval of this ordinance authorizing the disposition of the 531 North Center Street property and its sale to Mr. Lou Miller for $13,500.00 for the purpose of redeveloping the property for commercial use.