DEPARTMENT: Office of EastPoint and Real Estate
DEPARTMENT HEAD: Mike Etienne
COUNCIL DISTRICTS IMPACTED: 1
SUBJECT:
Disposition: Sale of City owned property at 221 Stark Street; and Closure of portion of Stark Street
SUMMARY:
Consideration of the following matters:
A. An ordinance declaring as surplus an unimproved 0.155 acre tract of City owned property located at 221 Stark Street and described as the East part of Lots 5, 6 and 7, Block 3, NCB 2572 in Council District 1 and authorizing its sale to KIPP Cevallos, Inc. for $10,100.00.
B. An ordinance authorizing the closure, vacation and abandonment of 0.074 acres of Stark Street Public Right of Way, located adjacent to NCB 2572, in Council District 1, as requested by KIPP Cevallos, Inc. for a fee of $5,141.00.
BACKGROUND INFORMATION:
A. KIPP Cevallos, Inc. (Petitioner) is requesting that the City of San Antonio declare as surplus to its needs and sell a parcel of land located at 221 Stark Street as shown on attached Exhibit A. The subject lot is an unimproved 0.155 acre tract of land (6,742 sq. ft.). The Petitioner owns all the abutting property and plans to build a charter school; grades kindergarten thru 12th. The subject lot is desired for purposes of secondary access to Stark Street from the site on which the school is to be constructed starting in July 2015 and anticipated to be complete in July 2016.
B. KIPP Cevallos, Inc. (Petitioner) is requesting the closure, vacation and abandonment of a portion of Stark Street Public Right of Way abutting property at 221 Stark Street (item A above) as shown on attached Exhibit A. The subject ROW is 0.074 of an acre (3,237 sq. ft.) and is an undeveloped, paper street that dead-ends into the Petitioner's property. All the abutting property owners are in agreement to the proposed closure. If approved, the Petitioner plans to utilize it in conjunction with the parcel at 221 Stark Street for the construction of a charter school; grades kindergarten thru 12th.
ISSUE:
A. This ordinance will declare as surplus an unimproved 0.155 acre tract of City owned property, located at 221 Stark Street and described as the East part of Lots 5, 6 and 7, Block 3, NCB 2572 in Council District 1 and authorize its sale to KIPP Cevallos, Inc. for $10,100.00.
B. This ordinance will authorize the closure, vacation and abandonment of 0.074 acres of Stark Street Public Right of Way, adjacent to NCB 2572, in Council District 1, as requested by KIPP Cevallos, Inc. for a fee of $5,141.00.
This action is consistent with City Code and Ordinances, which require City Council approval for the sale or disposition of City-owned or controlled real property.
ALTERNATIVES:
City Council could choose not to approve these requests; however, this will disallow KIPP Cevallos, Inc. from utilizing and developing the property. Also, the City's liability would continue along with the obligation for maintenance.
FISCAL IMPACT:
A. The fair market value of this property is $10,100, which was established by an appraisal performed by Eckmann Groll, Inc. on June 24, 2013. This is a tax foreclosure property; therefore, a portion of the sales proceeds will be used to pay delinquent property taxes and related court costs in the anticipated amount of approximately $1,257.14. The parties agreed to a sales price that did not include a reduction in property value.
B. The fair market value of the Right of Way is $4,900.00, which was established by an appraisal performed by Eckmann Groll, Inc. on June 24, 2013. The value was reduced by 50% in accordance with the reduction provided by the Inner City Reinvestment/Infill Policy (ICRIP). With added administrative fees, the City will collect $5,141.00 for this property. This fund will be deposited into the General Fund in accordance with FY 2014 Adopted Budget.
RECOMMENDATION:
Staff recommends approval of these ordinances to sell City-owned real property located at 221 Stark Street; and to authorize the closure, vacation and abandonment of a portion of Stark Street Public Right of Way in Council District 1.
The City of San Antonio's Planning Commission approved this request at its regular meeting on March 12, 2014.