DEPARTMENT: EastPoint & Real Estate Services
DEPARTMENT HEAD: Mike Etienne
COUNCIL DISTRICTS IMPACTED: 2
SUBJECT: Disposition: ROW closure of an improved portion of Edgar Drive
SUMMARY: An ordinance authorizing the closure of a 0.321 acre improved portion of Edgar Drive, in Council District 2, located between Seguin Street and Dignowity Avenue as requested by Richard M. Peacock & Co. for redevelopment of retail space.
BACKGROUND INFORMATION:
This ordinance will authorize the closure of a 0.321 acre improved portion of Edgar Drive, in Council District 2, located between Seguin Street and Dignowity Avenue as requested by Richard M. Peacock & Co. for redevelopment of retails space.
The Petitioner has sales contracts on the properties surrounding the proposed closure. The Petitioner plans to replat and rezone the properties for commercial pad sites, then lease the two lots to retail tenants.
The Petitioner will demolish the existing structures and replace them with commercial pads. The Petitioner will also relocate the existing overhead electric. The Petitioner has agreed to extend Dignowity Avenue by 150 feet and widen it along the property frontage. When completed, the pad sites will be marketed and leased to retail users. Construction will start within the first half of 2015. The proposed level of investment is $2,750,000.00
ISSUE:
Consideration of an ordinance authorizing the closure of a 0.321 acre improved portion of Edgar Drive located between Seguin Street and Dignowity Avenue in NCB 1195 in Council District 2 as requested by Richard M. Peacock & Co.
The Petitioner has sales contracts on the properties surrounding the proposed closure. The Petitioner plans to demolish the existing structures and replace them with commercial pads. The Petitioner will also relocate the existing overhead electric. The Petitioner has agreed to extend Dignowity Avenue by 150 feet and widen it along the property frontage. When completed, the pad sites will be marketed and leased to retail users.
ALTERNATIVES:
City Council could choose not to approve the closure of Edgar Drive, however the property will not be utilized to its fullest potential, it will not be placed back on the tax rolls and the city will be responsible for maintaining it.
FISCAL IMPACT:
In compliance with Chapter 37 of the Municipal Code, Section 37-2, fair market value was based on an Independent State of Texas Certified Professional Appraisal Report. The property was appraised for a total of $84,000.00 by Sandison Appraisal Services. Staff recommends 100% waiver of the $84,000.00 closure fee since the property is within the Inner City Revitalization Infill Policy Area, the EastPoint footprint and the Promise Zone. In addition, the level of investments for this development is $2,700,000.00. The development will maximize the use of the property and provide economic and employment benefit to the local community. The appraisal cost was $2,000.00. The cost of signs notifying the public of the proposed closure and recording fees are $115.00. Total proceeds of $2,115.00 will be deposited in the General Fund in accordance with the FY 2015 Adopted Budget.
RECOMMENDATION:
The Planning Commission reviewed and approved this request at its regular meeting on October 22, 2014.
Staff recommends approval of this request to close a 0.321 acre improved portion of Edgar Drive located between Seguin Street and Dignowity Avenue in NCB 1195 in Council District 2 as requested by Richard M. Peacock & Co.