DEPARTMENT: Transportation & Capital Improvements
DEPARTMENT HEAD: Mike Frisbie, P.E.
COUNCIL DISTRICTS IMPACTED: Council District 2
SUBJECT:
Real Estate Disposition: Sale of City owned properties at 503 and 507 Nolan Street
SUMMARY:
An ordinance declaring as surplus two improved properties located at 503 and 507 Nolan Street in Council District 2 and authorizing sale to Enrlour Investments LLC for a combined total of $109,000.
BACKGROUND INFORMATION:
The San Antonio Fire Department (SAFD) is requesting that the City of San Antonio declare as surplus and sell two improved properties located at 503 and 507 Nolan Street as shown on attached Exhibit A. These properties were initially acquired in 2009 for use as a radio repair shop for the SAFD; however, those plans never materialized. Over time, dwellings were used for storage, and then use of the properties was discontinued. The SAFD requested disposition of this real estate in May of 2015; canvassing was then initiated, which resulted in a consensus to declare as surplus.
The two properties were advertised for sale and published in the San Antonio Express-News on August 14, 2015. A sole bid was received from Enrlour Investments LLC to purchase the two properties as is. The Developer plans to renovate and redevelop each property as a live/work loft providing for both housing and commercial (professional offices) needs. Buyer intends to re-zone as needed.
The City of San Antonio’s Planning Commission considered this request at its regular meeting of April 13, 2016 and it was approved.
ISSUE:
This ordinance declares as surplus two improved properties located at 503 and 507 Nolan Street and described as Lots South 126 feet of 11 and South 129.86 feet of 12, Block 19, NCB 546, in Council District 2 and authorizes its sale to Enrlour Investments LLC for a combined total of $109,000.
The San Antonio Fire Department requested the sale two improved properties located at 503 and 507 Nolan Street as shown on attached Exhibit A. These properties were initially acquired in 2009 for use as a radio repair shop for the Fire Department; however, those plans never materialized. Over time, dwellings were used for storage, then use of the properties was discontinued. The Fire Department requested disposition of this real estate in May of 2015; canvassing was then initiated, which resulted in a consensus to declare as surplus.
The properties were appraised at $54,000 each by Sandison Appraisal, LLC (State of Texas Certified Professional Appraiser) on June 17, 2015. The City of San Antonio will collect a combined total of $109,000, for closing and other administrative costs. The Developer plans to renovate and redevelop each property as a live/work loft providing for both housing and commercial (professional offices) needs. Buyer intends to re-zone as needed.
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 this request; however, that would disallow Enrlour Investments LLC from utilizing and improving these properties, and the houses would continue to be a blight in the neighborhood. Also, the City would continue to be liable for their containment and maintenance.
FISCAL IMPACT:
In compliance with Chapter 37 of the City Code, Section 37-2, the property was appraised at $54,000 each by Sandison Appraisal, LLC (State of Texas Certified Professional Appraiser) on June 17, 2015. The City of San Antonio will collect a combined total of $109,000, for closing and other administrative costs. This revenue will be returned to the General Fund.
Also, the properties will be returned to the tax rolls, which will generate revenue for the City of San Antonio as well as other taxing entities.
RECOMMENDATION:
Staff recommends approval of the ordinance to declare as surplus and sell City-owned real property located at 503 and 507 Nolan Street in Council District 2, to Enrlour Investments LLC for a combined total of $109,000.