DEPARTMENT: Center City Development and Operations Department
DEPARTMENT HEAD: John Jacks
COUNCIL DISTRICTS IMPACTED: Council Districts 2 and 4
SUBJECT:
Sale and disposition of surplus properties owned by the Office of Urban Redevelopment San Antonio (“OUR SA”).
SUMMARY:
This ordinance authorizes the sale and disposition of 9 properties, currently owned by OUR SA, located in Council Districts 2 and 4.
BACKGROUND INFORMATION:
The subject properties are described in Exhibit A below. They include eight properties located in Council District 4 and one property located in Council District 2. All properties were originally acquired by the Urban Renewal Agency for the City of San Antonio between 1995 and 2004 and have remained vacant since that time. The current combined value for all properties according to the Bexar County Appraisal District (BCAD) is $43,010.00. This value assumes that all properties have equal access to streets, public utilities, and are not deed-restricted. This is not the case for the subject properties since the Vista Valley properties have no street access or utilities, and all properties can only be sold for the construction of affordable homes. This significantly impacts their value and utility on the open market.
The properties incur monthly costs to OUR SA for the routine clean up and maintenance. They are underutilized and add no value to their neighborhood nor to the City of San Antonio tax base, as-is. It is in the best interest for the City to dispose of these properties for the development of affordable homes; to eliminate the cost burden to OUR SA; and for their conversion back into tax-producing parcels. These properties have been advertised for sale twice or more in the past without success. The most recent advertisement, however, has yielded acceptable bids.
The properties have been advertised in City-wide publications and have been canvassed through the proper departments as required by the OUR SA Board of Commissioners.
ISSUE:
Bids for the properties were received by OUR SA and approved by the Board of Commissioners during the February 2017 Board meeting.
OUR SA is now seeking City Council approval for the sale of all properties listed on “Exhibit A”
as follows:
|
Property |
Council District |
Buyer |
Purchase Amount |
|
Vista Valley Lots (7) |
4 |
Romo Construction Services, LLC |
$7000 plus all closing costs |
|
5215 Trading Post |
4 |
Romo Construction Services, LLC |
$3000 plus all closing costs |
|
1007 Piedmont |
2 |
Chapawu Properties, LLC |
$4400 plus all closing costs |
|
TOTAL SALES PRICE |
$14,400 |
Note that the total sales price does not include all closing costs, which will be the responsibility
of the buyer. All properties will be sold for the purpose of building affordable homes, with a deed restriction on each property to that effect.
The Planning Commission approved the disposition of these properties on March 25, 2015.
ALTERNATIVES:
The City Council may elect not to approve the sale of these properties and OUR SA will continue to maintain the vacant and underutilized property.
FISCAL IMPACT:
The net funds from the sale of all the properties listed on “Exhibit A” will be considered CDBG program funds and will be returned to the City for future use.
RECOMMENDATION:
Staff recommends approval of this ordinance authorizing the sale of nine properties owned by OUR SA in City Council Districts 2 and 4 for the sum of $14,400 plus closing costs for the construction of new affordable single family homes.