DEPARTMENT: Transportation & Capital Improvements
DEPARTMENT HEAD: Mike Frisbie, P.E.
COUNCIL DISTRICTS IMPACTED: Council District 1
SUBJECT:
Disposition: Closure of two improved alley Public Rights of Way located within block bordered by Broadway, Brooklyn, Avenue B and 8th Street.
SUMMARY:
A resolution supporting the closure, vacation and abandonment of two improved alleys (0.138 acres) located within block bordered by Broadway, Brooklyn, Avenue B and 8th Street, in Council District 1, as requested by CBMB Properties, L.L.C., and accepting an In-kind contribution of approximately $300,000.00 towards the value of the closure fee.
BACKGROUND INFORMATION:
CBMB Properties, L.L.C, Petitioner, is requesting the closure, vacation and abandonment of two improved alley Public Rights of Way located in NCB 447 and bordered by Broadway, Brooklyn, Avenue B and 8th Street as shown on attached Exhibit A. All abutting property owners are agreeable and as partners, plan to redevelop the entire block with the construction of a new commercial development (see attached renderings) that will include outdoor public amenities for the community. The closure of both alleys would facilitate the layout and full development of the new construction.
Signs have been posted and notices have been mailed to property owners within a 500 foot radius of the proposed closures.
ISSUE:
This resolution will support the closure, vacation and abandonment of two improved alleys (0.138 acres) located within block bordered by Broadway, Brooklyn, Avenue B and 8th Street, in Council District 1, as requested by CBMB Properties, L.L.C., and accepting an In-kind contribution of approximately $300,000.00 towards the value of the closure fee.
CBMB Properties, L.L.C, Petitioner, is requesting the closure, vacation and abandonment of two improved alley Public Rights of Way located in NCB 447 and bordered by Broadway, Brooklyn, Avenue B and 8th Street as shown on attached Exhibit A. All abutting property owners are agreeable and as partners, plan to redevelop the entire block with the construction of a new commercial development (see attached renderings) that will include outdoor public amenities for the community. The closure of both alleys would facilitate the layout and full development of the new construction, and will leverage over $50 million of improvements in the area over the next several years.
This new commercial office building will include a retail and restaurant component on a portion of the ground floor. The building is 6 stories tall with one level of subsurface parking. In total, it is approximately 141,000 rentable square feet, of which approximately 130,000 square feet is intended for office use. Additional development phases are anticipated to occur in the adjacent parcels across the two closed alleys.
In accordance with Municipal Code, Chapter 37, signs were placed near the proposed closures, and letters sent to property owners identified within a 500 foot radius, to provide notice and public hearing dates of the proposed closures.
This action is consistent with City Code and Ordinances, which require Planning Commission/City Council approval for the sale or disposition of City-owned or controlled real property.
ALTERNATIVES:
Planning Commission could choose not to approve this request; however, if not approved, the right of way will remain underutilized.
FISCAL IMPACT:
The Rights of Way associated with the closing, vacating and abandoning of the two improved alleys were appraised at $202,500.00, by Noble and Associates, Inc. on May 11, 2018. Based on this investment, this value has been reduced by 75% in accordance with the Inner City Reinvestment/Infill Policy (ICRIP) for projects investing over $50 million. The ICRIP Fee Waiver reduces the proposed closure fee to $50,625.00. However, the closure shall allow the Petitioner to provide approximately $300,000.00 of improvements that will benefit the publically accessible alley. This amount is considered in-kind contribution towards the value of the fee. Therefore, at City Council’s discretion and approval, the City shall not collect fees associated with the closing, vacating and abandoning of the two improved alleys.
The action to close, vacate and abandon the two improved alleys will allow the property to be placed on the tax rolls, generating revenue for the City of San Antonio and other taxing entities, while reducing the City’s maintenance obligation.
RECOMMENDATION:
Staff recommends approval of this request to close, vacate and abandon two improved alley Public Rights of Way, in Council District 1.