PRESENTER: Presenter
Jeff Jewell, Director of Economic & Community Development
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SUBJECT: Title
Presentation and discussion on a proposed project expenditure for the acquisition of 6.7 acres on Gruene Road
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DEPARTMENT: Economic & Community Development
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COUNCIL DISTRICTS IMPACTED: 4
BACKGROUND INFORMATION:
At the New Braunfels Economic Development Corporation (NBEDC) workshop on June 15th, 2023, the Board committed to a process to undertake visioning and related predevelopment work for the eventual development of the Gruene 16, Block 1, Lots 1-3 property. The NBEDC purchased the property in 2016 for HD Supply’s planned expansion, which the company did not ultimately pursue. Instead of returning the property to market for sale, the stated goal of the visioning process was to guide its development to an outcome that provided broad benefits for New Braunfels residents. Key stakeholders - the City Council and NBEDC Board- developed a basic vision and goals for the property, determined the market demand for the property as envisioned, and developed budget estimates to determine the overall feasibility of the concept(s). These were the first steps in the feasibility stage. A second phase - one that solicited a developer with the intention of entering into a development agreement to realize the preferred development concept - has been paused until a resolution to the property acquisition has been resolved by the NBEDC and City Council.
During the planning process, the acquisition of five parcels (total of ~6.7 acres) on Gruene Road - all adjacent to the Gruene 16 property- was recommended in the feasibility study. The purchase of the additional parcels provides greater flexibility in how the property can be developed and expands the project’s potential impact. In May 2025, the NBEDC entered a purchase agreement for the 6.7 acres at a contract price of $4.6 million. The NBEDC has since exercised extension options that requires it to close by October 22, 2026. Staff recommends the acquisition of approximately 6.7 acres under the purchase contract to bring the entire site under the City’s control to realize the property’s maximum benefit for the community.
Property acquisition will allow the negotiation of a development agreement and planning on the site to proceed. Purchasing the properties will require a public hearing, formal action by the NBEDC recommending the expenditure, and approval by the City Council.
ISSUE:
The current contract expires October 22, 2026 - the two possible next steps include purchasing the properties or extending again until January 20, 2027. Purchasing the properties allows for the corresponding feasibility and development planning to continue without an impending deadline.
STRATEGIC PLAN REFERENCE:
YES Economic Mobility N/A Enhanced Connectivity N/A Community Identity
N/A Organizational Excellence N/A Community Well-Being
FISCAL IMPACT:
The proposed purchase price of the 6.7 acres is $4.6 million. Any action items with funding requests will be addressed at future meetings with appropriate public hearing notices.