PRESENTER: Presenter
Jeff Jewell, Director of Economic & Community Development
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SUBJECT: Title
Discussion and possible action to exercise the third and final extension of the feasibility period identified in the first amendment of the Purchase Contract between Mildred V. Bartels, Jerald D. Voges, and the New Braunfels Economic Development Corporation.
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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 predevelopment and feasibility 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. The City Council and NBEDC Board identified two directions for the property’s future. The property could be put on market for sale to the highest and best use. Alternatively, the property’s development could be guided so that it could deliver economic and community development benefits for the New Braunfels community. The chosen direction was to direct the property’s development for broader community and economic development benefits.
The process worked with key stakeholders-City Council and the NBEDC Board- to identify objectives, develop a basic vision for the project, determine the potential market demand, and develop high level building and infrastructure budget estimates to determine the overall feasibility of development concepts. The NBEDC, at its regular meeting on August 17, 2023, approved an expenditure to Economic & Planning Systems, Inc. (EPS), to begin the planning for a possible public/private partnership addressing the Gruene 16 property. EPS facilitated a workshop with the NBEDC Board in November 2023 and addressed objectives for the site, identified key questions for additional research, and established parameters for the next steps of the potential public/private partnership. EPS facilitated another workshop with the NBEDC Board in May 2024 and reviewed the completed feasibility study, City Council and NBEDC goals, economic, demographic, and market trends, discussed broker insights, highlighted opportunistic land uses, and reviewed themes and concepts discovered during the study.
The planning process identified the potential and significant contribution of available five parcels (total of ~6.7 acres) on Gruene Road - all adjacent to the Gruene 16 property- to the overall project and vision. EPS advised the addition of these parcels would greatly enhance development opportunities of the site and yield greater flexibility in how the site could be developed. These parcels were then added to the analysis.
On May 15, 2025, the NBEDC approved an initial amount of $75,000 to secure the additional parcels for a nine-month feasibility period ($50,000) and to cover due diligence costs for the properties ($25,000). At the February 19, 2026 regular meeting, the NBEDC approved an expenditure of $26,800 to extend the project feasibility period for an additional 90 days to continue project development.
On June 18, 2026, the NBEDC approved the first amendment of the Purchase Agreement which provided two additional extensions of the feasibility period:
Amendment: Extension 2: ends October 22, 2026, releases $5,000 from escrow to sellers
Amendment: Extension 3: ends January 20, 2027, releases $5,000 from escrow to sellers
This action would exercise the third and final extension for the 6.7 acres.
The project’s next steps are a series of public meetings with the adjacent neighborhood and other stakeholders to identify a path forward for development of the property.
ISSUE:
Additional time is required to continue project feasibility and development planning on the site. The existing extension will cease October 22, 2026; this final extension will hold the land until January 20, 2027 for release of $5,000 of escrow funds to the seller.
STRATEGIC PLAN REFERENCE:
YES Economic Mobility YES Enhanced Connectivity N/A Community Identity
N/A Organizational Excellence N/A Community Well-Being
FISCAL IMPACT:
Up to $100,000 has been previously approved by the NBEDC and City Council for the initial purchase contract and extension. The first amendment to the Purchase Contract was approved in June 2026 which permits two additional extensions for the cost of $5,000 each.
Recommendation
RECOMMENDATION:
If the property is not purchased, exercising the third and final extension is an alternative option.