PRESENTER: Presenter
Jeff Jewell, Director of Economic & Community Development
Body
SUBJECT: Title
Public hearing, discussion, and possible action approving an expenditure of $26,800 for the option to extend the project feasibility period for an additional 90 days per the Purchase Contract between Mildred V. Bartels and Jerald D. Voges and the New Braunfels Economic Development Corporation, pursuant to Section 505.102 of the Texas Local Government Code.
Header
DEPARTMENT: Economic & Community Development
Body
COUNCIL DISTRICTS IMPACTED: 4
BACKGROUND INFORMATION:
At the New Braunfels Economic Development Corporation (NBEDC) workshop on June 15th, 2023, the Board was introduced to a process to undertake predevelopment and feasibility work for the eventual development of the Gruene 16, Block 1, Lots 1-3 property. This property was purchased by the NBEDC in 2016 for HD Supply’s planned expansion, which the company did not ultimately pursue. The envisioned process works with key stakeholders to conceptualize the project and objectives, develop a basic “vision” for the project, determine the market demand for the project as envisioned, and develop high level building and infrastructure budget estimates to determine the overall feasibility of the development concept(s) that receive the most support. This is intended to be the first steps in the feasibility and development concepts stage, with a second stage proposed to ultimately solicit a developer and negotiate a development agreement to bring the project to fruition. The NBEDC Board directed staff to move forward with the proposal.
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 NBEDC approved Phase 2 funding at its July 18, 2024 meeting. Phase 2 included urban planning, test fitting the site, completing financial feasibility studies, and drafting a Request for Proposals/Request for Qualifications for solicitation of development proposals on the site.
Phase 2 identified the potential and significant contribution of available five parcels (total of ~8.7 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 Gruene 16 project and yield greater flexibility in how the site could be developed. These parcels were then added to the urban planning and test fitting analysis. The inclusion of the parcels provides a greater footprint and yielded four different development scenarios with different development concepts and users.
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). These parcels were then included in the RFP/RFQ process for developer consideration.
Staff has since identified the need to extend the feasibility period to continue project development, planning and negotiations with the development team. The existing contract allows for one extension of the feasibility period past the initial nine months for an additional 90 days. The initial nine-month period is set to expire April 24, 2026. If the funding and extension is approved, the feasibility period will end July 24, 2026.
If approved, the next steps include:
1. Council consideration at a meeting in March
2. If approved by Council:
a. Written notice and payment of earnest money ($50,000) provided to Property Owners/Title Company will be issued before the April 24, 2026 deadline
ISSUE:
Additional time is required to continue project feasibility and development planning on the site. To extend the feasibility period by 90 days (to July 24, 2026), an additional $50,000 will be provided to the seller. The NBEDC approved an initial amount of $75,000 for this project; $50,000 was put in escrow to secure the properties and an additional $1,800 was spent on an appraisal. The remaining balance of the initially approved amount is $23,200. To close the gap between the authorized amount remaining, an expenditure of $26,800 is recommended.
If the NBEDC extends the feasibility period by the additional 90-days and chooses not to close on the property, the existing contract stipulates the Seller will retain $25,000 and the NBEDC will retain $75,000 of the $100,000 placed into escrow.
STRATEGIC PLAN REFERENCE:
☒Economic Mobility ☐Enhanced Connectivity ☐Community Identity
☐Organizational Excellence ☐Community Well-Being ☐N/A
FISCAL IMPACT:
The NBEDC approved an initial amount of $75,000 for this project; $50,000 was put in escrow to secure the properties and an additional $1,800 was spent on a supplemental appraisal. The remaining balance of the initial amount is $23,200. The cost to extend the feasibility period for an additional 90 days is $50,000. To close this gap, an expenditure of $26,800 is recommended.
Recommendation
RECOMMENDATION:
Staff recommends approving the $26,800 to extend the feasibility period for purchase of 8.7 acres adjacent to the NBEDC-owned Gruene 16 parcels.