PRESENTER: Presenter
Jeff Jewell, Economic and Community Development Director
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SUBJECT: Title
Public hearing, discussion, and possible action approving a project expenditure, of up to $75,000, for escrow and due diligence funding to support the Gruene 16 project, pursuant to Section 505.102 of the Texas Local Government Code.
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DEPARTMENT: Economic and 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 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 did not occur. The described 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 on November 14, 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 on May 16, 2024 and reviewed the completed feasibility study, 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 future development.
During the early stages of Phase 2, staff was contacted by a real estate professional regarding the availability of five parcels on Grueue Road - adjacent to the Gruene 16 property. EPS advised the addition of these parcels would greatly enhance development opportunities of the Gruene 16 project. 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:
- Local: Including office space, retail space, townhomes, live/work units, with a plaza, and open space
- Visitation: Including conference space, hotel, retail, open space, and a plaza
- Creative: Including office, hotels, retail, movie theater, film studio, open space, and a plaza
- Visitation + Creative: Including hotels, retail, open space, conference space, film studio, a plaza, and open space
Approval of this item will secure the parcels via contract for a 9-month duration. These parcels will then be included in the RFP/RFQ process for developer consideration.
ISSUE:
To add to the total land available in the upcoming Gruene 16 RFP/RFQ a contract must be approved to secure the parcels for a 9-month duration.
STRATEGIC PLAN REFERENCE:
☒Economic Mobility ☐Enhanced Connectivity ☐Community Identity
☐Organizational Excellence ☐Community Well-Being ☐N/A
FISCAL IMPACT:
The anticipated cost for the 9-month contract is $50,000; an additional $25,000, for a total of up to $75,000, is included to cover additional feasibility costs.
Recommendation
RECOMMENDATION:
Staff recommends approval of the expenditure to support the Gruene 16 project.