Agenda Information Sheet
DEPARTMENT: Community Affairs
CM: Todd Hileman
DATE: May 23, 2017
SUBJECT
Title
Receive a report, hold a discussion and give staff direction regarding the use of the Prescott property at US 380 and Virginia Street, which is currently owned by Denton Municipal Electric.
Body
BACKGROUND
In October 2015, the City Council authorized Denton Municipal Electric (DME) to purchase approximately 10.94 acres on two tracts of land, known as the Prescott property located at US 380 and Virginia St. DME needed an easement along the west side of the property for a 138kV power line, and the City also needed a public utility easement on the northeast corner of the property. DME purchased the two tracts for $1.7 million.
In May 2016, DME was approached by a developer who submitted a proposal to purchase a portion of the Prescott property. This proposal was shared with the City Council in a Closed Session in July 2016. As part of that conversation, the City Council was given information on alternative uses for that tract of land to include land banking the property for a future infill fire station, acquisition of approximately five acres by DCTA for future public transportation services (park/ride lot and future commuter rail station) and a smaller tract to be used for a trailhead for a proposed Parks and Recreation Department facility.
On March 7, 2017, staff briefed Council on the various proposed uses for this property. The Agenda Information Sheet from that meeting has been attached for reference as (Exhibit 1). Staff was directed to further research the value of this land, data to support an infill fire station at this location, identify the timeline for trails connecting to this site by the Parks Department and provide additional data from DCTA on ridership, vision and how this parcel may fit within DCTA’s strategic plan.
The Fire Department has indicated a need for approximately 2.5 acres of this property for locating an in-fill station. Due to uncertainties in demand and the complexity of the overall response network there is no single optimum positioning plan for fire stations. There are nationally recognized models for establishing future station locations which are prevalent in the industry and analyze gaps in service coverage areas based on unit response time. Currently the area at Loop 288 and University Drive is experiencing a 5-6 minute response time from the nearest fire station. Lakeview Ranch located further east on University Drive is primarily serviced by Fire Station #2 at Mockingbird and McKinney and is averaging an 8-9 minute response time. Two different modeling systems recommend a maximum of a 3-4 minute unit travel response time and one minute for notification. Although response times to the immediate area of the Prescott property are within acceptable limits, future development will have an impact to the overall response network increasing time for out of district responses. These out of district responses will be outside of established limits. Accessibility from this location to the eastern portion of Denton will be critical in the future as growth continues to expand from the core of the City.
As part of the fire station development, a Police Department satellite office is also contemplated. The office would be equipped with computer connectivity, phones, and body camera docking stations. This satellite facility would allow officers to remain in the field rather than require officers to travel back and forth to the main police station to complete these routine tasks
The Parks Department is interested in using this location as a trailhead. The 2009 Parks, Recreation & Trail System Master Plan indicates connectivity to this area through extension of existing trails is a high priority. Funding is not currently available, thus a project timeline has not been established. This site could serve as a trailhead connecting to the Windsor Bike Lane, Cooper Creek Trail and the UNT Discovery Center as well as North Lakes Park. Cyclists and pedestrians could use the trails to access public transportation or park at this location to access the trail system. As the site develops, the Parks Department would seek partnerships with DCTA and the Fire Department to construct public restrooms that would be accessed from outside the proposed station that would not require users to enter the main fire station.
DCTA staff has prepared a power point presentation (exhibit 4) and will be available to provide an overview of agency activities including community outreach, transit ridership, upcoming service enhancements and future planning initiatives. Agency staff can also share information regarding the partnership synergy for joint land use with the City for the expansion of DCTA services including commuter bus and future A-train commuter rail extension not the site.
Staff was asked to research the value of this land and look at various scenarios for dividing and possibly selling parcels of this property. Staff contracted to have a real estate sale and listing activity research done around the site so that the City could model future development scenarios and options for the site. Dan Wright, MAI will be attending the meeting and will be available to review real estate sale and listing activity in the area as well as provide professional insight on the market variables related to the subject tract.
Based on the March 7, 2017 Council Work Session, staff understands Council may wish to consider four different scenarios on the subject tract:
OPTIONS
Scenario 1:
Sell the property for future commercial/retail development, subject to existing utility and drainage easements. Based on the sales activity we reviewed, we estimate the blended value of the 10.9 acre tract, upland and flood plain, between $3 and $4 per square foot ($1.4 M to $1.9 M). Additionally, by selling the property for private development, the City could realize between $9,500 and $13,000 in annual city property tax revenue for the unimproved tract.
Scenario 2:
Maintain ownership of the Prescott Tract and reserve the property for future public use. This use would include but not be limited to development of an in-fill fire station and satellite police facility, a Park and Recreation trail head and sell approximately five acres to DCTA for long-term strategic needs for public transportation; park and ride and/or commuter rail station.
Further exploration of this option may require future follow up with Council on Fire Department response needs and strategic plan in relation to proposed residential and commercial development in the area, Parks and Recreation Strategic Trail Plan as well as identifying development costs for the proposed extension of the A-train and review of the DCTA Service Plan.
Scenario 3:
Move forward with Scenario 2 outlined above, however, sell the frontage on US 380/University Drive for development opportunities and locate the proposed fire station further north on the tract. Due to limited developable acreage, this scenario would not include DCTA’s proposed use of approximately five acres on the north end of the tract. If the frontage property were to be sold, staff anticipates the value of an approximate 2.5 acre tract to be in a range of $5 to $8 per square foot or $550,000 to $900,000. Based on similar developments in the area the undeveloped 2.5 acre tract could save between $3,758 to $6,150 in annual City property tax revenue per year.
Scenario 4:
Council may wish to consider delaying further discussion and/or action on the Prescott Tract for the next 18 to 24 months and reassess the market and community needs at that time.
PRIOR ACTION/REVIEW (Council, Boards, Commissions)
July 19, 2016 - City Council Closed Session discussion.
March 7, 2017 - City Council Work Session discussion
April 11, 2017 - DCTA presentation to Mobility Committee
FISCAL INFORMATION
DME purchased the approximately 10.94 acres for $1,700,000 under its CIP Budget.
STRATEGIC PLAN RELATIONSHIP
The City of Denton’s Strategic Plan is an action-oriented road map that will help the City achieve its vision. The foundation for the plan is the five long-term Key Focus Areas (KFA): Organizational Excellence; Public Infrastructure; Economic Development; Safe, Livable, and Family-Friendly Community; and Sustainability and Environmental Stewardship. While individual items may support multiple KFAs, this specific City Council agenda item contributes most directly to the following KFA and goal:
Related Key Focus Area: Safe, Liveable & Family-Friendly Community
Related Goal: 4.1 Enhance public safety in the community
EXHIBITS
1. March 7, 2017 Council AIS
2. Fire Station Response Map and Workload Measure
3. Prescott Tract and Cooper Creek Trail Extension
4. DCTA PowerPoint Presentation
5. Teague Nall and Perkins March 29, 2017, Floodplain Study and Map
6. Mingo Road Level of Service
7. Current and Future Land Use
8. Presentation
Respectfully submitted:
Mark Nelson
Transportation Director