Agenda Information Sheet
DEPARTMENT: Economic Development
DCM: Bryan Langley
Date: May 9, 2017
SUBJECT
Title
Receive a report, hold a discussion, and give staff direction regarding redevelopment of the property at 101 S. Locust Street (Wells Fargo Building).
Body
BACKGROUND
Jack Bell Properties has acquired the four properties associated with the Wells Fargo bank building at the southeast corner of Locust and Hickory Streets: the tower/bank lobby, the ATM lot, and two parking lots.
The developer is considering three redevelopment scenarios:
1. Wells Fargo Building: This option contemplates remodeling the existing building only, to include offices in the basement and on floors 1-3 and 7, luxury apartments on floors 4-6, and an event center on floor 8.
2. Wells Fargo Actual Site: This option would include the existing Wells Fargo building and lots only.
a. remodeling the existing building to include offices in the basement and on floors 1-3 and 7, luxury apartments on floors 4-6, and an event center on floor 8
b. a 70-80 room boutique hotel at the corner of Austin and Hickory streets to include a restaurant/bar, and meeting rooms; because of the smaller site, the hotel would be taller and the pool would be indoors
c. 48 units of multifamily housing in a 4-5 story building; an aerial easement over Austin Street will be required to build a sky bridge (with apartment units above it) over Austin Street to the proposed parking garage
d. a 3- to 4-story parking garage attached to the south side of the hotel to provide parking for Jack Bell Properties sites only
3. Wells Fargo Large Site: This option encompasses the existing Wells Fargo building and lots along with leasing the Williams Trade Square site owned by the City of Denton. Details include:
a. remodeling the existing building to include offices in the basement and on floors 1-3 and 7, luxury apartments on floors 4-6, and an event center on floor 8
b. an 80-100 room boutique hotel at the corner of Austin and Hickory streets to include an outdoor pool, restaurant/bar, and meeting rooms
c. 164 units of multifamily housing, including three stories over the proposed parking garage; an aerial easement over Austin Street will be required to build apartments over the proposed park between Walnut and Mulberry streets
d. 3- to 5-story parking garage on the Williams Trade Square site to provide parking for the entire redevelopment, including 102 spaces to replace the current free public parking on the site
e. Approximately 10,000 square feet of retail, restaurant, or office space on the Hickory Street-facing first floor of the parking garage
f. abandonment of Austin Street for the construction of a park to be owned by the City and maintained by the developer
Jack Bell Properties has the following requests related to the redevelopment:
• Option to lease the Williams Trade Square site
• Boundary line adjustment between the Wells Fargo parking lots and Williams Trade Square
• Granting of an aerial easement over Austin Street (a license to build across Austin and Walnut streets was issued by the City to the property owner in 1971 for a term of 50 years to facilitate the concept for the original project, see Exhibit 3 for illustration; City staff is researching the details and implications of this license)
• If Austin Street is made into a park, the City will own it and the developer will maintain it in lieu of park fees
Note on downtown residential inventory and population: As of April 30, 2017, there are 527 multifamily units downtown. There are also 24 lofts above businesses and 15 townhomes. The estimated residential population in the Downtown Implementation Plan Area is 2,500, which includes residents of multifamily, lofts, townhomes, and single family homes.
FISCAL INFORMATION
Current Conditions for Williams Trade Square:
• The Denton Central Appraisal District’s 2016 valuation of Williams Trade Square is $432,000.
• In FY 16-17, the City of Denton will receive annual revenue of $15,330 from the lease of parking spaces in Williams Trade Square to Wells Fargo Bank and Denton County.
• Williams Trade Square may be rented for special events at the rates of $50/6 hours, $100/12 hours, $150/24 hours, and a multi-day maximum of $450. To date in FY 16-17, one event has rented the site for a fee of $300; no other events have been booked.
Current Conditions for Wells Fargo and Preliminary Analysis for Redevelopment
The tables below shows the actual or estimated values of structures associated with the Wells Fargo Actual Site and the Wells Fargo Large Site options, along with the estimated annual tax revenue. This preliminary analysis is based on information provided by the developer and gathered by City Economic Development staff.
OPTIONS
1. Initiate discussions regarding the lease of Williams Trade Square
2. Maintain status quo regarding Williams Trade Square
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: Economic Development
Related Goal: 3.4 Encourage development, redevelopment, recruitment, and retention
EXHIBITS
Exhibit 1 - Wells Fargo Actual Site Plan
Exhibit 2 - Wells Fargo Large Site Plan
Exhibit 3 - Wells Fargo Site Original Concept
Exhibit 4 - Presentation
Respectfully submitted:
Caroline Booth
Director of Economic Development