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2001-08-22 Meeting Report (Pearson and FM 1709)PREPARATORY QUESTION AND ANSWER SUMMARY SPIN #15 Meeting Rezoning of City -Owned Property at Pearson F.M. 1709 Wednesday, August 22, 2001 7:00 p.m. Southlake Town Hall 1) Why is the City of Southlake rezoning this property? Answer The zoning change application came as the result of months of discussions with the City Council in 2000 and 2001 regarding the bids received on the property on May 17, 2000, and the potential revenue yield from rezoning the property by allowing the development of a gas station convenience store on the corner lot (Lot 6R2). 2) Why does the City of Southlake want to sell the property? Answer The City purchased 14.957 acres on May 2, 1996 for $1,012,846, or $1.55 per square foot. The money for this purchase came from the City's utility fund where revenues are derived from the proceeds of providing water and sewer service. 3.331 acres were used to construct the City's ground water storage tanks. At the time of purchase, the City Council discussed the sale of the remaining adjacent property in order to recoup costs associated with the land investment. 3 Why would the City be interested in selling the property for gas station uses? Answer In January of 2000, the City Council directed staff to publish notice of our intent to sell or exchange the six (6) residential lots and the two (2) commercial lots. Sealed bids were opened on May 17, 2000. Only one (1) bidder submitted a bid for any of the property, lot 6R2, the corner piece. No bids were received for the interior lot or the residential lots. The bidder, Mr. David Bunnell, offered $957,500 ($9.12 per square foot) for the property with two important stipulations. One was that the bid would be reduced on a pro -rata basis upon the square footage to be retained for an entry portal location; and that the bid is conditioned upon the understanding that the lot may be used for the development of a gas station /convenience store. As gasoline stations are only permitted in areas with "C -3 "zoning with an approved Specific Use Permit (SUP), the current zoning would not meet the conditions of the bid As the bid amount for the corner piece of property almost recoups the outlay for the purchase of the entire 14.957 acres in 1996, staff sought City Council direction on the zoning of the property, and City Council was receptive to rezoning the property. The question was 1) should the City search for another buyer with "C -2" interests, or 2) was the City Council willing to entertain the notion that there is a market for gas stations at that location, and pursue rezoning the property? 4) Has the City considered other uses for the corner lot? There is a need for restaurants in the City, would this location not be a better site for a sit -down restaurant? Answer Restaurants are a potential use for "C -2" zoning; however, during the sealed bid process the City received a bid from one (1) party that stipulated as a condition of the bid that a gas station /convenience store be a permitted use on the site. That is the reason for staff seeking direction from the City Council regarding this site, and the request for a zoning change. 5) Does the City have a user lined up? Answer There is no specific user identified to develop this site. Upon approval of the zoning request, the City would seek potential buyers for the property. Page I of 3 6) How will the City control the ultimate use and appearance of the site (is there any guarantee that the City can provide that this property would not develop in a less- than quality manner)? Answer The property is subject to the Corridor and Residential Adjacency Overlay District Regulations. These districts have specific building design criteria which regulate the use masonry materials, require articulated building design and pitched roof style construction on the store and canopy. A site plan detailing the specific building and site design must be submitted to the City for review and approved by the Planning and Zoning Commission and City Council, with public hearings at both, prior to a building permit being issued 7) Isn't the City concerned about putting a gas station at the entry of the City? Answer This location is one of the few areas in the City that currently meets the criteria for a gas station, as the corner lot is adjacent to two (2) arterial thoroughfares. The land use of a gas station at an entry portal to the City is a values -based decision that would be subject to public discussion and a policy determination by the City Council. The Land Use Plan identifies the site as a retail commercial use. Another point to consider in weighing factors for the desire of this type of use at the location is that while the intersection serves as an entry portal, the particular lot in question is adjacent to the exit thoroughfare into Keller. 8 What happens if the zoning on the property is not changed? Answer The property would be subject to the current zoning, "C -2" General Commercial District, unless changed by the City Council. The intent of "C -2" zoning is to have low to medium intensity commercial uses by providing standards for neighborhood type retail. 9) What are the next steps in the approval process? Answer This item is on the Planning and Zoning Commission agenda for this Thursday, Aug. 23; the meeting begins at 6:30 p.m. This agenda item will be a public hearing for the public to participate. The first reading of the ordinance for consideration of this item by the City Council is on the Tuesday, Sept. 4, meeting agenda. A second reading of the ordinance, and the required public hearing, would be scheduled on the Sept. 18 agenda. 10 Has the City considered keeping the property and using developing the property for City purposes? Answer Upon purchase of the property in 1996 the City Council discussed selling the adjacent tracts in order to recoup the initial land investment costs. Given its value as commercial property, in January of 2000 staff was directed by the City Council to advertise the sale or exchange of the land During the discussions with Council regarding the rezoning application, no discussions regarding the City's keeping the property were held. Page 2 of 3 11 Why does a resident have a need for another gas station, and why is there a push to have gas stations on F.M. 1709? If the need exists, why can't gas stations go on State Highway 114 where they would be more appropriate? Answer Being adjacent to two (2) arterial thoroughfares, the corner location is one of a few undeveloped sites that meet the criteria delineated in the City's Zoning Ordinance for the development of a gas station. The City Council has discretion to consider the desire to have this type of land use at the particular location, as the zoning to develop a gas station does not currently exist. As the State Highway 114 corridor develops upon completion of the roadway, potential development of gas stations is a possibility. 12 Has the City at any time talked to a specific user regarding this property? Answer: There have been no discussions with potential users or discussions on a specific proposal to develop the site at this time, but did receive one (1) bid when the land was initially put up for sale. At the completion of the zoning change application, the City would begin the process of selling the property. 13 What was the cause of this item not coming forward in the spring? Answer Due to the potential changes among the City Council, this request was held back until the direction provided to staff could be discussed and/or confirmed 14 How long has the staff and /or Council been discussing this item, and why was there no public discussions earlier to receive public input? Answer The state allows for the deliberation of the value of land to be discussed in Executive Session due to potential harmful impacts that public discussion could have on the value of the property in question. 15 What would a gas station at this location do to traffic in the surrounding area, especially since there is a gas station across the street from this location? Answer As there are currently no identified users for this site, only a generic traffic analysis could be accomplished The zoning ordinance takes into account the traffic impact of a particular use, and as such that is the reason for the rule that a gas station can only be located adjacent to two (2) arterial thoroughfares. Upon development of the property, a traffic impact analysis could be accurately performed Page 3 o1'3