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Brentwood City Commission Agenda
Meeting Date: 10/08/2018  
Ordinance 2018-17 Authorizing the Purchase of Property Located at 9551 Split Log Road for a Future Fire Station
Submitted by: Kirk Bednar, Administration
Department: Administration  

Information
Subject
Ordinance 2018-17 Authorizing the Purchase of Property Located at 9551 Split Log Road for a Future Fire Station
Background
As part of the Fire and Rescue Department's strategic planning process in 2015, the department conducted a thorough analysis of future resource and service deployment needs.  This effort identified the future need for consideration of a fifth fire station to be located in the Split Log Road area in southeast Brentwood, generally in the area between the Northumberland subdivision and the Split Log Road/Ragsdale Road intersection.  The need for this station is primarily due to the residential growth in this area, the large size of the response zones for stations 2 and 4 which currently serve this area, the continuing increase in call volume for stations 2 and 4, and the resulting projected increase in response times in the southeast portion of Brentwood.  (See attached presentation for details regarding the Department's analysis of the need for a fifth station.) Note that this analysis was prior to the decision by Williamson County Schools to locate a new elementary and middle school in this area.

Following the rejection in fall of 2017 of a proposed fire station site within the Tuscany Hills subdivision at the corner of Ragsdale Road and Split Log Road, staff continued to explore property options within the identified area.  In exploring property options for a potential fire station, staff was guided by the following factors:
  1. Located within the Fire and Rescue Department's identified preferred corridor along Split Log Road.
  2. Large enough tract to accommodate the proposed neighborhood fire station.
  3. A willing seller since use of eminent domain was not an option as directed by the City Commission.
  4. Distance from existing homes and subdivision entrances.
As part of this effort to identify other location options, staff began conversations with the resident who lives at 9551 Split Log Road.  This property is approximately two acres and includes a one-story home containing approximately 1,930 square feet built in 1995 (see attached location map).  Below is an assessment of this property relative to the four factors listed above:
  1. Located within the preferred corridor along Split Log Road:  While not directly along the corridor between Northumberland and the Split Log/Ragsdale intersection, the property is only 375 east of the Split Log/Ragsdale intersection.
     
  2. Large enough tract: At two acres, the tract is the minimum size the City would consider, but it is a fairly level, rectangular shaped property that does provide a sufficient building envelope to accommodate the size of station anticipated - two-story structure with two bays.
     
  3. A willing seller: Yes.
     
  4. Distance from existing homes and subdivision entrances:  Given the level of residential development in the targeted area, it is virtually impossible to identify a tract that does not have some adjacent residential uses.  The property adjacent to this tract on the south and west is a 37 acre parcel that includes one home that is approximately 540 feet from the southern property line of the proposed fire station property.  The tract to the east of the proposed fire station tract is owned by the same individual as the property to the south and contains a barn but no residence.  As reflected on the attached residential proximity map, other nearby existing homes range in distance from 550 feet to over 1,000 feet from the closest adjacent boundary of the proposed fire station tract.  In addition, the entrance to the Sonoma subdivision is approximately 0.3 miles to the east and the entrance to the Tuscany Hills subdivision is approximately 0.35 miles to the east.  Note that plans have been approved for a new section of Tuscany Hills that will have new homes in closer proximity to the proposed fire station site.  That section is just now under construction and no homes or platted lots exist there today.
Given that the property compared well on the selection factors, staff commissioned an appraisal of the property by an independent appraiser who determined a current value for the property at $600,000 (see attached).  Through negotiations with the property owner, a final sales price of $685,000 was agreed to.  The price is higher than the appraised price, but ultimately reflects an extremely limited market of properties that fit the four criteria listed above.

Besides the sales price referenced above, the proposed sales agreement provides that the City will pay all closing costs except for the prorated portion of any 2018 property taxes due for the period of time prior to closing of the sale.  As part of the negotiations, it has also been discussed that the current resident shall have a right to remain in the home for up to 24 months after closing to allow him time to find/build suitable replacement housing.  A proposed lease agreement will be presented to the City Commission on the October 8, 2018 Commission agenda, when this ordinance will be considered on second reading.  The basic proposed lease terms include occupancy for the first twelve months with the lease payment to be equal to the property taxes due on the property.  If occupancy continues after twelve months, it will be on a month to month basis with a monthly lease payment of $2,000.  The tenant will be responsible for all property maintenance and utility charges and will be required to obtain renter's liability coverage in an amount specified by the City.

To make the surrounding property owners aware of the City's plans regarding purchase of this property, notices were mailed to all property owners within 1,000 feet of the property and surrounding HOA's.  Social media notices were also posted via Nextdoor to neighborhoods in the immediately surrounding area.  Staff also hosted a community meeting on September 18 to answer any questions from surrounding neighbors.

If the purchase of the property is approved by the City Commission on final reading on October 8, 2019, staff will proceed to schedule a closing date for late October, or early November.  The City's capital improvements plan does not anticipate design work on a new station to occur until FY 2023.  While that schedule could change somewhat when the City prepares the FY 2020-2025 CIP next spring, the exact timing on construction of a fire station on the property will ultimately be dependent upon the availability of future capital funding.
Staff Recommendation
Staff recommends approval of Ordinance 2018-17 authorizing purchase of the property at 9551 Split Log Road on second and final reading.
Previous Commission Action
On September 27, 2018, Ordinance 2018-17 was approved unanimously (5-0) on first reading.

Fiscal Impact
Amount : $685,000+ costs
Source of Funds: Capital Projects Fund
Account Number: 311-45200-5018
Fiscal Impact:
The FY 2019 budget for the Capital Projects Fund includes $500,000 for the purchase of property for Fire Station 5.  The addtional approximately $200,000 needed to complete this purchase is proposed to be allocated from the $1.2 million of unobligated FY 2018 excess revenue transferred to the Capital Projects Fund at the end of FY 2018.  A FY 2019 budget amendment will also likely be necessary later in the fiscal year as a result of this purchase.
Attachments
Ordinance 2018-17
COB Contract No. 2018-041
9551 Split Log Road Appraisal
Property Location Map
Residential Proximity Map
Fire Department Needs Assessment PowerPoint
Signed Ordinance
Signed Agreement

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