Another High-Rise Development Proposed in NorthgateFeatured Stories, News Wednesday, February 13th, 2013
A Houston company that manages a dozen local student housing complexes wants to build a multi-family structure in the Northgate district.
The four to eight story building would be located at the corner of Wellborn and Church.
Asset Plus Corporation wants to buy 3.36 acres owned by the City of College Station.
The land purchase, part of Thursday’s city council agenda, includes protecting the only existing building on the property, which is Cafe Eccell.
The 30 million dollar project, which also includes a parking structure, would be completed by the end of 2015.
The $2,975,000 dollar price tag for the land is after a $580,000 thousand dollar grant given by the city.
Closing would take place this summer after the developer conducts a feasibility study.
There are no traditional economic development incentives such as reduced property taxes or breaks on buying water and electricity.
And any new city infrastructure would be paid by the property owner.
Summary: Since 1943 the City has piecemealed together a single block consisting of twenty-two lots at the northwest corner of Wellborn Road and Church Avenue in the Northgate District.
The 3.36 acres of city-owned property is commonly referred to as the First Street Property.
On July 25, 2011 City Council gave staff direction to move forward with the disposition of the property in a responsible and methodical manner. After receiving several unsolicited inquires about the property, City Council gave staff additional direction to issue a Request for Interest.
The City received three formal statements of interest and interviewed two of the respondents. Asset Plus Realty Corporation was selected on the basis of reputation, quality of previous projects, familiarity with College Station, desire to incorporate Café Eccell, and proposed purchase price.
The final development project will be a four to eight story private mid-rise multi-family housing development and associated parking structure with a total development cost of at least $30,000,000.
Final completion of the project will occur no later than January 1, 2016. Asset Plus has also agreed to use good faith and commercially reasonable efforts to negotiate a new lease with Café Eccell with the intention of incorporating the business into the final development.
Following approval by City Council, Asset Plus would have a 120-day feasibility period prior to formal closing later this summer. Budget & Financial Summary: Asset Plus Realty Corporation will purchase the property for $3,555,000. The City will acknowledge a simultaneous grant of $580,000 to be used for the purchase of the property. The final net purchase price is $2,975,000.
Attachments: The Resolution, Purchase & Sale Agreement, and Economic Development Agreement are available in the City Secretary’s Office.
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