CC MEETING: May 26, 2020
DATE: May 19, 2020
TO: Erin Rinehart, City Manager
FROM: Ravi Shah, Director of Development Services
Marc Guy, Assistant City Manager
Title
Consider A Resolution Authorizing The City Manager To Negotiate And Execute The Purchase of Approximately 2.2 Acres Of Land Owned by Berkshire Hathaway Automotive, LLC, Located At 1301 South IH-35E, 1411 South IH-35E, 1428 Elm Street, 1211 South IH-35E And 1212 South Broadway, Collectively Known As Van Hyundai, In An Amount Not To Exceed $3,520,000.00.
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BACKGROUND:
Since early 2019 Berkshire Hathaway Automotive (BHA) has been evaluating alternative locations for its Van Hyundai dealership. The dealership is currently on four separate tracts of land within the Downtown Carrollton Transit Center District. Concurrently, the City and BHA have been negotiating the City's potential purchase of the property for strategic redevelopment of the site when the dealership relocates.
The dealership's location is inconsistent with BHA's desired positioning of the Hyundai brand in the marketplace, and the continued use of the property for auto sales is incompatible with the City's long-range strategic goals for Downtown Carrollton. By purchasing all four tracts the City can assimilate these parcels into a single tract for future redevelopment. Further, the acquisition of these tracts will allow the City the opportunity to direct and influence the character and quality of future development in a highly visible and strategic TOD area.
BHA has based the site's valuation of $3.5 million on the structures and land. To provide sufficient time to secure and construct a new dealership, BHA has requested to lease back the three tracts adjacent to I-35 for a period of twenty-four (24) months at a monthly rate of $18,000, resulting in total potential revenue of up to $432,000 to the City. BHA may terminate the lease without penalty at the end of any month at any time during the twenty-four (24) month term. Add...
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