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2019-012 Service Center ExpansionDate: January 18, 2019 Report No. 2019-012 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: Provide an update on the planned expansion of the City Service Center and vacation of adjacent City-owned property. EXECUTIVE SUMMARY: This Informal Staff Report has been prepared to provide an update on the planned reconfiguration of the City Service Center parking lot, equipment storage area, and the vacation of the adjacent City-owned property located at 1024 N. Ruddell Street. The Service Center property is partially located within the floodplain and the parking area is subject to periodic flooding. In preparation for the remodel and parking lot reconfiguration, a civil consultant is preparing to submit a proposal for a drainage study that may be needed on the property. As plans continue to evolve, the Materials Management lay down area is expected to be relocated to allow staging space for the parking lot work. This may be revised as the plans are further developed. BACKGROUND: In January 2002, tracts of land near the intersection of Mingo and Ruddell Streets were identified in the City of Denton Facilities Master Plan for Service Center related projects and for the possible realignment of Ruddell Street. In the fall of 2002, property owners in the area contacted the Materials Management Department and offered their property, located east of the City’s Service Center complex, for purchase. The approximately 19 acres of land also included one vacant and one tenant-occupied house. In the first quarter of 2003, the City entered into a purchase contract for the subject property. The terms of the contract provided that the residential tenant be given a 60-day notice of Lease Termination in regard to his “month-to-month” lease. Following the purchase, the Materials Management Department oversaw the disposition of the property. Shortly after the land purchase, the tenant, Mr. Nunez, entered into a short-term, below market lease with the City. From the time of the purchase to present date, Mr. Nunez continued to lease the house from the City with reminders that the he would be required to vacate the property when plans to expand the Service Center complex were anticipated to begin. Date: January 18, 2019 Report No. 2019-012 The last lease renewal expired in August of 2018. Rather than renewing the lease, Mr. Nunez was allowed to remain in the property on a month-to-month basis. In November 2018, following telephone conversations informing him of the City’s intent to move forward with its plans to expand the Service Center, Mr. Nunez was issued a notice that the lease was being terminated in accordance with the purchase contract. In consideration of the holiday season, the notice to vacate was extended through the end of January, 2019. City staff has periodically checked in with the tenants and has extended an offer to help with moving, if needed. The tenants have consistently confirmed that they have made other housing arrangements and will be vacating the property by the end of January as agreed. CONCLUSION: Within 60 days of the property vacancy, the City will conduct asbestos and other testing in preparation of demolishing the structure and clearing the tract for its assemblage and use at the City Service Center. Planned uses include expanding the area for equipment storage and for the future Ruddell Street Connector. STAFF CONTACT: Deanna Cody, Deputy Director of Real Estate 940-349-8353 Deanna.Cody@CityofDenton.com