That Big Box Sam’s at Cityplace May Not Happen After All, Property Could Command Higher Price

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Word came Tuesday from Jonas Park, the “Accidental Activist”, that a Dallas county judge has ruled to void an ordinance for a planned development district on Central at Carroll Avenue, across from Cityplace, that was all but certain to be a big box Sam’s Wholesale Club.

Talk about David and Goliath: Judge Michael O’Neill ruled that the city of Dallas did not properly notify property owners living near the proposed 100,000 square foot big box site. Property owners were concerned that a Sam’s was not the best use of the choice dirt and they worried about their property values ever since May, 2014, when Trammell Crow Company announced the Sams deal on 17 acres across from Cityplace and demolished the old Xerox building that used to sit on the site

Trammell Crow told the Dallas Morning News it is considering options:

“While we’re disappointed in the judge’s ruling, we’re considering our options moving forward,” said Scott Dyche, general counsel for Trammell Crow Company.

The neighbors claim they were told one thing, but got another. Way back in 2013, property owners were told that Crow wanted to rezone the site to “accommodate a retail development with design standards.” Many were hopeful that the zoning, which would have allowed for mixed use retail (shops, restaurants, hotels, apartments) would create a West-Village type atmosphere.

Instead, they got a big box retailer with a long lease. You may recall that some members of the Dallas Plan Commission even tried to re-open the case, but feared that Trammell Crow might sue the city. Or that the city would lose face, reneging on its word which would then be a bad example to other developers.

The property was closed on in August of 2013.

Neighbors quickly organized, forming the East Village Association, scrimped for resources and took the city and Trammell Crow Co. to court.

Dallas said the association had no standing, and tried to get the case tossed, but a judge disagreed with the city. And then we got the surprising new ruling on Monday.

“You never take anything for granted, but the notices are clearly insufficient,” said attorney Anthony Ricciardelli, who, along with Andy Ryan, represented the neighborhood association. “We were quietly optimistic the entire time.”

“This is not only a good news for this neighborhood, but also for the entire city of Dallas as we move forward,” says Jonas. “I just happened to be there when the Sam’s news explored. Ones who deserve the real credit are the so many neighbors, especially Christina Olivo Casas, who has been a neighborhood activist for many many years, Wylie H Dallas and Brenda Marks for connecting me with good people, Mary Warren for shelling out our first victory bond money, and Alex More for hours and hours of combing thru documents.”

And of course, Jonas thanks their amazingly tireless legal team of Anthony Ricciardelli and Andy Ryan.

“But I especially thank and want to acknowledge the late, great Neil Emmons, for his love for neighborhood, help and encouragement, says Jonas, who admits he cried a little at the hearing.

What would Jonas and the neighborhood like to see at the site over a Sams??

“TCC promised West Village in the East Village, and I would like to see that happen: small boutiques, shops, restaurants, in a park-like setting as their initial rendering proposed.”

Actually, that may happen. Thanks to our healthy real estate market, the value of the land where Sam’s wanted to plunk has gone up. Trammell Crow would be getting $55 per square foot from Sam’s, when the market would support more, like $100. Several months ago I heard that Trammell Crow wanted OUT of the Sams deal since the land had almost doubled in value. I heard that Costco had knocked on their door, even though they are in the process of building a Costco at 635 and Coit.

There are several developers nationwide wanting to buy the old Xerox and Trammell Crow lot together. Total win/win for Trammell Crow, who could wipe their hands clean of the entire plot and still make a profit.

As for the notice, Dallas now has another problem to deal with: what is sufficient notice to neighbors?

The city has long maintained it gave adequate notice to nearby property owners. But if this wasn’t done correctly, it could impact countless other cases, which is why Dallas City Attorney Larry Casto said he will brief the City Council about Monday’s ruling as soon as he can — and ask if they want his office to appeal the outcome.

Stay tuned.

 

 

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Candy Evans, founder and publisher of CandysDirt.com, is one of the nation’s leading real estate reporters.

1 Comment

  1. Clay Stapp on November 29, 2016 at 11:32 am

    Great work Jonas! Big win for Uptown and East Village!

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