City Could Score Millions in Sale of Hutchins Land Owned by Dallas Water Utilities
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Dallas officials confirmed Tuesday that a developer is interested in purchasing 313 acres in Hutchins currently owned by Dallas Water Utilities.
In a meeting of the Dallas City Council’s Government Performance and Financial Management Committee, Assistant City Manager Robert Perez dodged questions about an offer and declined to name the interested developer. City Hall insiders tell CandysDirt.com it’s a name you’ll recognize and the price tag is in the double-digit millions.
And while no one has said publicly what the developer plans to do with the land if a sale goes through, don’t get too excited about the potential for housing. The site at 3700 Lancaster-Hutchins Road is zoned light industrial and is surrounded by warehouses.
In an April 23 memorandum to GPFM members, Perez advised that a DWU-funded appraisal for the Hutchins property was nearly complete and would be available for discussion at the May 21 committee meeting. Perez said Wednesday the appraisal would be discussed in an executive session.
DWU Communications Manager Estela Ornelas told CandysDirt.com on Wednesday that the Hutchins site was purchased in 1992 for $2,024,738.
“The property was purchased for a future Southeast Water Treatment Plant,” Ornelas said. “DWU is not currently using the property and no longer has plans for a water treatment plant on this property.”
Editor’s Note: A memorandum filed Friday, May 24, by Perez offered more information on the DWU site and other properties in the Dallas real estate portfolio.
General Fund or Dallas Water Utilities?
There appears to be a question over whether Dallas Water Utilities is entitled to all proceeds from a sale of utility-owned land.
“The interim city manager has already stated that if we can get those funds into the general fund, her recommendation would be to put those funds toward the [Dallas Police and Fire Pension Fund]],” Perez said.
District 12 Councilwoman Cara Mendelsohn asked if the amount represented by the increase in value from the time the Dallas Water Utilities land was purchased could be deposited into the general fund.
“We are trying to find a way for that to occur,” Perez said. “We have some thoughts on potentially working through the Economic Development Corporation to broker a deal for us. If we can get that approved through the City Attorney’s Office, then I believe we could get that into the general fund. However, we still have to probably make the DWU fund whole for their initial purchase, which I believe was somewhere around $2 million.”
Watch Tuesday’s GPFM meeting here.
Dallas Real Estate Assets
Dallas owns about 50,000 acres that could be repurposed or sold. Council members have suggested using sale proceeds to help close the gap in a $3 billion Dallas Police and Fire Pension Fund deficit and reviewing housing options for long-vacant city buildings.
District 1 Councilman Chad West thanked Perez this week for his work in cataloging the city’s real estate portfolio and seeking opportunities for development and redevelopment. It was announced about a week ago that Perez was hired as city manager of Topeka, Kan.
“You jumped right in and really helped shine a light on the process of the city’s real estate and what we were and weren’t doing with it,” West said. “You broke through the different silos to get everyone working together on the executive work team. I think as a result of your efforts … we’re starting to see some movement on the city’s real estate portfolio.”
In addition to the Dallas Water Utilities property in Hutchins, Dallas officials are studying opportunities for nine other city assets, including the Dallas Executive Airport, Canton Street Service Center, Vilbig Auto Pound, Oak Cliff Municipal Center, North Oak Cliff Library, Park Forest Library, Family Gateway Building, Downtown Courts Building (fifth floor), and 606 Good Latimer.
At an April 23 GPFM meeting, Perez said staff is eyeing the Vilbig Auto Pound, OCMC, North Oak Cliff Library, and Park Forest Library for mixed-use redevelopment. About $43.53 million in bond funds for libraries was approved by voters on May 4, which will provide funds for redeveloping the libraries. Council members appear to have differing opinions on whether to sell or redevelop some of the other properties on the assets list.
Perez recommended last month a $600,000 expenditure for a brokerage firm to study best uses for the city-owned properties and help identify potential investors. The Department of Housing and Neighborhood Revitalization has identified veterans housing as a potential use for the fifth floor of the downtown courts building.
