Duncanville takes another step toward urban development

by Danielle Parker of Duncanville TODAY

Plans are in the works to transform about 1.8 acres, bordered by East Center Street, East Cherry Street and North Merrill Road, into the new home of Center Street Condominiums, a 31-unit mixed-used townhome development.

Nov. 5, the Duncanville City Council met with the 4B board and representatives of Options Real Estate in efforts to advance a proposal that has been in the works since 2006.

With a $564,000 Sustainable Development Call for Projects grant from through the North Central Texas Council of Governments for infrastructure improvements, the council was ready to make progress with the idea of the Center Street Condominiums. A developer was sought out, and after a few agreements fell through, the city contracted Monty Anderson of Options Real Estate.

Originally all of the townhomes were intended to be built at the same time. However, in order to make it as cost-efficient as possible, the plan was reworked.

“It was to be all 31 units at one time, but being phased in at five units at a time allows us to capitalize on the most conservative rates in building materials,” Economic Developer Earle Jones said.

With plans to move forward in expanding and transforming the Main Street corridor, City Manager Kent Cagle believes the Center Street Condos is a move in the right direction.

“When we did the Main Street Master Plan, we looked at projects like this around the country,” he said. “We did the research, and this is the kind of development that is going to produce the look, feel and revenue we desire.”

In conjunction with the Main Street Master Plan, the city hopes to create more sustainable development for future infrastructure progress and expansion along Main Street.

“What we have come to realize is our area is growing so fast, we cannot build enough highways to accommodate all of the cars,” Cagle said. “The idea has been mass transit is the answer, but it can only be the answer if we change the way we develop. If we think we are going to build more rail lines, but still just have urban sprawl then we will just have to build more highways to rail centers.

In order to create this more urban, pedestrian-friendly environment, Cagle said projects must be implemented that encourage retail.

“To get commercial, we need density. We need more rooftops,” he said.

While preliminary pricing is still being configured, it is believed that the project will bring in a net profit of $221,668, with a 75 percent share for the city. While those numbers may seem small, city staff believes the condos will bring in more than $4.8 million in value added to the tax rolls and about $33,000 in property taxes each year.

“The project will put the city at a negative $14,000 when the first five units are sold because of upfront construction costs,” Anderson said. “The next five units would put it at a positive balance of $23,000. So the risk is higher in the first five units.”

In order to ensure that homes are sold, marketing initiatives will target homeowners who would be intrigued by such a development.

“There will be an effort to specially attract people that are interested in this type of property,” Mayor David Green said.

Councilmembers Johnette Jameson and Paul Ford both voiced their doubts about the project's success during such a dismal point in time for the housing market.

“Real estate in this area is not moving,” Jameson said. “I am concerned about a project like this in our area. I don't understand why someone would move to this area where there is less space that costs more money.”

Anderson agreed that in general realty is currently in a poor state, but he reassured the council that unique properties, such as the Center Street Condos, are moving on the market.

“If you build the same old same old, you are going to see the same results,” Anderson. “Yes, a lot of homes are not selling, but this is not true of newer developments. Walkable, mixed-use developments are selling. Just look at the Enclave at Thorntree in DeSoto. There is currently nothing in our suburbs similar to this.”

While councilmembers were also concerned about whether the city would be at a loss if the condos did not sell, Cagle reassured them that the city's investment was protected.

“We have a clause that if the units are not sold in a certain time period, the money must still be paid,” he said, “We have protection based on that and we believe we've put as much protection in this agreement as possible.”

Condos will range from $121,000-$195,000. Groundbreaking for the project is expected to be in May of 2009.