Computer Sciences, which has built two buildings downtown, has decided it won't need the block and has agreed to give the city a chance to get it back for $4 million. The city says it has been appraised at $6 million to $8 million. The city would use the land for municipal development.
CSC previously turned aside queries from city officials about the property. The company had appropriated money for the property and has until 2015 to build on it. A CSC spokesman said he was unable to comment on the matter and referred questions to the city.
The new city hall will sit between the CSC buildings. The block under consideration is north of the new city hall. It is bounded by Second and Third streets on the south and north and Guadalupe and Lavaca streets on the east and west.
The city figures that it could buy the land for $1.3 million in addition to money already involved in the CSC deal. Had the original deal gone forward, CSC would have paid $3.9 million for the block and the city would have provided $6.6 million in incentives for the third office building. The net city outlay would have been $2.7 million. The city reasons $1.3 million in unplanned spending would be needed to complete the deal since $2.7 million already was earmarked. The city says that the $1.3 million will come from unanticipated cash premiums received from the August 2001 bond sales because of advantageous interest rates. About $850,000 would come from bonds associated with the city hall project.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
