The agreement gives developer Astin Redevelopment of Bryan certainty that the city will work with it while it draws up plans. The Temple Historic Arcadia Theatre Inc. will also have input.
“This essentially is a non-binding agreement that will allow the parties to negotiate,” said assistant city manager Kim Foutz during Thursday’s board meeting.
The agreement gives Astin six months to negotiate with the city for its plans for the properties. The final transfers of the properties will not take place until the city approves the designs.
The city will sell the properties to Astin for $1 a piece and, in return, Astin will develop the properties into a boutique hotel and performing arts conference center.
The hotel must have no less than 80 rooms, and include a bar, restaurant, kitchen, coffee bar, fitness and business centers as well as meeting space.
Astin must enter into a franchising arrangement with “a major national franchiser,” similar to the “quality and reputation to Marriot Courtyard or Hilton Garden Inn.”
Foutz said the city will provide certain incentives to Astin, including a 10-year declining term tax abatement on the increased value of real and eligible property, a waiver of applicable permits and fees, assistance in applying for historic tax credits and new market tax credits, and a grant in the form of $137,200 in federal grant dollars toward redevelopment.
The city will also resurface the hotel’s parking lot with no less than 96 parking spaces and include a crosswalk along South Fourth Street.
“We’re very excited to be moving forward,” Ms. Foutz said.
The city began negotiations with Astin for redevelopment of the properties in 2007. Temple bought the hotel in 2006 for $340,000 amid health and safety concerns for the building, which was built in the late 1920s. The theater is attached to the hotel.
I-35 Overlay District
Council members decided to delay an ordinance authorizing the creation of an Interstate 35 Overlay District containing regulations for landscaping, building standards, signs and parking to help improve beauty.
The ordinance would have mandated standards pertaining to the planning, architecture, landscaping, and exterior lighting and exterior signage of businesses located near or along I-35.
City officials said they began working on the ordinance in 2005, and sought the input of businesses in the area by forming a commission, which also included the input of groups such as the Temple Chamber of Commerce, Temple Economic Development Corp., Keep Temple Beautiful
Harry Adams, owner of Johnson Brothers Ford, spoke to council members about his displeasure with certain aspects of the ordinance standards, saying that he could lose parking at his dealership, and thought that certain tree regulations in the ordinance may attract unwanted birds to his property.
“There’s no question that something needs to be done to improve (the beauty) of the businesses along I-35,” said Adams. “But I think there will be a number of substantial investments businesses will have to make.”
City workers will now be able to update the proposed ordinance before the next council meeting.
Temple & Central Texas Railway
Council members also authorized City Manager David Blackburn to enter into a railroad licensing and operating agreement with Patriot Rail Corp. and Temple & Central Texas Railway Inc. for operational and management services in the Temple Rail Park.
Patriot and CTR will now manage and assist the city in developing the Rail Park, and Patriot will provide rail car switching, loading, unloading and storage operations, and routine maintenance of the rail infrastructure.
According to Blackburn, the railway should assist businesses like Gulf States Toyota and H-E-B that are in the process of building facilities in the area with transportation needs.
