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06/05/2017-CC-Minutes-Work SessionCITY OF SANGER, TEXAS MINUTES: CITY COUNCIL WORK SESSION June 5, 2017, 5:30 PM 502 Elm Street, Sanger, Texas COUNCIL MEMBERS PRESENT: Mayor Thomas Muir, Councilman Bill Boutwell, Councilman Lee Allison, Councilman David Clark, Councilman Gary Bilyeu COUNCIL MEMBERS ABSENT: Councilman Allen Chick The Mayor and Four (4) Council Members Were Present Constituting a Quorum. Councilman Allison Arrived at 6:07 PM STAFF MEMBERS PRESENT: Mike Brice City Manager, Cheryl Price City Secretary., Alina Ciocan, Director of Economic and Community Development, Clayton Gray, Finance Director. 1. Call Meeting to Order. Mayor Muir called the Meeting to Order at 5:47 PM. 2. Presentation by Jeffrey Davis on Potential Redevelop ment of Mobile Home Park at 817 Keaton Road. Mr. Davis was not able to be present at this meeting so it will be postponed to a later date, possibly August. 3. Presentation by Joe Palmer, Consilium Capital Group, on Modified Proposal for Apartment Complex Project on Indian Lane. Joe Palmer, managing member of Consilium Capital Group was recognized. He gave a comprehensive summary of his organization, noting they a small group established in 2010, all real estate professionals, and very pro-active. He gave a background of the projects they have done noting 15 projects in 7 years for 31 million. They do single-family multifamily, commercial and construction rehab. Their partner on this project is Emerson Commercial who are involved with Mr. Wang and Mr. McBirney. He gave a summary of Emerson Commercial. He advised that their choice is Sanger for the apartment project they are proposing. He noted that the land is being sold by Mr. McBirney and Mr. Wang who have no involvement in the project, they are just selling them the land. The project is proposed as an Apartment Project in a Planned Development. It will be a three-and-a-half-year project. The apartments will be Class A Market Rate Apartments. He summarized noting it was going to be “Big House” architecture, follow the current trends, and explained what their future vision is for the project. He stated they are going to build the best highest rated apartments in Sanger and they are going to build it, own it, and operate it for decades. No plans to sell it – they want cash flow. The land is 25 acres Phase I will consist of 10 acres with 200 units. He noted they will be submitting the Zoning change, after brief discussion it was noted it may be in August. Councilman Boutwell questioned where the Apartments would be located. Mr. Palmer advised that the property is located over the wall from the High School Football Field. They were not sure how many units they would build on Phase II. He noted that One bedroom would be approximately around $900 to $1000 and two-bedroom would be $1000 to $1250. He noted the Trails Apartments currently has similar rents, is an older product, and is full. Concern was noted by Councilmembers regarding the traffic 200 additional units would bring to the area. Councilman Boutwell questioned how they could guarantee they would be with the project, as he stated, for years to come. Mr. Palmer noted he didn’t know how he could provide a guarantee. Councilman Bilyeu questioned, nothing that Mr. Palmer said they have done 15 projects in 7 years and asked how many of those projects they currently own. Mr. Palmer stated they own two (2) right now. Councilman Allison noted that the last time this area was discussed that the Council preferred to see a planned development for the overall area. Mr. Palmer noted that his group does not have a direct partnership or affiliation with the other development teams who are doing the master plan for the area. They just bought the land from them; however, they are extremely interested in the success of the master-plan because their apartments will not do nearly as well without it. There was lengthy discussion and questioning regarding the desire to see a full master plan for the area and not see it being brought in, piece by piece, like a patchwork quilt. Mr. Palmer advised that he would be happy to begin speaking with Alina regarding a planned development and perhaps they need to broaden that effort. Alina Ciocan advised Council that Mr. McBirney has submitted a request to rezone the tract south of the proposed apartments to townhome. The Council reiterated, as they have voiced in the past, that they would like to see the whole area come in as a planned development and not piece by piece. Mr. Palmer agreed and noted that he understood that a Planned Development would protect the city in the fact that if something happened to them as the current developers; if someone else came in they would have to develop the same thing. He noted he wanted to do a planned development from the beginning and that he is willing to do one. 4. Presentation from New Gen Strategies on Conducting Electric, Water, and Wastewater (Utility) Rate Study. Due to time, this item was not discussed during work session. It is an item on tonight’s Regular Agenda and will be presented and discussed at that time. 5. Overview of Items on Regular Agenda. There was no discussion regarding this item. 6. Adjourn. The Work Session adjourned at 6:57 pm.