STRATEGIC PRIORITY: Core
AGENDA DATE: March 26, 2025
COUNCIL DISTRICT(S): 11
DEPARTMENT: Department of Facilities and Real Estate Management
EXECUTIVE: Donzell Gipson
______________________________________________________________________
SUBJECT
Title
Authorize acquisition, assumption and/or renegotiation of existing leases and property management contract from Montfort Valley View Shopping Center, LLC, of approximately 79,916 square feet of commercially improved land located near the intersection of Montfort and James Temple Drives for the 13305 Montfort Drive Acquisition Project - Not to exceed $11,310,000.00 ($11,250,000.00 plus closing cost and title expenses not to exceed $60,000.00) - Financing: Park and Recreation Facilities (B) Fund ($9,480,672.00); Mall Area Redevelopment TIF District Fund ($1,829,328.00)
Body
BACKGROUND
This item on behalf of the Park and Recreation (Parks), authorizes the acquisition, assumption and/or renegotiation of existing leases and property management contract from Montfort Valley View Shopping Center, LLC of approximately 79,916 square feet of land located near the intersection of Montfort and James Temple Drives for the 13305 Montfort Drive Acquisition Project.
The subject property will be the second purchase of five parcels needed by the City in order to assemble the approximately twenty-acre central park known as International Commons, as envisioned in the City’s Valley View-Galleria Area Plan (adopted by City Council in May 2013), PD 887-Valley View Galleria Special Purpose Zoning District (authorized by City Council in June 2013), and the Mall Area Redevelopment TIF District Project Plan and Reinvestment Zone Financing Plan (Authorized by City Council in June 2025). The first purchase of the International Commons project was the Prism Center in 2021 located at 5580 Peterson Lane. The consideration is based on independent appraisals.
The subject property is currently improved with a one-story multi-tenant retail building comprising of approximately 25,296 square feet of net rentable area and twelve existing
retail tenants.
Parks or its property manager will be responsible for the property, including all operations, maintenance, and repairs, through Parks’ existing resources or funded by rental revenues. The Parks Department or its property manager will also be responsible for all tenant relations and marketing efforts during this period. This property will remain under the management and responsibility of the Parks Department until such time as the structure is demolished or the site is redeveloped for its intended public use.
City staff intends to assume current leases or renegotiate new lease agreements with existing tenants under similar existing lease conditions, including rental rates, with the following provisions for renegotiated leases: an initial three-year lease term, two optional three-year renewal terms (subject to Park Board authorization and mutual agreement), and a 180-day termination clause without cause by either party.
This property will not be officially dedicated as municipal park land until such time as the property is developed for its intended use.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
This item was approved by the Dallas Park and Recreation Board on February 20, 2025.
The Board of Directors of the Mall Area Redevelopment TIF District approved the utilization of $1,829,328.00 from the Mall Area Redevelopment TIF District for this acquisition on March 17, 2025.
FISCAL INFORMATION
|
Fund |
FY 2025 |
FY 2026 |
Future Years |
|
Park and Recreation Facilities (B) Fund |
$9,480,672.00 |
$0.00 |
$0.00 |
|
Mall Area Redevelopment TIF District Fund |
$1,829,328.00 |
$0.00 |
$0.00 |
|
Total |
$11,310,000.00 |
$0.00 |
$0.00 |
OWNER / EXECUTIVE
Montfort Valley View Shopping Center, LLC
Farhad (John) Nayeb, Director
MAP
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