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Ellison Street Project
The developments at 135 and 114 W Ellison Street were formed through a private-public partnership. Included below is information about the project and some frequently asked questions. If you have any additional questions please email Alex Philips, economic development director.
What is the Ellison Street Project?
The development at 135 W Ellison Street is called Ellison on the Plaza and consists of seven buildings totaling 29,755 square feet of retail space and 22,050 square feet of office space. A new public parking lot was added at 140 W. Bufford in conjunction with the development.
Is this project going to cause my property taxes to increase?
This development will not directly impact residential property taxes in the city.
Why is the city participating in this project?
Since the adoption of the (LINK) “Old Town Plan”, the city has been focusing on placemaking in Old Town. In January 2000, the Comprehensive Land Use Plan including a portion on encouraging public and private economic incentives for the re-development of Old Town. One element of the Imagine Burleson document that was adopted in April 2010 called for the city to promote an environment that incorporates unique identification elements that create a cohesive identity throughout the city.
The city has focused on specific areas of Old Town, which include:
- Bringing development complementary to Mayor Vera Calvin Plaza
- Bringing users to Old Town at a variety of times: day, night and weekends
- Improving customer experience at city facilities
- Providing additional parking
- Increasing walkability
- Providing better connectivity and lighting
Who occupies the buildings?
- City Hall Annex – The City of Burleson owns and occupies multiple buildings converted into one large space. The city uses the space to office the development services team, along with other key city staff.
- Razzoo’s Cajun Restaurant
- Cooke Law Firm
- Twisted Sister’s Pizza
- Western Lavish Boutique
- Buffalo Bros. Wings, Pizza & Subs
- Shipman Companies
- Big B Crane
Who developed the project?
BTX Old Town, LLC developed and built the buildings. BTX Old Town still owns and leases some of the units.
How was the developer selected?
A Request for Proposals (RFP) Issued for 135 W. Ellison St. (former Wood Shopping Center) on August 9, 2019. The city received two proposals. One from BTX Old Town, LLC and one from David Shipman & Tim Windmiller.
Who was part of the process that selected the developer?
The staff panel included Drew Pennywell, EDC Project Manager, Alex Philips, EDC Director, Mandy Clark, Director of Development Services and Aaron Russell, Public Works Director. The committee reviewed and scored the proposals and made a recommendation to City Council.
What were the deal points of the partnership between the city and the developer?
- Property will be deeded to the developer.
- Developer responsible for development of the site.
- City to own and construct the approximately 10,000 square feet on the second floor and an additional 2,000 square feet on the first floor for city offices.
- Developer serve as the general contractor for the city.
- Developer be responsible for leasing the other 8,000 SF in buildings 3,4, and 5 at their own risk.
Why did city deed the property to the developer?
By deeding the property to the developer it allowed the city to maintain a specific vision for the property. The property was a part of the incentive package, as it is difficult for developers to receive financing to build on land that they do not own. It is also important to note that when property is owned by the city, there are no taxes paid on the property. By deeding the property to the developer, the developer will begin paying taxes on the property and the improvements. Which gives the city additional revenue. The city estimates to see a return of 298% over a 15 years from when the incentive package was approved by City Council.
What are the financial incentives the city is providing to the developer?
- No property tax incentives are proposed.
- Performance based sales tax incentives were utilized.
- Attracts users consistent with Council goals (e.g. restaurant and retail).
- If sales do not materialize, the size of the incentive is reduced.
- Incentive limited to first 10 years of lease.
- Term for Downtown TIF will need to be extended until 2041 to match term of the bond issue.
- Currently, TIF is scheduled to expire in 2037.
Developer Incentives
Element Cost Comments Land 135 & 114 W Ellison Street
(City purchased property in 2012 for $1.2M)$1,200,000 Burying Oncor electric lines $300,000 Reimbursed to the developer Make ready utility work for the site $100,000 Reimbursed to the developer Building fees $100,000 Reimbursed to the developer Phase 1 Environmental $20,000 Total $1,720,000
- Currently, TIF is scheduled to expire in 2037.
What is the city's return on investment on the development?
- 131 new parking spaces
- 12,000 square feet of city facilities
- $746,880 in new property tax collected
- $4,680,000 in new sales tax collected
- Resulting in a net return on investment of 298% over 15 years
What is the city's cost for their portion of the building that will house city facilities?
City Cost Elements (Estimated)
| Element | Cost | Comments |
|---|---|---|
| Construct 12,000 square feet of office space | $3,000,000 | Estimated at $250 per square foot |
| Furniture, Fixtures & Equipment | $300,000 | Estimated at $25 per square foot |
| Build public walkway from Bufford Street to Mayor Vera Calvin Plaza | $60,000 | |
| Platting, surveying, building fees and owners representative | $225,000 | Design/construction services |
| Demolition of city-owned building at 225 W Renfro & construction of new public parking lot | $1,342,500 | Includes asbestos removal |
| Renovation of city hall, including production studio | $170,000 | |
| Sidewalk and lighting improvements | $350,000 | Up to $350,000 |
| Contingency 20% | $1,089,500 | |
| Total | $6,537,000 |
How did the city fund their portion of the facilities?
Preliminary City Financing Components
| Funding Source | Contribution | Comments |
|---|---|---|
| 4A Economic Development Corporation* | $2,045,760 | Based on 32% of square feet; reimbursement for infrastructure |
| Downtown TIF Fund** | $3,196,500 | Based on 50% of square feet; parking lot costs |
| Water/Sewer Fund* | $1,150,740 | Based on 18% of square feet |
| PEG Fund* | $144,000 | Cost to create production studio |
| $6,537,000 |
* Cash contribution
** Bonds are proposed to be sold for the downtown TIF
How did this development help improve parking in Old Town?
- A 2019 parking study by Walker Consultants identified a shortfall of 56 spaces.
- City utilized property at 225 W Renfro with 63 parking spaces to construct an additional 63 new parking spaces for a total of 131 public parking spaces just a two-minute walk to Mayor Vera Calvin Plaza and the Ellison on the Plaza building.
- Lighting and landscaping to match Ellison Street upgrades have also been added to provide better connectivity and make the area safer to walk.
Ellison Project History
- City acquired property at 135 and 114 West Ellison Street in January 2013.
- Intent of acquisitions was to incentivize development and achieve desired vision for property.
- City issued prior RFP in 2016 to select development partner.
- Selected Realty Capital as a partner for negotiations.
- Unable to successfully negotiate development.
- Additional parking lots constructed on Bufford and Main Streets to increase access to businesses in the area (120 new parking spots).
- Contract to construct Plaza awarded in 2019, construction completed in 2020.
- Former Woods Shopping Center demolished as part of the project.
- To complement development in the area, the City released a new RFP in late 2019 to select a development partner.