Developer seeks more time for 600 West Kennedale Parkway project; car wash, coffee concept under review

City staff updated the EDC on Jan. 28 about the property at 600 West Kennedale Parkway, which the council previously approved for sale to a development interest. Staff said the developer (identified in the transcript as Mr. Pennington) is pursuing a car wash franchise and asked for more time to meet with franchisors and consultants to determine whether the site dimensions, setbacks and right-of-way will accommodate the proposed uses.

Staff told the board that the current 380 agreement framework contemplates selling the land for $25,000 under a Chapter 380 arrangement compared with a property value presented in the meeting of about $111,000, creating roughly a $90,000 difference in incentive value. Staff said the sale price and the 380 structure are based on the land and development plan rather than an agreement tied to a specific business.

Board members asked whether automatic car washes generate sales tax. Staff reported, citing comptroller guidance and a similar local operation, that automated washes themselves are not subject to sales tax, although sales tax would apply to retail items such as air fresheners or towels sold on-site.

Staff said the parcel is narrow (about 3 acres) and that the developer is considering where to place the car wash on the lot so a retail tenant or coffee drive-through could occupy the hard corner. The developer is also assessing possible office uses if retail cannot be accommodated.

No final 380 agreement or site plan was presented; staff said the developer plans to attend a car-wash franchise conference Feb. 18–19 (dates given in the transcript) and requested additional time to return with finalized plans.