City staff briefs committee on multiple Dallas properties; council to consider surplus tests and market analysis June 11

City staff and CBRE briefed the Government Performance & Financial Management Committee May 27 on several city-owned properties and recommended market-testing and additional analysis on a subset of sites. Staff said items for potential surplus designation and market testing will appear on the City Council agenda for June 11.

Danzo Gibson, City Manager's Office, introduced the update and said CBRE would conduct facility-condition assessments and market work in parallel for sites where the city needs more information before making disposition decisions. Peter Janssen of CBRE said formally declaring a property surplus and listing it allows the city to obtain bona fide market offers and compare market value to repurposing or rehabilitation costs. "You have the ultimate vote in terms of whether you go under contract," Janssen said, explaining that real bids and contract timelines typically require several months after marketing begins.

Properties discussed and staff comments: - 1000 Bellevue: Staff briefed the property in executive session May 14 and recommended testing the market; an additional facility condition assessment is underway by CBRE. The item is on the June 11 council agenda for consideration of surplus designation. - 4150 Independence: The Dallas Fire-Rescue memorandum in the meeting appendix flagged the site as a potential location to improve response times; staff said the fire department viewed the location as potentially suitable for a future fire station but that further due diligence and funding analysis would be required. - 209 Southampton: CBRE recommended running two parallel tracks: (1) test the market to determine fair market value and solicit offers; (2) a targeted analysis of permanent supportive housing (PSH) feasibility, including costs to rehabilitate the existing building versus demolition and rebuild. Council must declare surplus before staff may market the property, staff said. - Dallas Water Utilities (300+ acres): The parcel lies outside Dallas city limits within Hutchins; Dallas Water Utilities has engaged Hutchins as a potential strategic partner. Staff said next steps and feedback on that parcel would best be discussed in executive session with the city attorney. - Bullington truck terminal and other assets: Bullington drew recent attention; staff said they will brief council in executive session on recommended options.

Committee members asked whether surplus designation precludes subsequent city use; staff said it does not: properties declared surplus may remain unsold if bids are not acceptable, and the council retains authority to accept or reject offers. Don Knight, city attorney's office, reviewed the existing right-of-way management ordinance in response to committee concerns about utility cuts following recent street repaving; staff noted the ordinance includes restoration requirements and that the city could pursue additional coordination with utilities on project timing.

Why it matters: Staff said the market-testing process is intended to provide reliable price signals and reduce reliance on theoretical valuations, allowing council to compare market proceeds to costs of rehabilitation or repurposing (including potential housing uses). Staff cautioned that rezoning or other pre-listing actions can add time and cost and that a successful resale or redevelopment often requires detailed due diligence and capital-market readiness from buyers.