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Board hears proposal to turn 213 Prairie into 'Montgomery Forge' and authorizes administrator to continue negotiations
Summary
Staff proposed converting 213 Prairie Street into 'Montgomery Forge,' a small-business growth center, with renovation estimates of about $350,000 and an outstanding payment owed to the city of roughly $830,000; after executive session the board authorized the city administrator to continue negotiations on the property.
The Montgomery Economic Development Corporation reviewed options for 213 Prairie Street at its June 30 special meeting, including a staff proposal to convert the former fire station into a small-business accelerator branded "Montgomery Forge." Staff presented building details, renovation estimates and financing considerations; following an executive session the board authorized the city administrator to continue negotiations on the property.
"This proposed initiative will create a dedicated small business growth center where small businesses and start up companies can establish their operations, collaborate with one another, and accelerate their growth," Kimberly Gonzalez said in the presentation. Gonzalez said the building is about 4,800 square feet, was previously used as a fire station and currently includes offices and a large shop area.
Staff presented a conceptual renovation program with facade and interior work, garage-door replacements, restroom additions, HVAC work and parking expansion. Gonzalez said a contractor’s rough estimate for the renovations is around $350,000. She told the board the MEDC still owes the city $830,000 related to the property, which staff said makes the combined near-term obligation approximately $1,150,000 when paired with the renovation estimate.
Gonzalez outlined a potential mix of smaller rentable spaces and a common area for training; staff presented a rent-scenario using a $14-per-square-foot assumption that the presentation said would produce about $65,100 in annual revenue under the renovated scenario. (Transcript figures for per-space monthly estimates were inconsistent in places; staff provided the combined annual figure during the presentation.)
Board members raised pragmatic financing concerns: one member noted the MEDC's near-term capital limits and questioned whether the MEDC could both pay the city and undertake significant renovations immediately. Staff confirmed the property remains listed and that at least one potential deal existed; the board moved into an executive session to discuss the matter.
Citing Texas Government Code Chapter 551 (real property deliberations under §551.072), the board met in closed session and returned to open session. Afterward, a motion was made to authorize the city administrator to continue negotiations on the 213 Prairie matter; the motion was seconded and approved by voice vote.
Board members discussed possible program features—term limits for accelerator tenants, prioritization for grant consideration and the long-term downtown benefits of an incubator—while noting the need to secure feasible financing or a deal structure before committing to capital outlay.
