Thursday, March 10, 2016

A Money Pit?

On February 16, 2016, city council authorized the city manager to purchase the Canseco house on the corner of Chihuahua and Seymour.  Alex Perez admitted that the property is zoned as a residential property, yet he is willing to pay double the value of the land because it was appraised as a commercial property by an independent group.

City staff provided me with the appraisal that was done by Southwest Appraisal Group.   They value the property at $540,000.  But in doing so, they recommend re-zoning the property for commercial purposes.

Did the city rezone the property to give it a higher value?  Or are they paying more money for it because of its potential, and because they have money to spare?  If the Webb County Appraisal District has the home and land valued at a little over $200,000, I would rather have the city walk away from buying this home and not pay $450,000 (540,000 with a 90,000 credit).

Alex Perez wants to turn the property into something that will serve the arts community.  I don't know what that means.  Southwest Appraisal, however, says the home is in poor condition.

Perez seems to agree that the home is worth $540,000 and that it should be used as a commercial property.  But he doesn't hint at the recommendation of the appraisal group of demolishing the old home.  The only bright side of this deal is that a vintage home will be saved.  But we're not even clear that that's going to happen.  A local architectural firm gave its proposal on renovating the home.  That means more money.  Where is all this coming from?

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