Land Development or Sale

[Brandi Jo Newman]

Hi All - I'm posting here for the first time about a possible land development in Kilgore, Texas. This particular tract was purchased 12 years ago as a buy and hold investment. It has appreciated on the tax rolls but we have yet to pursue any development until now. 

This property is located on IH 20 and Hwy 31/259 interchange. TxDOT has finalized their flyover improvement for safer and more efficient on/off access. 

I'm brainstorming here with all of you... as we move into a changing economy we would like to unload this piece of property to free up equity.

Here is the listing on LoopNet -  https://www.loopnet.com/Listin...

Our portfolio is over 29 commercial units as of today not including this property. I've been thinking of having investors join us but with this uncertainty I'm not sure if there will be anyone willing to wait the 5 to 7 years for interchange improvements. 

Any thoughts or comments are more than welcome!

Thank you for your time.

[Brandi Jo Newman]

No “zoning”.  County/city ETJ. No city services. 

[Jamie Hora]

Hi Brandi Jo.  Looks to be a prime area right off if I-20.  I am not an investor or developer myself, but do civil engineering for developers.  I did a quick look on the property and noticed there is a creek running E/W through it.  After checking the flood maps, a large portion of this property looks to be in the flood-plain.  Maybe you were already aware of that.  Because of the recent road work by TxDOT, it is possible this area is being remapped, which would greatly benefit your site.  I would suggest reaching out the City/County engineering or floodplain administrator to ask about that. 

Sorry, maybe not quite the investor advice you were looking for.  Feel free to reach out if you'd like to ask me anything else.

[Brandi Jo Newman]

All good. Very well aware… interestingly TXDOT is the reason the flood zone is there. I’ve been inquiring about a reclamation clause since the land was not restored after 259 was built up. 

[Barrett Bridgewater]

@Jamie Hora @Brandi Jo Newman The unfortunate thing about this flood zone it is an A-Zone. That means FEMA has not determined what the "flood level" is in a 100-year rain event. That can make it difficult to develop.

I can imagine you dont want to sink much more cash into this property.  However, here is an idea we have seen work pretty well:

1. Run a hydro model to determine what the flood level would be in this area (essentially do the work that FEMA didnt complete.)

2. Also do a spot elevation survey to get a true lay of the land.

3. Compare the two. For the areas of land that are above the flood level you can then petition FEMA for removal of that flood designation. It will also provide intel on how much fill/dirt might need to be brought in.

The result here is more land to build on with more cost effective permits.  

You might gain more value on a deal.  You would do a lot the work the developer doesn't want to risk their own money on just to know if this land can achieve their concept.  Hopefully by doing it, it could be more marketable. 

[Brandi Jo Newman]

Yes and Yes! This is very much part of our research and planning.

We actually would like to build a lake that adds value. Currently we are researching the pipeline boundaries and may build 2 lakes.

This 306 acre tract is designated for a luxury RV Park. Flood zone doesn't matter because of the transience of an RV. The pads can be built in a flood zone. We believe a lake would add value to the park and create value for the town of Kilgore as well. So to be a bit more clear, we are not looking for more land to "build" on, we are looking for an aesthetically pleasing atmosphere for our permanent and temporary RV tenants.

[De Rasche]

We have toyed with an RV park and this is what little I have learned.

If no services, then septic not going to be easy in flood plain.  Check with county for a feasibility.  A lagoon may work per your county engineer.

To create and run services to each site locally is about 15k a site for RV.   Gravel, concrete pads, and or paved will impact that number. 

If open fields or wooded determines aesthetics. 

Target is cross county RV travelers or permanent users?  Impacts your amenities you mentioned.  The Yogi bear parks in Northwest  areas are a good sone to visit to learn.  

Lakes take about ten acres of flow locally to gain an acre of lake to maintain without a well.  We struggle with sand pockets here and the lake ever sealing.  Your county agent will be a big help and usually are glad to help.  In our area they will pay part of the cost if fits their criteria, but always helpful with advice.  

Do your due diligence and calculate your worst case scenario risk per Sam Zell.

Then decide.

[Jay Hinrichs]

I dont have anything to add other than this is some of the best feedback on a BP post I have seen in some time.. seems like data that your corroborating. So many times you see on BP folks talking about how they would develop land in some state on the east coast or west coast and as we know each jurisdiction varies wildly.  Love land in the path of progress good luck  with it. 

[Brandi Jo Newman]

Quote from @Brandi Jo Newman:

No “zoning”.  County/city ETJ. No city services. 

Just to clarify on services, the southern point is in the city limits - about 2 acres. We have a good relationship with the city officials and have discussed a bond to extend services and to include in the city limits.

 @Jay Hinrichs Jay I completely agree! Good vibes here!

@Jamie Hora would you be available for a chat?

@Barrett Bridgewater would you be available for chat?