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Commercial Real Estate
By Curtice Commercial Real Estate

Sugar Land demonstrates visionary approach to future land development

Over the past few months, City of Sugar Land officials have taken proactive steps to assure that future development in the city will not only be carefully considered from a land planning standpoint, but also through the consideration of the highest and best uses for the remaining undeveloped tracts. In this effort, the city, along with the Fort Bend Economic Development Council and corporate contributions from Alltel and Ondao Nalco, commissioned Angelou Economics in Austin to perform a "target industry study". In less than a decade, Angelou Economics has become one of the largest and most respected economic development consulting firms in the country. In addition to recognition for writing the strategic plan for the State of Texas under George Bush, the firm is highly regarded for its role as the architect in developing the Austin area into one of the country’s top technology regions.

The results of the Sugar Land study, focusing on commercial development in TxDot tracts 3, 4, and 5 and the Fluor tract along Highway 6, were revealed to City Council in late January. TxDot tracts 3, 4, and 5 are the former prison tracts between 59, Hwy 6, Hwy 90 and the Brazos River. The purchase rights for these tracts were awarded to developer Newland Communities as the top bidder in an auction concluded this past October. Amy Holloway, Vice President of Economic Development for Angelou, told council members that the Sugar Land study was unusual in that the majority of the analysis that her firm had performed previously had been for communities which were struggling economically and were looking for recommendations for a turnaround. Angelou representatives praised Sugar Land officials for being visionary and for continuing to exhibit the type of leadership which has molded Sugar Land into one of the most desirable communities in the country. "It is much easier to plan for economic development from a position of strength rather than a position of weakness".

The Angelou study identified high tech, high growth, target industries which would create an economic base which would position the city for success and produce the highest quality of life in future years. The firms recommendations were based on its analysis of the current business climate in the community and of existing city assets which would be attractive to the cutting edge technology, energy, biomedical and life science, and financial services companies targeted. Those assets include a highly educated, well paid, culturally diverse population, many of which are already employed in medical, energy, and technology industries. Also highlighted were Sugar Land’s exponential growth rate and the quality of existing development, both of which would be attractive to the targeted companies. Ironically, Holloway said one of Sugar Land’s greatest weaknesses is its proximity to Houston, which is generally viewed negatively by these same types of cutting edge companies.

The manner in which this remaining 2,800 acres is developed will have a significant impact on the future of Sugar Land. Different land uses produce different revenues for the city. The city could allow continued development focusing primarily on residential projects, but a significant opportunity would be lost. The tax base created by this type of development may not allow the city to maintain the same level of services in the future and the quality of life would decrease. The long term sustainability of the development would be at risk. The Angelou representatives presented three different land plans for the tracts. All three plans represented an increase in commercial development ranging from two percent (2%) to eight percent (8%) over existing Sugar Land planned communities. The commercial development would not only be targeted to the types of companies outlined above, but would be marketed to attract users compatible with existing assets such as the University of Houston and Town Center. Angelou also demonstrated the benefit of a research center in Sugar Land, specifically proposing a Texas Energy Center which could become a renowned offshore platform R & D facility. Also suggested were facilities for nanotechnology biomedical research. Rice University researchers met with Angelou representatives to discuss this rapidly expanding area of biomedical cancer research. All of these projects would bring a demand for highly skilled and educated workers which would have a significantly higher impact on the city economy than would alternative retail/office development. When annexed, the 2,800 acres would represent a twenty percent (20%) increase in land area for the city. The economic impact to the city, however, would be double (revenue would increase 100%). The Angelou study estimates that the three land use plans presented would increase city revenues between $16 million and $26 million per year over development focusing primarily on residential neighborhoods. At the city council meeting, Herb Appel, president of the Fort Bend Economic Development Council noted that these numbers were very significant in that they represented annual recurring revenue.

While the Angelou study provides the city with recommendations for what may be best for the development of the remaining tracts from a city perspective, those recommendations must be reconciled with the goals and desires of the land owner (Newland Communities). Not coincidentally, both Newland, the city, and Angelou have been working together to create a plan which will satisfy both parties. The initial conceptual development plan presented by Newland is very similar to one of the plans presented to the city by Angelou Economics. In no small part due to the visionary steps taken by City of Sugar Land staff and officials, the eventual development of the TxDot tracts will not only be profitable for Newland, but will also continue to position Sugar Land as one of the leading communities in the country as both a place to live and a place to work.


Kolbe M. Curtice CCIM, CLS is a licenses Texas Real Estate Broker and is owner/broker of Curtice Commercial Real Estate, One Sugar Creek Center Blvd., Suite 810, Sugar Land, 77478. He can be reached at 281-494-4769 (phone), 281-494-3227 (fax) or e-mail kcurtice@pdq.net


 
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   Last Update:  March 20, 2003