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First Methodist Church To Sell Their Spare Downtown Block


Guest danax

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Bizjournal subscriber article Exerpt below. Looks like one less parking lot. Yay.

"The downtown site is a surface parking lot operated by Central Parking Corp. that's bounded by Main, Clay, Fannin and Bell. The block is catty-corner from the church, which has been located at 1320 Main St. at Clay since 1910.

The 210-space parking lot, which is used by the church on Sundays, sits on the light rail line and is two blocks away from the huge Houston Pavilions project currently under development. The $200 million project -- which is spread across three city blocks -- is slated to include office space, retail sites and a residential tower with for-sale condominiums.

The city's new 12-acre park and an adjacent 37-story apartment tower planned by The Finger Cos. are also close to the site.

"There are several (projects) that make the development of this lot attractive," says Allen Houk, director of communication for First Methodist. "There's no reason for us to sit there with a parking lot if there is a better use for it."

Steve Wende, First Methodist's senior pastor, also wants to promote development in order to help revitalize that part of the Central Business District.

David Cook of Cushman & Wakefield says church leaders do not envision needing the downtown block for another church facility, so they decided to strike while the iron was hot. With land values on the rise, the parcels are going to market without an asking price.

"It's the right time to do it," says Cook, whose brokerage team includes Jeff Peden, Marshall Davidson Jr. and Graham Horton. "They're trying to capitalize on an improved market."

First Methodist will entertain offers to sell the downtown block, ground lease it to a developer, or joint venture on a project there. Potential development will be limited to a project suitable as a next-door neighbor to the church, says Houk, such as a residential tower, retirement facility or office space. "

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Bizjournal subscriber article Exerpt below. Looks like one less parking lot. Yay.

ONE less lot is always good news. I really do hope something comes out of this and isn't just sat on by another party(trying to milk it for as much $$$$ as they can)

The church really looks like they won't settle for anything less than development.

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Heh, it would be ironic if THIS was the lot that would kickstart DT development, and perhaps even the Pavilions project itself!

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Heh, it would be ironic if THIS was the lot that would kickstart DT development, and perhaps even the Pavilions project itself!

Yes, it would be ironic, considering the Downtown Park has already begun construction and Houston Pavillions has secured financing and will break ground in 3 weeks.

However, this could spur development of a nagging gap in the Main Street skyline. And, perhaps even more importantly, it suggests that the Methodists church, home to many wealthy and influential Houstonians, is optimistic about the Downtown landscape. Knowing that they were making money on this land by leasing it for parking, there is no incentive to put it up for sale, unless the market has increased it's value. Given that this announcement occurred right on the heels of Houston Pavillions' financing, I believe the church is capitalizing on the heightened interest in this section of downtown.

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Yes, it would be ironic, considering the Downtown Park has already begun construction and Houston Pavillions has secured financing and will break ground in 3 weeks.

Well, at least we DO know that for sure now! When I posted, we did not see the "official" groundbreaking date yet :blush::D

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I'm curious about the tax implications of this. Specifically, do churches have to pay property taxes? If not, if they develop the land in a joint-venture or a ground lease, I wonder how the property taxes on the improved property would be calculated.

If churches engage in non-religious business operations, they pay taxes just like anybody else. There can sometimes be a fine line, but I think that in this case the distinction would be pretty clear.

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If churches engage in non-religious business operations, they pay taxes just like anybody else. There can sometimes be a fine line, but I think that in this case the distinction would be pretty clear.

A "fine line" is putting it mildly. Have you read the recent New York Times articles on religion-based churches and tax breaks? I specifically direct your attention to the following:

http://www.nytimes.com/2006/10/10/business/10religious.html

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  • The title was changed to First Methodist To Sell Their Spare Downtown Block
  • The title was changed to First Methodist Church To Sell Their Spare Downtown Block

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