Located on Colleyville Boulevard is a building that used to house Wachovia bank. The building, highly visible along Colleyville’s main business corridor, has sat vacant for more than seven years.
But that will soon change. At the Dec. 3 Colleyville City Council meeting, council approved 6-1 a sublease agreement with the bank owners for the building.
The city plans to use the space for the new Colleyville Business Center. It will also house the Colleyville Chamber of Commerce, Assistant City Manager Mark Wood said. Council Member Callie Rigney voted against the item, saying she had not seen a demand for this type of service.
The Colleyville Business Center has been an item of council discussion for some time. The city plans to use the center as a one-stop resource for existing and prospective businesses. Included in the space are chamber offices, flexible office spaces, a large conference room, two small conference rooms, a work and break room, a reception area and eight workstations, according to meeting documents.
Programming at the center will include events, education opportunities and entrepreneurism, Wood said.
“The former Wachovia bank building has challenging financials that remain until the original lease expires in 2025,” Wood said in an email. “The City being able to fill the gap will ensure the highly visible building on SH 26 will have a tenant and activity in the previously vacant space.”
The bank owners have agreed to a lower sublease rate for the city. The property will cost the city an estimated $62,832 for base rent, with annual escalators increasing that amount a small percentage each year for the five-year agreement. Money for the sublease is available to the city via the Tax Increment Financing fund, Wood said.
Following a brief construction period, the building will be open in early 2020. Construction costs are estimated at about $160,000.
The chamber will rent the building from the city for $15,000 for the first year, with that cost estimated to increase annually as well. The chamber will also provide staffing for the business center.
“We are so excited to partner with the city on this,” chamber representative Kay Allen said at the Council meeting. “I think this a great opportunity for the citizens of Colleyville as well as the small businesses. I would like to congratulate you for being innovative on the creative use of this property. I think it is the new wave.”
Had the city not stepped in, the building more than likely would have remained vacant until the bank’s contract on the property terminated in 2025, Wood said.
“The City is committed to facilitating exceptional economic development in Colleyville, and the Colleyville Business Center will provide a tremendous resource in this effort,” he said in his email. “We are happy to partner with the Colleyville Chamber of Commerce in the endeavor and believe it will be an asset for the community.”
