SUBJECT: Ordinance authorizing the abandonment and sale of a 20 foot-wide water line easement, in exchange for conveyance to the City of a 23 foot-wide water line easement, both located within Block 77 of the Turner's Addition, out of the Obedience Smith Survey, A-696 and Joseph Gamble Survey, A-309. Parcels SY16-092 and KY17-058
RECOMMENDATION: (Summary) It is recommended City Council approve an ordinance authorizing the abandonment and sale of a 20 foot-wide water line easement, in exchange for conveyance to the City of a 23 foot-wide water line easement, both located within Block 77 of the Turner's Addition, out of the Obedience Smith Survey, A-696 and Joseph Gamble Survey, A-309. Parcels SY16-092 and KY17-058
SPECIFIC EXPLANATION:
The Museum of Fine Arts, Houston, (MFAH) (Willard Holmes, Chief Operating Officer), the fee property owner, requested the abandonment and sale of a 20 foot-wide water line easement, in exchange for conveyance to the City of a 23 foot-wide water line easement, both located within Block 77 of the Turner's Addition, out of the Obedience Smith Survey, A-696 and Joseph Gamble Survey, A-309. MFAH plans to develop a tunnel as part of MFAH's expansion master plan in the subject abandonment area. On September 29, 2010, Council approved Ordinance Number 2010-760 that authorized the Director of the Department of Public Works and Engineering to execute individual Developer Participation Contracts and Development Assistance Contracts. In December 2016, the City and MFAH entered into a Developer Participation Contract. Under the cost-sharing agreement, MFAH will relocate a 30-inch water line and construct a 12-inch sanitary sewer line for 30% reimbursement of the construction cost. The relocation of the 30-inch water line is a utility construction requirement associated with this transaction and will not be completed until after the City Council passes the abandonment ordinance. Plans for the utility relocation and construction have been approved by the Department of Public Works and Engineering.
MFAH has complied with the transaction requirements, has entered into a Developer Participation Contract with the City, and has accepted the City's offer.
The City will abandon and sell to MFAH:
Parcel SY16-092
| 4,783 square-foot water line easement: |
$263,065.00 |
| Valued at $110.00 PSF x 50% |
|
| TOTAL ABANDONMENT AND SALE |
$263,065.00 |
| In exchange, MFAH will pay: |
|
| Cash: |
$ 300.00 |
| Plus convey to the City: |
|
|
Parcel KY17-058
|
|
|
4,936 square-foot water line easement:
Valued at $110.00 PSF x 50%
|
$271,480.00 |
| TOTAL CASH AND CONVEYANCE |
$271,480.00 |
Inasmuch as the value of the $300.00 minimum parcel fee plus the water line easement being conveyed to the City is greater than the value of the water line easement being abandoned and sold, it is recommended City Council approve an Ordinance authorizing the abandonment and sale of a 20 foot-wide water line easement, in exchange for conveyance to the City of a 23 foot-wide water line easement, both located within Block 77 of the Turner's Addition, out of the Obedience Smith Survey, A-696 and Joseph Gamble Survey, A-309.
____________________________________
Dale A. Rudick, P.E., Director
Department of Public Works and Engineering