ORDINANCE approving and authorizing a cooperative development agreement between the City of Houston, HARRIS COUNTY MUNICIPAL UTILITY DISTRICT NO. 498, PB COMMERCIAL, LLC, GGA/REDDY FAMILY LIMITED PARTNERSHIP, HRRT MANAGEMENT SERVICES, LLC, INTERNATIONAL BANK OF COMMERCE, MALLADI S. REDDY & PRAVANI REDDY, DOLEX INVESTMENTS, INC. for Buffalo Speedway Design Modification; finding  and  determining  that  public convenience  and  necessity  no  longer  require  the  continued  use  of  (1)  a  portion  of  Buffalo  Speedway,  from  the  northern boundary line of the Wildcat Park Subdivision south approximately  2,100  feet,  and  (2)  a  portion  of  wildcat  park drive,  from  the  western  boundary  line  of  the  wildcat  park subdivision  east  approximately  1,264  feet,  both  within  the Wildcat  Park  Subdivision,  Harris  County,  Texas; vacating  and  abandoning  the street  rights-of-way  to  PB  Commercial,  LLC  (“abutting  owner”); approving and authorizing payment for related title services not to exceed $100,000.00; approving  and  authorizing  the execution and recording of a memorandum of  street  abandonment - DISTRICT K - GREEN

SPECIFIC EXPLANATION:

Under this agreement, Harris County Municipal Utility District No. 498 ("the District") will share costs and acquire property interests that it will provide the City of Houston (the "City").  In turn, the City will arrange to construct paving, drainage, and water lines as part of the part of the Paving Extension of Buffalo Speedway from West Bellfort road to West Airport Boulevard (WBS No. N-000784-0001-3) (the "Project") and pay title services not to exceed $100,000.00 The City and District will split water line construction costs 70/30 similar to a 70% Residential Development Participation Program contract.  The District will collect $990,642.89 from banks, entities, and persons ("Developers") named above to pay for additional costs for changes to paving, drainage, and water lines made at their request (the "Redesign Costs").  The District will also collect all easements/rights of way for the major thoroughfare including paving, drainage, and water lines, and the future grade separation (the "Property Interests").  After the District provides the City with the Redesign Costs and Property Interests described above, the City will arrange to construct the Project A true-up will be held upon Project completion.  The total cost of the Project is estimated to be $16,058,909.00.

As a result of the redesign, the City no longer needs the rights of way on which the City originally intended to construct Buffalo Speedway and Wildcat Park Drive ("Old Route").  PB Commercial, the current underlying fee owner of the Old Route, requested that the City abandon the Old Route and, to that end, has obtained a survey, an appraisal, and no-objection letters from affected utility companies.  The Joint Referral Committee found the Old Route to be surplus.

Therefore, it is recommended that an ordinance be passed authorizing the Mayor to execute the agreement, and authorize payments for title services not to exceed $100,000.00 and that an ordinance be passed authorizing the abandonment and sale of the Old Route.

Mark L. Loethen, P.E., CFM, PTOE

832-395-2705