SUBJECT: PROPERTY: Recommendation that an ordinance be passed approving the Purchase and Sale Agreement between Kasmani Investments, Inc., and the City of Houston, and authorizing payment of the purchase price for the acquisition of Parcel LY19-027 located at 0 Ammar Street for the SPELLMAN DETENTION BASIN PROJECT
RECOMMENDATION: (Summary) An ordinance be passed approving the Purchase and Sale Agreement between Kasmani Investments, Inc., and the City of Houston, and authorizing payment of the purchase price for the acquisition of Parcel LY19-027.
SPECIFIC EXPLANATION:
This project requires the acquisition of three tracts of land, in fee, for the SPELLMAN DETENTION BASIN PROJECT (the Project). The Project is located near the 6400 block of West Bellfort Avenue and adjacent to the Fondren Diversion Channel north of Willow Waterhole. The detention basin has a proposed maximum volume of 208 acre-feet, which will help mitigate flood risk to residential and commercial structures in the Willow Waterhole Bayou drainage area of the Brays Bayou watershed.
The Project will utilize funding assistance from the U.S. Department of Housing and Urban Development (HUD) under the Community Development Block Grant (CDBG-DR15) program. These funds are administered by the City’s Housing and Community Development Department (HCDD). HCDD has received the Authority to Use Grant Funds (AUGF). Real Estate acquisition costs and expenditures for the Project will come from the Dedicated Drainage and Street Renewal Fund-Ad Valorem Tax (Fund 2311) when expenditures are presented for payment. The reimbursement to the City of such eligible expenditures, costs, and bills for the Project will be deposited into Fund 2311 and expenditures will be reimbursed by CDBG-DR15 funds.
The City will acquire 9.9727 acres (434,411 square feet) in in fee for Parcel LY19-027. The City’s offer was based on an appraisal by Todd Rothholz, MAI, of Integra Realty Resources, which was reviewed and approved by a senior staff appraiser of this department. The parties now wish to enter into a Purchase and Sale Agreement, the terms of which include the following:
Parcel LY19-027 (Fee)
434,411 SF @ $3.00 PSF .................................................................... $ 1,303,233.00
TOTAL CONSIDERATION...................................................................$ 1,303,233.00
Title Policy and Services....................................................................... $ 7,888.00
TOTAL AMOUNT..............................................................................…$ 1,311,121.00
Parcel LY19-027 contains a 9.9727 acre (434,411 square feet) tract of land being Lots 1-23 and Reserve A, Block 1 and Lots 1-25 and Reserve B, block 2 of Ammar Estates, a Subdivision of 9.9727 acres of land out of the B.B.B. & C. Railroad Survey, Abstract No. 180, City of Houston, Harris County, Texas.
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Tom McCasland, Director
Housing and Community Development Department
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Carol Ellinger Haddock, P.E., Director
Houston Public Works
WBS No(s) M-420HUD-005A-2