Item Coversheet

CITY OF HOUSTON - CITY COUNCIL

Meeting Date: 10/12/2021
District K
Item Creation Date: 8/26/2021

LGL - Parcel LY20-021; City of Houston v. Mola Ventures LLC, et al.; Cause No. 1168543; Spellman Detention Basin Project; WBS/CIP No. M-420HUD-005A-2

Agenda Item#: 3.


 
                               
Summary:

RECOMMENDATION from City Attorney, to deposit the amount of the Award of Special Commissioners into the Registry of the Court, to pay all Costs of Court in connection with eminent domain proceeding styled City of Houston v. Mola Ventures LLC, et al.; Cause No. 1168543, for SPELLMAN DETENTION BASIN PROJECT - DISTRICT K - CASTEX-TATUM

Background:

The Spellman Detention Basin Project is part of the City’s program to provide a new detention basin to the area near the 6400 block of West Bellfort Avenue, 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 requested the Release of Funds from HUD and 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 Capital Fund-Ad Valorem Tax (Fund 4046) and will cause a transfer of funds 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 in Fund 2311 and expenditures will be reimbursed by CDBG-DR15 funds in accordance with the Letter of Agreement (LOA) between HCDD and HPW for the Project.

This eminent domain proceeding involves the acquisition of fee ownership interest to a parcel of land containing a total of 53,958 square feet. The property is located at the corner of West Bellfort Avenue and Gallo Drive in the City of Houston. The property is owned by Mola Ventures LLC. Prior to sending the matter to the Legal Department, the City attempted to negotiate a purchase of the property, but those efforts were unsuccessful.  The matter was then referred to the Legal Department to initiate eminent domain proceedings to acquire the needed property. The Legal Department filed the eminent domain petition and a Special Commissioners’ hearing was held.

City’s Appraisal/Valuation: ......................................... $1,912,686.00

Landowner’s Appraisal/Valuation: ..............................$3,123,867.00

Award of the Special Commissioners’ Hearing. ........$2,194,850.00

Court & Misc. Costs: Special Commissioners’ fees: $5,250.00 ($1,750.00 x 3); Court Filings: $250.00; Process Service Costs: $305.00. Estimated Total Court & Misc. Costs: $5,805.00.

 

____________________________

Arturo G. Michel, City Attorney

 

 

____________________________

Carol Ellinger Haddock, P.E.

Director, Houston Public Works

 

 

____________________________

Keith Bynam, Interim Director

Housing and Community Development Department
Prior Council Action:

Ordinance 2021-665, passed 8/4/2021; Ordinance No. 2019-931, passed 11/20/2019

Amount and Source of Funding:

$2,194,850.00; Funds previously appropriated under Ordinance No. 2019-931 out of the DDSRF Fund 4046.

Contact Information:

Steven Beard .............832-393-6295

Michelle Grossman ... 832-393-6216

Suzanne Chauvin....... 832-393-6219

ATTACHMENTS:
DescriptionType
Cover sheetSigned Cover sheet
Signed Cover SheetSigned Cover sheet