ORDINANCE authorizing the sale of 14,184 square feet of City fee owned land, located in the Reels and Trobough Survey, Abstract 59, Harris County, Texas; selling the property to TEXAS DEPARTMENT OF TRANSPORTATION as a part of a Widening Project for Business US Highway 90U, from Interstate Highway 610 to east of Mesa Road, in consideration of its payment to the City in the amount of $214,715.00 and other good and valuable consideration - DISTRICT I - GALLEGOS

SUBJECT: Ordinance approving and authorizing the sale of a 14,184 square feet parcel of land, located at Mesa Road and North McCarty Street (aka Business US 90), out of the Reels and Trobough Survey, Abstract 59. Parcel SY20-035

RECOMMENDATION: It is recommended City Council approve an ordinance authorizing the sale of a 14,184 square feet parcel of land, located at Mesa Road and North McCarty Street (aka Business US 90), out of the Reels and Trobough Survey, Abstract 59, in exchange to the City of a consideration of $214,715.00. Parcel SY20-035

SPECIFIC EXPLANATION: Houston Public Works-Capital Projects-Real Estate Services received an offer (Attachment 1) from Steve Bonjonia, Right-of-Way Agent for Property Acquisition Services, LLC (PAS), on behalf of the Texas Department of Transportation to purchase a 14,184 square feet tract of land out of a 23.5258-acre tract of City-owned land. The acquisition request is part of a widening project for Business US Highway (BU) 90U, from Interstate Highway 610 to east of Mesa Road. The project is approximately 1.2 miles and the project purpose is to reduce congestion and enhance safety in northeast Houston. The project requires approximately 2.47 acres of right of way for a proposed right-of-way width of 120 feet.

Pursuant to the Rule 11 Agreement between the City of Houston and the Texas Department of Transportation, Capital Projects – Real Estate Services will administer the sale of a 14,184 square feet parcel of land, located at Mesa Road and North McCarty Street (aka Business US 90), and the underlying ownership fee will be conveyed to the Texas Department of Transportation. The City reviewed an offer prior to the Rule 11 Agreement presented by Property Acquisition Services, LLC (PAS) on behalf of Texas Department of Transportation based on an appraisal from Whitney and Associates that concluded an opinion of value of $154,433.00. Real Estate Services – Appraisal Section recommended a new appraisal be submitted for a current value. The City presented a counteroffer of $214,715.00 that took into consideration the Texas Department of Transportation appraisal along with two additional appraisal reports. The Texas Department of Transportation has agreed to pay total compensation of $214,715.00 in complete settlement of any and all claims under item 1 of the Rule 11 Agreement associated with the acquisition request.

The City will sell to Texas Department of Transportation:

Parcel SY20-035
14,184 SF @$9.00 PSF X 100%.................. $127,656.00
Improvements…………………………………  $ 60,888.00
Cost to Cure…………………………………… $ 26,171.00

TOTAL SALE………………………………….$ 214,715.00


Therefore, it is recommended that City Council approve an ordinance authorizing the sale of a 14,184 square feet parcel of land, located at Mesa Road and North McCarthy Street (aka Business US 90), out of the Reels and Trobough Survey, Abstract 59, in exchange to the City of a consideration of $214,715.00.

FISCAL NOTE: Revenue for this item is included in the FY2023 Adopted Budget. Therefore, no Fiscal Note is required as stated in the financial Policies.

_________________________________

Carol Ellinger Haddock, P.E., Director

Houston Public Works

REVENUE

Fund 1000

General Fund

Addie L. Jackson, Esq.

Assistant Director-Real Estate

(832) 395-3164