ORDINANCE finding and determining that public convenience and necessity no longer require the continued use of Portsmouth Street from Woodhead Street to its terminus; vacating and abandoning said parcel to 4310 Dunlavy, L.L.C., 4300 Dunlavy Development, LLC and Dunlavy Development Phase I, L.L.C., the abutting owners, in consideration of owners' payment of $1,550,062.00 to the City and their conveyance to the City of five variable-width sanitary sewer easements all located within the Richwood Subdivision, out of Great Lot 3, Obediance Smith Survey, A-696, Harris County, Texas, and other good and valuable consideration - DISTRICT C - COHEN

SUBJECT: Ordinance authorizing the abandonment and sale of Portsmouth Street from Woodhead Street to its terminus, in exchange for conveyance to the City of five variable-width sanitary sewer easements, all located within the Richwood Subdivision, out of Great Lot 3 of the O. Smith Survey.  Parcels SY13-082, DY14-001A, DY14-001B, DY14-001C, DY14-001D, DY14-001E.

RECOMMENDATION: (Summary) It is recommended City Council approve an Ordinance authorizing the abandonment and sale of Portsmouth Street from Woodhead Street to its terminus, in exchange for a consideration of $1,550,062.00 plus conveyance to the City of five variable-width sanitary sewer easements, all located within the Richwood Subdivision, out of Great Lot 3 of the O. Smith Survey.

SPECIFIC EXPLANATION:  By Motion 2013-0719, City Council authorized the abandonment and sale of Portsmouth Street from Woodhead Street to its terminus, in exchange for conveyance to the City of a variable-width sanitary sewer easement, both located within the Richwood Subdivision, out of Great Lot 3 of the O. Smith Survey.  Since passage of the Motion, it was determined that the variable-width sanitary sewer easement would be divided into five parcels to reflect the underlying fee ownership of three businesses, 4310 Dunlavy, LLC; 4300 Dunlavy Development, LLC; and Dunlavy Development Phase 1, LLC; all under the ownership and management of Joseph Marom.  The property owners plan to construct a new multi-family housing development in the location of the proposed abandonment.

Because the construction requirements associated with this transaction will be completed after the City Council passes the ordinance, the property owners provided a Letter of Credit (LOC) for $57,434.00, an amount equal to the total estimated construction costs required to complete Items 3 and 4 of Motion 2013-0719.  The LOC will be for a specific time period which may be less than but not longer than twelve months from the effective date of the ordinance for this transaction.  The Director of PWE or his designee may authorize one extension of the LOC which may be less than but not longer than twelve months, if the applicant has received approved permits and commenced construction of the work required within the initial term of the LOC.  Should the conditions of the LOC not be satisfied upon expiration of the LOC, a recommendation will be submitted to the City Council to rescind the ordinance that abandoned the City’s property interest(s).  All funds paid by the applicants will be forfeited.  Upon the applicants’ satisfactory completion of the construction-related work as evidenced by written inspection clearance/approval by the Office of the City Engineer, PWE, at the applicants’ request the City will release the LOC.

4310 Dunlavy, LLC; 4300 Dunlavy Development, LLC; and Dunlavy Development Phase 1, LLC; have complied with the transaction requirements, have accepted the City's offer, and have rendered payment in full.

The City will abandon and sell to 4310 Dunlavy, LLC:

Therefore, it is recommended City Council approve an ordinance authorizing abandonment and sale of Portsmouth Street from Woodhead Street to its terminus, in exchange for a consideration of $1,550,062.00 plus conveyance to the City of five variable-width sanitary sewer easements, all located within the Richwood Subdivision, out of Great Lot 3 of the O. Smith Survey.

Council Motion #2013-0719, dated 11/06/2013

Nancy P. Collins

Phone: (832) 395-3130