** PULLED FROM MEETING OF 05/25/2016 ***

ORDINANCE appropriating $170,000.00 out of Airport Improvement Fund; approving and authorizing agreement for exchange of real property interests wherein REVISTA, INC conveys tracts of land containing 8.24 acres to the City of Houston, Texas, in exchange for 35.00 acres of land, including all improvements thereon, adjacent to George Bush Intercontinental Airport/Houston - DISTRICT B - DAVIS

Approve an ordinance appropriating $170,000.00 from the Airport Improvement Fund and approving and authorizing an Agreement for Exchange of Real Property Interests whereby the City exchanges said funds, 35 acres of land and agrees to compromise and settle an issue of disputed tree removal in exchange for 8.2 acres of land, including all improvements thereon, from Revista, Inc., abutting George Bush Intercontinental Airport/Houston (IAH).

Specific Explanation:

The Houston Airport System (HAS) concurrently requests an action of City Council to approve an appropriation of requested funds and the approval of an Agreement for Exchange of Real Property Interest with Revista, Inc. (Seller) for the exchange of land abutting the east side of IAH.

The Houston Airport System (HAS) and Revista, Inc. (Revista) share common boundaries and seek a mutually beneficial property exchange for development purposes by both parties. Revista owns approximately 8.2 acres of land that is landlocked within the footprint of IAH and HAS owns 82.74 acres of land that is in part landlocked by land owned by Revista.

HAS seeks ownership of Revista's 8.2 acres for future expansion of IAH's east cargo area and Revista seeks ownership of 35 acres of HAS' 82.74 acres of land for storm water detention. HAS will retain the balance of the 82.74 acres of land (47.74 acres) for future IAH storm detention needs.

Concurrently, HAS and Revista have agreed to an exchange of land and other interests of value which includes:

Revista will convey to the City of Houston 8.2 acres of land, valued at $1,077,652.00 ($130,680.00 per acre) and provide $68,000.00 of site demolition, site drainage improvement, and land surveying related to the transaction; in exchange,

The City will convey 35 acres of IAH land, valued at $914,760.00 ($26,136.00 per acre) to Revista, Inc.; make payment of $157,802.00; and settle disputed timber removal on HAS land valued at $73,000.00.

The exchanged land and timber values were determined by professional appraisers under contract with the City. The Local Government Code and the Houston Code of Ordinance allow for land exchanges when the City has need for the land being acquired. The land acquisition is included in the Department's Capital Improvement Program.

HAS further recommends the appropriation of $170,000.00 from the Airport Improvement Fund for the above property acquisition, inclusive of the payment of title insurance premium and miscellaneous closing costs.

The Real Estate Section of the Legal Department prepared the Agreement for Exchange of Real Property Interests and reviewed related documentation.


Director's Signature:


____________________________
Mario C. Diaz
Houston Airport System

CIP A-0476.85 $170,000.00                                   Airport Improvement Fund (8011)                                                                                                                                                    

Rhonda Arnold     2/233-1618

Ian Wadsworth     2/233-1682