Item Coversheet

CITY OF HOUSTON - CITY COUNCIL

Meeting Date: 6/21/2016
ETJ
Item Creation Date: 5/23/2016

LGL Parcel KY13-207; City v. Cole AA Houston (Aldine) TX, LLC, et al; Northeast Transmission 108-inch Water Line Easement Acquisition Project; L.D.#081-1400068-016;

Agenda Item#: 12.


 
                               
Summary:

RECOMMENDATION from City Attorney to deposit the amount of the Award of Special Commissioners into the Registry of the Court and pay the costs of court in connection with eminent domain proceedings styled City of Houston v. Cole AA Houston (Aldine) TX, LLC., a Delaware limited liability company, et al., Cause No. 1065635; for acquisition of Parcel KY13-207 for the NORTHEAST TRANSMISSION 108-INCH WATER LINE EASEMENT ACQUISITION PROJECT (Smith Rd. - Lee Rd.)

Background:

The Northeast Transmission 108-inch Water Line Easement Acquisition Project (Smith Rd. - Lee Rd.) is part of the City’s regionalization program and is in compliance with the Harris-Galveston Subsidence District requirement to implement the City’s long range water supply plan.  The project provides for the design and construction of transmission and distribution lines to convey treated water from surface water facilities.

 

This eminent domain proceeding involves the acquisition of a water line easement containing 17,857 sf (0.4099 acre) of land from a parent tract containing 46,609 sf (1.070 acres) of land. The rectangularly shaped parent tract is located at 5804 Aldine Bender Road being the southeast corner of Aldine Bender Road and Lee Road.

The property is improved with a 6,844 sf retail building owned by Cole AA Houston (Aldine) TX, LLC, and is occupied by the automotive retailer Advance Auto Parts.  The retail building is located outside of the area being acquired, but certain appurtenances will be impacted by the City’s acquisition.

 

The landowner’s attorney rejected the City’s revised final offer of $133,040.00 to purchase the easement and submitted an unsupported counter-offer of $150,897.00.  The counter-offer was reviewed and rejected by Public Works and Engineering.   Efforts by Public Works and Engineering to negotiate the purchase of the property failed, and the matter was referred to the Legal Department to initiate eminent domain proceedings.

 

The Legal Department cited and served the parties as required by law and scheduled the Special Commissioners’ Hearing.  The same appraiser utilized by Public Works and Engineering in making the City’s final offer was retained for the hearing.  The hearing was convened and the Special Commissioners adduced the following testimony. 

City’s Testimony Before the Special Commissioners: $141,969.00 (i.e. $7.00 psf. x 50% for the land being acquired, $26,916.00 for the improvements thereon and $52,553.00 as damages in the form of rental concessions and cost to cure).  The monetary difference between the City’s final offer and testimony is primarily attributed to an increase in the price per square foot assigned to the land being acquired. 

 

The registered agent for the landowner was served with Notice of Hearing but no one on behalf of the landowner appeared at the Special Commissioners’ Hearing.  The Special Commissioners returned an Award based solely upon the only evidence presented.  

 

Award of Special Commissioners: $141,969.00. The Legal Department and the landowner’s attorney both filed Objections to the Award of Special Commissioners to preserve their legal and procedural options.  The matter was placed on the Court’s jury trial docket.

 

The “Costs of Court” are as follows: $1,575.00 Special Commissioners’ fees (i.e. $525.00 x 3); $305.00 Service of Process fee; $3,500.00 Appraiser’s fee Total: $5,380.00.  These “costs of court” account for the monetary difference between the amount of the Award of Special Commissioners, and the total amount of funds needed herein.

 

We recommend that the City Attorney be authorized by Motion to deposit the amount of the Award of Special Commissioners into the registry of the Court, and pay the costs of court incurred in this matter. Funding will be provided by a previously approved blanket Appropriation Ordinance.

 

Prior Council Action:
Ordinance Number 2014-0871, passed 9/24/14; Ordinance Number 2013-0537, passed 6/5/13;
Amount of Funding:
$147,349.00; No additional funding required. (Funds previously appropriated under Ordinance No. 2013-0537) Water and Sewer System Consolidated Construction Fund 8500.
Contact Information:
Joseph N. Quintal
Phone:    832.393.6286
(alternatively Michelle Grossman 832.393.6216)