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I 'OR~GINl . City of La Porte Interoffice Memorandum e To: Robert T. Herrera, City Manager John Joerns, Assistant City Manager Knox Askins, City Attorney From: ~ Litchfield, Director of Finance/ACM Date: U February 11, 1998 (~.:I/'/'~: :.\~,~;.'... .,';-;,~: :..~:.i.;:r.) /Z,O';;;7Af.' - - ~;'''''..: Subject Changes to Street and Alley Closings Over the past several months, considerable thought has been given to the process we use to close and vacate streets and alleys in our City. Currently, there are two methods used to value the property when a street or alley is requested to be closed. The first method involves reviewing the appraisal data provided by the Harris County Appraisal District (HCAD), taking an average and multiplying by a factor of 1.75 to obtain the closing value. If this amount is not agreeable to either party, then an independent appraisal can be obtained and the closing value cannot be less than 75% of the value determined by the appraiser. Because of the time lag of the HCAD in appraising properties, we believe the tax roll values are not keeping pace with market conditions and have started requiring appraisals on recent requests. Because the decision to use the independent appraisal method is normally triggered by the City, it puts us in the position to determine if the HCAD value times 1.75 is equivalent to current market conditions. Neither myself nor anyone on my staff feels qualified to make that determination. At this time, I propose we change the method of handling this very important process. The goal in recommending this change is to provide a method that is fair to all involved and leaves little room for interpretation. Also, I do not want to leave the property owner with the feeling they have to try to "cut a deal with the City" or try to talk the city down on the price. First, I recommend changing the ordinance to require an independent appraisal on all street and alley requests. This gets us out of the picture because we no longer have to make the decision on whether or not we should use the HCAD method. Second, I recommend we increase the cost of the application fee from $100 to $400. The extra $300 should cover the cost of the appraisal. If we have a big project and the appraisal will be substantially higher than $300, we can request a higher application . fee. Third, I recommend we close all streets and alleys at 75% of the appraised value.