R-2005-18 acquisition of certain property in blks 1429, 1430, 1431 and 1438

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(~ I 6. e e Observations Assorted facts that came from the attached data are: 1. The property in the 10 block area (8 full blocks and the two partials that are cut off by Little Cedar Bayou) totals approximately 21 acres. 2. If the City obtained all of the property, they could make use of the dedicated streets and alleys to obtain a parcel with a total land size of about 35 acres. 3. The Cook's only. own 72 percent of the 10 block area, other property owners (about 17) own the other 28 percent. 4. Included as other owners are companies and individuals whom we have had to deal with in the past, i.e. the Frymore Corporation and the Debakey's own Block 1156. The total delinquent taxes on the Cook properties is estimated at $234,443. The delinquent taxes on the Cook properties in the 10 block area is estimated at $92,515. The amount due as delinquent taxes increases by 1 %, or about 2,350 each month. 7. The Total Amount Due of $234,443 is equal to 72% of the HCAD appraised value of the property. Even recognizing that HCAD is normally appraised lower than market, it still represents a large amount of the property's value. 8. The properties have suits filed against them by the City's previous Tax Attorney. His rights cease at the end of this December. Our new attorney will be filing suits in January. 9. If the land were to appraise at 50 cents a square foot, the cost for 21 acres would be 457,380. 10. The City is in the process of purchasing property behind the Recreation/Fitness Center in Block 1157 (Cudleigh J P). This property appraised at 72 cents a square foot. Recommendation If it is determined that it is beneficial to the City to obtain this property, I suggest we move forward as follows: 1. We obtain an appraisal of the 10 block property from a private appraiser. 2. We offer to purchase the property, in whole, at the lower of the appraised value or 50 cents per square foot, 3. We condition our offer that we buy all property as a block and that Decker and Fred will be responsible for obtaining purchase options from property owners other than Mrs. CQok. That is, it would be a turn key purchase, we would not be caught trying to deal with holdout property owners 4. Realizing the probability of Fred and Decker being successful in their delivery of the property is low, have our tax attorney file suits against the properties in January. ~