Loading...
HomeMy WebLinkAboutRE APPRAISAL OF 3.6856 ACRES OF LAND OUT OF THE JOHNSON HUNTER SURVEY ABSTRACT 35 CITY OF LA PORTE HARRIS COUNTY TEXAS KLEIN RETREAT PARCEL NEIGHBORHOOD CENTERS INC OWNER_UNKNOWN1 1 1 1 1 1 AIPS ' Allen, Williford & Seale Real Estate Appraisers May 20, 2003 Richard A. Ogrin Vice President for Project Development ' Methodist Retirement Communities 2202 Timberloch Place, Suite 200 ' The Woodlands, TX 77380 Re: Appraisal of 3.6856 acres of land out of the Johnson Hunter Survey, Abstract 35, City of La Porte, Harris County, Texas Klein Retreat Parcel, (Neighborhood Centers, Inc., Owner) ' Dear Mr. Ogrin: As requested, we have prepared the following Complete Appraisal communicated by a Summary Appraisal Report of the above referenced property to arrive at an opinion of market value. The property is more specifically described in the following appraisal report. Based on a thorough investigation of the market, it is my opinion that the market value of the subject property as of May 15, 2003, is as follows: ' $400,000.00 ' Your attention is invited to the attached definitions, data, discussion, analysis, certificate, and limiting conditions which are an integral part of this report. This cover letter is not an appraisal. ' Respectfully submitted, ALL_EN, WILLIFORD & SEALE, INC. 7 ' Rao y L. Sea , MAI State Certified General RE Appraiser Certificate No. TX-1320302-G 1 ' 14925 Memorial Drive, Suite 200, Houston, Texas 77079, 281-493-4444, Fax 281-493-6845 E-Mail: appraise@appraiser.com URL: http.'11 w .appraiser.com/ 1 1 1 1 1 1 SUMMARY OF IMPORTANT FACTS AND CONCLUSIONS Location: 3.6856 acres located on the west line of Bayshore Drive, north of Fairmont Parkway, La Porte, Texas. Effective Date of Value: May 15, 2003 Land Size: 3.6856 Acres (160,543 Square Feet) Zoning: R-2 (Medium Density Residential) Highest and Best Use: Subdivision of property for medium density residential use. Current Use: Recreational Park Value: $400,000.00 Value per Square Foot: $2.50 per square foot FA [1 1 Report Format. The report format used for this appraisal is a complete Summary Appraisal and is intended to conform to the Summary Appraisal Report format in compliance with Standards Rule 2-2 (b) of The Uniform Standards of Professional Appraisal Practice (USPAP). This report does not contain the full detail of discussion and analysis that has transpired in the development of this value conclusion. This report summarizes the information considered, the appraisal procedures followed, and the reasoning that supports the opinions of value. The value estimate has been developed with the same time commitment and level of diligence required for a self- contained report. This appraisal has been prepared in accordance with the Uniform Standards of Professional Appraisal Practice (USPAP) as promulgated by the Appraisal Foundation, the Standards of Professional Practice and the Code of Professional Ethics of the Appraisal Institute. This opinion of value is subject to the Assumptions and Limiting Conditions that are included in the attached report. Property Rights Appraised. The property rights appraised in this report are Fee Simple Estate and Easement. "Fee Simple Estate" is defined by the Dictionary of Real Estate Appraisal, Fourth Edition, copyright 2002, page 113, by the Appraisal Institute as: ' "Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat." I 1 1 "Easement" is defined in The Dictionary of Real Estate Appraisal, Fourth Edition, copyright 2002, page 90, as follows: "An interest in real property that conveys use, but not ownership, of portion of an owner's property. Access or right-of-way easements may be acquired by private parties or public utilities. Governments dedicate conservation, open space, and preservation easements." Purpose of the Appraisal. The purpose of this appraisal is to estimate market value of the herein described subject property. Intended User of the Appraisal. This report is intended for use only by Richard A. Ogrin of Methodist Retirement Community. Use of this report by others is not intended by the appraiser. Intended Use of the Appraisal. The intended use of this appraisal is for forming an opinion of value for possible acquisition of the property for a potential sale and purchase by the Methodist Retirement Community. Scope of the Appraisal. The scope of the assignment is to collect and verify completely, comparable land sales from within the subject area so that a value conclusion may be derived. The sources of our data included County Deed Records, our own data bank, real estate brokers and appraisers, and other knowledgeable individuals active in the area. The principals involved in the transactions, the broker of the transaction, or their representatives, have verified the market 1 I sales used in the report. The data is to be analyzed via the Sales Comparison Approach to Value, with appropriate support for any adjustments made and the value conclusions. The value derived via this approach is then reconciled into a final opinion of value for the subject property. No improvements were valued in this appraisal. Date of Report. The date of the report is May 20, 2003. Effective Date of the Appraisal. Our estimate of market value is effective as of May 15, 2003, which is the date of the most recent inspection. Inspection Information. An inspection of the subject property was performed on May 15, 2003, and the appraiser was not accompanied. Definition of Market Value. Market Value is defined by The Dictionary of Real Estate Appraisal, Fourth Edition, copyright 2002, page 177, by the Appraisal Institute as being: ' "The most probable price, as of a specified date, in cash, or in terms equivalent to cash, or in other precisely revealed terms, for which the specified property rights should sell after reasonable exposure in a competitive market under all conditions ' requisite to a fair sale, with the buyer and seller each acting prudently, knowledgeably, and for self-interest, and assuming that neither is under undue duress." Exposure Time. Based on discussions with real estate brokers regarding the amount of time required to sell properties similar to the subject, we have estimated a reasonable exposure time of ' 6-12 months. Competency Provision. I am competent to accept this appraisal assignment based on my ' education and experience in appraising properties involving partial acquisitions for right of way purposes as well as my knowledge of the local real estate market. Significant time has been ' spent in the collection and analysis of sales, rents, local costs, and demographics in order to obtain the necessary understanding of the local market. ' Environmental Statement. A non -scientific inspection of the subject property and the rights - of -way being acquired indicated no evidence of underground storage tanks, soil contamination, or environmental hazards. However, the appraiser is not qualified to detect the presence of ' environmental hazards, and the client is urged to retain an expert in this field if there is any question as to the existence of hazardous materials or environmental problems. The value estimated in our appraisal is based on the assumption that no hazardous material or ' environmental problems are present on or in the property. Neighborhood Analysis. An analysis of the neighborhood is important in the evaluation of ' local trends which may influence real estate market and property values in the vicinity. The subject neighborhood is located on the western boundary of the City of La Porte. La Porte has as its general boundaries, the City of Pasadena and the City of Deer Park to the west, the Houston ' Ship Channel to the north, City of Seabrook to the south, and Galveston Bay to the east. The 1 4 I 1 CI 1 t [1 1 1 1 1 industrial nature of the Houston Ship Channel as well as the industrial businesses in the City of La Porte support demand for residence in the subject neighborhood. Property that fronts on Galveston Bay is mostly low density residential and recreational uses, and supporting retail and commercial uses are located on interior streets. The neighborhood is predominantly developed and little vacant land exists. Most new development has taken the form of rehabilitation of existing improvements or razing improvements for more modem and denser uses. Statement of Ownership. The subject property is owned by Neighborhood Centers, Inc. Propertv History. The subject property was acquired from The Nathan J. Klein Fund on October 4, 1978 as recorded in Harris County Deed Records File Code No. 108-93-0834. The subject property is not listed for sale. Property Tax Information. The subject property falls under the taxingjurisdictions of La Porte ISD, Harris County, San Jacinto Junior College District and the City of La Porte. The Harris County Appraisal District Account Number for the subject is 0402770000002. The subject property has a religious exemption and therefore no taxes are paid on this property and the property is not assessed for tax purposes. Site Data. An analysis of the subject is particularly important in estimating its highest and best use and for separate valuation from the improvements. The following is a discussion of the most important factors. Information pertaining to the subject property was based on a survey, plat, metes and botmds description provided as well as a physical inspection of the site. The size of the subject property was based on the survey provided by our client. Legal Description. The subject property may be legally described as 3.6856 acres of land out of the Johnson Hunter Survey, Abstract 35, Fort Bend County, Texas. Location. The subject property is located on the south line of Bayshore Drive, west of South Kansas Drive. The street address is 1010 Bayshore Drive. Access. The subject site is accessible from the La Porte Central Business District via east on Fairmont Parkway, then north on Bayshore Drive to the subject property. Physical Characteristics. The subject property is generally rectangular in shape and contains approximately 3.6856 acres (160,543 square feet) of land. The tract has 351 feet of street frontage along Bayshore Drive and 423 feet of frontage on the Bay of Galveston and a maximum depth of 410 feet from Bayshore Drive. The property was originally 4.589 acres of land of which 0.9034 acres is submerged in Galveston Bay. The remaining portion of the subject tract appeared level and well drained upon inspection. In addition, there were no apparent soil or subsoil conditions which would hinder development, as evidenced by the nearby improvements. Off -Site Improvements. Bayshore Drive is a 2-lane, asphalt -paved road with open ditch drainage. I 1 Adjacent Land Use. Property uses adjacent to the subject consist of a nursing home on the ' north, Sylvan Beach Park on the south, Galveston Bay on the east, and single-family residences on the west. ' Zoning[Restrictions. The subject property is located in the City of La Porte which subscribes to zoning restrictions. The subject property is currently zoned R-2 (medium density residential). This zoning classification allows for most medium density uses to include apartment complexes, ' town homes, and condominiums. The subject is not deed restricted and there are no known restrictions which would restrict the property from development. Also, due to adjoining ' Galveston Bay, restriction are in effect concerning uses and the potential for submerged lands as regulated by the State of Texas and the U.S. Army Corp of Engineers. The following are some of the restrictions for Medium Density Residential (MD) and Single Family (SF) uses: 1 1 1 1 11 Minimum Lot Area: 2,000Square Feet -MD, 6,000 Square Feet -SF Density: 10 Dwelling Units/Acre-MD,4.8 Dwelling Units/AcmSF Stile Yard: Setback: 5-Feet-\ID, 5-Feet-SF Front Yard Setback: 20 Feet-NID, 25 Feet -SF Rear Yard: Setback: 10 Feet-XID, 15 Feet -SF Maximum Lot Coverage: 75%41D, 40 %-SF hla.cimum Height: 45 Feet-iNID, 35 Feet -SF Minimum Lot Width: 20 Feet -MD, 50 Feet -SF Flood Plain. According to Map No. 48201C0945J, issued by the Federal Emergency Management Agency, dated November 6, 1996, the subject property is located in Zone X, Zone VE with an elevation of 12 feet and Zone VE with an elevation of 17 feet. Zone X denotes a property located within the 500-year flood plain. Zone VE denotes a property in the costal flood plain having a wave velocity hazard which requires a minimum elevation for development. The majority of the property (approximately 60%) is located within the 500-year flood plain. Easements. The subject property is encumbered by standard utility easements, which are not believed to adversely affect development of the subject property. Furthermore, a physical inspection of the site did not reveal any encumbering easements that would adversely affect development. Utilities. The subject property has utilities typical of this neighborhood. According to Brian Sterling of the City of La Porte (281-471-5020), Southwestern Bell provides telephone service, water and sewer service is provided by the City of La Porte and Center Point Energy provides natural gas distribution and electric service. Improvement Analysis. The subject is used for recreation purposes for a park. The subject is improved with a wood pavilion, deck and various park equipment. Highest and Best Use. The procedure used in this report to estimate the highest and best use of the subject site was to consider, in sequence, the site's legal use, its possible use, its feasible use, and the optimum or highest and best use. Data collected and analyzed for purposes of the Neighborhood Analysis, and particularly the Site Data, is useful in arriving at a final decision. Leeal Use. Private (deed) restrictions, zoning regulations, building codes, historic district controls, and environmental regulations can often preclude many possible highest and best uses. 0 r L ''I The subject property is located in the City of La Porte which does subscribes to zoning and the subject is R-2 (medium -density residential.) This zoning classification allows for most medium density uses to include apartment complexes, town homes and condominiums. In addition, the subject is not restricted by deed. Therefore, virtually any use which conforms to the R-2 zoning classification is legal. The subject is currently being used as a park, which is a legal use of the site. Possible Use. Size, terrain, and utility availability are generally considered the most important factors in determining uses to which land may be developed. The size of a tract of land is important for determination of possible uses because some small tracts, due to limited size, can reach their optimum use only as part of an assemblage of several tracts. Large tracts, on the other hand, are not restricted by size and have a much wider range of possible uses. t The subject property contains 4.589 acres of which 3.6856 acres are upland area outside of Galveston Bay. The 3.6856 acres is adequate size for a wide range of possible legal uses. ' A tract's topography and subsoil conditions are also important considerations in determining its possible uses. If a site's topography or subsoil conditions make utilization restrictive and costly, the site's potential future use is adversely affected. 1 1 1 1 As mentioned previously in the Site Data section of this report, at the date of inspection, the subject property comprises 3.6856 acres of land out of Galveston Bay and is generally level and appeared to be well drained. In addition, there are no apparent soil or subsoil conditions which would adversely affect construction, as evidenced by the nearby improvements. The property is located within the flood plain. The possible uses of tract are also dependent upon the site's utility availability and capacity. As previously stated in the Site Data section of this report, the subject property currently does have access to public utilities. Feasible Use. From a financial standpoint, any property use which is expected to produce a positive rate of return is regarded as being feasible. Factors dictating which property uses are feasible include those which determine the possible and legal uses as well as other important factors such as: the shape, frontage, and location of the tract; access to the tract; adjacent property uses (in the interest of conformity); and the general neighborhood characteristics. These factors, along with pertinent market information, help determine what returns could be expected from altemative property uses. The subject property is located on the east line of Bayshore Drive, north of Fairmont Parkway and is currently improved with various improvements for park use. As stated in the neighborhood section, the immediate vicinity is residential and recreational in nature. The subject is zoned for medium density residential use. This allows for townhouse development of Lip to 10 units per acre versus 4.8 units per acre for single family residential use. Based on the legal use, location, size and shape of the subject property, the most feasible use of the subject property, land only, is for subdivided medium -density residential uses. I 1 The subject property is improved with various improvements for park use. These improvements represent an under -improvement for the tract and should be demolished for denser use of the ' property. Highest and Best Use of Land Only. After consideration of the possible, legal, and feasible uses, ' it is the appraiser's opinion that the highest and best use of the subject property (land only) is for Subdividing medium -density residential use. t 1 1 C] 1 1 1 1 1 1 Highest and Best Use as Improved: The subject property is improved with various improvements for park use. These improvements represent an under -improvement for the tract and should be demolished for denser use of the property. Sales Comparison Approach. The Sales Comparison Approach leans heavily upon the principle of substitution. In essence, this principle states that a prudent purchaser will pay no more for any particular property than it would cost him to acquire an equally desirable alternate property. The Sales Comparison Approach utilizes the sales of properties similar to the subject as the basis for an indication of market value. Direct comparison is made between each sale and the subject on an item -by -item basis., Adjustments are then made to the sales price of the comparable property in order to arrive at an indication of what it would have sold for had it been essentially the same property. These adjusted prices are then reconciled into an indication of value for the subject. The following is a summary of the comparable sales utilized to value the subject property. Full descriptions of these sales are included with this report. Land Sales Summary Sale No. Sale Date Size SF Price Per SF Location 1 10/13/95 22,760 $7.25 E/L of Toddville Rd, S of Bay Vista. 2 8/1/97 37,500 $2.13 SE/C of Toddville Rd, at 51" St. 3 3/6/02 9,650 $7.25 E/L of Toddville Rd, S of Gale Rd. 4 7/8/02 111,888 $3.80 SE/L of Bayrid a Blvd, NE of Sandy Ct. Land Sales Analysis. The land sales and current listing summarized above are considered comparable to the subject. When comparing these sales to the subject, the factors considered the most critical were: conditions of sale, market conditions (time), location, size, utilities, zoning, and physical characteristics. Each sale was compared to the subject and adjusted based on these factors. The following is a discussion of the comparisons used in our analysis. Conditions of Sale. This adjustment takes into consideration unusual features of the transaction, such as financing or whether or not the sale took place under open market conditions. 1 I 1 1 1 [1 1 1 1 t 1 1 1 All of the comparable sales were cash sales or financed at terms equivalent to cash. As such, no adjustments for conditions of sale were required. Market Conditions (Time). Generally, prices rise over time due to inflation and the decreasing supply of land. However, land values in the subject area have remained relatively stable during the early 2000's. The comparable land sales used in this report occurred between October 1995 and July of 2002 during a period of stabilization in the market. Based on our analysis, we believe no adjustment for market conditions is necessary. Location. This, in our opinion, is an important factor affecting property values. Those properties having frontage along major or primary roadways, or a comer location are often Superior to those properties located on secondary roadways or without comer locations. Proximity to major commercial areas, such as a business district, is also important in many instances. The subject property is located on the west line of Bayshore Boulevard and fronts on Galveston Bay. The property is adjacent to a public park which would be a detriment to the private enjoyment for residential use. All of the comparable sales are located on Galveston Bay and are comparable to the subject in location. The waterfront properties are influenced by the surrounding properties to a larger extent. The subject is different due to the public park. The sales are believed superior to the subject for residential use. A 10% downward adjustment was made. Corner Influence. Properties located on corners are typically considered superior to noncomer properties due to their increased visibility and accessibility. In order for comer influence to be significant, typically, the comer must be formed by the intersection of two primary roadways. The subject is not located on a comer and the sales are not believed to be influenced by corner location due to their residential highest and best use. Size. Larger tracts typically bring lesser unit prices than otherwise equally desirable smaller tracts. The primary reason for this is that the purchase of large acreage entails a much greater capital outlay, a factor which restricts the number of possible buyers as compared to the relatively larger market for smaller tracts. The subject contains 3.6856 acres or 160,543 square feet of land, while the comparable sales range in size from 9,650 square feet to 1 1 1,888 square feet. The subject's size is unusual in the market as most tracts have been subdivided into smaller residential properties. Sale No. 1 is 22,760 square feet and requires a 40% downward adjustment. Sale No. 2 has a size of 37,500 square feet and requires a 15% downward adjustment. Sale No. 3 is 9,650 square feet in size and is considered superior to the subject in size. A 40% downward adjustment was made to this sale. Sale No. 4 is a 111,888 acre tract that was purchased for residential development as two single family lots. A downward adjustment of 15% was considered appropriate for this comparable. Utilities. The availability of utilities is a major factor in the development of any property. If a ' site has no access to public utility service and cannot acquire access, it is virtually impossible to develop. Therefore, the price paid for such a site would be affected due to the lack or availability ' 9 I of utilities. ' The subject tract has have public utilities available at this time, and so do all of the comparable sales and current listing. Therefore, no adjustments were made for utilities. ' Zonin . Zoning ordinances can regulate land use and the density of development. It can used to limit the development, the density of development, or the architectural character of the development. In some instances, zoning can limit the development of property from its highest ' and best use. All of the land sales are zoned residential or can be used for residential use and are considered ' comparable to the subject. t Phvsical Characteristics. Other factors which can have an effect on values include drainage, shape in respect to development, hindering easements, location in respect to flood hazards, size, shape, frontage, and topography. Sale No. 2 had large portion of the property at a low elevation ' which required substantial site work and affected the usable area of the site. This sale was adjusted upward 20 percent to reflect this condition. All of the sales were analyzed and adjusted for these factors. ' Please refer to the following Land Sales Adjustment Summary which displays the adjustments used to compare the sales to the subject tract. 1 1 1 Ll LAND SALES ADJUSTMENT SUMMARY Sale No. Sales Price SF Location Adjmt. Size Adjmt. Physical Char. Adjmt. Gross Adjmt. Net Adjmt. Overall Adjmt. 1 $7.25 -10% -40% 0% 50% -50% $3.63 2 $2.13 -10% -0% 20% 30% 10% $2.34 3 $7.25 -10% -40% 0% 50% -50% $3.63 4 $3.80 -10% -15% 0% 25% -25% $2.85 ' The comparable sales analyzed in the preceding chart reflect an adjusted sales price range of $2.34 to $3.63 per square foot, due to the subject's larger size. Based on this information, other sales and offerings, and conversations with knowledgeable individuals in the real estate market, ' it is our opinion that the subject property, land only, has a market value, of $2.50 per square foot. As such, our estimate of market value, land only, is calculated as follows. 160,543 X $2.50 Per Square Foot = $401,358 Say $400,000 1 ' 10 I ' Improvements. As previously mentioned the main improvements are to be removed and contributed no value based on the highest and best use. Income Approach. The Income Approach to Value is typically utilized to value income producing properties. The subject property consists of effective vacant land. The main ' improvements of the subject are non -income producing and have not been valued in our report. Accordingly, we have not utilized the Income Approach to Value in this instance. ' Cost Approach. The Cost Approach is typically used to value improved properties. The subject property consists of effective vacant land. The improvements of the subject have not been ' valued in our report. Therefore, we have not utilized the Cost Approach to Value. ' Correlation and Final Value Opinion. The Income Approach and the Cost Approach are used primarily for improved properties. The subject property consists of effectively vacant land. Thus, the Income and Cost Approaches were not utilized. The Sales Comparison Approach was ' used to estimate the land value for the subject and indicated a land value of $2.50 per square foot. Thus, our final estimate of value for the subject property is as follows: ' Market Value: $400,000 1 1 1 1 1 1 I 1 1 1 1 1 1 1 1 1 CERTIFICATE OF VALUE We certify that, to the best of our knowledge and belief... the statements of the facts contained in this report are true and correct. the reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are our personal, impartial, and unbiased professional analyses, opinions, and conclusions. we have no present or prospective interest in the property that is the subject of this report, and we have no personal interest with respect to the parties involved. we have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. our engagement in this assignment was not contingent upon developing or reporting predetermined results. our compensation for completing this assignment is not contingent upon the development or reporting of predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. our analyses, opinions and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice, as promulgated by the Appraisal Foundation and the Code of Professional Ethics and the Standards of Professional Practice of the Appraisal Institute. Matt Osborn and Randy L. Seale made a personal inspection of the property that is the subject of this report, on May 15, 2003 and was not accompanied. Matt Osborn provided significant real property assistance to the persons signing this certification. the use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. 12 1 1 1 1 1 t 1 1 as of the date of this report, Randy Seale, has completed the continuing education program of the Appraisal Institute. Randy Seale is state certified by the State of Texas as a General Real Estate Appraiser. The market value of the property which is the subject of this appraisal report was valued, as of May 15, 2003, as follows: "�WL' Randy L. S ale, MAI State Certified General RE Appraiser Certificate No. TX-1320302-G $400,000.00 13 1 1 1 1 1 1 1 ASSUMPTIONS AND LIMITING CONDITIONS That the date of value to which the opinions expressed in this report apply is set forth in the Letter of Transmittal. The appraiser assumes no responsibility for economic or physical factors occurring at some later date which may affect the opinions herein stated. That no opinions are intended to be expressed for legal matters or that would require specialized investigation or knowledge beyond that ordinarily employed by real estate appraisers, although such matters may be discussed in this report. That no opinion as to title is rendered. Name of ownership and the legal description were obtained from sources generally considered reliable. Title is assumed to be marketable and free and clear of all liens, encumbrances, easements, and restrictions except those specifically discussed in this report. The property is appraised assuming it to be under responsible ownership and competent management and available for its highest and best use. That no engineering survey has been made by the appraiser. Except as specifically stated, data relative to size and area were taken from sources considered reliable and no encroachment or real property improvement is assumed to exist. That maps, plats, and exhibits included herein are for illustration only, as an aid in visualizing matters discussed within this report. They should not be considered as surveys or relied upon for any other purpose. That no detailed soil studies covering the subject property were available to the appraiser. Therefore, premises as to soil qualities employed in this report are not conclusive, but have been considered consistent with information available to the appraiser. The property is appraised as though free and clear, under responsible ownership, and competent management. All existing liens and encumbrances have been disregarded. Unless otherwise stated herein, all of the improvements previously described were considered operational and in good condition. Unless stated otherwise in this report, no presence of hazardous materials on or in the property was observed by the appraiser. The appraiser has no information on the existence of such materials and is not qualified to detect same. The presence of such materials on or in the property could affect the appraiser's opinion of market value. However, the value estimate stated herein is based on the assumption that no hazardous materials are present on or in the property, and the appraiser accepts no responsibility for determining such condition. The client is urged to retain an expert in this field if there is any question as to the existence of hazardous material. Any information fumished to us by others is believed to be reliable, but we assume no responsibility for its accuracy. 1 14 ' Possession of this report, or a copy thereof, does not carry with it the right to publication, nor may it be used for any purpose, by any but the applicant, without the previous written consent of ' the appraiser or the applicant and, in any event, only in its entirety. This appraisal does not require us to give testimony in court or attend on its behalf unless ' arrangements have been previously made therefore. The distribution of the total valuation in this report between land and improvements applied only ' under the existing programs of utilization. The separate valuations for land and building must not be used in conjunction with any other appraisal and are invalid if so used. ' The value is reported in dollars on the basis of the currency prevailing at the date of this appraisal. ' We have no present or contemplated interest in the property appraised. ' Our compensation for making this appraisal is in no manner contingent upon the value reported. That the appraiser assumes no responsibility for determining if the property lies within a flood ' hazard area and its consequences to the property. It is advised that a Topographic Survey be obtained and local officials be contacted. ' That our analyses, opinions and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice, as promulgated by the Appraisal Foundation and the Code of Professional Ethics and the Standards of Professional Practice of the Appraisal Institute. 1 There are no other limiting conditions contained in this report other than the ones listed above. 1 1 1 1 15 j �. r ice, —i. �� j t y �c, tt�:. t" 7rih � Y if lip Awl ��':flfeT� •L1' .� � 4 { 1W I 1 [] 1 ADDENDA 1 1 0 1 I 1 �1 1 1 L 1 1 LJ 1 FLOOD PLAIN MAP 1 I Flood Plain Map I 1 1 1 1 II i I 1 ZONING MAP C uM m €� PAmao�omo i oaD-' O� o0 X0 4 �� ��m®olomo� -pp oo . � OO d �oO Imvgmm LrMi1E2lS :t Øflh1I!.:moo wo m ,off z �0©DD ©m .a• PrYy 11� I 1 1 1 1 I 11 1 1 LAND SALES 11 0 I ' Land Sale No. 1 ' Location Date of Sale ' Map Page Grantor ' Grantee Recording Data Legal Description ' Frontage Land Size ' Sales Price Financing Flood Plain ' Sewer Water Zoning t Highest and Best Use Use at Sale Date ' Current Use Easements ' Confirmed by Comments 1 1 East line of Todville Road, South of Bay Vista 10/13/1995 620 L Lester and Dixie Hoaglin Herbert and Amy Goebel F.C.# 505-80-0772 Part of the Ritson Moms Survey, Abstract 52, Seabrook, Hams County, Texas 87 FF: Todville Rd., 77 FF: Galveston Bay 0.5225 Acre (22,760 Sq. Ft.) S165,000.00 (S7.25 per Sq. Ft.) Cash to seller VE-15 Yes Yes R-1 Residential Residential Residential None known Broker, Edmonson and Associates (28 1 A88-1730) A pre-1900 bay cottage home was on the property at the time of sale. Due to the delapidated condition, the house held no value in the sale and the sale price is considered land only. The property is a waterfront property on Galveston Bay with a bulkhead. 11 I 1 1 11 I 1 1 Land Sale No. 2 Location Date of Sale Map Page Grantor Grantee Recording Data Legal Description Frontage Land Size Sales Price Financing Flood Plain Sewer Water Zoning Highest and Best Use Use at Sale Date Current Use Easements Confirmed by Comments Southeast comer of Todville Road @ 5th Street 8/1/1997 620 Q Hiram W. McCord Robert Griggs, et ux FC# 514-22-3555 Lots 1, 2, 3, 8, 9, and 10, Block 80, Town of Seabrook, Hams County, Texas. 150 FF: Todville Road 0.861 Acre (37,500 Sq. Ft) $80,000.00 (52.13 Per Sq. Ft.) Cash to Seller VE-16/18 Yes Yes OS Speculative Speculative Residential None Stated Broker(Sharon), (281-333-1770) Property did not front Galveston Bay but submerged properties separate the tract from the bay. Property was low and buyer built up portion of tract and constructed residence. ' Land Sale No. 3 1 1 1 1 Location Date of Sale Map Page Grantor Grantee Recording Data Legal Description ' Frontage Land Size ' Sales Price Financing Flood Plain ' Sewer ' Water Zoning ' Highest and Best Use Use at Sale Date ' Current Use Easements ' Confirmed by - Comments 1 E/L of Toddville Road, S of 8th Street. 3/6/2002 620 Q Bank of America, N.A. Matthew D. Wiggins F.C.# 549-77-1142 Lot Two, Replat of Ocean Park Subdivision, Seabrook, Hams County, Texas. 10 FF on Toddville Road. 50 FF on Galveston Bay. 9,650 Square Feet '$70,000 (57.25/SF) Cash to seller Zone X and VE Yes Yes R-1 Residential Vacant Vacant None Known Edward Burrer, Broker (281-496-7400) This property was a foreclosure that was listed for 575,000 and on the market for 7 days. I ' Land Sale No. 4 1 1 Location Date of Sale Map Page Grantor Grantee Recording Data Legal Description ' Frontage Land Size ' Sales Price Financing Flood Plain Sewer ' Water Zoning Highest and Best Use Use at Sale Date ' Current Use Easements ' Confirmed by Comments 1 SE/l, of Bayridge Road, N of Wilson Road. 7/82002 540 W Moosa Family Limited Partnership Peter C. Sundt F.C.# 553-99-1929 Lots I and 2, Captain's Point Subdivision, City of Morgan's Point, Hams County, Texas 530 FF on Galveston Bay. (Approximation) 2.5686 Acres S425,000 (S3.80/SF) Cash to seller Zone X, Zone VE Yes Yes R-1 Residential Vacant Vacant None known Gun Ledbetter, Broker(281-413-8209) NA La Porte Land Sales Oaks Beach Park Terrace Sale 4 tort Ship Channel 2.5686 Acres 53.80/SF Atkinson Island Yacht Club d Bluff Del Mar Sale 1 Rp 0.5225 Acres -rrJ $7.25/SF Sale 3 0.2215 Acre $7.25/SF i Sale 2 I0.861 Acres $2.13/SF I 1 1 1 1 1 1 d 1 1 1 1 1 1 1 I 1 SUBJECT PLAT L E oil M wC1119Gm r�PlT. QAiv.l M[ mM1 . WMY w u+0[ n m[ cw're vu[n .n Y'I[TtfW. .lip 114! [Ip M1.14pp( Spit M rcn u ro.r n M m[ WM Suna�. Plat Map 113 fi s0�39Q AH pR z"a `y8a;. ra,"ta > 944. is �bj 3 PIP .N 5' 'a ���B'`E' ,'` W E E4as �'iS p`yA 3 '-.. pCa:, `. 9 IB r- <. r `, era r�s / kq 7 y .�.,.: RES A "SAS 9fiA0 ,o- `6 ' pR _�� �`.32�0 P .. 5>0 FACET 6 2 5 3 B 3A e2 a-'_-- 'q,w„�a,,., 0 4;`_ 4_ / > ' 1 2 ? A wo-ai>-a000002 ' ,8 \ _ 4.6600AC JI��`__S !B,B r .2 ``� •!. J1 �. i �:z(Q916 ��1616;'_ "Sae E91r:9 'a�'.4a ♦ ♦j '12 % r19 ya z - T // S, j IAd4� ,,,{ -TB aes Harris sass'. ,/ 1 007-001_-- ,... County a•R J-J J �`�l r r r� ` '> ° B r. Appraisal _ District 8---- ,0',4 ',3;2 .-'F 10 gAPpR to '•Add'; Iz a� e �,.-... e � 'yn;. 14 l 07 17"1" 200' Plat Map I 1 1 1 1 1 [1 1 1 QUALIFICATIONS F I ' QUALIFICATIONS OF RANDY L. SEALE, MAI ' Randy L. Seale is a real estate appraiser associated with Allen,. Williford & Seale, Inc. AWS is a real estate appraisal firm with corporate offices in Houston, Texas. Field ' offices are maintained throughout the nation. Mr. Scale's responsibilities include appraisal of all types of right of way and commercial properties and he has testified as an expert witness regarding real property value on numerous occasions in local, state, and ' federal courts of law. BIOGRAPHICAL DATA Mr. Seale was bom in Pittsburg, Texas, in 1962. He attended public schools in Pittsburg, Texas, prior to attending Texas A & M University, where he was a distinguished student. ' Mr. Seale is married and has three children. EDUCATION ' Bachelor of Science Degree (Agricultural Economics): Texas A & M University (1984) ' Appraisal Institute: Various Course Work International Right of Way Association: Various Course Work tPROFESSIONAL AFFILIATIONS Appraisal Institute (MAI No. 8445) ' International Right of Way Association (SR/WA Candidate) State Certified General Real Estate Appraiser: Texas Certificate No. TX-1320302-G ' California Appraiser I.D. No. AG017798 New Mexico Certificate No. 001421 Washington Certificate No. 27011 ' Colorado Certificate No. CG01324213 Louisiana Certificate No. 2874 ' Mississippi Certificate No. GA-483 Utah Certificate CG00048354 Texas Water Conservation Association (Member) ACTIVITIES ' Mr. Seale is active in Houston Chapter 33 of the Appraisal Institute where he is on the Regional Ethics and Council Panel, and is currently serving as Director for the Gulf Coast Chapter 8 of the Intemational Right of Way Association. 03/26/2003 12:26 281-479-B429 AMERICAN TITLE PAGE 02 THE FOLLOWING COMMITMENT FOR, TITLE INSURANCE IS NOT VALID UNLESS YOUR NAME AND THE POLICY AMOUNT ARE SHOWN KSCHEDULEA; AND -OUR AUTHORIZED REPRESVfrArMEHASCOUNTEIMGNCD BELOW. COMMITMENT FOR TITLE INSURANCE ISSUED BY Alamo Title Zntsurance. We, Alamo Title Insurance, a Texas corporation, will issue our title insurance policy or policies (the Policy) to You (the proposed insured) upon payment of the -premium and other charges due, and compliance with, the requirements in Schedule B and Schedule C. Our Policy will, be in the form approved by the Texas Department of Insurance at the data of Issuance, and -will insure. your interest inthe land described in Schedule A. The estimated premium for our Policy and applicable endorsements is shown on Schedule D. There may be additional charges such as recording, fees, and expedited delivery expanses_ This Commitment ends ninety (90) days Irom the effective date, unless the Policy is issued sooner, or failure to issue the Policy is our. fault. Our liability and obligations to- You are under the express terms of this Commitment and end when this Commitment expires. Alamo Title /nsuranf e tiP�f ,MIL CONDITIONS AND STIPULATIONS 1. It you have actual knowledge of any matter which may affect the title or mortgage covered by this - Commitment, that is not shown in Schedule B. you must notify us in writing. If you do not notify us in writing, our liability to you is ended or reduced to the extent that your failure to notify us affects our lability. If you do notify us, or we learn of such matter, we may amend Schedule B, but we will not be relieved of liability already incurred. 2. Our. liability is only to you, and others who are. included in the definition of Insured in the Policy to be issued. Our liability is only for actual loss incurred in your reliance on this Commitment to comply with. its requirements, or to acquire the interest in the land. Our liability is limited to the amount shown in. Schedule A of this Commitment and will be subject to the following terms of the Policy: Insuring Provi• sions, Conditions and Stipulations, and Exclusions. (THIS COMMITMENT IS INVALID UNLESS SCHEDULES A, B, C AND D ARE ATTACHED HERETO.) Form 9373 Pmlec (otlDo) Tax" Form T•7_Commltmeut For Title.nu ame • Ellecove 11IM3 03/26/2003 12:26 281-479-8429 AMERICAN TITLE PAGE 03 ALAMO TITLE INSURANCE COMMITMENT FOR TITLE INSURANCB SCHEDULE A Case No. 2003 CS 506891-G (00217� Effective Date of Commitment: March 4, 2003, 8:00 o'clock a.m. Issue Date: March 26, 2003 I. The Policy or policies to be issued are: (a) OWNER POLICY- OF TITLE'INSURANCE (Form T-1 (Not applicable for improved one -to -four family residential real estate) Policy Amounttr fTO BE'DETERMINED Proposed Insured. METHODIST RETIREMENT CENTER '(b) TEXAS RESIDENTIAL OWNER POLICY OF TITLE INSURANCE --ONE-TO-FOUR FAMILY RESIDENCES (Form T-1R) Policy Amount: $ Proposed Insured: *C) MORTGAGEE POLICY OF TITLE INSURANCE (Form T-2) Policy Amount: s Proposed Insured: Proposed. Bcrrowezy (d) TEXAS SHORT FORM RESIDENTIAL MORTGAGEE POLICY OF TITLE(Form T-2R) Policy Amount: s Proposed Insured: Proposed Borrower: (e) MORTGAGEE TITLE POLICY BINDER ON INTERIM CONSTRUCTION LOAN (Farm T-13) Binder Amount: f Proposed Insured: Proposed.. Borrower: (f) OTHER: Policy Amount: Proposed Insured: Z. The interest in the land covered by this commitment is: FEE SIMPLE 3. Record title to the land on the.Effectivs. Data appears to be vested in: NEIGHBORHOOD CENTERS -DAY CARE ASSOCIATION, a Texas non-profit corporation 4. Legal description of land: See Exhibit A attached hereto and made a part hereof for all purposes. PagCYa And Cover Page are Attached 2-Schedule A (Rev, 1-1-931 Valid only if Schedule B And cage No. 2003 CS 506891-G (00217) 03/26/2003 12:26 281-479-8429 AMERICAN TITLE PAGE 04 ALAMO TITLE.INSURAN5E EXHIBIT A 4.589 acres of Iand _baio4 a Part of a 19'.I'acre tract shown as Lot 19 of the W.'B. LOWRANCE SUBDIVISION in the Johnson Hunter Survey and being the same pproperty as described in deed recorded in Volume 4834, page 158 of the, HARRIS County Deed Racorda, said-4.. 589 acre' tract bein4 more particularly described by metes and bounds on Exhibit "A" attached hereto. Case No. 2003 CS 506891-G (00217) DOC9 1 03/26/2003 12:26 281-479-B429 AMERICAN TITLE EXHIBIT "A" PAGE 05 4.5'" Acres of land being a Part of a 19.1 Acre tract shown as Lot 19 of the W. B. Lowrance -Subdivision in the..sobnson Runter'SurV6T and being the same property as described in deed recorded in.Vol. 4834, Page 158 of the Harris County .Deed Records, said 4-.58.9 Acre Tract being more particularly described by metes and. bounds as follows.. Beginning at a 1" Iron Rod found marking the Nest 'Corner of a tract- o£.land described irr deed 'recorded - in Vol. 4834, Pg. 158 of the Harris County Deed Rec- ords, same being the Nest Corner and Place o.f.segin- ning- of rho 4.58.9 Acre Tract of land herein described; Thence N. 268 q0' 00" E_ and with the Southeasterly Right of Hay line of Bayshore Drive (Grand View Ave.) a distance of 63.92 feet to a 1" Iron Rod found marking the• Vest'Cbrner of a tract of land described in deed recorded in Vol. 232, p;. le6 c- the Harris County Deed Records, said point heartnq s. 6'4-� 00" 00" E. a distance of 90.00, from the South Corner of Block 17 of Bay rront'Addition the Plat. Of. whichis recorded in Vol'. 65,•Pg. 440 of the Harris County. Deed Records, said I' Iron P.od marking a corner of the tract of land herein -described;, .. Thence S. 52• 25' '18" E., a di.utance_ of 54.15 feet to a 1' Iron Rod found marking a corner of the tract of land herein descried; Thence N. 37. 57' 07" E. a distance of 50.00 feet to a 1' Iran Pipe set marking a cosne;:.of the.trar:: of land herein described; Thence it. 51` 55' W W. a distance of 64'.tY feet, to a point W Iron Rod) found on the Southeasterly Right df Nay Line. of Ray.shosenri ee. mark i -g. a corner, of the tract of land herein described; Thence N. 26. 00' 00" E. and with the Southeasterly Right of Way line of Bays.hore Drive a distance of 287.57 feet to a 1" Iron Rod found on the Southwest- erly line of Bay Shore Park Ad&itiorr the- 71&t7 of which is recorded in Vol. 10, Pg. 22 of the Harris County Hag Records, said L' Iron,Pipe. marking. the_ North Corner of the tract of land herein described; Thence S. 510 53' 54" E. and with the Southwesterly line of Bay Shore Park Addition a distance, of 523.44 feet to a point marking the East corner of the tract of. land herein described; Thence S. 28. 40' 30' W. a distance of 400.90 feet to a point marking the South Corner of the tract of land berein described; Thence-K.. SV 44' IV W. a distance of Sat.60 feet to the Place of Beginning and containing 4.589 Acres of Land,, more or. less.. MOTE: THE COMPANY DOES NOT REPRESENT THAT THE ABOVE ACREAGE ORSQUARE FOOTAGE CALCULATIONS ARE CORRECT. 63/26/2003 12:26 281-479-8429 AMERICAN TITLE PAGE 06 ALAMO TITLE INSURANCE SCHEDULE B EXCEPTIONS FROM COVERAGE In addition to the Exclusions and conditions and Stipulations., our Policy will not cover loss; coats, attorneys fees, and -expenses resulting Prom: I. The following restrictive covenants of record itemized bslow(We must either, insert epecffin recording data or delete -this exception):. ITEM 1 OF SCHEDULE B IS HEREBY DELETED IN ITS ENTIRETY, 2• Any discrepancies, conflicts, or shortages in area or boundary Lines, or any encroachments or protrusions, or any overlapping of improvements. 3'. Homestead or community roperty or survivorship rights if any of any spouse of any insured. pjApplies to the Owner Policy only.S o-. Any titles or rights asserted by anyone, including but not limited to, Persons, the public, corporations, governments or other entities, a. to tidelands, or lands.comprising the shoros or beds of navigable or perennial rivers and atreams, lakes, bays, gulfs or oceans, or b. to -lands beyond the line of the harbor or bulkhead lines as established or changed Oy any government, or C. to filled -in lands, or artificial islands, or d. to statutory water rigbts,. .iacludi.ng riparian rights, or e. to the area extending from the line of mean low tide to the line of vegetation, or the rights of .access. to that area or easement along and across the area. (Applies to Owner Policy only.) 5. Standby fees, taxes and assessments by any taxing authority for the year 2003 , and subsequent years; and subsequent taxes and aeseaements by any Laying authority for prior, years dve to change in land usage or ownership, but not those taxes or assessments for prior years because of an exemption granted to a previous owner of the property uncer Section 11.13, TEXAS TAX CODE, or becauss of improvements not asaessed-for a previous tax year. 6. The terms and conditions of the documents creating- your interest in the. land. 7. Materials furnished or labor performed is connection with planned. construction before signing and delivering the lien document described in Schedule A, if the land is part of the homestead of the owner. (Applies to the Mortggaggee Title PolicyBinder on Interim Construction Loan only, and , may be delsterY if'satisfactory is evidence to us before a binder is issued.) S. Liens and leases that affect the title to the landoubordY. but that are Policy to- the- lien of -the insured mortgage, (Applies to Mortgagee' Policy only.) 9. The exceptions from Coverage and -Express Insurance in Schedule B of the Texas Short Form Residential Mortgage Policy ((T-2R). (Applies to Texas Short Form ReaLdent ial Mortgage polioy of Title 2R).(nce ies R) onlTexas Separate except ions 1 throwgh B of this Schedule B do not apply to Taxes Texas Short Form Residential Mortgage Policy of Title Insurance (T2-A). 10. The followingg matters and all terms of the documents creating or offering evidence -Of the matters (We must-ineert matters or delete this exception.): Rights of parties in possession- (oNNER_pOLZCY ONLY) (. CONT. ON SCH. B, PAGE Page 3-Schadule B (Rev. 1-1793) DOCf 1 Case No_ 2001 CS.50b8Y1-G (o0217) 2 ) Valid only if Schedule A And C And Cover Page are Attached 03/26/2003 12:26 281-479-8429 MIERICAN TITLE PAGE 07 ALAMO TITLE INSURANCE SCHEDULE B (page 2.j 11. subject to any visible or apppparent eaeement(s) over, under or across subject property. (OWNER MUCY.ONLY) 12. Any and all unrecorded leases and/or rental agreements, with rights.o.f tenants in poceession.. 13. Subject to any visible or apparent easements and/or rights of way on, over,. under or across the subject property., the.existenee of which woul on a cvrrenr survey. d 'appear 14. o y portion of the subject property lying within the boundaries of a pub Tic private roadw-aT, whether dedicated or not. 16_ This Compyany shall have no liabilit 'for, nor responsibility for, nor responsibility to defend any part o the property described against any right, title interest, or claim (valid or invalid) of any character had or asserted by Ehe State of Texas, or by any government or governmental authorit , or by the public, generally an or to an portions of the herein describe property that may lie within the bed of ualveston Bay, and further, this Company does. not. 4quarantee-ohange�ia the boundaries Of the sub act property caused by the forces of erosion, accretion and/or avulsion. 16.. The -real operty described' herein is located in a county that borders the Gulf of M xico. The purchaser must be advised, either in the contract or separate statement, prior to closing that the public has acquired a_r' of use or..eacemont to cr over tbe'area of -any public beach by prescri ion, dedication or presumption, or has retained a right of virtue of continuous right in the ublic since time immemorial as recognized by law and custom, all as sat out in compliance- with- Section 6Y.OZ5- of the Natural Resources Code. 17. There is axpceastyy excluded from coverage -herevnder,andthis Company does not insure title to oil, gas and other minerals of every kind and character, in, on and under the.property herein described. 18. Subject to the zoning ordinances now in force in the City of LaPorte, Texas. (OWNER POLICY ONLY) - . 19. Unobstructed easement affecting subject propert as granted t0 Houston Lighting S Power and as located in Lnstrument(sy filed for record Unger IS COunty Clark'9-File No(s). D33'T604. Page 1 4-Schedule B (Rev. 1-1-93)'. Valid only if schedule A And C Case No. 2003 Cs 506891-G (00217) And cover Page are Attached 03/26/2003 12:26 281-479-8429 AMERICAN TITLE PAGE 08 ALAMO TITLE INSURANCE SCHEDULE C Your Policy will not cover loss, costa attorneys fees, and expenses resulting from the following requirements that will a pear.as. Exceptions in Schedule B of the -Policy, unless you dispose of these mat ers to our satisfaction, before the date the Policy is issued: 1. Documents creating your. title -or interest must be approved by us and must be signed, notarized and filed for record. 2. Satisfactory evldpnrn must-bC provided- brat: persona personameduPning the land claims any interest in that land against the ,paragraph-3 of Schedule A, - all standby fees, taxes, assessments and Charges against the property have been paid,. - all improvements or repairs to the property are completed and accepted bbyy the owner, and that all contractors, sub -contractors, laborers and amersuppll.ialma have- been full ppaid; and that no mechanic's, laborer's or ma erialman's liens have attacF:ed to the property, - thereis leg-3 right of access to - and - from the land, - (on a Mortgage e Policyy only restrictions have not been and will not be Y7 violated.thaF affact. ths-validity and priarity of the insured mortgage. 3 intercu est pay the seller or borrower the agreed amount for your property or t. 4. Any defect, lien or other matter that may affect title to the land or intere at insured, that arises or is filed aftr the effective date of this, , 5.. NOTE: Procedural Rule P27 es provided for in Article 9.39A of the Texas Insurance Code requires that "Good Funds" be received and deposited before a Title Agent may disburse -'from' its'TYust Fund Account. 6. NOTE: we find no outstanding liens of record affecting the subject property. Inquiry should be -made concerning the existence of any unrecorded lien or other indebtedness which could give rise to any security interest claim in the subject property. 7. we must be furnished satisfactory proof from the Secretary of State (Texas) that NEIGHBORHOOD CENTERS -DAY CARE ASSOCIATION, a Texas non-profit corpncatioa is - a- corporation'in good standsnq and is authorized to do business in the State of Texas. 8. we must be furnished. with.a goperly. executed Corporate Resolution in recordable form to support the instant transaction. 9. we are to be furnished With a.. survey showing a -plat and containing the. correct metes and bounds description of the subject roperty made by a licensed public surveyor;of the State of Texas suitable to this title company. when same is submitted, it.is•.to- be shown to the examiner for inspection and approval. 10. In the event subject propertyy.. lies. within the -limits of a City whose. Ordinances require same;.Seller in to furnish to Purchaser a properly executed and acknowledged Notice of Restrictions in compliance with such Ordinance which is to state, A. The existence of the restrictions and include the recording reference to each instrument containing restrictions by Volume and Page, Clerk's File No. or Film Code No:; 8. The right of said city to enforce these restrictions; and '( CONT. ON SCH-. C, PAGE 2 ) Paa S-Schedule C (Rev. 1-1793): Valid only if Schedule A And B DO94 1 And Cover Page are Attached, Case Na. 2003 M 506"T-G '(60Z17) 03/25/2003 12:26 281-479-B429 AMERICAN TITLE PAGE 09 ALAMO TITLE INSURANCE SCHEDULE (page. 2)_ C. The legal description of the property, and its street addrecal andsoto b is 10 be executed and acknowledged by the caller and.p r and is to be filed. of_ record. utchas� AMERICAN TITLE COMPANY OF HOUSTON Countersi ed W t ue or en Page 6-Schedule C (Rev. 1-1-93) v lid y if Schedule A And 8 DOC# 1 An vex Page are Attached Case No. 2003 CS 506891-G (00217) E(3/26/2003 12:26 281-479-8429 AMERICAN TITLE PAGE 10 ALAMO TITLE INSURANCE SCHEDULE D Pursuant to the requirement& of Rule-P-21( Basic Manual of Rules Rates and Forms for the writing of Title Insurance in the State of Texas, the following disclosures are made: 1. The foYl-Owing individuals are Directors and/or Officers of ALAMO TITLE INSURANCE: DIRECTORS- OFFICERS William P. Foley II. Frank P. Willey William P. Foley, II C.E.O./Chairman Darryl Patrick F. Stone J. Tyson Chief Operating Officer Ronald R. MaudsleyY Ronald R. Maudsley. Alan L. Stinson President Donald E- Partington Senior -Vice President Alan Darryl J. Tyson L. Stinson Treasurer and Chief Financial Raymond R. Quirk Officer Bradley J. Brigante. Senior Vice President -and, Secretary Natio valtle FirrHolding oncdra ,l Inc- Owns 100% Alammo TitletH lding Company. Fidelity Of 9 Company. 2. The following disclosures this eomnrtment-.- The are made by the Title -Insurance Agent issuing following individuals as indicated, of American are directors and or officers, Title -Company of Houston. SHAREHOLDERS ATCOB Holding Company DIRECTORS: Herbert Williams Troy W. Pennock Linda Goodson Jareil E. Brandt. Kim Sobieski OFFICERS: Herbert Williams Chairman of the Board Troy W-. Pennock- President Jarell E. Brandt Executive Vice President Kim Sobieski Executive Vice President Secretary/Treasurer Linda Goodson Senior Vice President 3. You are entitled to receive. advance_ disclosure- of settlement charges in, connection with the proposed transaction to which this commitment relates. Upon your request, such disclosure will be made to you. Additionally the name of anX person, firm or corporation re-eivin any sum from the se�tle- ment of this transaction will be disclosed on the closing or settlement statement. You_ara further -advised that theestimated-title-premium* is: Owners Policcyy. MOLtgaoes, Pebicy . Tax Modification Survey Modification Endnrasment-Charges- Total TO BE DETERMINED E Of this total amount:' y. DO '(. _OOQOt.)will be paid to the policy I issuing Title Insurance Co mpan ; f.00 ( .0000%) will be retained by the iaeuing Title nsurance Agent; and the remainder of the estimated premium will be paid to other Parties as. follows-: AMOUNT TO WHOM FOR SERVICES JWMMWI'o3A leelllnweq�� * The estimated premium is based upon .information furnished to us as of the date of this Commitment for Title Insurance. Final determination of the amount of. the premium will be-made,closing in accordance with the Rules and Regulations adopted by the State Board of Insurance. Page 7-Schedule D Case No. 2003 CS 506892-47 (oo2r7) DOC# 1 EW 26/2003 12:26 281-479-8429 AMERICAN TITLE PAGE 11 (Not eppIicableTtoNthe TTexgsReesidential PROVISION Policy) ARBITRATION is a common form of alternative. disputereaolution. it can tie a pgpenckerNowevere8ifr means to settle a dispute with your Title Insurance Com- Titio Compantpyt to court and your rightsato,discou o e=y a£ your y dencehmay take tretthe, arbizrat oa process. rh adddition? you cannot usually appeal an arbi- Ycur policy cOntetne'arr erbitration provision (shown below). it allows yyou or the Campan to re Ire arbitration i the amount of insurance is allo00,000 EY eTe 'ZE ou w87{E"_t�pbCaifS�Op rigght to Sue the_. Com�a�p Ln ease- of a dis- pute over aclaim, you must request deI'etion of the arbitration Pero the policyp Le issued. You can do thl6 by Signing this formrandsireturn- ing it to the Com any at or before the closing of your real estate traneaeti n or by wziting..to-the Company. 4 The Arbitration provision in -the Policy.ia_aa follows: "Unless ohibited by applicable law or unless this arbitration section is deleted ay specific provision in Nchedule.H.o.f.this ppoolicy, either the company or the -insured may demand arbitration pursuant to the Title Insur , once Arbitration Rules of the American Arbitration Association. Arbitrable matters mayY include, but are not limited to, any .controversy or claim be- tween -the compares and -the Insured arising out of or relating to this Policy, and service of the Compaq in connection with its issuance or the breach of a policyy pprovision or ocher obligation. All -arbitrable matters, when the -Amount Kaurance is T1,aa(yo0o or less SHALL BE arbitrated at the request of either the Company or tie Insured, uffi0VffZL[e insured is an individual person (as distinguished from a corgoration,.trust, partner- Ship- association or other;legsl entity). AIr arbitrable matters when the', Amount of Insurance is in excess of ti, 0o0,000 shall be arbitrated only when agreed to by both the company and the Insured. Arbitration pursuant to this -Polley -and under the Rate In effect on the date the demand for arbitration is made or, at the option of the Insured, the rules in effect at the Date of Policy shall be binding upon the parties. The award may include- att„_ rPe s.. fang Only if' thw laws- or the state in which the land is ocated permit a court to award attorney's fees to a prevailing party. Judgment upon the award rendered by the Arbitrator(s) may be entered in any court.having yvrmdict;c, thereof, The law of the situs of the land shall apply to an arbitration under the Title Insurance_erbitration. Rules-. A copy of the rules may be,obtained from the Company upon request." I request the deletion of the.Arbitratiaa provision.. 03/26/2003 12:26 2B1-479-B429 AMERICAN TITLE PAGE 12 ALAMO TITLE INSURANCE TEXAS TITLE INSURANCE INFORMATION. T1rIe Insurance insures you against Loss resulting from certain risks to your title. The Commitment for Title Insurance is the title insurance company's pppooromise to issue-tha title insurance document.ThYoushou dnreview regal carefully- to completely - it before your closing (ate. E1 seguro de titulo le asegura an relation a perdidas reaultantes de ciertosriesgoo-que pueden afectar el titulo de su propiedad. El Compromiso Para Segura de Titulo ee de titulos de lemitizplalpoliza deead8ea gguro de titulo._. E1 Compromiso es un, documento legal. voted dabs leerlo cuidadosamenta Yy enterderlo complete- mente antes da.la fecha.para fina-lizar eu transaction. 1 Your. Commitment for Title InVurantm-'is a regal contract between you and us. The Commitment is not an opinion or report of your title. It is a contract to issue you A policy subject to the Commitment a terms and requirements. Before issuing a Commitment for Title Insurance (the Commitment) or a Title Insurance Policyy (the Policy), the Title Insurance om an (the Company) deter- manea.whetheL ti�a title is- insurable; This­daterndnatien Has already been made. Part of that determination involves the Compares m decision to insure the title except for certain risks that will not be covered by the policy. Some of these risks are listed. la Schedule.. B-ofthe- attached -Commitment ae Exceptions. Other- rieke are stated in the Policy as Exclusions. These risks will not be covered by the Policy. Another part of the determination -involves whether the Promise to insure is conditioned upon certain requirements being met. Schedule C of the Commitment lists theme requirements- that must.be, :sntisf.led- or the-C will refuse to. cover thaw. You may want to discuss any matters shown on Schedules B and C of the Commitment with an attorney. These.matters will affect your title and your use. of the.. land_ when your Policy is issuednd�the coverage will be limited by the Policy's Excep- tions, Exclusions -and..Cotions.,.defined below: EXCEPTIONS are title risks that a Policy generally covers but does not cover in a particular instance.. :ExrPpt+nne.are, shown. on Schedule B or discussed in Schedule C of the Ccmmitment.:They cab also be added if you do not comply with the Condit}one section of the Commitment. When the olicy is issued, all Exceptions wall be on Sche le. R.. of_ the_ policy. EXCLUSIONS are title risks that Policy generally does not cover. Exclu- sions are contained in the Policy but_nnt nFnWn Or, dIS&useed in the Co mi5- CONDITIONS are additional PPProvisions thantoddqualify oc limit -your coverage. connttaained innthedPolicyrbutonotbshowneoradiscuoosed InttheCOCoommitment0y The Policy Conditions are not the same as the Commitment Conditions. You can get a copy of the policy form approved byy the State Board of Insurance by calling the Title Insurance -Company at 1-B00-292-5320 or by calling the tatle.insuranC-.agent that issued -the Commitment. The State Board of Insurance may revise the policy form from time to time. You can also get a brochure that exaiains the-Ralicy from the Texas Department of insurance by calling 1-800-242-3A39•_ Before_ the.. Policl� is. issued, youMay- request changes in the Policy. Some of the changes to conoider are: Request amendment. of -the "area and bouadazp" exception (Schedule B, para- (CONTINUED ON NEXT RAGE.) 0.3/26/2003 12:26 281-479-8429 AMERICAN TITLE PAGE 13 ALAMO TITLE INSURANCE' TEXAS TITLE INSURANCE INFORMATION (CONTINUED) raph 2). To get this amendment you must furnish a surve On the Owner of cy, you must pay_ an additional Premium for the amendmen?. If the survey s acceptable to tFie Company, your policy will insure.you against lope be- ause of discrepancies or Conflicts in boundary lines, encroachments, e- rotrueions, or overlapping of impmvcment...The Company may then decide noor t c insures against specific boundary or survey problems by making special rceptions in the Policy. Allow the- COMT to add an exception to "rights of partiee in possession.,. If you refuse th s exception, the Company or the title insurance agent maq inspect the ppropertyp. The Company may. except tand. not annot insure you against the rights of specific' rsons, such as renters adverse owners or easement holders who occupy the land., The Company may charge you for the inspection. If you want to,make-your- owninspection, you must sign a Waiver of Inspection form and allow the Company to;add this exception to your Policy. will notiOwe pany1additional prom mseunleseayiou want toeincreaselsoursucoverage at a later date and the Company agrees to add an Increased Value indorsement. IMPORTANT NOTICE FOR INFORMATION, OR TO MAKE A COMPLAINT, CALL OUR TOLL -FREE TELEPHONE NUMBER. 1-800-292-5320 ALSO YOU MAY CONTACT THE TEXAS.. DEPARTMENT OF INSURANCE AT: 1-800-252-3439 to obtain information on: ' I. filing a complaint against -an insurance company or agent, 2. whether an insurance Company or agent is licensed, 3. complaints received against an insurance company or agent;* 4. policyholder rights, and 5, a list of consumer, publicafiona and services available through' the Department. YOU MAY ALSO WRITE TO: THE TEXAS DEPARTMENT OF INSURANCE. P.O. BOX 149104 AUSTIN, TEXAS 78714-9104_ FAX NO. (512) 475-1771 AVISO IMPORTANTE PARA INFORMACION, O PARA SOMETER UNA QUEJA LLAME AL NUMEEO GRATIS 1-800-292-5320 TAMBIEN PUEDE COMUNICARSE CON EL DEPART- AMENTO DE SEGDROS DE TEXAS ALt 1-800-252-3439 pars obtener informacion sobre: 1: Como someter una queja en contra -de una .ecmpania_de..seguros o agents do seguros, 2. sL, una. compania, de seguros o agents de seguros tieno licencia, 3. quejas recibidas.en Contra de una compania de eeguroo o agente de seguros, '4'. los derechos del asegurado, y 5. una Beta do publicacionee y servi- cios pars consumidores disponiblas a traves del Departmento. TAMBIEN PUEDE ESCRIBIR AL: DEPARTAMENTO DE SEGUROS DE TEXAS P.O. BOX 149104 AUSTIN-, TEXAS- 787-14-9104 FAX NO. (512) 475-1771 63/26/2003 12:26 281-479-B429 AMERICAN TITLE PAGE 14 ALAMO TITLE INSURANCE AMERICAN TITLE CO.. OF HOUSTON PRIVACY POLICY:NOTICE PURPOSE OF THIS NOTICE Title V of the'Gramm-Leach-Bailay Act fsLBA)' gerrerTily prohibits any financial institution directly or through its affiliates, from sharing nonpublic personal information about you with a nonaffiliated third party unless the institution Provides you with.a" notice. Of its- privacy policies and practices, such as the typo of information that it collects about you and the categories of persons or entities to whom it may be disclosed. In compliance with the GLBA, we are providing you with this document, which noiifi'es you of the Prrvacy-policLac'and practices of the above named Underwriter and the Title Insurance Agent. awe may ourceecoll.ect. nonpublic personal information about you from the following a * Information we receive from you such as on applications or other form.. Informatina..about..ggour transactions'we-secure from our files, or from our affiliates or 0thera. * Information we receive from a consumer reporting agency. Information that. we_ receive from Others- invo-lved'in your transaction, such as the real estate agent or lender. Unless it is specifically stated otherwise. in are amended Privacy Policy Notice; no additional nonpublic personal information will be collected about you. We customers disclose customersoto our affiliatesaorwtocnonaffiliated third parties as permitted by law. . Waaal so may disclose this information about our customers to the followig n types of nonaffiliated companies•'that perform marketing services on our behalf or with whom we have joint marketing agraamp..+._ • Financial service providers such as companies engaged in banking, consumer finance, securities and insurance. • Non-financial..companies-auch4as-envwlope stuffers and other fulfillment service providers. WE.DO NOT DISCLOSE ANY'NONPUBLIC PERSOM.M INFORMATION ABOUT YOU WITH ANYONE FOR ANY PURPOSE THAT IS NOT SPECIFICALLY PERMITTED BY LAW. We restrir-t access -to- nonpubiic'personal' information about you to those We plOyees who need to know that information in order to provide products or services to you. We maintain pphyysical, electronic, and procedural safeguards information. with fed 1. regula.ione-to gdard-your nonpublic personal It#:1:1T711dV.% FIELD NOTE DESCRIPTION OF 3.6856 ACRES OF LAND BEING A PORTION OF A CALLED 4.589 ACRES OF LAND BEING A PART OF A 19.1 ACRE TRACT SHOWN AS LOT 19 OF THE W.B. LOWRANCE SUBDIVISION ACCORDING TO TIE PLAT RECORDED IN VOLUME I, PAGE 53 OF THE MAP RECORDS OF HARRIS COUNTY, TEXAS AND BEING IN THE JOHNSON HUNTER SURVEY, A-35, CITY OF LA PORTE, HARRIS COUNTY, TEXAS, SAID TRACT BEING THE SAME - PROPERTY DESCRIBED IN VOLUME 4834, PAGE 158 FO THE HARRIS COUNTY DEED RECORDS: SAID 3.6856 ACRES BEING MORE PARTICULARLY DESCRIBED BY METES AND BOUNDS AS FOLLOWS: BEGINNING, at a 1-inch iron rod found marking the west comer of a said tract of land described indeed recorded in volume 4834, page 158 of the Deed Records of Harris County, Texas, said point being on the southeasterly right-of-way line of Bayshore Drive (80 feet wide); THENCE, N 26° 00' 00" E, and with the southeasterly right-of-way line of said Bayshore Drive, a distance of 63.92 feet to a 4-foot chain link fence post marking the west comer of a tract of land described in deed recorded in volume 232, page 188 of the Harris County Deed Records, said point bearing S 640 00' 00" E, a distance of 80.00 feet from the south comer of Block 17, of Bay Front Addition according to the plat recorded in volume 85. page 440 of the Deed Records of Harris County, Texas: THENCE, S 520 25' 18" E, a dka,r.i:; of 54.15 feet to a 4-Coot chain link post found for a point for corner of the herein described tract: THENCE. N 370 57' 07" E, a distance of 50.00 feet to a 4-foot chain link post found for a point for comer of the herein described trail: THENCE. N 510 55' 41" W, a distance of 64.83 feet to a 4-foot chain link post found on the southeasterly right-of- way line of said Bayshore Drive for a point for comer of the herein described tract; THENCE. N 260 00' 00" E, along the southeasterly right-of-way line of said Bayshore Drive, a distance of 287.57 feet to a 1-inch iron rod found on the southwesterly line of Bay Shore Park Addition according to the plat recorded in volume 10, page 32 of the Harris County Map Records, said point being the north comer of the herein described tract; THENCE. S 510 53' 54" E. and with the southwesterly line of said Bay Shore Park Addition, a distance of 389.74 feet to a 6-fool chain link post found for the east corner of the herein described tract, said point being on the west shore line of Galveston Bay; THENCE, following the meanders of the westerly shore line of Galveston Bay the following courses and distances: S 32' 55' 06" W. a distance of 32.58 feet to a point for corner; S 170 37' 30" W, a distance of 128.48 feet to a point for corner, S 12° 35' 60" E. a distance of 36.73 feet to a point for corner, S 12' 14' 55" W, a distance of 61.26 feet to a point for corner, S 37° 47' 07" W, a distance of 164.03 feet to a 6-foot chain link post found 1.3 feet north of the south comer of the herein described tract, said point being on the north line of Sylvan Beach Park; THENCE, N 510 44' 36" W, along the north line of said Sylvan Beach Park, a distance of 409.17 feet to the POINT OF BEGINNING of the herein described tract and containing as aforesaid 3.6856 acres of Dated this theInd day of May, 200 I CHARLES E. BATES, Registcmn=--ifessional Land Surveyor No. 4110 Job No. 2003133 eigal1-]kd 1Y FMLD NOTE DESCRUMON OF 3.6856 ACRES OF LAND BEING A PORTION OF A CALLED 4.589 ACRES OF LAND BEING A PART OF A 19.1 ACRE TRACT SHOWN AS LOT 19 OF THE W.B. LOWRANCE SUBDIVISION ACCORDING TO THE PLAT RECORDED IN VOLUME 1, PAGE 53 OF THE MAP RECORDS OF HARRIS COUNTY, TEXAS AND BEING IN THE JOHNSON HUNTER SURVEY, A-35, CITY OF LA PORTE, HARRIS COUNTY, TEXAS, SAID TRACT BEING THE SAME FROPERTY DESCRIBED IN VOLUME 4834, PAGE 158 FO THE HARRIS COUNTY DEED RECORDS; SAID 3.6856 ACRES BEING MORE PARTICULARLY DESCRIBED BY METES AND BOUNDS AS FOLLOWS: BEG -INNING. at a 1-inch iron rod found marking the west corner of a said tract of land described in deed recorded in volume 4834, page 158 of the Deed Records of Harris County, Texas, said point being on the southeasterly right-of-way line of Bayshore Drive (80 feet wide): THENCE. N 260 00' W' E, and with the southeasterly fight -of -way line of said Bayshore Drive, a distance of 63.92 feet to a 4-foot chain link fence post marking the west comer of a tract of land described in deed recorded in volume 232, page 188 of the Harris County Deed Records, said point bearing S 64' 00' 00" E. a distance of 80.00 feet from the south comer of Block 17, of Bay Front Addition according to the plat recorded in volume 85. page 440 of the Deed Records of Harris County, Texas; THENCE, S 520 25' 18" E, a distance of 54.15 feet to a 4-foot chain link post found for a point for corner of the herein described tract THENCE. N 370 57' 07" E, a distance of 50.00 feet to a 4-foot chain link post found for a point for comer of the herein described tract: THENCE, N 51" 33' 41" W, a distance of 64.83 feet to a 4-foot chain link post found on the southeasterly right-of- way line of said Bayshore Drive for a point for corner of the herein described tract: THENCE. N 260 00' 00" E, along the southeasterly right-of-way line of said Bayshore Drive, a distance of 287.57 feet to a 1-inch iron rod found on southwesterly line of Bay Shore Park Addition according to the plat recorded n volume 10. page 32 of the Han -ounty Map Records, said point being the north comer of the herein described tract: THENCE. S 510 53' 54" E, and with the southwesterly line of said Bay Shore Park Addition, a distance of 389.74 feet to a 6-foot chain link post found for the east comer of the herein described tract, said point being on the west shore line of Galveston Bay; THENCE, following the meanders of the westerly shore line of Galveston Bay the following courses and distances: S 32' 55' 06" W. a distance of 32.58 feet to a point for corner; S 170 37' 30" W. a distance of 128.48 feet to a point for comer, S 12° 35' 60" E. a distance of 36.73 feet to a point for corner, S 12° 14' 55" W, a distance of 61.26 feet to a point for comer, S 370 47' 07" W, a distance of 164.03 feet to a 6-foot chain link post found 1.3 feet north of the south comer of the herein described tract, said point being on the north line of Sylvan Beach Park: THENCE, N 510 44' 36" W, along the north line of said Sylvan Beach Park, a distance of 409.17 feet to the POINT OF BEGINNING of the herein described tract and containing as aforesaid 3.6856 acres of land. Dated thisA 2gd day of May. CHARL'ES E. BATES. Registered Professional Land Surveyor No. 4110 Job No. 2003133 79?0:t1. I.TA.Fu �r WARRANTY DEED 1 pg-95-0834 v THE STATE OF TEXAS S On KNOW ALL MEN BY THESE PRESENTS: COUNTY OF HARRIS S That THE NATHAN J. KLEIN FUND, a Trust Estate, acting by and through its President, NATHAN J. KLEIN, of the County of Harris, State of Taxes, hereunto authorized by a resolution I'r of the Board of Trustees of said Trust Estate, for and in con- !*' sideration of the sum of TEN DOLLARS ($10.00) and other good and valuable considerations, to it in hand paid by NEIGHBORHOOD CENTERS -DAY CARE ASSOCIATION, a Texas non-profit corporation .t C\ in the County of Harris, State t: with principal offices located I' pi of Texas, has GRANTED, SOLD and CONVEYED, and.by these presents does GRANT, SELL and CONVEY unto the said NEIGHBORHOOD CENTERS- DAY CARE ASSOCIATION, all that certain tract or parcel of land, together with all improvements thereon, lying and being situated in�Harris County, Texas, and more particularly described as follows: t 4.589 Acres of land being a part of a 19.1 Acre tract shown as Lot 19 of the W. B. Lowrance'Subdivision in the Johnson Hunter Survey and being the same property as described in deed recorded in Vol. 4834, Page 158 of the Harris County Deed Records, said 4.589 Acre Tract being more particularly described by metes and bounds as follows: Beginning at a 1" Iron Rod found marking the West Corner of a tract of land described in deed recorded in Vol. 4834, Pg. 158 of the Harris County Deed Rec- ords, same being the West Corner and Place of Begin- ning of the 4.589 Acre Tract of land herein described; Thence N. 26" 00' 00" E. and with the Southeasterly Right of Way line of Bayshore Drive (Grand View Ave.) a distance of 63.92 feet to a 1" Iron Rod found marking the West Corner of a tract of land described in deed recorded in Vol. 232, Pg. 188 of the Harris County Deed Records, said point bearing S. 64" 00' 00" E. a distance of 80.00' from the South Corner of Block 17 of Bay Front Addition the plat of which is recorded in Vol. 85, Pg. 440 of the Harris County Deed Records, said 1" Iron Rod marking a corner of the tract of land herein describes; - Thence S. 52" 25' 18" E. a distance of 54.15 feet to a 1" Iron Rod found marking a corner of the tract of land herein described; Thence N. 37" 57' 07" E. a distance of 50.00 feat to a 1" Iron Pipe set marking a corner of the tract p. of land herein described; CCG��OOO Thence N. 51" 55' 41" W. a distance of 64.83 feet to a point (1" Iron Rod) found on the Southeasterly Right of Way line of Bayshore Drive marking a corner 0O of the tract of land herein described; CLO CJ9 Thence N. 26" 00' 00" E. and with the Southeasterly Right of Way line of Bayshore Drive a distance of 287.57 feet to a 1" Iron Rod found on the Southwest- erly line of Bay Shore Park Addition the plat of which is recorded in Vol. 10, Pg. 22 of the Harris County Map Records, said 1" Iron Pipe marking the North Corner of the tract of land herein described; Thence S. 51" 53' 54" E. and with the Southwesterly line of Bay Shore Park Addition a distance of 523.44 feet to a point marking the East Corner of the tract of land herein described; Thence S. 28" 40' 30" W. a distance of 400.90 feet to a point marking the South Corner of the tract of land herein described; Thence N. 51" 44' 36" W. a distance of 504.60 feet to the Place of Beginning and containing 4.589 Acres of Land, more or less. TO HAVE AND TO HOLD the above described premises, together with all and singular, the rights and appurtenances thereto in anywise belonging unto the said NEIGHBORHOOD CENTERS -DAY CARE ASSOCIATION, its successors and assigns forever; and said Trust Estate does hereby bind itself, its successors and assigns to Warrant and Forever Defend all and singular the said premises unto the said NEIGHBORHOOD CENTERS -DAY CARE ASSOCIATION, its successors and assigns, against every person whomsoever law- fully claiming, or to claim the same or any part thereof. IN WITNESS WHEREOF, the said Trust Estate has caused these resents to be signed by its President, and attested to by its _presents d�/A4y this q H� day of , 1978. THE NATHAN J. KLEIN FUND \� Attest • Hart . na, Klein L By Pre nt Nathan J. Klei N. J. Klein Power-Att. Trustee ",co"oe"a,.e.aum K awe w..""rmio:" u aax. THE STATE OF TEXAS S COUNTY OF HARASS S BEFORE ME, the undersigned, a notary public in and for the State and County aforesaid, on this day personally appeared NATHAN J. KLEIN, known to me to be the person and officer whose name is subscribed to the foregoing instrument, and acknowledged to me that the same was the act of THE NATHAN J. KLEIN FUND, a Trust Estate, that he was duly authorized to perform the same by appropriate resolution of the Board of Trustees of such Trust Estate, and that he executed the same as the act of such Trust Estate for the purposes and consideration therein expressed, and in the capacity therein stated. LIP— ,Y ,,,..UNDER MY HAND AND SEAL OF OFFICE, this P— day of. (JyC�.f•C� , 1978. ...y...,_:... .:ri1.i:....... %aihivn M. Buford. _�Aac.'•. HARRIS COUNTY,:T!9 My Commission Expi I-A5-I9 P o. 6dv 081 i 1 y p'! �7a> -3- . w 1m-93-1327 } { } 1 , ) ®§ 2 q » H q . a R! d E. § ® { \ } } \ u i } � / § \ } . \ } : 2 /\ __.I1 ''llsetn 0CT 61978 L. HARRIS COUNTY.1WS { City of La Porte Interoffice Memorandum CONFIDENTIAL To: Mayor and Council Debra B. Feazelle, < From: John Joerns, Assist4nt4y Manager Date: February 5, 2004 Subject: Executive Session/Council Meeting 2/9/04 Land Acquisition Enclosed is some information on the Klein Retreat property discussed at the executive session of January 26, 2004. Also included is a draft option agreement between the City and Neighborhood Centers, Inc. I hope to secure before Monday night, a survey, appraisal and Phase I Environmental Report that are approximately 8-9 months old. JJ/ml c: Cynthia Alexander, Assistant City Manager Knox Askins, City Attorney Various HCAD Land Values Bayfront Property 2/5/2004 HCAD # Land Value Size Ac $/s .ft. Avg. D Frontage $/If 2 040-279-000-0033 $55,000.00 1.1486 $1.10 340.67 148.32 $370.82 3 040-279-000-0061 $41,600.00 0.48 $1.99 239.5 88.43 $470.43 4 040-279-000-0035 $40,700.00 0.41 $2.28 203.7 85.58 $475.58 5 040-279-000-0034 $42,800.00 0.65 $1.51 151.09 154.89 $276.32 $180,100.00 2.6886 $1.54 477.22 $377.29 10 040-244-001-0131 $250,700.00 5.336 $1.08 1,041.57 239.00 $1,048.95 11 640-244-001-0068 $149,900.00 3.443 $1.00 953.18 126.18 $1,187.93 $400,600.00 8.779 $1.05 365.18 $1,096.99 8.&, 1 121 040-244-001-0089 1 $625,300.001 10.0871 $1.421 1013.171 493.351 $1,267.46 0 18 $189,800.001 2.21181 $1.971 3501 236.001 $804.24 Other Bayfront Values Size I $/s .ft. I $/If Seabreeze 1 2 1 $575000.00 $795:000.00 3.016 3.016 $4.38 $6.05 514.67 514.67 $1,117.22 $1,544.68 Klein 3 4 $499,999.00 $395,000.00 3.6858 3.6858 $3.11 $2.46 400.00 400.00 $1,250.00 $987.50 A100. 000 00 4 a .,t ) 00o.00 1) Purchase Price 2) Appraised Value (referenced in a report/not confirmed) 3) Asking Price 4) Previous option price (not confirmed) ,fs>oO0 a o d-Ts K Care N Vircimrry v, iwm~-- - Ar, MAM ju WC* I. W%mv BOUNaWSVRVEY . 40 3•SM,4CRtS OF L"D MN0AMM=afAC4f4LW 4LS59ACRES d FLVM JOHNSON HuMm SWIM AMMAC . 7 Na I ASKINS & ARMSTRONG, P. C. ATTORNEYS AT LAW 702 W. FAIRMONT PARKWAY P.O. BOX 1218 LA PORTE, TEXAS 77572-1218 KNO>. W. ASKINS JOHN O. ARMSTRONG CLARK T. ASKINS February 3, 2004 Mr. John Joerns Assistant City Manager City of La Porte Ci=y Hall La Porte, Texas Re: Neighborhood Centers Option Agreement Dear John: TELEPHONE 281 471-1885 TELECOPIER 281 471-2047 K WAlKIN9OAOL.COM JOMN-AOSV/BELL.NET CTA]KINSCS.RELL.NET Following our telephone conversation on February 2, 2004, I spoke with Andy Rolf at Main Properties, who furnished me with a legal description on the Klein Retreat property. It is my understanding that you will attempt to obtain an existing survey, Phase I Environmental Study, and appraisal, from the Met:iodist Church, on this property. I have prepared a draft Option Agreement. As we discussed, the matters which would have to be negotiated are the amount of the option fee, which is credited on the purchase price, if finally closed; the length of the option; and the purchase price. An option agreement is essentially a contingent contract which, when, as and if the option is exercised, becomes a firm purchase agreement. Please let me know when I can be of further assistance. Yourry truly, 'V J iii Knox W. Askins City Attorney City of La Porte KWA:sw Enclosure OPTION AGREEMENT STATE OF TEXAS § § COUNTY OF HARRIS § This Agreement made and entered into by and between NEIGHBORHOOD CENTERS, INC., a Texas non-profit corporation, of Harris County, Texas, hereinafter called GRANTOR, and the CITY OF LA PORTE, a municipal corporation, of Harris County, Texas, hereinafter called GRANTEE, W I T N E S S E T H: I. For and in consideration of the sum of Dollars ($ ) in cash to it in hand paid by the CITY OF LA PORTE, GRANTEE, receipt of which is hereby acknowledged; NEIGHBORHOOD CENTERS, INC., GRANTOR, being the owner of the hereinafter described real property, does hereby give and grant to the said GRANTEE, its successors and assigns, an irrevocable option, effective until 12:00 o'clock Noon on the 1st day of 2004, to purchase the hereinafter described property, to -wit: That certain 3.6858 acre tract of land, from and out of a called 4.589 acre tract of land, being a part of a 19.1 acre tract shown as Lot 19, of the W.B. Lowrance Subdivision in the Johnson Hunter Survey, Abstract 35, Harris County, Texas, known as the "Klein Retreat" property in the City of La Porte, Harris County, Texas, together with all improvements thereon situated. II. GRANTEE shall have the right, during the time set out in this Option Agreement, to purchase the hereinabove described property for the cash sum of Hundred Thousand Dollars ($ ), to be paid at closing, of which the option money shall fora a part. r- It is represented by the GRANTOR that the subject property is free and clear of all restrictions, reservations, easements and encroachments. IV. This right, privilege and option to so purchase, according to the terms and provisions of this Agreement, shall terminate at 12:00 o'clock Noon on the 1st day of , 2004. In the event GRANTEE exercises this option within the time allowed, by certified mail to GRANTOR, addressed to NEIGHBORHOOD CENTERS, INC., (address) setting out that the option is exercised, then, in that event, this purchase shall be concluded within thirty (30) days subsequent to 1, 2004, as set out herein. V. Upon closing of this transaction, GRANTOR agrees to furnish to GRANTEE, at the time of execution of GRANTOR's Deed, an Owner's Title Policy issued by American Title Company, Deer Park, Texas, covering such property for the amount of the purchase price. VI. The subject property has been on the tax rolls as exempt from taxation. Possession of the property shall be delivered to GRANTEE at the date of closing of the sale. GRANTOR shall execute and deliver to GRANTEE a General Warranty Deed, which deed shall contain covenants of general warranty, conveying good and 2 indefeasible title without exceptions of any nature. GRANTOR and GRANTEE shall each pay for all usual and customary title company expenses and other expenses in connection with the closing of this transaction. VIZ. In the event GRANTEE does not exercise the right, privilege and option herein granted to it, on or before 12:00 Noon, 1, 2004, then all rights and privileges granted to it hereunder shall automatically terminate and shall be of no force and effect and the option money paid under this option agreement to GRANTOR shall be forfeited to GRANTOR, and the GRANTEE shall have no further right to such sum, and in such event both Parties hereto shall be released from any and all further obligations hereunder. V1006 In the event this Option is exercised and the GRANTOR is unable to furnish to GRANTEE the owner's title policy provided for in Paragraph V hereof, then, in that event, the option money, receipted for herein, shall be returned to GRANTEE, and both parties shall be released herefrom; except, that GRANTOR shall use its best efforts to furnish such title policy, and GRANTEE may waive any objection, if any, to the title, and close the transaction. In the event title is good and the title policy mentioned herein may be furnished, and GRANTEE refuses to consummate the purchase of the subject property under the terms and conditions herein set out, then, in that event GRANTOR shall have the right of specific performance. 3 In the event title is good and the title policy mentioned herein may be furnished, or in the event GRANTEE waives any objection, and GRANTOR refuses to convey the subject property under the terms and conditions herein set out, then, in that event, GRANTEE shall have the right of specific performance. IX. GRANTOR has listed the subject property with Main Properties, La Porte, Texas, as Real Estate Agents, and GRANTOR will be responsible for the payment of the real estate commission in accordance with its listing agreement with Main Properties, at closing. X. GRANTEE shall have the right during the option period, to enter upon the property for the purpose of conducting a survey, environmental inspections, and appraisals. XI. This contract embraces the full agreement between the Parties hereto and no statement, remark, agreement or understanding, oral or written, not contained herein, will be recognized or enforced. EXECUTED IN SEVERAL DUPLICATE ORIGINALS, this the _ day of 2004. GRANTOR: NEIGHBORHOOD CENTERS, INC. By: Printed Name: Title: GRANTEE: CITY OF LA PORTE By: Debra Brooks Feazelle City Manager 4 STATE OF TEXAS § COUNTY OF HARRIS § This instrument was acknowledged before me on the day of , 2004, by I of NEIGHBORHOOD CENTERS, INC., a Texas non-profit corporation, on behalf of said corporation. Notary Public, State of Texas S^ATE OF TEXAS § § COUNTY OF HARRIS § This instrument was acknowledged before me on the day of 2004, by Debra Brooks Feazelle, City Manager of the CITY OF LA PORTE, a municipal corporation, on behalf of said corporation. Notary Public, State of Texas 5 "e, I 50 0 50 100 150 Scale 1 " = 50' BLOCK 16 BAYFRONT ADDITION VOL. 85 PG 440 H.C.D.R. so�T OV Ci�- o �y J W 3b —E LOT 23 OT 22 / 1 1 � / LOT 21 S / BLOCK 17 BAYFRONT ADDITION/ VOL. 85 PG 440 H. C. Q� R. LOT 18 LOT 191 c / /LOT 20 so�VT � ti o�y •J O ,v 0 O 00 0 P. 0. B. FND 1 "IR �� Y� •• sir �o S Y L V A N 8 E A C H P A R K TRACTS 1, 2 do 13 W.B. LOWRANCE S./D VOL. 1 PAGE 53 k C. M. R. ACCORDING TO FLOOD INSURANCE RATE MAP 4 8 2 0 1 C 0 9 4 5 J DATED T THIS TRACT HEREBY SURVEYED LIES WITHIN ZONE "X-SHADED AND IS NIC IN THE 100 YEAR FLOOD PLAIN. THIS STATEMENT IS BASED CN SCAUNG THE LOCATION OF SAID SURVEY ON THE ABOVE REFERENCED MAP AND IS FOR FLOOD INSURANCE RATES ONLY AND NOT INTENDED TO IDENTIFY SPECIFIC FLOODING CONDITIONS. B/F: 12.00' THE UNDERSIGNED HEREBY CERTIFIES THAT THIS SURVEY WAS MADE ON THE GROUND UNDER MY SUPERVISION, AND THAT THIS PLAT REPRESENTS THE FACTS ASIFOUND AT THE -TIME OF THE SURVEY. SIGNED: 'f_l'' CHARLES E. BATES REGISTERED PROFESSIONAL LAND SURVEYOR NO 4110 H A P P Y H A R B O U R METHODIST HOMES FOR OLDER PEOPLE H. C. C. F. NO. K858616 LOTS 1 THRU 6 do RESERVE 8 BAYFRONT BLOCK AND RESERVE A BAYSHORE BLOCK BAY SHORE PARK 5/D VOL. 10 PAGE 32 H C. M. R. Is, Nr sus .9 A - SEARCHED, NOT FOUND FND 6' CH LINK POST FOR RE.FENCES POGti'T 2- 4 3 P 4v SEARCHED, NOT FOUND FND 6' CH LINK POST ' FOR REFENCES POI S,. ''9s\ rakRBOURS Ham,OUSTON SHIP CHANNEL225 CUT Q e�I lll� � J� SITE co FA/RAIONT PARKWAY O / J P V VIC/ N IT Y M A p - NOT TO SCALE - NOTE: -BASIS FOR BEARINGS: ASSUMED AS DEEDED -DISTANCES SHOWN ARE GROUND DISTANCES -ALL ABSTRACTING DONE BY TITLE COMPANY LEGEND: U.E. - UTIUTY EASEMENT A.E. - UNOBSTRUCTED AERIAL EASEMENT B.L. - BUILDING LINE C.I.R. - CAPPED IRON ROD (ALL AS PER RECORDED PLAT OF SUBDIVISION) --15, - WOOD FENCE -- - CHN. LINK FENCE BOUNDARY SURVEY OF 3.6856 ACRES OF LAND BEING A PORTION OF A CALLED 4.589 ACRES OF LAND BEING A PART OF A 19.1 ACRE TRACT SHOWN AS LOT 19 OF THE W.B. LOWRANCE SUSDMSION ACCORDING TO THE PLAT RECORDED IN VOL. 1 PAGE 53 OF THE MAP RECORDS OF HARRIS COUNTY, TEXAS AND BEING IN THE JOHNSON HUNTER SURVEY, A-35 CITY OF LA PORTE, HARRIS COUNTY, TEXAS SAID TRACT BEING THE SAME PROPERTY DESCRIBED IN VOL. 48340 PAGE 158 OF THE HARRIS COUNTY DEED RECORDS (SEE AW 418M A' MITES & HOUNDS) DATE: MAY 2, 2003 SCALE i'=JO' ` CHARLES E. BATES LAID M/111n011 CRf /L� 00IDtLTA1R1 "M UELLA AVO o /AN6 TIDY TMG oPP. 1"47FfM /AL lfMl*-@M Mu1L. Combs"ma SdAm JOB NO. 2003133 /I f METHODIST qRE T I R E M E N T COMAAUNITIES February 6, 2004 Mr. John Joerns Assistant City Manager City of La Porte 604 West Fairmont Parkway La Porte, Texas Dear Mr. Joerns: This letter is to confirm the receipt of the City of La Porte's check numberZ0bjItin the amount of $4,14 S' for the purchase of an appraisal, survey and Phase I Environmental site assessment regarding a 4.589 acre tract of land owned by Neighborhood Centers — Day Care Association. Sincerely, (, ,c_Q_ Richard A. Ogrin Vice President for Project Development RELATED TO THE FE.1AS CONFERENCE OF THE UNITED .MEFHOOIST CHURCH 2202 IIMBERLOCH PLACE, SUITE 200 THE WOODLANDS, TX 77180 2B1 / 363 - 2600 FAX 281 / 292 - 6360