HomeMy WebLinkAboutPR 19481: FAIR MARKET VALUE OF LAND, EDC BUSINESS PARK LOCATED ALONG HWY 73 s
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MEMORANDUM
To: Mayor, City Council, City Manager
From: Floyd Batiste, CEO
Date: August 15, 2016
Subject: P. R. No. 19481; Council Meeting of August 23, 2016
ATTACHED IS PROPOSED RESOLUTION NO. 19481
SETTING THE FAIR MARKET VALUE OF LAND IN THE
CITY OF PORT ARTHUR SECTION 4A ECONOMIC
DEVELOPMENT CORPORATION BUSINESS PARK
LOCATED ALONG HIGHWAY 73, PORT ARTHUR,
TEXAS
P.R. No. 19481
8/11/2016 KVM
RESOLUTION NO.
A RESOLUTION SETTING THE FAIR MARKET VALUE OF
LAND IN THE CITY OF PORT ARTHUR SECTION 4A
ECONOMIC DEVELOPMENT CORPORATION BUSINESS PARK
LOCATED ALONG HIGHWAY 73, PORT ARTHUR, TEXAS
WHEREAS,per Resolution 10-316,the City of Port Arthur Section 4A Economic Development
Corporation(the "PAEDC") established the fair market value of land in the PAEDC Business Park (the
"Business Park"), located at Highway 73 at $3.02 per square foot; and
WHEREAS,the Business Park consists of 263,577 square feet available for sale not dedicated to
street,drainage,rights-of-way,detention ponds,utility easements,lift stations or other restricted uses;and
WHEREAS, the land in the Business Park has been unable to sell over the last six(6)years; and
WHEREAS, PAEDC has undertaken an analysis of the current market value of land in the
Business Park with the assistance of a local realtor as described in Exhibit "A"; and
WHEREAS,the PAEDC Board of Directors at its August 1,2016 meeting,approved the price per
square foot to $1.72 as a comparable fair market value.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
PORT ARTHUR:
Section 1. That the facts and opinions in the preamble are true and correct.
Section 2. That the price per square foot of the PAEDC Business Park along Highway 73 is$1.72
per square foot and is herein approved by the City Council of the City of Port Arthur.
Section 3. That a copy of the caption of this Resolution be spread upon the Minutes of the City
Council.
READ, ADOPTED AND APPROVED on this day of A.D., 2016, at a
Meeting of the City Council of the City of Port Arthur, Texas, by the following vote:
AYES:
Mayor
Councilmembers
NOES:
Derrick Freeman, Mayor
ATTEST:
Sherri Bellard, City Secretary
APPROVED:
‘/ eve)
Floyd Batiste, PAEDC CEO
APPROV I AS TO FORM:
Guy N. Goodson, PAEDC A torney
APPROVED AS TO FORM:
7
Valec'a R. Tizeno ✓4 At s ney
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EXHIBIT "A"
MARKET PRICE FOR HWY 73 BUSINESS PARK
Original Message
From: Patricia Holmes[mailto:patholmesrealtor@aol.com]
Sent:Tuesday,July 05,2016 10:14 PM
To: Floyd Batiste<fbatiste@PAEDC.ORG>
Subject: Hwy 73 property
Floyd:
The only thing I can find that is near being comparable is a sale at 3500 Hwy 69 in Nederland, it is right
past the Pipefitter's Hall. It was right at 5 acres but it had 2 homes on it... I'm giving the homes a value
of$150,000 each as I remember them being brick homes. The rest of the land is undeveloped.
It sold 10/28/15 for$675,000.00.
Taking away the value of the two homes($300,000) that would leave the land sale at$375,000 for 5
acres=$75,000 per acre.
Because of the infrastructure already available on your property, I feel like$75,000-$100,000 per acre
would not be an unreasonable amount to ask for your property since the Hwy 69 property has not been
developed.
This is not a certified appraisal,just an estimated opinion of value based on a recent comparable sale.
I hope this will be help to you. If you have any questions, please call me.
Regards,
Pat Holmes
In reviewing the above comparable:
$75,000 per acre will equate to $1.72/sf
(75,000 divided by 43,560 sf/acre = $1.72/sf)
$100,000 per acre will equate to $2.30/sf
(100,000 divided by 43,560 sf/acre = $2.30/sf)