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HomeMy WebLinkAboutPR 23881: AUTHORIZING THE CITY MANAGER AND CITY ATTORNEY TO PURCHASE TRACT OR PARCEL NO. 95652 P.R. No. 23881 08/16/24 HT RESOLUTION NO. A RESOLUTION AUTHORIZING THE CITY MANAGER AND CITY ATTORNEY TO PURCHASE TRACT OR PARCEL NO. 95652, LOCATED AT 727 FREEMAN AVENUE, FROM THE PORT OF PORT ARTHUR NAVIGATION DISTRICT FOR THE FAIR MARKET VALUE AMOUNT OF $4, 0 0 0 . 0 0, TO BE USED AS PART OF THE FUTURE SITE OF THE NEW FIRE STATION NO. 2; FUNDING AVAILABLE IN ACCOUNT NO. 001-01-003-5420-00-10-000 WHEREAS, The Port of Port Arthur Navigation District is the fee simple owner of Tract or Parcel No. 95652 , located at 727 Freeman Avenue, as depicted in the attached Exhibit "A" ; and WHEREAS, the City Manager contacted the Port of Port Arthur to request for the purchase of said tract or parcel at fair market value for use as part of the future site of the new Fire Station No. 2 on the City' s Westside; and WHEREAS, the Board of Commissioners of the Port of Port Arthur authorized the sale of the tract to the City for fair market value at their Regular Board Meeting; and WHEREAS, the City secured an appraisal report to determine the fair market value of the property as delineated in the attached Exhibit "B" ; and WHEREAS, it is deemed in the best interest of the City Council to authorize the City Manager and City Attorney to proceed with the land acquisition and finalize the purchase . NOW, THEREFORE IT BE RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR: s.pr23881 Section 1. That the facts and opinions in the preamble are true and correct . Section 2 . That the City Council hereby authorizes the City Manager and City Attorney to purchase the tract or parcel from the Port of Port Arthur Navigation District, contingent upon clear title, for the fair market value amount of $4 , 000 . 00, plus closing costs . Section 3 . That the City Manager and the City Attorney shall be authorized to execute the necessary closing documents as it relates to the purchase . Section 4 . 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. 2024 , at a Meeting of the City Council of the City of Port Arthur, Texas, by the following votes : AYES : Mayor: Councilmembers : NOES : Thurman "Bill" Bartie, Mayor s.pr23881 ATTEST: Sherri Bellard, TMRC City Secretary APPROVED AS TO FORM: Roxann Pais Cotroneo, City Attorney APPROVED F0 t iul ISTRATION: a:Pr' Ronald Burton SDM City Manage APPROVED AS TO AVAILABILITY OF FUNDS: eAD elaji,t_i_e_ V Lyna "Lyn" Bosewell, M.A. , ICMA-CM Director of Finance s.pr23881 Exhibit "A" s.pr23881 '''''''-7:''''' .. odoil:.1 '•t:',.: :- ' ,. • "•:•+:4,-.744'..,t41',11-44.4':,•'•,....4,.-:-.- ......4. , ::/. ',e ......_ , 'V .4 L \ ....- \ • . . .. .. . ,. . . .1- \-., ,...:..... .... , .,'•‘4,:- NI*1 ‘c...' ..:= , .. : -.....' .;,. ;/ •‘-'• 0 I .t. :.::;:•-.;;.," ..Ct 5\\ >i), 4, a . Atli A....0' . ....... ... . ... ,. .. ,... . . . . , 74 ,,-, (...., . 4: • : ."-, 7,.• . :- Co ” . \ .;-./ ,\ / -_, \\ 2 ' \ TZ. \ / ‘ 44' 7 \' ,. \ i \ ..„' \ -1 . . p- i#F 1r ... ...;"' 6, -:-.-' • -E--- • - , , f .... / .. .: - ........ , .. .:_. , . . , . ... . . .. .. p. ,.. .-. . ....P... - .. ! ' .. . . ,.... _ ...... . ,. ..-.1 . ,I3 t.... cn 2, CD TO. {I v. 2Rq g ,' c- .1, 5. = z 2 L,":" § 5 3 z 0 eo .;'' A•• P N So 'f.f..- ES :. ..0 2 t Exhibit "B" s.pr23881 APPRAISAL OF: 727 Freeman Avenue Port Arthur, Texas PREPARED FOR: MR. HUY TRAN, COMPLIANCE OFFICER CITY OF PORT ARTHUR, LEGAL DEPARTMENT 444 4th Street Port Arthur, TX 77641-1089 AS OF: August 1, 2024 BY: COOK & ASSOCIATES, INC. Mr. W. Burnell Cook, MAI, SRA 2640 McFaddin Beaumont, Texas 77702 COOK & ASSOCIATES, INC. COOK & ASSOCIATES, INC. Real Estate Appraisers 2640 McFaddin • Beaumont, Texas 77702 • (409)835-1430 • Fax (409)835-7314 • Tax ID #76 0325476 W. Burnell Cook, MAI, SRA, CPA cookappr@gmail.com Stephen F. Peyton Lucas G. Cook August 15, 2024 Mr. Huy Tran, Compliance Officer City of Port Arthur, Legal Department 444 4th Street Port Arthur, TX 77641-1089 RE: Appraisal of 727 Freeman Avenue, Port Arthur, Texas Dear Mr. Tran: In compliance with your request, I have personally inspected and analyzed the above captioned property for the purpose of developing an opinion of the Market Value in Fee Simple Interest. As a result of my investigation and analysis, my opinion of the Market Value of the sub- ject property, as of August 1, 2024, is: FOUR THOUSAND ($4,000) DOLLARS This transmittal letter is followed by the certification of the appraisal and the APPRAISAL REPORT containing pages further describing the subject property and containing the reasoning and pertinent data leading to the developed value opinion. Your attention is directed to the "General Underlying Assumptions" and "Limiting Condi- tions" which are considered usual for this type of assignment and have been included in the Addenda of the report. Respectfully submitted, COOK & ASSOCIATES W. Burnell Cook, MAI, SRA Texas State Certified TX 1320838 — G CERTIFICATION I certify that, to the best of my knowledge and belief: -- the statements of fact contained in this report are true and correct. - the reported analyses, opinions and conclusions are limited only by the reported assump- tions and limiting conditions, and are my personal, impartial and unbiased professional analyses, opinions and conclusions. -- I have no present or prospective interest in the property that is the subject of this report, and no personal interest with respect to the parties involved. -- I have performed no services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three year period immediately preced- ing the agreement to perform this assignment. -- I have no bias with respect to the property that is the subject of this report or to the par- ties involved with this assignment. -- my engagement on this assignment was not contingent upon developing or reporting predetermined results. -- my compensation for completing this assignment is not contingent upon the development or reporting of a 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 occur- rence of a subsequent event directly related to the intended use of this appraisal. - I, W. Burnell Cook have made a personal inspection of the property that is the subject of this report. - no one provided significant real property appraisal assistance to the person or persons signing this certification. - the reported analyses, opinions and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute, which include the Uniform Standards of Professional Appraisal Practice. the use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. as of the date of this report, I have completed the requirements under the continuing ed- ucation program of the Appraisal Institute. -- the appraisal assignment was not based on a requested minimum valuation, a specific valuation or the approval of a loan. August 15, 2024 W. Burnell Cook, MAI, SRA Date Texas State Certified General TX 1320838-G TABLE OF CONTENTS 727 Freeman Avenue Port Arthur, Texas Introduction Letter of Transmittal Certification Summary of Salient Facts and Conclusions 1 General Information Intended Use/User 2 Client/Scope of Work 2 Subject Identification 2 Value Definition and Interest Valued 4 Exposure Time 4 Effective Date 4 Legal Description 5 Area/Property Analyses Area Analysis 5 Neighborhood Analysis 8 Property Description 10 Highest and Best Use 11 Valuation Analysis Sales Comparison Analysis 12 Reconciliation and Concluded Value 22 Addenda Maps and Plats 23 Subject Photos 29 JCAD Detail Letters from Texas General Land Office Property Deed General Limiting Conditions Qualifications and License Engagement Letter COOK & ASSOCIATES, INC. 1 SUMMARY OF SALIENT FACTS AND CONCLUSIONS 1. Appraisal Type/Scope: Sales Comparison Approach 2. Report Format: Narrative 3. Property Type: Vacant Land 4. Location: 727 Freeman Avenue, Port Arthur, Texas 5. Owner: Port of Port Arthur Navigation District 6. Site: 2,000 SF, (40 x 50 feet ) per JCAD 7. Improvements: None 8. Zoning: CG, Commercial General 9. Highest and Best Use As Vacant: Commercial/Light Industrial in conjunction with neighboring property As Improved: N/A 10. Value Indication: Sales Comparison Approach: $4,000 11. Date of Inspection: August 1, 2024 12. Date of Value Estimate: August 1, 2024 13. Date of Report: August 15, 2024 14. Property Rights Appraised: Fee Simple 15. Final Opinion of Market Value: $4,000 COOK & ASSOCIATES, INC. 2 APPRAISAL REPORT CLIENT: Mr. Huy Tran, Compliance Officer City of Port Arthur, Legal Department 444 4th Street Port Arthur, TX 77641-1089 APPRAISER: W. Burnell Cook, MAI, SRA Cook & Associates, Inc. 2640 McFaddin Beaumont, Texas 77702 SUBJECT: 727 Freeman Avenue, Port Arthur, Texas INTENDED USE OF REPORT: For the sole purpose of assisting the client in evaluating the subject property for potential purchase. This report is intended for use by Huy Tran, Compliance Officer, and the City of Port Arthur, Texas. Other uses or users are not in- tended by the appraiser. SCOPE OF WORK AND REPORTING PROCESS: This is an Appraisal Report which is intended to comply with the reporting requirements set forth under Rule 2 of the Uniform Standards of Professional Appraisal Practice for an Appraisal Report. As such, it presents relevant discussions of the data reasoning and analysis that were used in the appraisal process to develop the appraiser's opinion of value. Supporting documentation concerning the data, reasoning and analysis is retained in the appraiser's file. The depth of discussion contained in this report is specific to the needs of the client and for the intended use stated above. The appraiser is not responsible for unauthorized use of this report. As the subject is a vacant lot, the appraiser did not use the Cost and Income Approaches to value which are not considered necessary to develop a credible opinion of value. The appraiser believes the only applicable approach to value is the Sales Comparison Ap- proach. Subject property identification: Identification of the subject property was provided by the client in the form of a plat, legal description and appraisal district property account refer- ence. Subject property observation and physical data collection: The appraiser visited the subject property on August 1, 2024. All photographs of the subject site were taken on this date. Data collection and research: The subject property data such as size, physical features, location, quality and zoning are considered and presented in this report. Market data, in- cluding comparable vacant land sales and supply and demand are among the items re- searched and analyzed. The data is used to estimate the highest and best use of the sub- ject property and its market value. COOK & ASSOCIATES, INC. 3 Extent of analysis: The documentation necessary to arrive at the opinion of value is considered in this appraisal report. The market data has been collected, confirmed and analyzed. Comparable sales were chosen for their similar highest and best uses as out- lined within the report. All sales were analyzed and compared to the subject property based on their similarities and dissimilarities. The applicable approaches were considered and reconciled in developing a final opinion of market value. Disclosures: Texas is a non-disclosure state in regards to details of sales transactions. Thus, our knowledge of sales data is not all-inclusive. Our data sources include Beau- mont, Mid-County and Orange County Multiple Listing Service, Commercial Gateway (HAR), local real estate brokers, as well as grantees, grantors, lessees and lessors. Ter- minology and definitions utilized are in accordance with banking regulations and the Dic- tionary of Real Estate Appraisal, Seventh Edition, (copyright 2022), by the Appraisal Insti- tute, or most recent revision. This appraisal is intended to comply with the requirements of the Appraisal Institute as well as the current Uniform Standards of Professional Appraisal Practice. COMPETENCY STATEMENT: Both USPAP and FIRREA minimum appraisal standards require that an appraiser have the knowledge and experience to complete an assignment competently. Additionally, FIRREA requires a competency statement. W. Burnell Cook, MAI, SRA has 40 years of commercial property appraisal experience. The appraiser has appraised properties similar to the subject in the Southeast Texas marketing area. This practical experience coupled with classroom training through the Appraisal Institute and other organizations complies with the Competency requirements of USPAP. The appraiser is a state certified general real estate appraiser. A complete qualifications statement and a copy of the certification for the appraiser is included in the Addenda . ENVIRONMENTAL DISCLAIMER: The appraiser is not an expert in determining the presence or absence of hazardous substances, defined as all hazardous or toxic materi- als, waste, pollutants or contaminants, including but not limited to asbestos, PCB, UFFI, or other raw materials or chemicals used in construction or otherwise present on the proper- ty. The appraiser assumes no responsibility for studies or analyses which would be re- quired to conclude the presence or absences of such substances or loss as a result of the presence of such substances. The client is urged to retain an expert in this field, if desired. The personal surface site inspection by the appraiser did not indicate the presence of hazardous materials or contaminants. Therefore, the value opinion herein is based on the assumption that the subject conforms to applicable environmental regulations and is subject to that condition. PURPOSE OF THE APPRAISAL: To estimate market value as referenced in Section 12, C.F.R. Part 34. COOK & ASSOCIATES, INC. 4 Market Value as reported herein, is defined as: the most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the pass- ing of title from seller to buyer under conditions whereby: 1. buyer and seller are typically motivated; 2. both parties are well informed or well advised, and acting in what they con- sider their own best interests; 3. a reasonable time is allowed for exposure in the open market; 4. payment is made in terms of cash in U.S. dollars or in terms of financial ar- rangements comparable thereto; and 5. the price represents the normal consideration for the property sold unaffect- ed by special or creative financing or sales concessions granted by anyone associated with the sale. INTEREST VALUED: Fee Simple Interest, as defined in Real Estate Terminology, is: An absolute fee; a fee without limitations to any particular class of heirs or restrictions, but subject to the limitations of eminent domain, escheat, police power, and taxation. An in- heritable estate. SALES HISTORY: The subject property is currently owned by the Port of Port Arthur Navigation District who purchased it from the State of Texas for $1,700, on September 4, 2022. The property was not actively marketed and the price paid appears below market, based on the analysis herein. ESTIMATED EXPOSURE TIME: The exposure time estimate provided precedes the ef- fective date of this report. In estimating an exposure time for the subject property the ap- praiser has considered some or all of the following: • Current supply and demand factors • Current cost information • Analysis of historical sales information • Analysis of future income expectancy In the case of the subject property, an exposure time of 12 to 24 months is thought rea- sonable. EFFECTIVE DATE OF VALUE: August 1, 2024 DATE OF INSPECTION: August 1, 2024 PROPERTY TAXES: Assessed value is $1,276; the subject is tax exempt. (See appraisal district and tax account information in the Addenda.) COOK & ASSOCIATES, INC. 5 DESCRIPTION OF REAL ESTATE APPRAISED: LEGAL DESCRIPTION: The subject property is located at 727 Freeman Avenue, Port Arthur, Texas. It is legally described as the East 50 feet of Lot 19 and the East 50 feet of the south 15 feet of Lot 20, Block 22, the Reservation, City of Port Arthur, Jefferson Coun- ty, Texas AREA ANALYSIS: The subject area is known as the "Sabine-Neches Industrial area" or the "Golden Triangle" and is comprised of Hardin, Jefferson, Orange and Newton Coun- ties in Southeast Texas. The three major cities are Beaumont, Port Arthur and Orange. The cities are virtually contiguous as result of continuous development along their con- necting highways. Beaumont, the largest city and the county seat of Jefferson County, has a population of 115,282 per the 2020 census, down 2.6% from 118,296 in 2010. The pop- ulation of the four county area is 412,870 per the 2020 census, up 9,676 or 2.4% since 2010. Area city services, public utilities, schools and health facilities are considered to be good. The area climate is favorable with warm summers and mild winters. Area transportation resources include railroads, some deep water ports located in Port Ar- thur, Beaumont and Orange, four airports as well as good highway access. Jefferson County Airport, located adjacent to and west of Nederland, provides daily connector flights to Dallas. Medical facilities, located in Beaumont, Port Arthur, Groves, Nederland and Or- ange include eight major hospitals as well as a variety of facilities providing specialized and emergency care services. Major industries include shipping, petroleum and agriculture. In the early 1990's major federal, state and local prison complexes between Beaumont and Port Arthur in Mid- County were established. The area economy is primarily based on petrochemical refining and production related industries and has been since the Spindletop Oil discovery in 1901. A number of major petrochemical plants are located in this portion of the upper Texas Gulf Coast, typically along the Neches River and Sabine River in south Jefferson County and south Orange County. Many individuals from the three county area find employment in these area petrochemical complexes. Major plants located in the area include Motiva, Valero, DuPont, Total, Huntsman, Chevron, Mobil-Exxon and Goodyear. Economic conditions have been favorable in recent years, as area industrial plants have continued to expand. However, unemployment for the Beaumont/Port Arthur MSA is at 5.5% (May, 2024), down from 6.0% one year ago. Unemployment for the State of Texas is 4.0% for May, 2024, unchanged from May, 2023, and from a month ago. Local MSA em- ployment is 162,100, up 2.0% since May, 2023, and down 0.3% since last month. The economic forecast for the Golden Triangle area, including Beaumont, Port Arthur and Orange, remains relatively positive as renovations, additions and upgrades to existing oil, gas and petroleum facilities, primarily in mid and south Jefferson County continue. The na- tional economic downturn in late 2008 and 2009 and decline in oil prices caused some COOK & ASSOCIATES, INC. 6 concern, with some projects being delayed, cancelled or put on hold. However, the Total, Motiva and the Valero expansions remained on track and are now complete. The five year, 10 billion dollar Motiva expansion was the largest single expansion in the United States in four decades. Cheniere Energy is building a 10 billion dollar LNG export facility adjacent to their new Sabine Pass gas import terminal in Cameron Parish, LA (just east of Sabine Pass, TX), now in operation. The expansion is projected to be substantially complete in 2022. Gold- en Pass Products has also announced authorization from the U.S. Department of Energy to export LNG, and began construction (March, 2019) of a 10 billion expansion for such purpose, projected to be complete in 2024. Final approval for investment in a $13 billion LNG facility in Sabine Pass was announced by Sempra on March 20, 2023. The Jefferson Energy Terminal, owned by JCP Energy Partners in Orange County on the Neches River across from the Port of Beaumont, was recently completed at a cost of± $50 million. The state of the art facility is now operating and shipping its first shipments of ethanol internationally. The Gulf Coast Project section of the controversial Keystone Pipeline project has recently been completed extending 487 miles from Cushing, OK to Nederland Texas. The pipeline project is planned to ultimately extend from Canada transporting crude oil to Texas Gulf Coast refineries. However, the project has recently encountered political/environmental obstacles. The ultimate outcome is unknown. In November, 2013, Natgasoline LLC, a subsidiary of Orascom Construction Industries (OCI) announced a 1.9 billion dollar methanol plant project to be located on 514 acres on SH 347 just south of Beaumont, which broke ground in March, 2014. The plant, completed in 2018, is one of the nation's largest methanol plants. Ground breaking fora $1 billion expansion to build a "blue" ammonia plant was December 7, 2022. Completion is antici- pated for 2025 with 1000 construction jobs and 100 permanent jobs anticipated. Additional expansion for a renewable fuels facility and a fertilizer plant is planned. Exxon-Mobil is nearing completion of a $1.2 billion expansion of their plant on US 90, just west of Beaumont. Construction of a 1.7 billion dollar ethylene production unit at the Total plant site in Port Arthur is also nearly complete. A 748 million dollar project to deepen and widen the Neches River portion of the Sabine Neches Ship Channel, as part of the Water Resources Reform and Development Act of 2013, was signed into law by President Obama. Initial funding of$18 million for fiscal year 2019 was reported in the Beaumont Enterprise on November 26, 2018. Initial phases of construction began in late 2019. $169.2 million in capital improvement is planned by the Port of Beaumont, to be funded in part by $85 million in bonds, with voter approval ob- tained November 7, 2017. The U. S. Army Corps of Engineers, in their recently announced 2021 Work Plan, allocated $68.5 million for the Sabine-Neches project underway. This project, in conjunction with completion of the Panama Canal expansion, completed in 2016, is expected to have a significant positive economic impact on Texas Gulf Coast ports and the Beaumont-Port Arthur MSA in general. COOK & ASSOCIATES, INC. 7 In March, 2023, the 1,215 megawatt Orange County Advanced Power Station near Bridge City was approved by the Public Utility Commission. Entergy Texas, Inc. estimates the plant construction, now underway to be competed in 2026, potentially powering 230,000 homes. The Power Station is projected to cost $1.2 billion and create 7,000 construction jobs along with 27 permanent jobs. Currently, land has been acquired and construction begun for a new Chevron- Phillips/Qatar Energy facility near Texas 87 and FM 1006 in Orange; announced on No- vember 16, 2022, to be an $8.58 billion dollar project with 4,500 construction jobs and 500 full time jobs. A plant expansion currently underway at the Exxon-Mobil Beaumont refinery will employ 1,850 in construction jobs, with 40 to 60 permanent jobs, and increase crude refining capacity by two thirds, making it one of the nation's largest refineries. The Golden Triangle area, as does the Gulf Coast in general, experiences occasional hur- ricanes and tropical storms. Tropical Storm Harvey struck the area on August 30, 2017, with record rainfall and widespread flooding. Tropical Storm Imelda struck the area on September 19, 2019, also with widespread flooding and road closures, but to a lesser de- gree than experienced during Tropical Storm Harvey. Most flooding occurred in the west- erly portion of Jefferson County and easterly portion of Chambers County. A fairly rapid recovery was completed with minimal long term adverse effect. Most recently, the area in general suffered relatively minor damage from Hurricane Laura which struck the Camer- on/Lake Charles, Louisiana area, just to the east, on August 27, 2020. Damage in the Or- ange area was more extensive, being closer in proximity to landfall. Damage in the Lake Charles area was severe. Tropical Storm Beta, which struck the area on September 22, 2020, caused minimal damage. Hurricane Delta, which struck Lake Charles on October 9, 2020, caused moderate damage in the Beaumont, Port Arthur and Orange area. In response to the threat of hurricane damage, the US Corps of Engineers is constructing a coastal storm barrier system known as the Sabine to Galveston or Texas Coastal Spine Project. The project will extend 27 miles through Orange County coastal area, as well as coastal area of Jefferson County and the Bolivar Peninsula to Galveston. The project ini- tially began in Orange County in 2020 and is expected to be complete in 2031. The entire project is projected to take 20 years or more to complete with design and environmental studies for some areas not yet complete. Prices paid for existing real estate in general are increasing. Brokers are optimistic with increases in market activity related to continued petrochemical expansion anticipated over the next twelve months. Currently smaller office/shop/warehouse space is in short supply with new construction anticipated. An area map is included in the Addenda. COOK & ASSOCIATES, INC. 8 NEIGHBORHOOD ANALYSIS: The objective of a Neighborhood Analysis is to de- scribe and analyze observable and/or quantifiable data that indicates discernible patterns of urban growth, structure and changes that detract from or enhance property values. A neighborhood is a portion of a larger community in which there is a homogeneous grouping of inhabitants, buildings or business enterprises. Neighborhood boundaries may consist of well-defined natural or man-made barriers, or they may be, more or less, well- defined by a distinct change in land values or in the character of the inhabitants. The subject tract is located on Freeman Avenue (aka Texas Avenue) between 7th Street and 8th Street. The subject neighborhood is considered to be that area bounded by the Union Pacific Railroad on the north, Savannah Street on the east, the Intra Coastal Wa- terway on the south and State Highway 82 on the west. This is an older area in the City of Port Arthur which contains the Central Business District, a light industrial/manufacturing district and the Port of Port Arthur. The industrial/light manufacturing district is primary located along Houston Avenue, Railroad Avenue, Fort Worth Avenue, Austin Avenue and West Procter Street. Immediately southwest and northwest are major petrochemical refining and storage facilities (Valero, Motiva), with re- lated properties just within the westernmost portion of the neighborhood. The Central Business District declined significantly during the early 80's. This decline will be discussed later in this analysis. At the present time, the Central Business District pri- marily consists of city and county governmental offices, local neighborhood retail trade, museums, the Lamar University Port Arthur campus and the Port of Port Arthur. There are scattered local club and restaurant uses and some buildings have been restored for office or warehouse use. A number of vacant buildings in various stages of deterioration remain. However many have been razed in recent years, with vacant lots remaining. Houston Avenue and Procter Street are major traffic arteries into the downtown area. Houston Avenue is a two-lane asphalt paved thoroughfare with concrete curb and gutters. Procter Street is a four lane, asphalt paved, curb and guttered traffic artery with a center turning lane. Gulfway Drive (State Highway 87) is a major east/west four-lane asphalt paved traffic artery that traverses the central part of the city. State Highway 82 is a north/south artery extending southeast from State Highway 73 across the ship channel to Pleasure Island and on to Louisiana. The terrain within the neighborhood is generally level with elevations ranging from approx- imately 5 to 10 feet above mean sea level. For the most part, the neighborhood falls within the Federal Emergency Management Agency designated Flood Zone B, a flood hazard area between the limits of the 100 year and 500 year flood plains. However, it is located within a hurricane flood plain area, protected partially by a hurricane levee which was completed in 1981 by the U.S. Corps of Engineers. The city enacted an ordinance requir- ing new construction to be at four feet or above maximum ponding level. This action, along with the construction of numerous drainage canals and other precautions has made the area eligible for flood insurance at government subsidized rates. Since completion of the Flood Protection Project, the area has generally had a reputation for adequate drainage. However, there was widespread flooding associated with Tropical Storm Harvey, as previ- ously mentioned. COOK & ASSOCIATES, INC. 9 Electricity, gas and telephone services are provided by privately owned corporations and serve the entire neighborhood. The city provides sewer and water utilities throughout the neighborhood. All of these services have a reputation of providing adequate service. Zoning classifications throughout the area are primarily GC (Commercial/General), CR (Commercial/Retail), HI and LI (Heavy and Light Industrial), MDR (Medium Density Resi- dential) or PD (Planned Development). These zoning restrictions provide for a variety of commercial, light industrial, distribution and/or manufacturing uses. Residential classifica- tions are typically removed from major arteries. Portions of the westernmost portion of the neighborhood are outside the city limits, but are subject to extraterritorial jurisdiction regu- lations. During the mid-1980's, the neighborhood experienced an economic decline, as previously mentioned. This was due, in part, to the depressed oil related economy of the entire area. Significantly compounding the problem was a trend begun in the early 1980's toward the relocation of retail businesses to the New Town In Town area and Central Mall located 6.5 miles northwest of the subject at the intersection of US Highway 69/96/287 and FM 365. This area quickly became the major retail center in the city of Port Arthur. Thus, the Cen- tral Business District, as well as other retail areas in the city, suffered a decline. Conse- quently, demand for commercial sites within the neighborhood diminished. In recent years, the local economy in general has recovered. Continuing and significant petrochemical expansion has had a positive impact. (Manufacturing and light industrial uses continue to be viable due, in part, to proximity to the Port of Port Arthur.) The central business district within the subject neighborhood never recovered from the competition of Central Mall and has not been considered to be a viable retail area. However, an an- nouncement by Motiva Enterprises, LLC on April 3, 2019, indicated plans to purchase and renovate two large historic downtown Port Arthur buildings to be occupied by ± 500 office workers. The two buildings, the World Trade Building and the Federal Building, are located on Austin Avenue and have been vacant for decades. Completion of this renovation, in conjunction with renovation of the Sabine Hotel, recently purchased by Motiva, is projected to take 2 '/2 years and is expected to have a significant positive impact on the downtown area. (Motiva's projected investment in the three building project is $150 million and is part of an "in lieu of taxes" agreement with the City of Port Arthur.") In conclusion, the subject neighborhood is expected to retain its present characteristics for the foreseeable future with positive impact of the Motiva building renovations anticipated. Continued periodic expansion and upgrading at the Port of Port Arthur and the Lamar Uni- versity-Port Arthur campus is thought likely. A Neighborhood Map is presented in the Addenda. COOK & ASSOCIATES, INC. 10 PROPERTY DESCRIPTION: Location/ Access: The subject lot is located on Freeman Avenue (aka Texas Avenue), between 7th and 8th Street, three blocks west of Houston Avenue. Houston Avenue is a four-lane artery and primary connecting route from Gulfway Drive to the Port of Port Arthur and Central Business District. Freeman Avenue and 7th and 8th Streets are two-lane, sec- ondary neighborhood streets. Tract Size: 2,000 SF Configuration: Rectangular (40 x 50) Topography/ Elevation: The subject tract is cleared and level. Elevation is approximately 0 to 5 feet above mean sea level. Flood Zone: Zone B, within the 500 year flood plain or area protected by hurricane levee, but outside the 100 year flood plain. Zoning: CG, Commercial General Utilities: All public utilities are available. Existing Improvements: None Surrounding Uses: Immediately across Freeman Avenue is a church facility. Other imme- diately surrounding tracts are vacant. South and east across West Procter and Denbo Avenue is a large Kansas City Southern railroad terminal/yard, south of which is the Port of Port Arthur, and Sabine Neches Ship Channel Easements/ Encumbrances: Standard utility easements were noted. The characteristics of the subject tract generally conform to those of surrounding proper- ties and those discussed in the Neighborhood Analysis are considered applicable. Howev- er, the subject is relatively small for typical development and thought best suited for use in conjunction with neighboring property. The subject is presently vacant. Presented in the Addenda are a Plat Map (aerial view), Topographical Map, Flood Map and a Zoning Map. COOK & ASSOCIATES, INC. 11 HIGHEST AND BEST USE: Highest and Best Use "As Vacant": The subject is located on a secondary street in general proximity to the Port of Port Arthur and central business district. However, it is quite small for typical development and thought best suited for use in conjunction with neighboring property. Commercial/light industrial development is legally permissible and consistent with development trends. Limited ongoing development suggests financial feasibility of various commercial/light in- dustrial uses. Thus, the Highest and Best Use of the subject is commercial/light industrial in conjunction with neighboring property. COOK Si ASSOCIATES, INC. 12 SUMMARY OF THE SALES COMPARISON ANALYSIS: This is an appraisal technique in which the Market Value estimate is based on prices paid in actual market transactions. The approach involves gathering data of sales of comparable properties and analyzing the nature and condition of each sale, comparing with the subject property, making logical ad- justments for characteristics dissimilar to the subject property. The direct sales compari- son approach is based upon the principle of substitution and is a good indicator of value when sales of highly similar properties are available. The principle of substitution is de- fined in The Dictionary of Real Estate Appraisal, p. 296 as "The appraisal principle that states that when several similar or commensurate commodities, goods or services are available, the one with the lowest price will attract the greatest demand and widest distri- bution." The reliability of this approach is dependent upon the following factors: • The degree of similarity of the comparable property to the property being appraised as to location, size, and utility. • The time of the sale. • The verification of the market data. • The absence of unusual conditions affecting the sales price. The appraiser has made a diligent search of available sources in an attempt to obtain data on the sales of similar vacant properties. Also contacted were several area real estate brokers. The Sales Comparison Approach is applied in the study of prices paid for compa- rable tract to indicate the price at which the subject tract should sell after adjustments are applied for the factors that tend to affect price, i.e., sale date, tract size, locational quality, etc. The "market" for similar properties has been active in recent years, thereby providing sales data from which a comparative analysis can be made for a value indication. Presented on the following pages is the data on the sales which were deemed most com- parable and provided the most reliable indicators of value as well as a map showing the location of each sale in relation to the subject, followed by a Sales Summary. The square foot unit has been used in the analysis as the market tends to quote vacant land prices in this unit. The Market Adjustment Chart, showing the pertinent data on each sale and the adjustments follows the Sales Summary. After the adjustment chart is a brief explanation of the adjustments and the concluded value estimate for the subject tract. COOK & ASSOCIATES, INC. 13 Land Sale No. 1 Property Identification Record ID 1570 Property Type Vacant Land Address Nall Street, Port Neches, Jefferson County, Texas 77651 Location South side on Twin City turnaround Tax ID PIDN: 74934 Latitude, Longitude N29.967773, W-93.972624 Legal Desc. Tract 1-A, Lot 6, Range F, Block 13, PALCO .6985 Ac Sale Data Grantor Robert Nghia Chang DDS PLLC Grantee Sandoval Elite Custom Builders LLC Sale Date February 28, 2024 Deed Book/Page 2024005227 Property Rights Fee Financing Cash to seller Verification Coldwell Banker Southern Homes- Barbara Kearns; MLS # 237502 Sale Price $150,000 Cash Equivalent $150,000 Land Data Zoning B-M (Business-Medium) Topography Level and cleared Utilities All available Shape Rectangular Flood Info Zone C Land Size Information Gross Land Size 0.699 Acres or 30,448 SF Front Footage 102 ft Nall Street; Indicators Sale Price/Gross Acre $214,592 Sale Price/Gross SF $4.93 COOK & ASSOCIATES, INC. 14 Land Sale No. 1 (Cont.) Remarks Land sale on the south side of Nall Street loop/access road below elevated main lanes, just east of Twin City Highway COOK & ASSOCIATES, INC. 15 Land Sale No. 2 Property Identification Record ID 1440 Property Type Vacant Land Address 134 Gulfway Drive, Port Arthur, Jefferson County, Texas 77640 Location South side, east of Houston Avenue west of San An- tonio Ave. Tax ID PIDN: 92836 Legal Desc. Lot 12, Block 481, City of Port Arthur Sale Data Grantor Tom Gilliam Ill et ux Grantee Hina Younis Sale Date August 22, 2023 Deed Book/Page 2023024741 Property Rights Fee Verification Freeman Properties Group; MLS # 239969 Sale Price $12,500 Cash Equivalent $12,500 Land Data Zoning CG-Commercial General Topography Level Utilities Available Shape Rectangular Flood Info Zone B, within 500 year floodplain Land Size Information Gross Land Size 0.161 Acres or 7,000 SF 0 Indicators Sale Price/Gross Acre $77,786 Sale Price/Gross SF $1.79 COOK & ASSOCIATES, INC. 16 Land Sale No. 3 Property Identification Record ID 1348 Property Type Vacant Land Address 510 Stadium Road, Port Arthur, Jefferson County, Texas 77642 Location Stadium @ 5th St. (NEC) Tax ID PIDN: 54605 Legal Desc. Lots 23 - 29 Block 7, Lakeview MSA Beaumont-Port Arthur-Orange 1 Sale Data Grantor Jonathan M Barnett Grantee David Alvarez Sale Date November 08, 2021 Deed Book/Page 2021039495 Property Rights Fee Financing Cash Verification J. Sanders/SETX Properties; MLS #202823 Sale Price $33,000 Cash Equivalent $33,000 Land Data Zoning LC Light Commercial, Light Commercial Topography Level, Cleared Utilities All Available Shape Rectangular Flood Info Zone B Land Size Information Gross Land Size 0.434 Acres or 18,900 SF Front Footage 189 ft Stadium Rd; 100 ft 5th; Indicators Sale Price/Gross Acre $76,057 Sale Price/Gross SF $1.75 Remarks List Price: $34,900 DOM: 907 COOK & ASSOCIATES, INC. 17 Land Sale No. 4 Property Identification Record ID 707 Property Type Vacant Land Address 900 - 930 Houston Avenue, Port Arthur, Jefferson County, Texas Location Northeast side between 9th St. and 10th St. Tax ID 87886, 87887, 87888 Legal Desc. Lots 7 thru 9, North 22.67' of Lot 10, Block#44 MSA Beaumont-Port Arthur Sale Data Grantor John E. Wallace, et al Grantee Port of Port Arthur Navigation District Sale Date July 21, 2021 Deed Book/Page 2021025563 Financing Cash to seller Verification Grantee, Agent, Pat Holmes RE; Other sources: MLS #A70358A Sale Price $25,000 Cash Equivalent $25,000 Land Data Zoning Industrial Topography Level, cleared, residual concrete Utilities All available Shape Rectangular, 97.67' x 140' Flood Info Zone B Land Size Information Gross Land Size 0.314 Acres or 13,674 SF Front Footage 98 ft Indicators Sale Price/Gross Acre $79,640 Sale Price/Gross SF $1.83 Remarks The List Price is $39,900. Prior sale for $25,000 fell through due to title issues. COOK & ASSOCIATES, INC. 18 Land Sale No. 5 Property Identification Record ID 1124 Property Type Vacant Land Address 400 Houston Avenue, Port Arthur, Jefferson County, Texas Location East side, just south of 5th Street Tax ID PIDN 89021 Legal Desc. Lot 8, Block 135 MSA Beaumont-Port Arthur Sale Data Grantor Laurence M. Teller Grantee Port of Port Arthur Navigation District Sale Date March 30, 2021 Deed Book/Page 2021010731 Financing Cash Verification Grantee Sale Price $7,000 Cash Equivalent $7,000 Land Data Utilities All available Shape Rectangular Flood Info Zone B Land Size Information Gross Land Size 0.080 Acres or 3,500 SF Front Footage 25 ft Total Frontage: Indicators Sale Price/Gross Acre $87,120 Sale Price/Gross SF $2.00 Sale Price/Front Foot $280 Remarks Listed for sale (MLS M 76272 W) on 8/7/2018 for $7,000, withdrawn prior to sale. COOK & ASSOCIATES, INC. 19 Land Sale No. 6 Property Identification Record ID 1325 Property Type Vacant Land Address 3201 9th Avenue, Port Arthur, Jefferson County, Texas 77642 Location NWC of 9th Avenue and 31st Street Tax ID PID #80628 Legal Desc. Lots 9 & 10, Block 2, Pear Ridge Addition, less .0006 acres out of Lot 10 Sale Data Grantor Yen Tran Investments, LLC Grantee Melvin M.L. Melendez Sale Date March 19, 2021 Deed Book/Page 202008522 Property Rights Fee Financing Cash to Seller Verification MLS #218197; Agent: JLA Realty; Other sources: Jefferson CAD records Sale Price $23,000 Cash Equivalent $23,000 Land Data Zoning PD, Planned Development Topography Level, Cleared Utilities All public utilities available Dimensions 90' x 130' Shape Rectangular Flood Info Zone - B Land Size Information Gross Land Size 0.269 Acres or 11,700 SF Front Footage 130 ft 9th Avenue; 90 ft 31st Street; Indicators Sale Price/Gross Acre $85,631 Sale Price/Gross SF $1.97 Remarks Developed lot in an older mixed residential/commercial area. COOK & ASSOCIATES, INC. 20 "D E L O R ME DeLorme StromAtlas USA®2013 L. • 1. ! 7 ., -.R. `---_,_r-'• l • y • /i' CA� ly P Y 'y � ` , r �jd S� •k-yam k` J 4- 0 ® e' _ , , . -•:.•;','‘,:',.-' ?'A _ , ,.,..:,.,.-',..."",..-.,.-.,...,..,.,.r.Pee R/ �• ' GrRKng Pau. p!• ���, ��. ,'� (` ,'SALE 3 ® SEI N ob, j//// / ^' Port Arhus Q� NN / // •� .)' J/J w • N CB F(4 e(a ,z,9 `f*,/,\.\\(,),,,, ,, Ory / ", �: t' �+ j a } 4 m SUBJECT r� Lab 41 , : / i / r +` .r: ` `°°` LAND SALES MAP Data use subject to license IC ■■ i♦ ©DeLorme DeLorme Street Atlas USA®2013 ' '_ mi 0 /a /� 3/41 1% 1/z 1h www delorme corn MN(0 7'E) Data Zoom 11-6 0 COOK & ASSOCIATES, INC. 21 SUMMARY OF SALES COMPARISON ANALYSIS: Summary of Subject Subject Location Size/SF 727 Freeman Avenue, Port Arthur 2,000 Land Sales Summary Sale Date Location Size/SF Unit Price 1 2/2024 Nall Street, Port Neches 30,448 $4.93 2 8/2023 134 Gulfway 7,000 $1.79 3 11/2021 510 Stadium @ 5th 18,900 $1 .75 4 7/2021 900-930 Houston 13,674 $1 .83 5 3/2021 400 Houston 3,500 $2.00 6 3/2021 3901 9th Avenue 11,700 $1.97 Market Adjustment Grid - Land Sales Sale SP/SF Fin. Time Size Loca- Phys. Net Adj. Unit tion Char. Adj. Value/SF 1 $4.93 0 0 +35% -60% 0 -25% $3.70 2 $1 .79 0 0 +10% 0 0 +10% $1.97 3 $1 .75 0 0 +15% 0 -10% +5% $1.84 4 $1.83 0 0 +15% 0 0 +15% $2.10 5 $2.00 0 0 0 0 0 0 $2.00 6 $1.97 0 0 +15% 0 -10% +5% $2.07 Limited Explanation of Adjustments: Financing: All sales were for cash to seller or financing equivalent to cash, therefore, no 4 financing adjustments were necessary. Time: All sales are fairly current transactions; therefore, no market condition ad- justments were necessary. COOK & ASSOCIATES, INC. 22 Size: Typically smaller tracts generate relatively higher unit sales prices. Except for Sale #5, all sales were larger than the subject and therefore warrant various positive adjustments for this factor. Adjustments applied range from 10% to 35%. Location: Sale #1 is thought somewhat superior to the subject with regard to access/ exposure and/or proximity to development and is negatively adjusted 60%. Utility: Sales #3 and #6, corner tracts, are thought superior to the subject with re- gard to tract utility and are negatively adjusted 10%. All sales are located in the subject's general market area and are considered to provide reliable indicators of value for the subject site. After adjustments the sales indicated a val- ue range from $1.84/SF to $3.70/SF. The mean value indicated for the subject tract is $2.28/SF. The median value is $2.04/SF. Sale #5, with no adjustments, indicates a unit value of$2.00/SF. Sales #2 thru #6, most similar in location, indicate $2.00/SF. Based on this analysis, a unit value of$2.00/SF is considered reasonable and when ap- plied to the subject site indicates the following: 2,000 SF @ $2.00/SF = $4,000 RECONCILIATION OF FINAL VALUE ESTIMATE: The sales selected for analysis are in the subject marketing area and have a reliable degree of comparability to the subject property. The adjustments for variances between the comparable properties and the sub- ject property are thought consistent with the opinions and attitudes of prudent purchasers. As previously discussed, there were no improvements which preclude the use of the Cost Approach and there was no income stream to be evaluated which precludes the use of the Income Approach. In view of these facts, primary consideration is given to the Sales Comparison Approach in developing an opinion of the Market Value of the subject proper- ty. CONCLUDED PROPERTY VALUE: Considering all of the data presented in the forego- ing analyses, it is the appraiser's opinion that, as of the date of inspection, the Market Val- ue of the subject property is: FOUR THOUSAND ($4,000) DOLLARS COOK & ASSOCIATES, INC. ADDENDA COOK & ASSOCIATES, INC. 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'4 o` yysf, O04 O `' .‹i thur 1 t 114, �� A`' rc, c �„ *., o ; `yY 6 i300yards . 1� �� w Q-a v . .a.- b 0`qP Google° b, ` : , i #' ; . T ;e> MAP DATA MAP LEGEND Powered 5, arewge"s 40 01 FEMA Special Flood Hazard Area No Ei Areas inundated by 500-year flooding •:): Protected Areas Map Number:4854990045E Zone B El Areas inundated by 100-year flooding 4 Floodway Map Date April 17,1984 n Velocity Hazard 0 Subject Area 11 FIPS.48245 COOK & ASSOCIATES, INC. 29 .„ VIEW ALONG W. FREEMAN LOOKING SOUTH • 3 3 _ i ,s • Tg N a VIEW ALONG W. FREEMAN LOOKING NORTH COOK & ASSOCIATES, INC. 30 • 1 �taa VIEW FROM SUBJECT NEC LOOKING SOUTHWEST Y VIEW FROM SUBJECT SEC LOOKING NORTHWEST COOK & ASSOCIATES, INC. 8/2/24,10:53 AM aboutblank PI Property Details Account Property ID: 95652 Geographic ID: 055020-000-035100- 00000 Type: Real Zoning: HC Property Use: CN REAL VACANT Condo: NAVIGATION/PORT Location Situs Address: 727 FREEMAN AVE PORT ARTHUR, TX 77640 Map ID: 0 Mapsco: 109-06 Legal Description: E50' OF LT 19 & E50' OF S15 OF LT 20 RES 22 RESV Abstract/Subdivision: 055020-000 - RESERVATION Neighborhood: Owner Owner ID: 465143 Name: PORT OF PORT ARTHUR NAVIGATION Agent: Mailing Address: DISTRICT PO BOX 1428 PORT ARTHUR, TX 77641-1428 % Ownership: 100.00% Exemptions: EX-XV - Other Exemptions (including public property, religious organizations, charitable organizations, and other property not reported elsewhere) For privacy reasons not all exemptions are shown online. A Property Values Improvement Homesite Value: N/A(+) Improvement Non-Homesite Value: N/A(+) Land Homesite Value: N/A(+) Land Non-Homesite Value: N/A(+) about:blank 1/5 8/2/24, 10:53 AM about:blank Agricultural Market Valuation: N/A(+) Market Value: N/A(=) Agricultural Value Loss:0 N/A(-) Appraised Value: N/A(=) HS Cap Loss/Circuit Breaker: 0 N/A(-) Assessed Value: N/A Ag Use Value: N/A VALUES DISPLAYED ARE 2024 CERTIFIED VALUES. DISCLAIMER Information provided for research purposes only. Legal descriptions and acreage amounts are for appraisal district use only and should be verified prior to using for legal purpose and or documents. Please contact the Appraisal District to verify all information for accuracy. !1 Property Taxing Jurisdiction Owner: PORT OF PORT ARTHUR NAVIGATION %Ownership: 100.00% Entity Description Tax Market Taxable Estimated Freeze Rate Value Value Tax Ceiling 109 PORT ARTHUR ISD N/A N/A N/A N/A N/A 235 CITY OF PORT ARTHUR N/A N/A N/A N/A N/A 343 PORT OF PORT ARTHUR N/A N/A N/A N/A N/A 755 SABINE NECHES NAV DIST N/A N/A N/A N/A N/A 851 DRAINAGE DISTRICT #7 N/A N/A N/A N/A N/A 901 JEFFERSON COUNTY N/A N/A N/A N/A N/A A59 FARM AND LATERAL ROAD N/A N/A N/A N/A N/A CAD JEFFERSON CO APPRAISAL N/A N/A N/A N/A N/A DISTRICT T235 TIF CITY OF PORT ARTHUR N/A N/A N/A N/A N/A Total Tax Rate: N/A about:blank 2/5 8/2/24,10:53 AM about:blank Estimated Taxes With Exemptions: N/A Estimated Taxes Without Exemptions: N/A • about:blank 3/5 8/2/24, 10:53AM about:blank 11 Property Land Type Description Acreage Sqft Eff Front Eff Depth Market Value Prod. Value RES55 RES55 0.05 2,000.00 40.00 50.00 N/A N/A about:blank 4/5 8/2/24, 10:53 AM about:blank PI Property Roll Value History Year Improvements Land Market Ag Valuation Appraised HS Cap Loss Assessed 2025 N/A N/A N/A N/A N/A N/A 2024 $0 $1,276 $0 $1,276 $0 $1,276 2023 $0 $1,276 $0 $1,276 $0 $1,276 2022 $0 $1,276 $0 $1,276 $0 $1,276 2021 $0 $1,276 $0 $1,276 $0 $1,276 2020 $0 $1,276 $0 $1,276 $0 $1,276 2019 $0 $1,280 $0 $1,280 $0 $1,280 2018 $0 $1,280 $0 $1,280 $0 $1,280 2017 $0 $1,280 $0 $1,280 $0 $1,280 2016 $0 $1,280 $0 $1,280 $0 $1,280 2015 $0 $1,280 $0 $1,280 $0 $1,280 2014 $0 $1,280 $0 $1,280 $0 $1,280 11 Property Deed History Deed Type Description Grantor Grantee Volume Page Number Date 9/4/2022 WD WARRANTY STATE OF PORT OF PORT 2022033412 DEED TEXAS ARTHUR NAVIGATION about:blank 5/5 AL {4,O TEXAS GENERAL LAND OFFICE GEORGE P. BUSH, COMMISSIONER July 6, 2022 Port of Port Arthur Navigation District Attn: Rebecca Underhill P.O. Box 1428 Port Arthur,Texas 77641 Sent via email: rebeccaPportpo.com Re: Approved sale of East 50 ft. of Lot 19, and the South 15 ft. of the East 50 ft. of Lot 20, Range 22, BBB and C Survey, City of Port Arthur, Jefferson County, Texas, File Number TFL- 000086 Dear Ms. Underhill: Today, the School Land Board approved the direct sale of the referenced tract for a total purchase price of $1700.00 Also, the 1.5% statutory sales fee in the amount of $25.50 is due. This fee represents 1.5%of the total purchase price. In order to close this sale,please forward$1725.50,in the form of a remittance made payable to the Texas General Land Office, within 30 days from the date of this letter. When the required payment is received, you will receive a DEED for the tract. If you have any questions, please contact me at heather.martaindaie(d glo.texas.gov or (512) 463- 5161. In order to ensure proper handling, please direct your correspondence to my attention at: Texas General Land Office, Asset Management Division, PO Box 12873, Austin, Texas, 78711- 2873. Sincerely, 60101 7-REV /s/Heather Martaindale Heather Martaindale APPROVED Asset Management By Rebecca Underhill at 9:52 am,Aug 04, 2022 1700 North Congress Avenue,Austin,Texas 78701-1495 P.O.Box 12873,Austin,Texas 78711-2873 512-463-5001 glo.texas.gov L,^ALA a n i TEXAS GENERAL LAND OFFICE GEORGE P. BUSH, COMMISSIONER September 14,2022 Port of Port Arthur Navigation District Attn: Rebecca Underhill P.O. Box 1428 Port Arthur,Texas 77641 Re: Deed for East 50 ft. of Lot 19, and the South 15 ft. of the East 50 ft. of Lot 20, Range 22, BBB and C Survey, City of Port Arthur, Jefferson County, Texas Dear Ms. Underhill: ti Enclosed is your Deed for the referenced sale. Please be aware that it is your responsibility to have the deed recorded in the real property records of the Jefferson County Clerk's Office in order to protect your rights in this property. In accordance with Section 51.065 of the Texas Natural Resources Code, the Texas General Land Office will notify the county clerk of the sale, the purchaser's name and address, and the purchase price. This information will then become public record. Please call me at or (512) 463-5161 or email at heather.martaindale(aglo.texas.gav if I can answer any questions or provide additional information. Sincerely, III CP/j*,ftt'kjUatkaktid. aiQU Heather Martaindale Asset Management IIEnclosure 1 1700 North Congress Avenue,Austin,Texas 78701-1495 P.O.Box 12873,Austin,Texas 78711-2873 512-463-5001 glo.texas.gov DocuSign Envelope ID:77DA55A8-3BA3-40CC-8088-65D7F4CD3629 NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE ANY OR ALL OF THE FOLLOWING INFORMATION FROM ANY INS'IRUMEN'T'1'HAT TRANSFERS AN INTEREST IN REAL PROPERTY BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER'S LICENSE NUMBER. DEED FROM THE STATE OF TEXAS STATE OF TEXAS } } KNOW ALL BY THESE PRESENTS: COUNTY OF JEFFERSON } That the State of Texas,acting by and through George P, Bush, Commissioner of the General Land Office, for the benefit of the Capitol Trust Fund, (Grantor), by virtue of the authority vested in it by Chapter 32, Subchapter Ill, of the Texas Natural Resources Code,for and in consideration of SEVENTEEN IIUNDRED and NO/100 Dollars ($1700.00), the receipt and sufficiency of which is hereby acknowledged, has granted, sold and conveyed,and by these presents does grant,sell and convey unto Port of Port Arthur Navigation District,P.O. Box 1428,Port Arthur,Texas 77641,(Grantee), the following described land to-wit: East 50 ft. of Lot 19, and the South 15 ft, of the East 50 ft. of Lot 20,Range 22, BBB and C Survey, City of Port Arthur, Jefferson County, Texas; Being the same property conveyed to the State of Texas, in foreclosure of a tax lien, recorded in Document Number 8304061, Pages 2355-2357,Deed Records,Jefferson County,Texas;(Property). To have and to hold the above described premises, together with all and singular the rights, improvements, and appurtenances thereto in anywise belonging unto Grantee, its successors and assigns forever; provided,however, that there is reserved and retained unto Grantor, for the use and benefit of the Capitol Trust Fund, (1) all oil, gas, coal, lignite, sulphur and other mineral substances from which sulphur may be derived or produced, salt, potash, uranium, thorium, sand, gravel, caliche, limestone,and all other minerals in and under the Property described above wherever located and by whatever method recovered; (2) all rights and interests in and to groundwater underlying the Property described above, including the right to place, construct, maintain and operate wells, pipelines, utilities, pumps, meters and other related infrastructure upon the appurtenant surface estate; (3) the right to test for, explore for, produce, develop, lease, and store such minerals and groundwater and to place, construct, maintain, and operate any structures necessary and incident thereto at a she or sites as determined by Grantor; and (4) the right of ingress and egress across the appurtenant surface estate necessary to explore for, produce, develop and store the said oil, gas, minerals and groundwater. Further provided,however, Grantee shall have the right to use so much of the groundwater underlying the said Property as may be reasonable and necessary for Grantee's household and domestic purposes only. Grantee, their successors, and assigns shall have no right to use any groundwater underlying the Property conveyed herein for any commercial or industrial purposes. This deed is made and accepted subject to all restrictions, covenants, conditions, reservations,rights-of-way, easements, and encumbrances, including title deficiencies, if any, that are of record or visible upon the Property. This deed is made and accepted without any warranties whatsoever,expressed or implied,including those set forth in Property Code Section 5,023. DocuSign Envelope ID:77DA55A8-3BA3-40CC-8088-65D7F4CD3629 WITNESS M 'HAND - SEAL OF OFFICE. By: ____ GEORGE P.BUSH Commissioner of the General Land Office DATE: I4\2022. Contents Ark. Legal. Director rt5C ritib Dep.GC w Gen.Counsel r," Executive_ "r- L_ — File No.:TFL-000086 GENERAL UNDERLYING ASSUMPTIONS AND LIMITING CONDITIONS This appraisal report and the letter of transmittal are made expressly subject to the follow- ing assumptions and limiting conditions: General Underlying Assumptions Legal Matters: The legal description used in this report is assumed to be correct, but it may not necessari- ly have been confirmed by survey. No responsibility is assumed in connection with a sur- vey or for encroachments or overlapping or other discrepancies that might be revealed thereby. Any sketches included in the report are only for the purpose of aiding the reader in visualizing the property and are not necessarily a result of a survey. INo responsibility is assumed for an opinion of legal nature, such as to ownership of the property or condition of title. Unless otherwise stated,the subject property appraised is the surface estate only, with no consideration of mineral interests. I The appraiser assumes the title to the property to be marketable and unrestricted;that, un- less stated to the contrary, the property is appraised as an unencumbered fee which is not used in violation of acceptable ordinances, statutes or other governmental regulations. Unapparent Conditions: The appraiser assumes that there are no hidden or unapparent conditions of the property, subsoil or structures which would render it more or less valuable than otherwise compara- ble property. The appraiser is not an expert in determining the presence or absence of hazardous substance, defined as all hazardous or toxic materials,waste, pollutants or con- taminants (including, but not limited to, asbestos, PCB, UFFI, or other raw materials or chemicals) used in construction or otherwise present on the property. The appraiser assumes no responsibility for the studies or analysis which would be re- quired to conclude the presence or absence of such substances or for loss as a result of the presence of such substances. The client is urged to retain an expert in this field, if de- sired. The value estimate is based on the assumption that the subject property is not so affected. The site being appraised appears firm unless otherwise noted, however, soils common to the area have a high shrink-swell potential and may exert unusual pressure on foundations. The appraiser does not warrant against this condition or the occurrence of problems arising therefrom. Information and Data: Information, estimates and opinions furnished to the appraiser and contained in the report, were obtained from sources considered reliable and believed to be true and correct. How- ever, no responsibility for accuracy of such items furnished the appraiser can be assumed by the appraiser. All mortgages, liens, encumbrances and servitudes have been disregarded unless so specified within the appraisal report. The subject property is appraised as though under responsible owner- ship and competent management. Zoning and Licenses: It is assumed that all applicable zoning and use regulations and restrictions have been complied with, unless a nonconforming use has been stated, defined and considered in the valuation. It is assumed that the subject property complies with all applicable federal, state and local environmental regulations and laws unless noncompliance is stated, defined and consid- ered in the valuation. It is assumed that the information relating to the location of or existence of public utilities that has been obtained through a verbal inquiry from the appropriate utility authority, or has been ascertained from visual evidence is correct. No warranty has been made regarding the exact location or capacities of public utility systems. It is assumed that all licenses, consents or other legislative or administrative authority from local, state or national governmental or private entity or organization have been, or can be, obtained or renewed for any use on which the value estimate contained in the valuation re- port is based. The appraiser will not be required to give testimony or appear in court due to preparing the appraisal with reference to the subject property in question, unless prior arrangements have been made. Possession of the report does not carry with it the right of publication. Out-of-context quot- ing from or partial reprinting of this appraisal report is not authorized. Further, neither all nor any part of this appraisal report shall be disseminated to the general public by the use of media for public communication, nor used for any purpose by any but the intended user, without the prior written consent of the appraiser signing this appraisal report. This appraisal is to be used only in its entirety and no part is to be used without the whole report. All conclusions and opinions concerning the analysis are set forth in the report were prepared by the appraiser(s)whose signature(s) appear on the appraisal report. No change of any item in the report shall be made by anyone other than the appraiser and/or owner of the firm. The appraiser and firm shall have no responsibility if any such unauthor- ized change is made. Disclosure of the contents of this report is governed by the By-Laws and Regulations of the Appraisal Institute. Neither all nor any part of the contents of this report (especially any conclusions as to value, the identity of the appraisers or the firm with which they are con- nected, or any reference to the Appraisal Institute or to the appraisal designations)shall be disseminated to the public through advertising media, public relations media, news media, sales media or any other public means of communication without the prior written consent and approval of the author. The distribution of the total valuation in this report, between land and improvements, is ap- plicable only as a part of the whole property. The land value, or the separate value of the improvements, must not be used in conjunction with any other appraisal or estimate and is invalid if so used. An appraisal related to an estate in land that is less than the whole fee simple estate ap- plies only to the fractional interest involved. The value of this fractional interest plus the value of all other fractional interests may or may not equal the value of the entire fee sim- ple estate considered as a whole. The appraisal is subject to any proposed improvements or additions being completed as set forth in the plans, specifications, and representations referred to in the report, and all work being performed in a good and workmanlike manner. The appraisal is further subject to the proposed improvements or additions being constructed in accordance with the regu- lations of the local, county and state authorities. The plans, specifications and representa- tions referred to are an integral part of the appraisal report when new construction or new additions, renovations, refurbishing or remodeling applies. If this appraisal is used for mortgage loan purposes, the appraiser invites attention to the fact that (1) the equity cash requirements of the sponsor have not been analyzed, (2)the loan ratio has not been suggested, and (3) the amortization method and term have not been suggested. The function of this report is not for use in conjunction with a syndication of real property. This report cannot be used for said purposes and, therefore, any use of this report relating to syndication activities is strictly prohibited and unauthorized. If such an unauthorized use of this report takes place, it is understood and agreed that the appraiser has no liability to the client and/or third parties. The appraiser reserves the right to alter the opinion of value on the basis of any infor- mation withheld or not discovered in the normal course of a diligent investigation. There is no accountability, obligation or liability to any third party. The appraiser assumes no responsibility for any costs incurred to discover or correct any deficiencies present in the property. The Americans with Disabilities Act("ADA") became effective January 26, 1992. The ap- praiser has not made a specific compliance survey and analysis of this property to deter- mine whether or not it is in conformity with the various detailed requirements of the ADA. It is possible that a compliance survey of the property, together with a detailed analysis of the requirements of the ADA, could reveal that the property is not in compliance with one or more of the requirements of the Act. If so, this fact could have a negative effect upon the value of the property. Since the ap- praiser has no direct evidence relating to this issue, the appraiser did not consider possible noncompliance with the requirements of ADA in estimating the value of the property. Acceptance of and/or use of this appraisal report constitutes acceptance of the foregoing General Underlying Assumptions and General Limiting Conditions. The appraiser's duties, pursuant to the employment to make the appraisal, are complete upon delivery and ac- ceptance of the appraisal report. However, any corrections or errors should be called to the attention of the appraisers within 60 days of the delivery of the report. QUALIFICATIONS OF W. BURNELL COOK, MAI, SRA President, Cook & Associates Professional Affiliations and Activities MAI and SRA Member of Appraisal Institute, Houston Chapter Southeast Texas Chapter of CPA's Texas Society of CPA's National Association of Realtors Texas Association of Realtors Beaumont Board of Realtors Educational Background Graduated from Forest Park High School, Beaumont, in 1972 Graduated from Lamar State University, Beaumont, in 1976 (BBA in Accounting) Recent Continuing Education Financial Analysis 9/2014 Analyzing Operating Expenses 1/2015 Forecasting Revenue 2/2015 Comparative Analysis 3/2017 Sales Comparison Approach Workshop 3/2017 Appraisal of Owner Occupied Commercial Prop. 1/2019 Appraisal of Self-Storage Facilities 1/2019 4 Land and Site Valuation 1/2019 National USPAP Update 9/2020 Appraisal of Industrial and Flex Buildings 11/2020 Introduction to Commercial Appraisal Review 1/2021 The Basics of Expert Witness for Commercial App. 1/2021 Business Practices and Ethics 11/2021 Realtor Code of Ethics Training 12/2021 Supervisor— Trainee Course for Texas 4/2022 National USPAP Update 2/2023 Commercial Land Valuation 3/2023 Appraisal of Fast Food Facilities 3/2023 Experience Work experience includes various accounting and financial management posi- tions from 1976-1984 with emphasis on real estate investments, and business acquisi- tions and divestitures as chief financial officer. In February 1984, I joined Cook & Associates and have been active in consulta- tion, expert witness testimony and appraisal of various real estate interests in the East Texas and Southwest Louisiana areas. Such interests include single family residential, agricultural and timberland, industrial properties, offices, retail centers, apartments, mo- tels, restaurants, R.O.W. acquisitions and various other commercial and special pur- pose properties. Licenses/Certification Licensed Certified Public Accountant(#22347) Texas State Certified General Appraiser - TX 1320838-G WILLIAM BURNELL COOK 2640 MCFADDEN BEAUMONT,TX 77702 1 ZN6, 7#,N Certified General TALCB Real Estate Appraiser TEXAS APPRAISER LICENSING CERTIFICATION QOARD Appraiser: William Burnell Cook ILicense #: TX 1320838 G License Expires: 05/31/2025 Having provided satisfactory evidence of the qualifications required by the Texas Appraiser Licensing and Certification Act, Occupations Code, Chapter 1103, authorization is granted to use this title: Certified General Real Estate Appraiser Chelsea Buchholtz For additional information or to file a complaint please contact TALCB commissioner at www.talcb.texas.gov. 0 THURMAN BILL BARTIE,MAYOR .,, . RONALD BURTON,CPM DONEANE BECKCOM,MAYOR PRO TEM City of 'i" CITY MANAGER , SHERRI BELLARD,TRMC COUNCIL MEMBERS: — - CITY SECRETARY WILLIE"BAE"LEWIS,JR. g?-t raifir TIFFANY L. HAMILTON EVERFIELD Tomc JAMES M.BLACK HAROLD L.DOUCET,SR. INTERIM CITY ATTORNEY THOMAS KINLAW III DONALD FRANK,SR. July 23, 2024 via email:cookapprfiu2mail.com Cook &Associates, Inc. Burnell Cook, MAI, SRA, CPA 2640 McFaddin Street Beaumont,Texas 77702 Re: Property Appraisal Request Dear Mr. Cook: I hope this letter finds you well. On behalf of the City of Port Arthur, I am writing to formally request your professional services for a property appraisal. We are in the process of acquiring a tract of land and will need a fair market valuation of the property described below. Property Details: • Property Address: 727 Freeman Avenue • Property ID: 95652 • Legal Description: E50' OF LT 19 &E50'OF Sly OF LT 20 RES 22 RESV Please let me know if you require any additional information or documentation from my end to initiate the appraisal process. I can be reached at huy.tran/aportarthurtx.gov or(409)983- 8126 to discuss any details or answer any questions you may have. Thank you. Sincerely, Huy ran, Compliance Officer "Remember,we are here to serve the Citizens of Port Arthur" P.O BOX 1089' PORT AR]UUR.TEXAS 77641-1089 '409/983-8125'FAX 409/983-8124' www.portarthurtx.gov