League City pays property owner $40,360 to construct Hike & Bike Trail!

On Tuesday March 24, 2015, League City Council authorized the purchase of .21 acres of land  (9320.8 sq ft) to construct part of the League City Hike and Bike Trail Phase 1 for the purchase price of $34,860. The parcel of land that is to be purchased is part of the Heritage Park Trail potion of phase 1`of the League City Hike and Bike Trail. 

This expense will be paid for with a portion of the sale tax that League City collects for its 4B fund. 

The City sales tax, which provides the City’s third largest revenue source, is 1.75% on taxable items. Of this amount, 0.25% goes to the City’s 4B economic development corporation “to promote and develop amateur sports complexes.” In 2014, The 4B fund had a balance of over 8.7 Million and is the funding source for the League City Hike and Bike Trail.

The City Council Meeting Minutes (http://voccproud.com/p/CouncilPaysForAnEasement.pdf):

A motion was made by Mayor Paulissen, seconded by Mr. Kinsey, to approve the offer to sell and purchase agreement in the amount of $34,860 plus surveying and closing costs, for the purchase of 0.21 acres with all improvements thereon located in Lot 18, Division “C” of League City, together with the right-of-entry agreement (at no cost) for the construction of a portion of the Heritage Trail across the 0.21 acre tract, and authorize the deputy city manager or his designate to execute and City Secretary to attest such documents as necessary to complete the conveyance. The motion passed.

Update 4/15/2015 (http://www.guidrynews.com/story.aspx?id=1000069026)
The city council voted 7-1, with Gross opposed, to accept the counter-offer to sell and purchase agreement in the amount of $40,360, plus surveying and closing costs, for the purchase of 0.21 acres with all improvements thereon located in Lot 18, Division "C" of League City, together with the right-of-entry agreement, at no cost, for the construction of a portion of the Heritage Trail across the 0.21 acre tract, as discussed in closed session

The $40,360 purchase is roughly $4.33 per sq ft ($40,360 / 9320.8 sq ft) , In comparison, the  easement that VOCC donated League City is much larger than the recently purchased property. Using the figures from the recent purchase; The VOCC easement's estimated size is 1.48 acres (18 ft wide x 3595.65 ft long = 64,721.7 sq ft * $4.33) for an estimated value of $280,251. 

The VOCC donated our easement for free.

In the April 2014 HOA Board Meeting: 

(http://voccproud.com/p/2014-04-03_Minutes.pdf)
Vote on The Hike and Bike Trail : Tabled until Board can determine if city is willing to provide Dogi Pots, trash receptacles, and new benches. If we do get Dogi Pots and trash receptacles it will probably fall on volunteers to clean them out, not the landscaper. Board will not press the city for money in exchange for the right-of-way.The HOA attorney has said the right-of-way contract looks acceptable.

At the time, Members questioned why the VOCC would not ask for money in return for the Easement. The easement  that we were donating was real property and had real value. The members were told that League City would not pay for an easement for the Hike & Bike Trail.

When the community was making a decision on donating the easement to League City for the construction of the Hike and Bike Trail, members were told that the path would be built by the city at no expense to community, but at what cost?

The voter's guide that was presented to the community by the HOA, stated that the Hike and Bike trail that was going to be installed in our community by League City was worth $250,000. (http://voccproud.com/images/HB_Voters_Guide.pdf) 

League City claims that the trail is only worth $150,000, that is $100,000 difference.  (http://voccproud.com/p/CityApproves.pdf)

In exchange for an estimated $280,251 worth of land, the HOA received a $150,000 Hike and Bike Path.

The donation of the easement changed the land from Private Property to Public Property. This allows anyone to come into the community. The HOA has lost control of our property.

In 2014, the HOA had to return $24,883 of income from an illegitimate conveyance of Land made to Denbury Pipeline by the HOA Board, due to not obtaining the required 2/3rd vote from the community needed to convey land. (http://home.earthlink.net/~vocc3/official_doccrs.pdf and http://home.earthlink.net/~vocc3/2014-08-12_Minutes.pdf )

In 2014, the HOA spent almost $9,000 in legal. This expense was more than $4,000 over the HOA's Legal budget  (12/31/14 Income / Expense sheet ) of which a large portion was spent on legal advice regarding the easement donation to the city. 

This legal advice was given by Gregg & Gregg, who at the time of the advice was soliciting League City to be the attorney for the City's Planning & Zoning committee - http://voccproud.com/p/GreggndGregg.pdf  which many of the HOA members felt was a conflict of interest. 

This legal cost was much higher than prior years, for example, in 2012 the HOA spent a total of $1,731.08 in legal. (12/31/12 - income / expense sheet)

Later, the community was forced to cut back its maintenance of the common areas to one (1) time a month for three months (December 2014, January 2015, and February 2015) to save $1,500 a month.

During the same year that the HOA donated our easement to League City for the construction of a Hike & Bike Trail, the HOA spent $0.00 to maintain the existing HOA trail (this was disclosed at our 2015 Annual meeting). 

Over the years, volunteers helped maintain the HOA trail by adding granite and spraying for weeds. (http://voccproud.com/p/VOCCtrail.pdf  and  http://home.earthlink.net/~vocc/2013-11-05_Minutes.pdf )

At the End of the 2014 fiscal year, the HOA reported a loss of ($13,375). 

Members can only wonder, if the HOA would have experienced a loss, had it negotiated with the League City to purchase the easement as opposed to the HOA simply donating the easement to the city for free. 

If the HOA would have negotiated $1.00 a sq ft, not even 25% of what the city just agreed to pay, the HOA would have had a gain of $51,346.70 ($64,721.70 - $13,375)