Authorize Execution of a Right-of-Way Development Escrow Agreement with AIL Investments, L.P., and American Escrow Company Relative to the Dedication of Fee Simple Interest in 2.044 Acres of Land Located at 8497 and 8601 Old Denton Road, and Fee Simple Interest in 0.289 Acres of Land Located at 8200 Old Denton Road and Reimbursement of Expenses in Connection with the Relocation of Oncor Electric Utility Infrastructure in an Amount Up to $275,000.00 for the North Riverside Drive Project (2014 BOND PROGRAM) (COUNCIL DISTRICT 4)

It is recommended that the City Council:

1.  Authorize the execution of a Right-of-Way Development Escrow Agreement with AIL Investments, L.P., and American Escrow Company relative to the dedication of fee simple interest in 2.044 acres of land out of the W. McCowen Suvey, Abstract No. 999, located at 8497 and 8601 Old Denton Road, and fee simple interest in 0.289 acres of land out of the C.C. Whyte Survey, Abstract No. 1611, located at 8200 Old Denton Road;

2.  Authorize the reimbursement of expenses in connection with the relocation of Oncor Electric utility infrastructure in an Amount Up to $275,000.00 for the North Riverside Drive Project (Project No. 02272); and

3.  Authorize the City Manager or his designee to execute and record the appropriate documents accepting the conveyance of fee simple interest.

The 2014 Bond Program provides funding for improvements to North Riverside Drive from a two-lane roadway to a four-lane divided arterial street from North Tarrant Parkway to Old Denton Road (Project No. 02272). An Agreement has been reached with AIL Investments, L.P. (AIL), relative to the acquisition of 101,595 square feet (2.333 acres) of fee simple interest in land needed for the North Riverside Drive project.  AIL has agreed to dedicate the necessary right-of-way to facilitate the construction of North Riverside Drive between North Tarrant Parkway and Thompson Drive.  In exchange for the dedication, AIL will receive credit against future transportation impact fees in the amount of $324,088.00.  Additionally, under the terms of the agreement AIL will be reimbursed for the cost to relocate Oncor electrical facilities outside the future right-of-way in an amount not-to-exceed $275,000.00.  The relocation of electrical facilities is required prior to construction of the roadway.    

Based on an independent fee appraisal,  the estimated fair market value of the property interest being dedicated is $796,500.00.  Below is a summary of the property interests and the corresponding estimate of fair market value. The Agreement with AIL will result in an estimated net savings for the acquisition of $197,412.00.


        
                                                                      

	Address/Legal Description	Type of Acquisition	Est. FMV
8	8200 Old Denton Road, C.C.Whyte Survey, Abstract No. 1611	Right-of-Way Easement (0.289 Acres)	$75,500.00
13	8497 Old Denton Road, W. McCowens Survey, Abstract No. A-999	Right-of-Way Easement (0.688 Acres)	$180,000.00
14	8601 Old Denton Road, W. McCowens  Survey, Abstract No. A-999	Right-of-Way Easement (1.079 Acres)	$360,000.00
14 A	8601 Old Denton Road, W. McCowens  Survey, Abstract No. A-999	Right-of-Way Easement (0.277 Acres)	$181,000.00
		TOTAL	$796,500.00

This project is included in the 2014 Bond Program. Available resources within the General Fund will be used to provide interim financing for these expenses until debt is issued. Once debt associated with this project is sold, bond proceeds will reimburse the General Fund, in accordance with the statement expressing official Intent to Reimburse that was adopted as part of the ordinance canvassing the bond election (Ordinance No. 21241-05-2014) and the subsequent actions taken by the Mayor and City Council.

This project is located in COUNCIL DISTRICT 4.