Wednesday, March 20, 2013

Banning Lewis and an $800 million discrepancy

Posted By on Wed, Mar 20, 2013 at 1:31 PM

Banning Lewis Ranch

In today's edition, we have a story about what's to become of the Banning Lewis Ranch property now that Ultra Resources of Houston likely won't be drilling for oil there.

One of the key issues is the 1988 annexation agreement, in part because its requirements have been seen as onerous to the development community.

As we reported, City Attorney Chris Melcher told City Council last week the developer investment requirement is about $100 million.

But it's much higher than that. According to the 2007 Banning-Lewis Annexor Shared Obligation Study, the figure is estimated at nearly $900 million. Here's the pertinent passage:

The Banning-Lewis Ranch Shared Obligation Cost Estimate Table was prepared based on cost estimates (Appendix D). The table presents a general overview summary of the estimated costs of the total shared obligations for all of the Annexors. It is estimated that the total value of the shared obligations equals $891,842,467. The table further identifies existing funding mechanisms that are in place for the majority of these obligations ($701,572,891), leaving $190,269,575 worth of shared Annexor obligations for which new cost sharing/reimbursement mechanisms must be created. Of these $190,269,575 shared obligations, $147,963,288 are costs associated with the Banning-Lewis Parkway and $42,306,287 are other General Annexor Obligations.
The new obligations together equal approximately $190,269,575, a sum to be subject to a new cost sharing/reimbursement program that equitably shares the costs of these obligations and reimbursements among all Annexors. All estimates are in 2006 dollars.

We asked Melcher about the discrepancy between his figure and those contained in the study, and will post his response if and when we receive one.

If you're interested, here's the study:
Banning_Lewis_study.pdf

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