The Army Corps of Engineers is investigating whether Perry Homes, its subsidiaries and contractors violated Section 404 of the federal Clean Water Act. The Corps has regulatory authority for any fill material dumped into waters of the U.S. Those include perennial tributaries and adjacent wetlands.
No Record of Request for Jurisdictional Determination
When developers encounter wetlands, normally they seek a jurisdictional determination from the Corps. They want to ensure they are not violating the Clean Water Act. However, neither Perry Homes nor their subsidiaries (PSWA and Figure Four Partners) apparently sought such a determination. Neither did LJA Engineering, according to Corps records.
Army Corps response to June 5, 2019, request for records pertaining to a request for jurisdictional determination on Woodridge Village Wetlands.
The LJA Engineering Drainage Analysis never even mentions wetlands. Wetlands are highly protected because of their ability to filter and retain floodwater, among other things. This multipage article by the USGS describes all the functions of wetlands and legislation affecting them.
Elm Grove Director Requests Investigation
In October, 2019, Beth Guide, a director of the Elm Grove Homeowners Association, went a step further than my FOIA request. She asked the Corps to investigate the legality of the loss of Woodridge Village wetlands. On November 13, 2019, US Congressman Dan Crenshaw received a letter from the Corps stating that the Corps was, in fact, investigating Ms. Guide’s request.
Corps Seeking Access to Property
The Corps is currently contacting Perry Homes (or subsidiary, Figure Four Partners) for access to the site. The Corps characterized the investigation as “an open purported unauthorized activity investigation.”
Colonel Timothy R. Vail, the Corps’ District Commander said, “…we continue to gather all the facts to determine if there is a violation of any of our statutes and if so, determine what might be the appropriate resolution.”
Ms. Guide believes loss of these wetlands played a role in three floods which struck Elm Grove on May 3, May 7 and September 19 of this year. Before the loss of the wetlands, none of the surrounding neighborhoods ever flooded, according to nearby neighbors. Some of them lived in their homes for more than 30 years.
Accelerating runoff reduces the time of accumulation for floodwaters. That means more water reaches ditches faster and at the same time; none is retained upstream. That, in turn, makes floods peak higher.
Posted by Bob Rehak on 11/16/2019
809 Days since Hurricane Harvey and 58 since Imelda
The thoughts expressed in this post represent opinions on matters of public concern and safety. They are protected by the First Amendment of the US Constitution and the Anti-SLAPP Statute of the Great State of Texas.
https://i0.wp.com/reduceflooding.com/wp-content/uploads/2019/09/Woodridge-Wetlands.jpg?fit=1500%2C864&ssl=18641500adminadmin2019-11-15 20:26:592019-11-15 22:33:22Army Corps to Investigate Potential Wetland Violations on Perry Homes’ Woodridge Village Site
Usually when you make an investment, the worst thing that could happen is that you lose all your principle. But Perry Homes could loose a hundred times more than they paid for Woodridge Village land. That takes special talent.
Out-of-Pocket Costs
The land that Woodridge Village sits on didn’t cost much; much of it was wetlands and many streams converged there. Regardless, a Perry Homes subsidiary, Figure Four Partners, bought the land. Montgomery County Appraisal District values the two main parcels at less than a million dollars. Together they comprise more than 80% of the 268-acre project. (See screen captures below from Montgomery County Appraisal District website.)
Real Costs Could Be 100X Greater
Now let’s look at the real costs to Perry. Just to screw up the land, they paid for:
Excavating two detention ponds (out of five they promised)
Soil tests and a geotechnical report
A mile of pavement to the middle of nowhere
Two large box culverts
Storm drains
Let’s say that cost another five million.
But all of that contributed to the flooding of approximately 200 homes in May and 350 in September. Let’s assume the damage to each home totaled $100,000. That comes to about $55,000,000.
Furniture, appliances, rugs, window coverings and other contents? Let’s assume an average of $40,000. That would total another $22,000,000.
Let’s also assume that 300 cars flooded. Average cost – $30,000. Bingo. $9 million.
Now let’s estimate the reduced marketability of homes that flooded. To do this, let’s assume an average price of $200,000 per home and a 20% reduction. That would cost homeowners $40,000 each in the market value of their homes. That’s another $22,000,000.
If juries rule in favor of the flood victims, that million dollar investment could add up to more than $100 million in potential liabilities…before any penalties for negligence and/or gross negligence kick in.
But perhaps Perry Homes went too far. People did notice. The wetlands that they conveniently ignored fall under the jurisdiction of the Army Corps. And the Corps is now investigating potential violations of Section 404 of the Clean Water Act. That could get expensive all by itself.
Like Building Homes at the End of a Gunnery Range
It just keeps getting worse for Perry. This was kind of like buying land to build homes at the end of a gunnery range. A little risky.
But it’s too late to rethink that decision. No one will ever want to buy a home on this site. It’s less marketable than swampland near Chernobyl.
There’s another rule of thumb in business. When you find yourself in a hole, stop digging. And that’s exactly what Perry has done. They have stopped work on the site for months. Work on detention ponds that would help protect people downstream from future flooding is going undone.
That means the numbers above could balloon with the next big rain. Or a negligence ruling by a jury. Yep, we’re in double Jeopardy now.
Career-Limiting Moves
Whoever made the decision to develop Woodridge Village definitely made a CLM (career-limiting move). At this point, even Perry Homes employees not associated with the decision must worry about their Christmas turkeys. Few careers or companies survive blunders that become case studies for how not to do something.
Eroding Profit Margins
Because of faulty assumptions and corner cutting, Perry Homes put itself between a rock and a hard place. They’ve managed to turn a million dollar investment into a potential $100 million liability. They can’t develop this property profitably now. And they can’t sell it. Who would want to buy this land and inherit the liability every time a storm cloud floats by?
To protect downstream homes from flooding, they would have to expand the detention ponds by at least 40%. And that would eliminate so many homesites that costs could exceed income. I say “at least” because the issue is not just Atlas-14 compliance. While digging the S2 detention pond, contractors hit water that’s not going away.
The S2 Detention Pond has lost about 20-30% of its capacity. The bottom 3-5 feet have been filled with ground watersince contractors started digging to the target depth.
That means they can’t achieve their detention goals by going deeper; they’ll have to go wider. And that will cut into marketable land even more.
Toxic for Perry Homes
Let’s face it. When Perry Homes bought this property, Kathy Perry Britton swallowed a poison pill. Woodridge Village now has a toxic reputation that will infect the rest of Perry Homes. No one will ever be able to trust anything Perry Homes says again.
But what to do with this land? If you’re Kathy Perry Britton trying to spit shine the legacy of dear old dad, you can’t keep it. And you can’t sell it. You can’t even give it away. No land conservancy organization would take it until the damage done to wetlands and streams was remediated. That could take decades.
The Real Value of Wetlands
However, there are two pieces of good news in this mess.
If Perry Homes implodes, it won’t take a lot of investors with it; the company is private.
Perry Homes may serve as a lesson to other developers and teach them that the real value of wetlands is their downstream legal costs.
Time To Be Decisive
Just remember, Ms. Britton. Historically, 85% of Houston floods are non-tropical. So if you think you have eight more months to figure this out, think again.
Posted by Bob Rehak on 11/15/2019
808 Days after Hurricane Harvey and 57 after Imelda
The thoughts expressed in this post represent opinions on matters of public concern and safety. They are protected by the First Amendment of the US Constitution and the Anti-SLAPP Statute of the Great State of Texas.
https://i0.wp.com/reduceflooding.com/wp-content/uploads/2019/11/RJR_4344.jpg?fit=1500%2C1000&ssl=110001500adminadmin2019-11-15 17:45:182019-11-16 09:51:58Perry Homes’ Woodridge Village Investment Could Be Costliest Ever
The last dredge from the Army Corps’ Emergency West Fork Emergency Dredging Program has left the river. State Representative Dan Huberty says plans for Phase 2 of dredging will be announced next week.
Great Lakes Dismantles Dredge
The last remaining dredge, operated by Great Lakes Dredge and Dock, finished dredging a 500,000 cubic yard contract extension in the area of the West Fork mouth bar around Labor Day. That brought the total amount of sand and sediment removed from the West Fork to about 2.3 million cubic yards.
The Great Lakes Dredge waited near the mouth bar for six more weeks, as the owners hoped for yet another contract extension that didn’t come. Finally, in mid-October, Great Lakes started removing its dredge, booster pumps, pipe and other support equipment. That was about the time the City applied for another FEMA grant to help with more dredging.
Now You See It
On November 4th, the dock at the Army Corps Command Post opposite Forest Cove was bustling with activity, as workers dismantled the Great Lakes Dredge.Note all the pipe in the background. Each 40 food section weighs 4,000 pounds.
Now You Don’t
Photo taken on Tuesday, 11/12/19. Dredge is gone.
With Great Lakes and Callan Marine gone, any additional dredging efforts will start from scratch. And we need a Phase 2.
Long-Shot Option: On October 15 or thereabouts, City of Houston Flood Czar Stephen Costello submitted another grant request to FEMA for additional money to dredge the mouth bar. That request is still pending. But it isn’t our only hope.
Sure-Thing Option: Luckily, thanks to State Representative Dan Huberty’s Amendment to SB-500, earlier this year, the State Legislature earmarked $30 million for dredging Lake Houston. Let’s call that Phase 2.
The crucial text of the Huberty Amendment reads, “… $30 million is dedicated to the Texas Water Development Board to provide a grant to Harris County for the purchase and operation of equipment to remove accumulated siltation and sediment deposits located at the confluence of the San Jacinto River and Lake Houston.”
According to Huberty, the County, City and State have been examining alternative plans and evaluating their cost-effectiveness. Huberty expects to hold a press conference next week to announce next steps. Stay tuned.
Please note that the two options are not mutually exclusive. The FEMA Grant could still come though and be used to extend Phase 2 dredging.
Posted by Bob Rehak on 11/15/2019
808 Days after Hurricane Harvey
https://i0.wp.com/reduceflooding.com/wp-content/uploads/2019/11/IMG_0419-copy.jpg?fit=1500%2C1097&ssl=110971500adminadmin2019-11-14 20:15:052019-11-14 20:27:24Last Phase-1 Dredge Gone; Phase 2 Will Be Announced Next Week
Army Corps to Investigate Potential Wetland Violations on Perry Homes’ Woodridge Village Site
The Army Corps of Engineers is investigating whether Perry Homes, its subsidiaries and contractors violated Section 404 of the federal Clean Water Act. The Corps has regulatory authority for any fill material dumped into waters of the U.S. Those include perennial tributaries and adjacent wetlands.
No Record of Request for Jurisdictional Determination
When developers encounter wetlands, normally they seek a jurisdictional determination from the Corps. They want to ensure they are not violating the Clean Water Act. However, neither Perry Homes nor their subsidiaries (PSWA and Figure Four Partners) apparently sought such a determination. Neither did LJA Engineering, according to Corps records.
In June, a FOIA (Freedom of Information Act) request filed with the Corps of Engineers turned up NO RECORDS of any such request for the Woodridge property. See below.
The LJA Engineering Drainage Analysis never even mentions wetlands. Wetlands are highly protected because of their ability to filter and retain floodwater, among other things. This multipage article by the USGS describes all the functions of wetlands and legislation affecting them.
Elm Grove Director Requests Investigation
In October, 2019, Beth Guide, a director of the Elm Grove Homeowners Association, went a step further than my FOIA request. She asked the Corps to investigate the legality of the loss of Woodridge Village wetlands. On November 13, 2019, US Congressman Dan Crenshaw received a letter from the Corps stating that the Corps was, in fact, investigating Ms. Guide’s request.
Corps Seeking Access to Property
The Corps is currently contacting Perry Homes (or subsidiary, Figure Four Partners) for access to the site. The Corps characterized the investigation as “an open purported unauthorized activity investigation.”
Colonel Timothy R. Vail, the Corps’ District Commander said, “…we continue to gather all the facts to determine if there is a violation of any of our statutes and if so, determine what might be the appropriate resolution.”
Presence and Importance of Wetlands
Numerous residents near the property noted the wetlands in question. The wetlands also appear in the USGS National Wetlands Inventory.
For the full text of the letter from the Corps to Congressman Crenshaw, click here.
Ms. Guide believes loss of these wetlands played a role in three floods which struck Elm Grove on May 3, May 7 and September 19 of this year. Before the loss of the wetlands, none of the surrounding neighborhoods ever flooded, according to nearby neighbors. Some of them lived in their homes for more than 30 years.
Typically, wetland vegetation slows down runoff. On the other hand, clearcutting/filling wetlands accelerates runoff. This simple science experiment shows how.
Accelerating runoff reduces the time of accumulation for floodwaters. That means more water reaches ditches faster and at the same time; none is retained upstream. That, in turn, makes floods peak higher.
Posted by Bob Rehak on 11/16/2019
809 Days since Hurricane Harvey and 58 since Imelda
The thoughts expressed in this post represent opinions on matters of public concern and safety. They are protected by the First Amendment of the US Constitution and the Anti-SLAPP Statute of the Great State of Texas.
Perry Homes’ Woodridge Village Investment Could Be Costliest Ever
Usually when you make an investment, the worst thing that could happen is that you lose all your principle. But Perry Homes could loose a hundred times more than they paid for Woodridge Village land. That takes special talent.
Out-of-Pocket Costs
The land that Woodridge Village sits on didn’t cost much; much of it was wetlands and many streams converged there. Regardless, a Perry Homes subsidiary, Figure Four Partners, bought the land. Montgomery County Appraisal District values the two main parcels at less than a million dollars. Together they comprise more than 80% of the 268-acre project. (See screen captures below from Montgomery County Appraisal District website.)
Real Costs Could Be 100X Greater
Now let’s look at the real costs to Perry. Just to screw up the land, they paid for:
Let’s say that cost another five million.
But all of that contributed to the flooding of approximately 200 homes in May and 350 in September. Let’s assume the damage to each home totaled $100,000. That comes to about $55,000,000.
Furniture, appliances, rugs, window coverings and other contents? Let’s assume an average of $40,000. That would total another $22,000,000.
Let’s also assume that 300 cars flooded. Average cost – $30,000. Bingo. $9 million.
Now let’s estimate the reduced marketability of homes that flooded. To do this, let’s assume an average price of $200,000 per home and a 20% reduction. That would cost homeowners $40,000 each in the market value of their homes. That’s another $22,000,000.
And we haven’t even factored in the legal fees of J. Carey Gray, counselor extraordinaire.
Corps Now Investigating Wetland Violations
Perry Homes bought wetlands and must have thought that no one would notice when they filled them in. They didn’t even bother to request a jurisdictional determination from the Corps for the wetlands. That reduced costs even more. It’s a proven formula in business; minimize costs to maximize profits.
But perhaps Perry Homes went too far. People did notice. The wetlands that they conveniently ignored fall under the jurisdiction of the Army Corps. And the Corps is now investigating potential violations of Section 404 of the Clean Water Act. That could get expensive all by itself.
Like Building Homes at the End of a Gunnery Range
It just keeps getting worse for Perry. This was kind of like buying land to build homes at the end of a gunnery range. A little risky.
But it’s too late to rethink that decision. No one will ever want to buy a home on this site. It’s less marketable than swampland near Chernobyl.
There’s another rule of thumb in business. When you find yourself in a hole, stop digging. And that’s exactly what Perry has done. They have stopped work on the site for months. Work on detention ponds that would help protect people downstream from future flooding is going undone.
Career-Limiting Moves
Whoever made the decision to develop Woodridge Village definitely made a CLM (career-limiting move). At this point, even Perry Homes employees not associated with the decision must worry about their Christmas turkeys. Few careers or companies survive blunders that become case studies for how not to do something.
Eroding Profit Margins
Because of faulty assumptions and corner cutting, Perry Homes put itself between a rock and a hard place. They’ve managed to turn a million dollar investment into a potential $100 million liability. They can’t develop this property profitably now. And they can’t sell it. Who would want to buy this land and inherit the liability every time a storm cloud floats by?
To protect downstream homes from flooding, they would have to expand the detention ponds by at least 40%. And that would eliminate so many homesites that costs could exceed income. I say “at least” because the issue is not just Atlas-14 compliance. While digging the S2 detention pond, contractors hit water that’s not going away.
That means they can’t achieve their detention goals by going deeper; they’ll have to go wider. And that will cut into marketable land even more.
Toxic for Perry Homes
Let’s face it. When Perry Homes bought this property, Kathy Perry Britton swallowed a poison pill. Woodridge Village now has a toxic reputation that will infect the rest of Perry Homes. No one will ever be able to trust anything Perry Homes says again.
But what to do with this land? If you’re Kathy Perry Britton trying to spit shine the legacy of dear old dad, you can’t keep it. And you can’t sell it. You can’t even give it away. No land conservancy organization would take it until the damage done to wetlands and streams was remediated. That could take decades.
The Real Value of Wetlands
However, there are two pieces of good news in this mess.
Time To Be Decisive
Just remember, Ms. Britton. Historically, 85% of Houston floods are non-tropical. So if you think you have eight more months to figure this out, think again.
Posted by Bob Rehak on 11/15/2019
808 Days after Hurricane Harvey and 57 after Imelda
The thoughts expressed in this post represent opinions on matters of public concern and safety. They are protected by the First Amendment of the US Constitution and the Anti-SLAPP Statute of the Great State of Texas.
Last Phase-1 Dredge Gone; Phase 2 Will Be Announced Next Week
The last dredge from the Army Corps’ Emergency West Fork Emergency Dredging Program has left the river. State Representative Dan Huberty says plans for Phase 2 of dredging will be announced next week.
Great Lakes Dismantles Dredge
The last remaining dredge, operated by Great Lakes Dredge and Dock, finished dredging a 500,000 cubic yard contract extension in the area of the West Fork mouth bar around Labor Day. That brought the total amount of sand and sediment removed from the West Fork to about 2.3 million cubic yards.
The Great Lakes Dredge waited near the mouth bar for six more weeks, as the owners hoped for yet another contract extension that didn’t come. Finally, in mid-October, Great Lakes started removing its dredge, booster pumps, pipe and other support equipment. That was about the time the City applied for another FEMA grant to help with more dredging.
Now You See It
Now You Don’t
With Great Lakes and Callan Marine gone, any additional dredging efforts will start from scratch. And we need a Phase 2.
Millions of cubic yards remain in the West Fork Mouth Bar alone. And Imelda deposited immense of amounts of sediment in a growing East Fork Mouth Bar. And let’s not forget upstream dredging near US59 and the County’s planned Edgewater Park, which will have a public boat launch.
Phase 2 Options Moving Forward
Long-Shot Option: On October 15 or thereabouts, City of Houston Flood Czar Stephen Costello submitted another grant request to FEMA for additional money to dredge the mouth bar. That request is still pending. But it isn’t our only hope.
Sure-Thing Option: Luckily, thanks to State Representative Dan Huberty’s Amendment to SB-500, earlier this year, the State Legislature earmarked $30 million for dredging Lake Houston. Let’s call that Phase 2.
The crucial text of the Huberty Amendment reads, “… $30 million is dedicated to the Texas Water Development Board to provide a grant to Harris County for the purchase and operation of equipment to remove accumulated siltation and sediment deposits located at the confluence of the San Jacinto River and Lake Houston.”
According to Huberty, the County, City and State have been examining alternative plans and evaluating their cost-effectiveness. Huberty expects to hold a press conference next week to announce next steps. Stay tuned.
Please note that the two options are not mutually exclusive. The FEMA Grant could still come though and be used to extend Phase 2 dredging.
Posted by Bob Rehak on 11/15/2019
808 Days after Hurricane Harvey