High-Rise Property May Be Deed Restricted to Single-Family Residential

A search for deed restrictions on property proposed for high-rise development turned up some huge surprises today. I had previously posted about height restrictions within Friendswood Commercial Development Guidelines. It turns out that the Friendswood Commercial Development Guidelines do not apply in this case – because the property was restricted to single-family residential. Specifically, I’m talking about the section of land circled below. It’s just south of the Barrington subdivision in Kingwood.

This post deals only with the section in red where most of the high rises will go, but deed restrictions also exist on other related parcels of land in the proposed development.

Relevant Property History Starts in 1994

Some concerned residents and I conducted a title search with the help of the County Clerk’s website and a friendly title company. The land in the circle has changed hands twice since 1994. Friendswood Development company sold it to Holley-Strother Kingwood Lake Estates, Ltd. on December 30, 1994. Holley and Strother sold it to the current owners in 2012. The land has actually been sold more than twice, but only among companies controlled by the same individuals. It’s also been the subject of an eight year law suit related to flood plain issues. More on those items in subsequent posts.

Key Elements of Deed Restrictions

Deed restrictions in the first sale specify four key elements:

  • Single-family residential
  • Compatible architecture in harmony with structures on adjoining land.
  • No alteration of drainage for surrounding areas
  • Applies to all subsequent buyers for a period of at least 40 years (until 2036)

Here’s actual language for the first two:

Screen capture of paragraph 5 from the deed.

What Developer Wants to Build

According to the US Army Corps of Engineers Public Notice, Romerica Investments, LLC has applied for a permit to construct commercial, condominium and hotel towers up to 500 feet high on a 25 acre parcel. Here’s a scale drawing that shows what this would like compared to the Barrington if permitted. You can see examples of what they plan in this video posted on an architect’s website.

That hardly looks like single-family residential housing. I talked to experts in city planning, real estate and sales. They all agreed that “single family residential” usually means “one family in one structure on one lot.”  

Drainage Deed Restrictions, Too.

Hindering or obstructing existing drainage channels or ditches, which serve adjoining property owners – without the written consent of the owners – is also prohibited. (See Paragraph 8.)

The Corps’ public notice also states that the developer plans to put “285 cubic yards of fill into 771 linear feet of streams adjacent to the West Fork of the San Jacinto.” That would seem to be another deed restriction violation.

I’m not sure about you, but I moved to Kingwood, a master-planned community, because deed restrictions ensured these kinds of things did not happen.

To my knowledge, the developers have not even attempted to gain permission to disrupt drainage from other villages, such as Kingwood Lakes, Deer Cove, Trailwood and Barrington.

Deed Restrictions Binding on Successors

Another key clause in the deed restrictions reads:

Deed restrictions normally “run” with the land. Said another way, when the first buyer sells the land to a second buyer, the second buyer must abide by the same restrictions that the first buyer had, and so forth in perpetuity. Subsequent buyers may add restrictions, but not remove them without the consent of the ORIGINAL grantor. The original grantor in this case was Friendswood Development Company.

Click here to download the complete deed restrictions.

No Documents Found Removing Restrictions

We could find no recorded documents on the County Clerk’s web site or in a title search that removed deed restrictions on this property. A former Friendswood executive told me, “If there is not a recorded document removing the restrictions, then they have not been removed.” So…

The Burden of Proof is on the Developers

I am requesting the developers to show the legally recorded document that removes the deed restrictions. However, so far they have not responded to my certified mail or phone calls requesting a public meeting.

The Corps informed me yesterday that the developer has designated Leah Manlove Howard of Manlove Advertising and PR as their new point of contact. Her contact information is:

Romerica Investments, LLC
One Performance Drive
Angleton, TX 77515
Telephone: 281-487-6767
POC: Ms. Leah Manlove Howard

This raises so many questions that I hope the Corps extends the public comment period yet again. The community needs to understand who we are dealing with.

As always, these are my opinions on matters of public interest. They are protected by the First Amendment of the US Constitution and the Anti-SLAPP statute of the great State of Texas.

Posted by Bob Rehak on February 6, 2019

526 Days since Hurricane Harvey

Sand Miners Plan TACA Days in Austin for February 4th, 5th

Sand miners plan to gather in Austin on February 4th and 5th to meet with legislators for their annual TACA Days. TACA stands for the Texas Aggregate and Concrete Association. It represents sand miners. They hope  to beat back regulation of the industry that could help protect areas like Lake Houston from excessive sedimentation.

They describe the event as a series of meetings with state legislators and their staffs, which will be followed by recognition in both the House and Senate Chambers.

The flood during Hurricane Harvey breached sand mine dikes and roads up and down the West Fork. All of the mines with the exception of one are located inside the floodway – a dangerous business practice that contributes to sedimentation. However, none of the bills introduced in the Texas House so far address this issue.

TACA Plan of Attack

The invitation says that for the meetings, the group will split up into teams. Each team will have a captain who speaks for the group. Captains know the drill from previous attempts to beat back legislation. TACA has spent millions of dollars lobbying the legislature and key state officials. This is part of that effort.

The invitation closes with a plea. “The higher the participation, the greater the impact we will make with our legislators. This legislative session will involve critical issues to our industry and we need your representation.”

Guess they’re expecting a fight. In year’s past, I have been told, they’ve even brought in some of their big equipment to parade up and down streets leading to the Capitol Building.

Sadly, Not Much Legislation to Get Excited About

Four bills have been filed re: sand mining so far.

The most exciting from a Lake Houston Area resident’s perspective is HB509. State Representative Terry Wilson filed it. It:

  • Requires a hydrology assessment of the operation’s impact on surrounding surface and groundwater – including water availability. 
  • Creates criminal penalties for non-compliance.Enables regulators to consider the cumulative impact of multiple APOs in an area when evaluating new applications.
  • Requires the operation to prevent material damage to the hydrologic balance outside the permit area.
  • Requires public notice of permit applications
  • Provides for public comment on permit applications
  • Makes permit approval contingent on past performance
  • Requires permitting agencies to publish the public comments
  • Allows the agencies to deny permits based on public comments
  • Grandfathers operations with existing permits

HB 907 filed by State Representative Dan Huberty doubles the penalties if sand mines don’t register with the TCEQ. However, most of the problems with sand mining have to do with companies that ARE registered. They are mining in the floodway which contributes to sedimentation during floods. So double the penalties on unregistered mines will create only the APPEARANCE of getting tough on mines.

HB 908, also filed by Representative Huberty, increases penalties for other violations, but calls for inspections once every two years. A lot can happen during that time. I suggested using Landsat photos to supplement monitoring of operations. Landsat flies over Montgomery County sixteen times a day and could spot breeches of dikes in near real time. Seems like it would be more effective, more efficient, and cheaper. But no mention of Landsat appears in the bill.

HB 909 calls for the TCEQ to develop and publish a set of best practices for sand mining. However, it attaches no penalties for violation of them.

I’ve talked to representative Huberty about these issues. He believes regulation should happen in small steps. I believe it should happen before the next big storm.

With the exception of HB506, TACA may have won this fight before it started. The sand miners should have a lot to be thankful for tomorrow in Austin.

As always, these are my opinions on matters of public policy. They are protected by the First Amendment of the US Constitution and the Anti-SLAPP statute of the great State of Texas.

Posted by Bob Rehak on 2/3/2019

523 Days since Hurricane Harvey

Will High-Rise Marina Project Meet Army Corps’ Criteria for “Needed”?

As we saw in a previous post, Army Corps regulations stipulate that a developer must prove there is a need for his/her project before destroying wetlands. Further, the Corps assumes that the developer has done due diligence in assessing market conditions.

“Has Romerica Investments done due diligence? Is this project needed?” In my opinion, the answer is no. It consists of condominiums 65-feet high in the flood plain, plus 25-50 story retail, commercial and hotel structures arranged around a marina. That marina is in the floodway of the San Jacinto River’s West Fork.

Looking northwest from the southeastern tip of the proposed high-rise marina district Imagine 50-story high rises in the narrow strip of land between the lake and the Barrington in the background. Look below to see the scale.

But growth in the Humble ISD has slowed from 6% to 1% because of concerns over flooding. The number-one need we have now is to restore safety by mitigating flood risk. This project will worsen flood risk and there is little demand for it – especially in this location. The Corps should deny this permit until the safety of the community can be assured.

Drawn to vertical scale.

The developer plans to build more than 3 million square feet of hotel, commercial, retail and residential space in the floodplain. Yet, since Harvey, we can’t fill all the homes we have – even those on higher ground. About a quarter of the retail space in Town Center and King’s Harbor is still vacant. There’s little demand for commercial space. And existing hotels can handle travelers just fine, thank you.

Previous Attempt to Build Retail Mall in Kingwood Failed

It’s also hard to see how Kingwood’s population would support another shopping mall and theater. We already have a major 1.2 million SF regional mall right across the river in Humble. We also have three theaters with 44 screens within 5 miles. Also, consider that online shopping and streaming services, such as Amazon and Netflix, are stealing market share from malls and movie theaters all over America.

A previous attempt to build a small mall in Kingwood resulted in abject failure. The mall was on the southwest corner of Kingwood Drive and US59. After sitting vacant for years, HCA bought the structure and converted it into a community hospital.

Market Review Does Not Consider Location-Specific Factors

The market review conducted by the applicant mentioned none of this. It focused on job growth in Texas and Houston. It totally ignored the local Kingwood market and site-specific considerations. Conducted before Harvey, the survey has NOT been updated to reflect flooding concerns.

That said, most existing homes and businesses in Kingwood are on much higher ground. Raising this project 12 feet above its current elevation to 57′ won’t raise it out of harms way. Far from it. We’ve had six floods higher than that since 1994 – an average of one every FOUR years. That’s an increase over the previous 65 years when we had just three – one every 22 years..

The build-it-and-they-will-come mentality in post-Harvey Houston invites disappointment down the road. It will create white elephants that leave permanent scars on the landscape after destroying the fragile wetlands that we so desperately need to absorb and store floodwaters.

Raising Elevation Will Raise Costs

However, raising the entire project 12 feet WILL raise costs. And therefore, it will price sales and rentals far above the rest of the market – in an area (i.e., floodplain) that people are wary of after Harvey.

In my opinion, the combination of higher costs, less demand, less traffic, remote location, and local opposition will doom this project from the start.

Incomplete Market Analysis

The developer’s market conditions report looks only at economic growth projections for the State of Texas and City of Houston.

  • It does not include any evaluation of local Kingwood-specific factors, such as occupancy rates. 
  • It includes no staples of market analysis such as traffic counts or trading radius.
  • It does not consider the feasibility of anchor attractions, such as the marina and retail mall. For instance, can the West Fork even accommodate the volume and size of boats in the marina? Will retailers support a mall at the end of a dead-end road, four miles from the nearest highway, devoid of any through traffic, that floods every time we get four inches of rain?
  • It says comparable projects around the country were surveyed, but makes no mention of them. It contains no competitive analysis.
  • It reads like a prospectus targeted at investors, but contains no mention of risk.
  • The authorship of the analysis is redacted; we do not know who conducted the survey or what credentials they have.
  • Finally, it contains no mention of flooding or Harvey. 

These omissions feel like serious flaws in Romerica’s market analysis. The Corps should not approve a permit based on such work. There is no demonstrable need to destroy these wetlands.

Posted by Bob Rehak on 2/1/2019

521 Days since Hurricane Harvey