High-Rise Developers Make New Claims, Give Themselves Most Generous Disclaimer in History of Words

The developers of the proposed high-rise development near River Grove Park launched a new web site today, TheHeronsKingwood.com. In it, they make many new claims designed to put the public’s concerns to rest. It had the opposite effect on me. Why?

  • They told the Corps the Marina would hold 640 boats. It’s 160 boats larger now. The website video states 800.
  • The Army Corps thinks the development is 331 acres. The website claims 364.
  • After telling community leaders they would hold a public meeting before the close of the comment period, they now say after.
  • After previously touting their connections to an Italian architectural firm, Torrisi and Procopio (which I suspected was a fake site), they now say Skidmore Owings and Merrill (SOM) developed the design. But SOM in San Francisco referred me to their legal department, which did not take my calls. The Italian site was developed in English and registered in Aruba by a Canadian Company.
  • They now claim that a subsidiary of Romerica Investments, the Romerica Group, will develop the project. They claim Romerica Group has existed since 2007 and is located in Houston. The Texas Secretary of State has no listing for Romerica Group. Neither do Florida, Delaware or Alberta, Canada – other known locations where the developers have incorporated. The phone number listed on the Romerica Group website is disconnected. The office was unoccupied last time I checked several weeks ago.
  • “Romerica Group” does not appear on any of the permit applications associated with this project at the Army Corps, City of Houston or Harris County Flood Control.
  • Romerica Investments does not own the property being permitted.
  • They claim that 25-story condominium towers are single family homes. That’s the world’s largest family!
  • They say that only the northern half of the development is subject to height restrictions without offering any proof that “single-family residential” deed restrictions have been removed from the southern half.
  • They claim they’re creating a connection to Hamblin Road (sic), which the Corps Public Notice does not mention and no one in Forest Cove seems to know about.
  • They claim that “Both the city and county have approved construction and permits have been issued, they have determined that the community will not have an adverse effect on surrounding communities.” This makes it sound like they have been given permits for the entire development. Not true. Neither is the second half of the statement. Developers requested a permit to start excavating the marina. They promised they would haul excavated material offsite. However, things changed by the time the Corps issued its public notice. The public notice states that they will use the fill to raise the elevation 12 feet. Hmmm. Sounds like cause to revoke those permits to me!
  • They again claim that raising elevations to 57 feet will make the buildings flood safe when the area has flooded over 57 feet at least six times in the last 25 years.
  • They call roads an alternative mode of transportation!
  • They think ExxonMobil is spelled Exxon Mobile.

But the best part is this! Read the disclaimer. It’s the most self-generous disclaimer in the history of words. Nobody is responsible for anything the site says. Make sure you read the fine print.

Ain’t nobody responsible for nothin’.

As always, this post represents my opinions on matters of public policy. They are protected by the First Amendment of the United States Constitution and the Anti-SLAPP Statute of the Great State of Texas.

Posted by Bob Rehak on February 12, 2019

532 Days since Hurricane Harvey

History of Proposed High-Rise Property Tied to Flooding For Decades

Romerica Investments proposed high-rise marina property has a long history of flooding. In fact, the flooding which has gotten progressively worse through the years, has stymied one developer after another.

The property flooded 52 times since Lake Houston was built in 1955. That means it floods almost every year. And in the last year (February ’18 to January ’19). it flooded SIX times.

Timeline Shows Link Between Flooding, Sales, Lawsuit

As you review this chronology, clicking on the links will take you to the actual deeds. Here’s a timeline that shows how sales of the property relate to water and flooding. As you review it, remember all deed restrictions run with the land. That means they carry forward from one buyer to the next…unless the original entity imposing the restrictions consents to removing them.

Notice how subsequent transfers summarize restrictions in the earlier transfers: “This conveyance…is made and accepted subject to any and all … restrictions … relating to the property, but only to the extent that they are … shown of record in the herein above mentioned County…”

We could find no documents in county records removing the single-family residential restriction that Friendswood Development Company placed on the property. The developer has provided none to date.

Title and Flood History

  • 1950 – Foster Lumber Company sells 3200 acres to City of Houston for the purpose of creating Lake Houston.
  • 1955 – Lake Houston created.
  • 1973 – City of Houston sells two tracts of land not inundated by Lake Houston to Friendswood Development Company and King Ranch. City puts several deed restrictions on property. The significant ones: 1) No use that could alter the reservoir capacity of Lake Houston through fill or erosion. 2) Any fill must be compensated with excavation immediately adjacent to the fill. 3) City reserved the right to enforce pollution controls on activities up to the 51 foot contour elevation line. This is significant because it would include marina operations. The Lake and river normally pool at 42.5 feet back to the US59 bridge.
  • 1994 – In October, historic flooding hits area. Crest at US59 = 67.30 feet.
  • 1994 – On December 30, Friendswood and King Ranch sell property to Holley-Strother Kingwood Lakes Estates, LTD. Deed restrictions limit property use to “single family residential homes with accompanying greenbelt, park, pool, recreational facilities and for no other purpose or purposes” for a period of 40 years. Also, drainage cannot be altered in a way that affects surrounding property. Finally, before the developers could begin construction, they had to get a declaration of use restrictions affecting all the property approved in writing by the grantor. This would force homebuyers to abide by the deed restrictions, too.
  • 1998 – West Fork crests at 60.1 feet at US59 on 11/15.
  • 2001 – 2007 – River crests above 50 feet inundating Holley-Strother property seven times in seven years.
  • 2007 – June 18, FEMA approves new Flood Insurance Rate Maps (FIRMS). This put a large part of the Holley Strother property in the floodway for the first time. City of Houston also adopted a new ordinance that prohibited the City Engineer from permitting any buildings in a floodway.
Current flood map used by FEMA and CoH is dated 6/17/2007. Expansion of floodway (crosshatched area) kept Holley-Strother from developing land. COH rules prohibit building in floodway. Current developer appears to be rushing to get property permitted before flood maps are updated again. Updates will likely show all high-rise portion in floodway.
  • 2008 – West Fork floods and crests at 62.8 feet at US59 on September 18. Holley and Strother excavate a lake on the southern portion of their land to help build up the level of the Barrington, which is still under construction. On September 30, Holley and Strother sue the City. They claim that the City Ordinance against building in the floodway constitutes “illegal taking” of their land under the 14th amendment of the U.S. Constitution.
  • 2009 – 2012 – Floods above 50 feet inundate the property three more times.
  • 2015 – 2016 – Property floods SIX more times between March, 2015 and May, 2016. Highest crest at US59 is 61.95 feet on 5/29/16.
  • 2017 – On August 29, Hurricane Harvey sets new record for highest crest on the West Fork – 69.18 feet.

Questions Remain

And so history repeats itself. The current rush to beat redrawing of the flood maps reminds one of the events in 2007 and 2008.

I have numerous questions about this project. About the safety of building high rises in an old meander of the San Jacinto. About the wisdom of approving a permit to build such immense structures on the edge of the floodway – when we know the flood maps will soon be revised again. About expanding a marina toward the river when the river is migrating toward the marina at the rate of 20 feet per year.

Who are These People?

Meanwhile, I’m also struggling with questions about the developers. I’m struggling to understand the maze of companies, partnerships, addresses, and registrations in other states and countries. These two men have 19 entities here in Texas alone.

This raises so many questions that I hope the Corps extends the public comment period yet again until we can learn who these men are and where their money comes from. The community needs to understand who we are dealing with. But they have not yet consented to a public meeting despite numerous requests.

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

531 Days since Hurricane Harvey

Rehak Letter about Proposed High-Rise Development Spells Out New Concerns

For the past six weeks, I’ve struggled to understand what the Army Corps considers when reviewing a new permit application. I have also struggled to organize everything I learned about the high-rise project, and the applicant. My protest letter re: Public Notice SWG-2016-00384 will be emailed today. It’s too long to include within the body of this post, so I’m going to include a summary here and a link to a PDF of the entire letter.

Water skiing, anyone? Photo by Sidney Nice of Atascocita Point after Harvey.
Imagine trying to evacuate 640 40-boats before a storm. The biggest threat to water quality is the one thing in this development that needs to be near the river: the marina.
 

Main Concerns

My main concerns are:

  1. This development appears to violate legally binding deed restrictions. We can find no documents registered with the county clerk that legally change allowable land use from “single family residential” to commercial, retail and hotel high rises.
  2. An article in International Appraiser lists these developers among EB-5 regional centers touting fake projects.
  3. Although the developers claim to have development experience, they have shown none. 
  4. Dunn & Bradstreet lists Romerica Investments, LLC (the applicant) as having no sales, no assets, no working phone, and being out of business. Romerica Investments also does not own the property for which it seeks the permit. 
  5. The developers many websites touting this project appear to violate rules from the SEC, FTC, FINRA, National Association of Realtors, and Texas Real Estate Commission governing real-estate investment advertising. See letter section 15 (e) XX on page 15.
  6. The developers are foreigners who operate through a maze of companies that makes it hard to understand whom the community is dealing with.
  7. The developers are being sued by investors for fraud. 
  8. They have provided no market research to demonstrate a need for this kind of development in the Kingwood area. The little market research we found raises serious concerns about their experience, due diligence, the feasibility of this project, and whether it would be economically viable.
  9. The developers propose to build high-rises in an area that will soon be reclassified as floodway. Moreover, the river is migrating toward this property at a rate that could soon destroy it. This raises significant concerns about public safety, flood risk, evacuation, and the stability of buildings.
  10. If approved, this development will destroy bald eagle habitat, impair water quality, increase erosion, and worsen flooding.
  11. Developers have not responded to multiple requests to meet to clear up questions.

Needs and Welfare of the People

Many environmental, wildlife, flooding, and conservation concerns have been expressed in previous letters by the Sierra Club, Galveston Bay Foundation, KSA and others. I recap most of those and add a few. But I also have spent much time researching a category called “Needs and Welfare of the People.”

One huge thing I believe we need: Confidence in the legitimacy of the developers.

Their refusal so far to appear at a public meeting to answer questions about their development raised red flags. I found many others. Four pages worth. See pages 16-19 in the letter. A small sampling:

The people of Kingwood don’t need another Gucci outlet as much as they need freedom from flooding. I therefore called for a moratorium on all flood plain permitting until flood mitigation measures can be put in place and safety restored.

Conclusion

Any one of these factors by itself might be sufficient to deny the permit request. Taken together, they leave no doubt; the negatives far outweigh any positives. According to Army Corps guidelines, the permit must therefore be denied. Too many questions remain unanswered about the developers and the development to approve this permit.

Sending Copies to Other Agencies

In addition to the Army Corps, I am copying:

  • TCEQ
  • Texas Parks and Wildlife Department 
  • US Fish and Wildlife Service
  • EPA
  • Congressman Dan Crenshaw
  • Senator John Cornyn
  • Senator Ted Cruz
  • Houston City Council Member Dave Martin
  • Harris County Flood Control
  • FBI

Only 3 Weeks Left to Register Your Objections

Deadline: March 1. If you haven’t yet sent your letter, please do so right away. Only 400 letters have been received so far by the Corps. Time is running out. You can download the full text of my letter. You can review and download other sample letters here. Feel free to copy any portions of the letters that reflect your concerns.

Or send them in their entirety and say, “I agree!” Here’s a customizable word.doc that you can download and send. Remember to insert your name and contact information on the first page and your name again on the last page. You can then send it by clicking on the links in the letter.

I am sending my letter only in a digital format because of all the hyperlinks embedded in it.

Emailed Letters Preferred

The recipients have expressed a desire for electronic versions over paper copies anyway. Electronic makes it easier for them to forward and file the documents; no scanning necessary.

As always, the thoughts in the letter and this post represent my opinions on matters of public interest. They are protected by the First Amendment of the United States Constitution and the Anti-SLAPP statute of the Great State of Texas.

Posted on February 9, 2019 by Bob Rehak

529 Days since Hurricane Harvey