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Edinburg Housing Authority Serving Families since 1949

Ciro Treviño Administration Building • 910 S. Sugar Rd. Edinburg, Texas 78539 • P. O. Box 295 Edinburg, Texas 78540 Tel: (956) 383-3839 • Fax: (956) 383-6672 • www.edinburgha.org

REQUEST FOR BIDS The Housing Authority of the City of Edinburg, TX will receive bids until 3:00PM on Wednesday 09/24/ 2018, at 910 South Sugar Road Edinburg, Texas 78539, for more or less 13 acres, improved with a public housing apartment complex called “Albores Courts”. The property has 98 apartments with approximately 73,644 SF, plus numerous amenity buildings such as an office, gym, learning center, etc. All buildings proposed for deconstruction. The subject property is a rectangular shaped inside tract located just south of University Drive along the east side of Expressway 281 (Interstate 69C). It has more or less 789 FF along the east side of the expressway frontage road and a depth of more or less 720 feet. The property is an excellent location for commercial development. For information, please contact Edinburg Housing Authority’s Executive Director, Rodolfo Ramirez at rudy@edinburgha.org, or Director of Operations, Liz Hernandez at lhernandez@edinburgha.org or at the number (956) 383-3839. Email communication is preferred. The property is a public housing development owned by the Edinburg Housing Authority that is planned for disposition. The successful bidder shall be required to enter into a contract of sale within 30 days of official notification of being the successful bidder and shall have a 60-day due diligence period. The earnest money shall be nonrefundable after the end of the due diligence period. Final closing shall be negotiated by the Housing Authority and the successful bidder. Extensions shall be considered upon the bidder's payment of additional earnest money and the Housing Authority reserves the right to make payments for extensions nonrefundable. The Housing Authority will undertake “deconstruction” of the 98 apartments prior to conveying the property as defined by HUD. In contrast to demolition where buildings are knocked down and materials are landfield, deconstruction involves carefully taking apart portion of buildings or removing their contents with the primary goal of reuse. The buyer will be responsible for demolition of the remaining structures. The Housing Authority will assist the successful bidder in obtaining approvals from the city for zoning changes. Hand delivered or mailed bids shall include seven (7) copies and be placed in a sealed envelope marked BID FOR ALBORES COURT, addressed to:

Executive Director Rodolfo Ramirez Edinburg Housing Authority 910 S. Sugar Rd. Edinburg, TX 78539

The Housing Authority reserves the right to reject any and all bids and has the right to request additional information. Late Bids will not be accepted.

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1. Location Description

The subject tract of land is the Albores Court Public Housing development fronting Expressway 281 (Interstate 69C). The subject tract of land is bordered by E. Cano St. to the North, E. Fray St. to the South, S. 29th Ave. to the East, and S. 25th Ave. to the West (Expressway 281). The market area is in the stable stage of its life cycle, since the market area consists of the Eastern Division of the city, which is fully developed with few city lots remaining. Recent development activity has included numerous hotels, restaurants, and other commercial developments which have been developed on sites where existing older improvements have been demolished to make way for these newer improvements. The highest and best use for the subject tract of land is also for a newer, commercial development, where existing improvements are meant to be demolished. In comparison to other areas in the region, the market area is rated as follows:

MARKET AREA ATTRIBUTE RATINGS Highway Access Very Good Demand Generators Average Convenience to Support Services Average Convenience to Public Very Good Property Compatibility Good General Appearance of Properties Average Appeal to Market Good Prices / Value Trend Average

2. Neighborhood Description:

Boundaries of the neighborhood:

The neighborhood boundaries could be described as Expressway 281 to the West, South Raul Longoria Rd. to the North, East University Dr. to the to the East, and East Sprague St. to the South. The subject tract of land is located 4 blocks South of the University of Texas Rio Grande Valley. Commercial development in the neighborhood includes a variety of hotels, restaurants, sales and service centers, and other commercial properties along East University Drive (East service road to Expressway 281). There are a few commercial vacant lots remaining. There were minimal vacant buildings in the immediate area. The overall condition of the surrounding properties is considered average. Commercial development includes The Texas Inn and Suites City Center at University Dr., Fast Food Chains (Whataburger, McDonald’s, DQ, and Burger King), as well as a Walgreens and a 7-eleven. Typical price range of residential homes in the neighborhood is between $150,000 to $157,900. The neighborhood is about 95% built up. The improvements range in age from about 65 years to newer buildings. Edinburg is showing improvements over the past years. Demand for additional residential, commercial,

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and light industrial developments continues to improve. Occupancy rates in the area appear to be stable. Given the history of the area and current market trends, the property values will continue at a gradual pace in the near future. The subject neighborhood is well-located for commercial uses. There are no external factors which negatively influence the subject neighborhood. There are no known nuisances or hazards in the neighborhood. Neighborhood Life Cycle:

The complementary land uses that comprise neighborhoods typically evolve through four stages.

1. Growth – a period during which the neighborhood gains public favor and acceptance 2. Stability – a period of equilibrium without market gains or losses 3. Decline – a period of diminishing demand 4. Revitalization – a period of renewal, modernization, and increasing demand.

(From The Appraisal of Real Estate 12th Edition, Appraisal Institute) 3. Property Information

Property Name: Part of Albores Courts Public Housing Development Fronting Expressway 281 (Interstate 69C). Address: 220 South 25th Avenue, Edinburg, Texas, 78542 Tract Code: 0237.00 MSA-State-County-Tract: 32580-48-215-0237.00

Legal Description: EUREKA ACRES LOTS 11 TO 16 W 108.05' LOTS 25 36 E. 13 ACS PAYMENT IN LIEU OF TAXES. Tax ID: Tax exempt Property Type: Urban Residential Owner of Record: Housing Authority of the City of Edinburg Site Characteristics

Estimated Land Size: 13.05 Acres or 568,514 sq. ft. Estimated Frontage: Approx. 789 FF along the East side of Expressway 281 frontage road and a depth of approximately 720.55 feet Shape: Rectangular.

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Corner influences: No

Topography: Level

Flood Zone: According to FIRM Map No. 48338 0020 E, revised June 6, 2000; the subject is located within a zone “X500” designated area, which does not typically require special flood insurance coverage. Zoning Designation: Urban Residential. Highest and Best Use As if Vacant – Commercial use

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4. Location Map

The property

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5. City Location Map

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6. Property Plat

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7. Flood Map

8. Properties Phots

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View of Subject Property

View of Office and Amenities

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View of Typical Apartments

View of Apartments and Gym

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View of Project Entrance

Street View, Subject on the Right

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Street View, Subject on the Left

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9. Property Identification

The subject tract of land is the Albores Courts Public Housing development fronting S. 25th Ave. (expressway 281). The subject tract of land is bordered by E. Fray St. to the West, S. 25th Ave. to the South, E. Cano St. to the East, and S. 29th Ave. to the north. The MSA-State-County-Tract is listed as 32580-48-215-0237.00 the property is legally described as: EUREKA ACRES LOTS 11 TO 16 W 108.05' LOTS 25 36 E. 13 ACS PAYMENT IN LIEU OF TAXES Location and Population:

Edinburg lies at the epicenter of one of the most dynamic regions in North America, a region that is keeping pace with the speed of change. Edinburg is the educational and technological capital of a Texas-Mexico border region. With a population of more than 2 million, this region has the highest concentration of people between the ages of 18 and 24 in North America. The result is an excellent and trainable workforce and one of the largest concentrations of Maquiladora plants along the U.S. Mexico border. Edinburg is located in the Rio Grande Valley, a four-county area that has a larger population than South Dakota, Delaware, North Dakota, Vermont, Alaska, and Wyoming. With a land area of 11,122,712 square kilometers, the Rio Grande Valley is almost twice the size of Delaware and four times the size of Rhode Island. Edinburg is the county seat of Hidalgo, the seventh largest county in Texas and is home to the University of Texas Rio Grande Valley, the state’s tenth largest public university. Centrally located within one of the largest trade corridors in the world, Edinburg is also the gateway to U.S. 281, which is being transformed in to Interstate 69 or the NAFTA Highway. In 1999, more than 54% of all trade between Mexico and the United States made its way through South Texas ports of entry. EDINBURG-TX MSA TRENDS-POPULATION: Year Population Growth Growth Rate 2016 87,650 1,301 1.51% 2015 86,349 1,546 1.82% 2014 84,803 2,132 2.58% 2013 82,671 2,188 2.72% 2012 80,483 1,375 1.74% 2011 79,108 2,008 2.60% 2010 77,100 28,635 59.08% 2000 48,465 1 8,580 62.17% Zoning Data: The subject tract of land is Zoned Urban Residential by the City of Edinburg.

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Assessment and taxes: The appraised property is owned by the Housing Authority of the City of Edinburg and is exempted from property taxes. It is not assessed by the Hidalgo County Appraisal District. Highest and best use:

The highest and best use may be defined as:

The reasonably probable and legal use of vacant land or an improved property, which is physically possible, appropriately supported, financially feasible, and that results in the highest value. (Source: The Appraisal of Real Estate, 12th Edition)

The physical characteristics of the land such as size, shape, location, topography have been considered. In addition, the analysis has included the surrounding developments, existing zoning, access to major transportation routes, availability of utilities, current trends, and demand for property of this type in the real estate market. Highest and Best use “As-Is” (As Though Vacant)

The land value is based on the premise of the highest and best use “as though vacant”. There are four tests which are taken into consideration in developing an opinion of highest and best use. These four tests include an examination of those uses that are physically possible, legally permissible, financially feasible, and maximally productive. Each criterion is considered cumulatively and provides the best analysis for the highest and best use of the land. The following is the highest and best use of the subject site “as though vacant”. Physically Possible

The subject contains approximately 13.05 acres of site area (subject to survey), which is considered an adequate space for a commercial project. The subject fronts along Expressway 281 which provides good access and exposure for commercial development (as rezoned). Size, shape, area, soils and topography affect the uses to which a site may be physically developed. The utility of a parcel may depend on its frontage and depth. Irregularly shaped parcels may cost more to develop and, when developed, may have less utility than a rectangular parcel. The subject site is of sufficient size for development. There are no known physical restraints which inhibit development of the site. Legally Permissible

The subject property is zoned as Urban Residential by the City of Edinburg. The existing use as apartments is permitted. However, the highest and best use is considered commercial.

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Financially Feasible

Commercial development is also considered financially feasible. Commercial development is expected to produce positive returns and is regarded as financially feasible subject to rezoning by the City of Edinburg. Maximally Productive Among the financially feasible uses, the use that provides the highest rate of return, or value, is the highest and best use. The appraisers tested the subject for alternative uses and as a result, it is estimated that commercial development would produce the highest rate of return, subject to rezoning which is considered likely and probable. In conclusion: Highest & Best Use - As Vacant Based upon the preceding discussion, the appraisers estimate that the highest and best use of the subject property as vacant is for commercial use subject to a zoning change which is considered likely and probable.

MARKET TRENDS

From 2014 to 2015, employment in Edinburg, TX grew at a rate of 2.94%, from 33,833 employees to 34,829 employees. The most common employment sectors for those who live in Edinburg, TX, are Educational Services, Healthcare & Social Assistance, and Retail trade. This chart shows the share breakdown of the primary industries for residents of Edinburg, TX, though some of these residents may live in Edinburg, TX and work somewhere else. Census data is tagged to a residential address, not a work address.

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McAllen, TX Top Employers

Edinburg Consolidated I.S.D., 3,600 employees McAllen Independent School District, 3,595 Edinburg Regional Medical Center, 3,000 University of Texas Pan American, 2,850 McAllen Medical Center, 2,800 Hidalgo County, 2,211 Mission Consolidated I.S.D., 2,140 City of McAllen, 1,801 Columbia Rio Grande Regional Hospital, 975 South Texas College, 811

Top Private Sector Employers

Edinburg Regional Medical Center, 3,000 employees

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McAllen Medical Center, 2,800 Wal-Mart, 1,000+ Columbia Rio Grande Regional Hospital, 975 T-Mobile, 720 H-E-B, 380+ Dillards, 354 Foleys, 350 McDonalds, 350 Sams Club, 350 Trade Trends Edinburg is the gateway to U.S. 281, which is being transformed in to Interstate 69 or the NAFTA Highway. In 1999, more than 54% of all trade between Mexico and the United States made its way through South Texas ports of entry With U.S. 281 bisecting the city, the Edinburg industrial park is within 2.5 miles, current occupants include:

• Santana Textiles • Nu-Co tool Incorporated • FedEX.

International Bridges The Rio Grande Valley is home to twelve bridge crossings that allow international trade and commerce to flourish. The Pharr International Bridge, Pharr, TX 78577, is one of the closest International bridge to the property and is located 20.2 miles away. The Pharr International Bridge serves as one of the most important ports of entry for the U.S.-Mexico border. The bridge handles commercial vehicles as well as passenger-operated vehicles. The Pharr International Bridge connects U.S. 281 to the city of Reynosa, an important industrial city in northeastern Mexico, and one of the fastest growing cities in Latin America. Other nearby international bridges are:

• Los Indios International Bridge, Free Trade Bridge, San Benito, TX 78586, located 45.2 miles away.

• Progreso International Bridge, 251 S International Blvd, Progreso, TX 78579, located 28.6 miles away.

• Anzalduas International Bridge, Mission, TX 78572located 26.3 miles away. • Mc Allen-Hidalgo International Bridge, 1023 International Blvd, Hidalgo, TX 78557, located

20.0 miles away. Rail Service

Rio Valley Switching Company ("RVSC") is the “Valley Railroad” interchanging with Union Pacific Railroad (www.uprr.com) in Harlingen and extending west 55 miles/88 km to Mission, Edinburg and to the McAllen Foreign Trade Zone. RVSC also extends Northwest 11/18 km miles to Santa Rosa.

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RVSC greatly expands on the services offered by major Class I Railroads by providing a personalized, dependable service. RVSC is also located within 100 miles of a majority of Mexico's emerging Burgos Basin (the extension of the Eagle Ford Shale in to Mexico). RVSC is ready to provide solutions for Sand, Drilling Fluids, Barite, Oil and Pipe. UPRR Unit Train and Manifest Capabilities to all 70 miles of RVSC trackage. BNSF Unit Train and Manifest Capabilities to Harlingen TX Existing Sites, Team Tracks, and Lots Available (Unit Train and Manifest Solutions) Mexican Truckers can deliver / pick up commodities directly from all RVSC locations RVSC can assist in providing Mexican trucking solutions

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Air Cargo