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Fort Worth Star-Telegram - 2008-02-04

Agency criticized for land deal talks (new window)

By R.A. DYER

Star-Telegram Staff Writer

AUSTIN -- In an under-the-radar deal by the Texas General Land Office, about 2,000 acres of potentially environmentally sensitive land along the Blanco River in Central Texas could soon go to an undisclosed buyer.

Citing a state law that allows the agency to withhold any documentation relating to pending property deals, the land office has been tight-lipped about details. The agency won't reveal the identity of the proposed buyer, any potential environmental fallout from development, and what, if anything, the General Land Office has done to protect the tract.

But those familiar with the tract and with land office operations said that an endangered bird has been seen in the area and that an agency official had expressed concerns that the site could be archaeologically sensitive. The agency's handling of the tract is also drawing fire from conservation groups.

"We're definitely concerned by what we see as the GLO's investment strategy, which includes buying up ecologically sensitive land and selling it to developers," said Luke Metzger, director of Environment Texas, a conservation group. "They should be held to a higher standard and shouldn't be in the business of encouraging sprawl. ... We think this area in particular is vulnerable."

Jim Suydam, a spokesman for the land office, said the agency has conducted archaeological and environmental studies on the property, but declined to discuss the conclusions of those studies. He also declined to say whether the agency had taken steps to protect the property.

The land is at the center of a pending real estate transaction, meaning the agency could potentially withhold the information for months or even years if necessary, he said.

"I'm not going to talk about any of the details of this pending real estate transaction," Suydam said.

The potential transaction is just the latest General Land Office deal to raise eyebrows. Land Commissioner Jerry Patterson also has drawn criticism for his effort to sell a pristine mountain range near Big Bend National Park to private interests and for leasing land in West Texas to a company that wants to dump sewage on it.

Endangered bird

The Blanco River land was acquired in 2005 and 2006 and put out to bid by the General Land Office in July. Kyle retiree A.W. Gregg, the former owner, said he had mixed emotions about selling -- but the land office offered him cash.

"They are the only people paying cash -- a developer doesn't do that -- and so that's the only way I would have sold it," Gregg said.

Although neither Gregg nor the land office would comment on the purchase price, separate reports note that the state agency paid more than $20 million. The land office identifies the property as two parcels -- 1,971 acres acquired in August 2005, and 195 acres purchased in July 2006.

Both are just south of Farm Road 150, in Kyle, with part of the property fronting the river. Those familiar with the land say it's mostly wooded, but has flat areas suitable for development.

The land also sits in the middle of a known habitat for the golden-cheeked warbler, an endangered bird, said Gary Amaon, a former official with The Nature Conservancy. The 62-year-old retiree stressed that he was not speaking on behalf of the organization, although he says he has some familiarity with the land because of his previous association with the group.

"They have a wooded ravine [on the property] where the endangered species habitat is -- and along the river, also," said Amaon, who said he believes that recent legislation has given the land office a separate statutory mission to protect Texas land.

He questioned whether that mission conflicts with its strategy for making money for the Permanent School Fund, which includes acquiring investment properties like the Blanco River tract. "They are not a developer, they are an arm of the state of Texas, and I think they have a higher standard that they should be held to," he said.

Suydam, of the General Land Office, said he knew of no statutory mission to protect open spaces. "I've never heard of that," he said.

Conservation easement

Jeff Barton, a member of the Hays County Commissioners Court, who also said there is environmentally sensitive land in the area, gave the agency high marks. He said that a land office official contacted his office some time back, and that the agency agreed to pursue environmental protections on 40 to 70 acres of the roughly 2,000-acre tract.

"I don't know if it's sufficient -- I haven't seen a detailed geological assessment of the site -- but the state did more than they had to," Barton said.

As he understands it, the land office will insist upon a conservation easement that will prevent a future owner from developing that small portion of the tract, he said. He said that the Hays County Commissioners Court voted on the deal without much discussion and that the vote did not attract any publicity or public input.

Several local activists said that was because the transaction has flown beneath the public's radar. Many expressed shock and dismay that the agency had acquired the property and was looking to sell it.

"This is archaeologically sensitive land all along these rivers," said Diana Wassenich, director of the San Marcos River Foundation. "These rivers are spring-fed and for a thousand years, there were some Indians here. It was a constant source of water for them."

What's ahead

The Christmas Mountains controversy comes up for a possible vote Tuesday in Austin.

That's when the School Land Board, a three-member panel headed by Land Commissioner Jerry Patterson, is set to consider bids from private interests to buy the 9,269-acre tract. Patterson has pressed to sell the land to private interests, even though the General Land Office agreed earlier that it would remain in public hands or go only to the National Park Service.

The School Land Board is expected to consider two purchase offers from private groups, as well as an acquisition plan from the National Park Service. The meeting is scheduled for 10 a.m.

Online: www.glo.state.tx.us/about/landboard.html

R.A. DYER REPORTS FROM THE STAR-TELEGRAM'S AUSTIN BUREAU. 512-476-4294.
rdyer@star-telegram.com