Buffett Buying Burlington Northern

FORT WORTH (Dallas Morning News, CNNMoney.com) – Warren Buffett today announced his firm's plan to purchase the remaining shares in Burlington Northern Santa Fe (BNSF), which has one of the largest freight railroad networks in North America.

Buffet's holding company, Berkshire Hathaway Inc., already has a major stake in the Fort Worth–based company. It owns almost 23 percent and plans to pay $26 billion for the remaining 77 percent in a cash-and-stock offer worth $100 per share.

Berkshire will assume $10 billion in debt from BNSF.

The purchase will require shareholder approval and will have to undergo regulatory review by the Justice Department.

Texas Cities Get Millions from HUD

TEXAS (Austin Business Journal, San Antonio Business Journal) – Local governments statewide have obtained funding from the U.S. Department of Housing and Urban Development (HUD), notably Austin, San Antonio and Bexar County.

The capital, given $13.4 million, and Alamo City and its surrounding county, given a combined $25.7 million, are receiving grants from HUD for community development and production of affordable housing.

The City of San Antonio will receive $14.6 million in Community Development Block Grant funds; $640,466 in Emergency Shelter Grant funds; $7 million in HOME Investment Partnerships Program funding; and $1 million in Housing Opportunities for Persons with AIDS funding.

Separately, Bexar County will receive $1.7 million in Community Development Block Grant funding and $650,999 in HOME funding.

HOME is a federal block grant program that can be used by state and local governments to develop affordable housing.

Other local governments receiving grants include Brownsville, Edinburg, Harlingen, Laredo, McAllen, Mission, Pharr, Round Rock, San Benito, San Marcos, Victoria and Williamson County.

Holy Construction Cranes!

DALLAS (Dallas Business Journal) – First Baptist Dallas has announced plans for what it claims will be the largest church construction project in U.S. history — right in the heart of downtown Dallas.

The church's proposed $130 million campus could include a new 3,000-seat worship center, a six-floor education building, two gymnasiums, a skywalk connecting the campus’ buildings, a parking garage with more than 500 additional spaces and a rooftop green area for outdoor concerts and events.

Senior Pastor Dr. Robert Jeffress said church leadership will present the final project to the congregation only if it meets capital goals by spring 2010.

Project designer is Dallas-based architectural firm The Beck Group.

Brewery Hops Downtown

HOUSTON (Houston Chronicle) – Saint Arnold Brewing Company held the grand opening of its new plant Saturday, bringing a brewery into downtown Houston at 2000 Lyons Ave.

Company founder Brock Wagner has spent $7.5 million on renovations following the purchase of the 95-year-old Houston ISD food distribution warehouse to fit the needs of a modern brewery.

Wagner added a brewhouse with room for three 240-barrel fermenting tanks and the collection of 60- and 120-barrel tanks that will move from the company’s old location outside the 610 Loop.

The new plant can produce 100,000 barrels of beer annually — four times the production limit of its old location.

Road Construction Begins

CORPUS CHRISTI (Corpus Christi Caller-Times) – Contractors for Bay LTD began an 18-month project Monday on US 77 from County Rd. 36 to SH 44.

The nearly $11.8 million project will include construction of main lanes and an overpass at FM 892, as well as grading, base structures, surfacing, signage, pavement markings and markers, according to the Texas Department of Transportation.

Levee to Block Waters, Lower Insurance

RIO GRANDE VALLEY (Valley Morning Star) – Construction will begin within the next few weeks on a $20.9 million levee reconstruction project along 48 miles of the North Floodway and Arroyo Colorado in Cameron and Hidalgo Counties.

The project will benefit residents of cities from La Feria to Weslaco, creating a more secure flood barrier and possibly reducing flood insurance rates.

The new barrier will be built to FEMA accreditation standards, a certification that could reduce flood insurance rates for residents. This requires that the levee rise three feet above FEMA’s estimated 100-year flood level.

A 100-year flood is defined as a flood so severe that it has a 1 percent chance of occurring in any given year.

Ballenger Construction of Harlingen has been awarded the project contract and is expected to finish by next September.

Good Market Conditions for BCS Renters

COLLEGE STATION (The Eagle) – Bryan–College Station apartment occupancy decreased between the first and third quarters, while rents have slightly increased, giving potential renters an advantage.

The average area occupancy rate of apartment units fell from 94.3 percent in the first quarter to 93 percent in the third, according to Apartment Realty Advisors.

Average rent increased 0.35 percent during the same period, bringing it to $866 for a unit averaging 844 sf.

Concote Relocates in Coppell

COPPELL (globest.com) – Concote Corp. Packaging Co. signed a 15-year lease on 144,019 sf at Freeport IX, part of Duke Realty Corp.’s Freeport North Industrial Park.

The packaging and distributor of custom-made fabrication will relocate to the 559,582-sf distribution space at 600 Freeport Pkwy. in December from its current 6120 Peeler St. location in Dallas. The move will bring Freeport IX occupancy to 80 percent.

Jones Lang LaSalle represented Concote, while Duke Realty was self-represented.

Silver Tree Buys Heritage Square

FARMERS BRANCH (Dallas Morning News) – Addison-based Silver Tree Partners has purchased the Heritage Square office towers at LBJ Fwy. and the Dallas North Tollway, near the Galleria.

Built between 1975 and 1987, the ten- and 11-story buildings sit on a 12-acre site and contain about 360,000 sf of office space.

The Addison-based real estate investor bought the two office towers from a Carlyle Group affiliate. Jones Lang LaSalle negotiated the sale.

Loans for State Agency Efficiency Projects

SAN ANTONIO (San Antonio Business Journal) – The comptroller’s State Energy Conservation Office will disburse $157.7 million provided by the stimulus plan to state government facilities for building efficiency and retrofitting projects.

Funds will be distributed through a revolving loan program to cities, counties, schools, hospital districts and other state and local entities. Each can apply for loans up to $10 million at 2 percent interest, to be paid back in ten years.

Some of the items that can be obtained with the loans include high-efficiency heating, ventilation and air-conditioning systems; high-efficiency lighting; better insulation in buildings; reflective film on windows; and automated energy management systems and equipment.

Agencies must submit loan applications by Dec. 30.