Open Records Decision No. 291
November 30, 1981

	Re:  Whether city application to Department of Housing and Urban Development 
for funds for water treatment plant is available under the Open Records Act

Mr. Alex Huddleston
Attorney at Law
Skaggs & Huddleston
P. O. Box 2999
Harlingen, Texas 73550

Dear Mr. Huddleston:

	Your request for our decision under the Open Records Act, article 6252-17a, 
V.T.C.S., concerns an application which the city of Rio Hondo submitted to the 
Department of Housing and Urban Development for federal funds to construct a new 
water treatment plant.  You contend that you are entitled to withhold this application 
from public disclosure under sections 3(a)(4) and/or 3(a)(5) of the Open Records Act.

	Section 3(a)(4) excepts from disclosure:

information which, if released, would give advantage to competitors 
or bidders.

	Section 3(a)(5) excepts:

information pertaining to the location of real or personal property 
for public purposes prior to public announcement of the project, and 
information pertaining to appraisals or purchase price of real or 
personal property for public purposes prior to the formal award of 
contracts therefor.

	The Department of Housing and Urban Development approved the application in 
question.  In support of your contention that you may withhold it from the public at this 
time, you state as follows:

Until all bids have been let and the real property necessary for 
construction of the water treatment plant has been acquired, it is 
believed that disclosure of the grant application could have an 
adverse effect on the project.  The city does not yet own the real 
property where the proposed water treatment plant is to be located, 
and has not opened the bidding for construction of the plant.  The 
grant application contains detailed information regarding the desired 
location of the plant, as well as estimates of construction costs.  If 
this information is revealed at this time, the city's negotiating 
position could be seriously weakened since the amounts budgeted 
for acquisition of land and construction costs and the location of the 
land to be acquired might be discovered by prospective bidders or 
owners of the land the city wishes to acquire.

	Open Records Decision No. 234 (1980) dealt with a request for plans, locations 
and cost estimates relating to a proposed reservoir and water line project.  At the time 
that request for an Open Records decision was presented to this office, the project was in 
the planning and negotiation stage.  No decision as to location had been made and no 
property had been purchased.  Relying in part upon Open Records Decision No. 5 
(1973), which concluded that a study could be withheld if it was still the basis for good 
faith negotiations regarding the purchase by the city of the particular property in 
question, Open Records Decision No. 234 held as follows:

So long as negotiations regarding the purchase of a site for the 
reservoir and water line have not been completed, we believe that 
the city may withhold all proposed plans, locations and cost 
estimates under section 3(a)(5).  When the transaction has been 
completed, all factual information relating to the project will 
become available to the public.

Compare Open Records Decision No. 222 (1979) (private consulting firm's study of 
possible sites for sludge treatment plant not excepted from disclosure after site had been 
purchased).

	We believe the reasoning of Open Records Decision No. 234 is applicable to your 
request.  We therefore conclude that the application in question may be withheld from 
public disclosure at this time.  When the transactions in question are completed, factual 
information relating to the project will become available to the public.

Very truly yours,

Mark White
Attorney General of Texas

John W. Fainter, Jr.
First Assistant Attorney General

Richard E. Gray III
Executive Assistant Attorney General

Prepared by Jon Bible
Assistant Attorney General

APPROVED:
OPINION COMMITTEE

Susan L. Garrison, Chairman
Jon Bible
Rick Gilpin
Jim Moellinger
Bruce Youngblood