RECOMMENDATION: Approve and authorize the Marketing Agreement between the City of Houston, TX, and CBRE, Inc., a Delaware limited liability company to assist with the marketing of Parcel QY22-007, located at 12606 Cityscape Avenue, Houston, TX 77047.
SPECIFIC EXPLANATION: Parcel QY22-007 consists of approximately 14.95 acres of land, located at 14.95 along the east line of Highway 288 Frontage Road and the west line of Cityscape Avenue, south of East Orem Drive.
Section 253.014 of the Texas Local Government Code provides the City the option to contract with a broker to sell City-owned property. It was determined that listing the property with a broker who will actively market the property to developers, investors, builders, and end users may yield an earlier, higher return to the City as opposed to a sealed bid sale.
Therefore, the General Services Department recommends that City Council approve and authorize the Marketing Agreement between the City of Houston, TX, and CBRE, Inc. to assist with the marketing of Parcel QY22-007.
SCOPE OF CONTRACT AND FEE: The proposed Real Estate Marketing Agreement will commence on the date of countersignature by the City Controller and terminate at the earlier of (a) 11:59 pm on the 30 of June, 2024, or (b) upon closing and funding of the City’s sale of the property. Under the terms of the Agreement, CBRE, Inc. will perform the following tasks: (1) gather relevant information and develop marketing material; (2) list or advertise the property in appropriate publications, websites, etc.; (3) install agreed-upon signage on the property; (4) identify and target qualified prospects; (5) respond to information requests concerning the property; (6) assist with the City’s sale process; and (7) provide periodic progress reports to the City.
The City will pay a one-time fee of 3% of the sales price of the property, or 4% if the purchaser is represented by another broker other than CBRE, Inc. The sale of the property will be conducted in accordance with all applicable state and city laws and will require final approval by City Council.
The Office of Business Opportunity reviewed the Real Estate Marketing Agreement and determined the level of MWSBE availability would produce minimal MWSBE participation. Therefore, the Office of Business Opportunity has approved a 0% MWSBE goal.
PROPERTY LOCATION: 12606 Cityscape Avenue, Houston, TX 77047
FISCAL NOTE: There is no impact to the fiscal budget or no additional spending authority. Therefore, no Fiscal Note is required as stated in the Financial Policies.
DIRECTOR’S SIGNATURE/DATE:
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C. J. Messiah, Jr.
General Services Department
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Keith Bynam
Housing and Community Development