RECOMMENDATION: Approve and authorize the Marketing Agreement between the City of Houston, TX, and Savills, Inc., a New York corporation, to assist with the marketing of Parcel QY22-008, located at 10301 Stella Link Road, Houston, TX 77025.
SPECIFIC EXPLANATION: Parcel QY22-008 consists of approximately 12.22 acres of land, located along the east line of Stella Link Road and the northwest line of South Main Street.
Section 253.014 of the Texas Local Government Code provides the City with 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 Savills, Inc. to assist with the marketing of Parcel QY22-008.
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 30th of June 2024, or (b) upon closing and funding of the City’s sale of the property. Under the terms of the Agreement, Savills, 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 Savills, 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: 10301 Stella Link Road, Houston, TX 77025
FISCAL NOTE: There is no impact on the fiscal budget or no additional spending authority. Therefore, no Fiscal Note is required as stated in the Financial Policies.
DIRECTOR’S SIGNATURE/DATE:
____________________________
C. J. Messiah, Jr.
General Services Department
____________________________
Michael C. Nichols, Interim Director
Housing and Community Development