SUBJECT: An Ordinance authorizing the allocation of $34,000,000.00 and approving the Purchase and Sale Agreement between the City of Houston and 1615 South Loop West, LLC, authorizing payment of purchase prices and related expenses for the acquisition of ± 144,805 square foot building located at 1615 South Loop West, Houston, Texas which is located on ± 14.01 acres of land along with office furniture personal property remaining in the building. Parcel JY25-003.
RECOMMENDATION: An Ordinance authorizing the allocation of $34,000,000.00 and approving the Purchase and Sale Agreement between the City of Houston and 1615 South Loop West, LLC, authorizing payment of purchase prices and related expenses for the acquisition of ± 144,805 square foot building located at 1615 South Loop West, Houston, Texas which is located on ± 14.01 acres of land along with office furniture personal property for Houston Public Works emergency management collaboration needs.
SPECIFIC EXPLANATION: Houston Public Works in efforts to provide enhanced emergency management and coordinated services will acquire property to provide a space for large equipment storage and personnel space. This will increase the efficiency of providing, directing and coordinating large equipment to distressed Houston areas and allow a space to gather equipment prior to major storm events. The proposed ordinance authorizes the purchase of ± 144,805 square foot building located at 1615 South Loop West, Houston, Texas (the “Building”), which is located on ± 14.01 acres of land along with the remaining office furniture personal property currently in the building.
Houston Public Works negotiated with 1615 South Loop West, LLC (the “Seller”) to purchase the building and property for $34,000,000.00 with an option to receive a $1,000,000.00 Purchase Price Credit at Closing if the City can conclude the transaction before December 31, 2024. The purchase price of $34,000,000.00 plus closing cost and related expenses up to $150,000.00 will be paid from funds made available by Houston Water.
Therefore, it is recommended that an Ordinance be approved authorizing the allocation of $34,000,000.00, approving the Purchase and Sale Agreement between the City of Houston and 1615 South Loop West, LLC, and authorizing the payment of the purchase price and related expenses for the acquisition of ± 144,805 square foot building located at 1615 South Loop West, Houston, Texas which is located on ± 14.01 acres of land along with office furniture personal property remaining in the building.
FISCAL NOTE: Funding for this item is not included in the FY 2025 Adopted Budget. Therefore, a Fiscal Note is required as stated in the Financial Polices.
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Estimated Fiscal Operating Impact
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Recurring or One Time:
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One Time
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Fund Name:
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FY2025
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Outyear
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Total
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Combined Utility System General Purpose Fund
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$34,000,000.00
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$0
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$34,000,000.00
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____________________________
Randall V. Macchi
Director, Houston Public Works
WBS Nos: R-900001-0008-2 and S-900001-0008-2