SPECIFIC EXPLANATION: The Department of Public Works and Engineering has determined that the 1.273 tract of land located at 4215 Leeland Avenue, described as Parcel SY15-044, is surplus to its needs. All City departments with land needs have been canvassed and it has been determined that this parcel is not needed for City purposes.
Therefore, the General Services Department (GSD) recommends that City Council declare Parcel SY15-044 surplus to the City’s needs and appoint two independent appraisers, as listed below, to determine the fair market value, which is estimated to exceed $1 million.
· Thomas A. Stark – National Appraisal Partners LLP
· Edward B. Schulz – Edward B. Schulz & Co
GSD further recommends approval of a Real Estate Listing Agreement with Transwestern Property Company SW GP, L.L.C. d/b/a Transwestern, (“TW”) to assist with the marketing and sale of the parcel. In January 2015, GSD solicited a Request for Information (RFI) from three real estate brokerage firms: CBRE; Boyd; and TW. The RFI contained selection criteria that ranked the firms on the following criteria:
- Years of marketing experience in land sales on the east side
- Past performance with City of Houston properties or other government municipalities
- Demonstrated ability to effect a Marketing Plan, if necessary
- Ability to include target prospects and to achieve highest and best use of the property Dealing with any unusual issues which relate to the property
- Minority participation and associated fees
GSD selected TW because they received the most points based on the selection criteria.
SCOPE OF CONTRACT AND FEE:
The proposed Real Estate Listing Agreement will commence on the date of countersignature by the City Controller, and terminate at the earlier of (a) 11:59 p.m. on the 365th day after the commencement date, of (b) upon the closing and funding of the City's sale of the property. Under the terms of the agreement, TW will perform the following tasks:
- Gather relevant information and develop high-quality marketing materials
- List or advertise the properties in appropriate publications, web sites, etc.
- Install agreed-upon signage on the properties
- Identify and target qualified prospects
- Respond to information requests concerning the properties
- Assist with the City's bid sale process: and
- Provide periodic progress reports to the City
The City will pay TW a one-time fee of 4.5% of the sale price of the property, or 4.5% to be split 50/50 if the purchaser is represented by another broker. The sale of the parcel will be conducted in accordance with all applicable state and city laws and will require City Council approval.
The Office of Business Opportunities has reviewed and determined that the services provided under the contract provide no subcontracting opportunities and has approved a waiver, as described in the attached correspondence.