On October 15, 2014, by Motion No. 2014-0935, City Council declared surplus Parcel SY14-137, located at 12800 Fuqua Street, and authorized sealed bid sale of the property. The City acquired the property by deed in 1972 for the Genoa Townsite Booster Station.
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.
In May 2016, the General Services Department (GSD) solicited a Request for Proposal (RFP) to actively market the property to determine its highest and best use from six brokerage firms: Womack Development & Investment Realtors; Avison Young; Realty Executives; Cushman & Wakefield of Texas, Inc.; Customized Real Estate Services, Inc., dba CRES & Associates; and Transwestern. The RFP contained selection criteria that ranked respondents on level of experience in selling vacant tracts; marketing plan and brokerage fees; valuation of subject property based on market comparables; knowledge of property characteristics and challenges; experience of target market; and professionalism of the agent. Cushman & Wakefield of Texas, Inc.; Customized Real Estate Services, Inc., dba CRES and Associates; and Transwestern responded. Transwestern is the most capable firm based upon the selection criteria.
The proposed Agreement will commence on the date of countersignature by the City Controller and terminates at the earlier of (a) 11 :59 pm on the 365th day, or (b) upon closing and funding of the City's sale of the property.
Under the terms of the Agreement, Transwestern will perform the following tasks:
1. Gather relevant information and develop marketing material;
2. List or advertise the property in appropriate publications, web sites, 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 bid sale process; and
7. Provide periodic progress reports to the City.
The City will pay Transwestern a one-time fee of 3% of the sales price of the property, or 4% if the purchaser is represented by a broker other than Transwestern. The sale of the property will be conducted in accordance with all applicable state and city laws and will require City Council approval.
The Office of Business Opportunity has reviewed and determined that the services provided under this contract provide no subcontracting opportunities and has approved a waiver, as described in the attached Goal Modification Request Form.
Accordingly, GSD recommends approval of a Real Estate Marketing Agreement with Transwestern to assist with the marketing and sale of 12.83 acres of vacant land identified as Parcel SY14-137 and located at 12800 Fuqua Street.