ORDINANCE approving and authorizing Purchase and Sale Agreement between the City of Houston, Texas, Seller, and Alireza Khatami, Purchaser, for the sale of approximately 41,925 square feet of land located at 7420 Park Place Boulevard, Houston, Harris County, Texas [Parcel No. S98-012], for $181,500.00 - DISTRICT I - GALLEGOS

TAGGED BY COUNCIL MEMBER GALLEGOS

This was Item 16 on Agenda of November 30, 2016

On October 15, 2014, Motion No. 2014-0935, City Council declared Parcels I59-002 and I59-003 surplus and authorized sealed bid sale of the properties.  On March 23, 2016, Ordinance No. 2016-0222, City Council authorized a Marketing Agreement with Champions Real Estate Group, LLC (Champions) to actively market the properties for sale. Recently, the adjoining tracts were surveyed as one parcel and identified as Parcel No. S98-012, consisting of 41,925 square feet.

Parcel S98-012 was previously used as a police substation located in the southeastern part of Houston, along the southern line of Park Place Boulevard.  The property’s highest and best use is considered to be commercial.  Champions actively marketed the property to developers, investors, builders and end users and listed the property on the Houston Association of Realtors website.  The City received written and verbal offers from four parties, which included two offers over appraised market value.  Both offers were withdrawn.  Subsequently, Alireza Khatami submitted an offer in excess of the appraised market value.

Therefore, the General Services Department recommends that City Council approve and authorize a Purchase and Sale Agreement with Alireza Khatami for Parcel S98-012 for a purchase price of $181,500.00, which is over the appraised market value.  It is further recommended that City Council authorize the Mayor to execute and the City Secretary to attest a Special Warranty Deed conveying the property to Alireza Khatami.

After payment of a 4% brokerage commission to Champions, pursuant to the Marketing Agreement, the net sale proceeds will be directed to the General Fund.

Motion No. 2014-0935; October 15, 2014

Ordinance No. 2016-0222; March 23, 2016