ORDINANCE approving and authorizing Purchase and Sale Agreement between the City of Houston, Texas, Seller, and ALLIANCE REALTY PARTNERS, LLC, Purchaser, for the sale of 3.88 acres of land located at Nicholson Street and West 19th and 20th Streets, being a part of the John Austin 2 League Grant, Abstract Number 1, Harris County, Texas, for $15,205,664.00; approving and authorizing a Special Warranty Deed - DISTRICT C - COHEN

SPECIFIC EXPLANATION: On April 8, 2015, Motion No. 2015-0235, City Council declared Parcels SY 14-101 and SY15-072 to be surplus and appointed two independent appraisers to determine the fair market value of the properties. Thereafter, on February 10, 2016, Ordinance No. 2016-0108, City Council approved a Real Estate Listing Agreement with Cushman & Wakefield of Texas, Inc. ("CW") to actively market Parcels SY 14-101 and SY15-072 for sale.

The property consists of an agregate of 3.88 acres of land. Tract 1 contains 2.070 acres located at the northeast corner of Nicholson Street and West 19 n Street, and Tract 2 contains 1.8086 acres located at the northwest corner of Nicholson Street and West 201h Street. The three buildings on Tract 1 have been designated as Protected Landmarks, pursuant to Article 7 Chapter 33 of the Code of Ordinances, Houston, Texas, and are being sold subject to this restriction. Any renovation of the buildings must comply with the requirements of this designation.

The properties' highest and best use is considered to be commercial/residential. CW actively marketed the properties to brokers, developers, investors, and users. In March 2016, signs were placed on both tracts and listed on three commercial multiple-listing services. The listing postings were followed by eight electronic distributions of marketing materials to more than 2,100 contacts which included all developers (residential, retail, office), retail brokers, citywide industrial/land brokers and citywide office brokers. On September 23, 2016, CW received 19 offers. Alliance Realty Partners, LLC submitted the highest offer and complied with all of the City's requirements. Alliance Realty Partners is a real estate development company that desires to purchase the properties to develop multi-family apartments, retail space and integrated parking. In accordance with the terms of the Purchase Agreement, prior to presentment of this action to Council for approval, Alliance Realty Partners, LLC presented a development plan to interested residents and businesses and others, at a publicly-advertised meeting, which outlined how the land will be developed and the preservation of the three historic structures located on Tract 1.

Therefore, the General Services Department recommends that City Council approve and authorize a Purchase Agreement with Alliance Realty Partners, LLC for Parcels SY 14-101 and SY15-072, for a purchase price of $15,205,664.00, which is well above the appraised fair 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 properties to Alliance Realty Partners, LLC. Concurrent with the transfer of the properties, Alliance Realty Partners, LLC will convey to the City, an easement for sanitary sewer purposes on a portion of Tract 2.

Jacquelyn L. Nisby                 

 Phone: 832-393-8023