DEPARTMENT: Center City Development & Operations
DEPARTMENT HEAD: John Jacks
COUNCIL DISTRICTS IMPACTED: 1
SUBJECT:
Sale of Real Estate: 889 East Market Street
SUMMARY:
An Ordinance declaring an approximately 0.801 acre improved tract of land located at 889 East Market Street in Council District 1 as surplus and authorizing the negotiation and execution of real estate contracts, deeds and other associated instruments to complete the sale of the tract to HMH Rivers L.P. for a total not less than $6,000,000.00.
BACKGROUND INFORMATION:
The subject property is located at 889 East Market Street and is improved with the 512 room Marriott Riverwalk Hotel. This property has been leased since 1978 to a hotel operator who built the current improvements including a 162 car parking structure located on land under the existing Convention Center Garage and is presently an entity associated with Host Hotel & Resorts. The property has been ground leased to the hotel operator for a period that is set to expire in 2053. In addition to the sale of the land upon which the hotel presently sits, the City will also provide an instrument to the buyer that will allow parking for 162 cars under the adjacent Convention Center Garage along with allocation of five parking spaces in the garage to satisfy exiting requirements from the hotel's ballroom. There will be other associated easements granted as a condition of this sale to allow public access to the adjacent Riverwalk and account for utility infrastructure located on the property and adjacent property that will continue to be owned by the City.
An appraisal conducted by HVS, a market expert in hotel valuation, has appraised the value of the leasehold including the 162 space parking facility at $5,400,000.00 of which $173,555.00 is attributable to the value of the five spaces in the garage used by the hotel to provide a clear path of exit from their ballroom. Staff is presently negotiating the ...
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