The Empire Parking Garage is being built with approximately 16,500 sq. ft. of retail/office area on the ground floor, facing Montana Avenue.  It has been designated as a single unit in the Declaration of Unit Ownership (condo) but it could be divided into ten (10) sub-units.  In July, staff presented Council with offers to purchase some or all of the area but Council rejected the offers and asked for suggestions to actively market the space.  Council received a written recommendation on August 19 to issue an RFP and submit a proposed contract to Council in October.  Staff advertised the RFP on August 29, sent it to approximately twenty (20) Realtors with commercial property experience and requested responses by September 27.  Mike Walker, NAI Business Properties, submitted the only response and it is attached.  Staff reviewed the scope of work with Mr. Walker and supports the marketing plan.

The City Council may:

• Approve the proposal and contract with Michael Walker, NAI Business Properties, to sell the Empire Garage retail units.  The garage will be completed in April, 2014.
• Reject the proposal and contract.  Staff would ask the Council to state its desired next steps to market and sell the Empire Garage retail units.

Mr. Walker proposed a fee of 7% of the selling price.  The fee will be paid from the sale proceeds, so there isn't a direct impact on the City's budget.  The project budget is built on net proceeds of at least $500,000.  Any shortfall could be recovered from the Tax Increment Fund over the next three (3) years.

Staff recommends that the City Council approve the contract with Michael Walker, NAI Business Properties, to market the retail units in the Empire Parking Garage.