4.4.
CC Regular Session
- Meeting Date:
- 01/24/2017
- Submitted For:
- Patrick Brama
- By:
- Patrick Brama, Administrative Services
Information
Title:
Approve Extending CBRE Listing Agreement through July 2017
Purpose/Background:
REFERENCE
This case is in reference to the following discussions: EDA 09/01/2016, EDA 12/08/2016, Council 01/10/2017 regarding the City's strategy for marketing/ selling City-owned land. Please see those cases for background.
PURPOSE
The purpose of this case is to approve the attached short-term contract extension with CBRE (6 months). This short-term CBRE contract should provide enough time for the City to decide what their next long-term contract will be/ with who (typically 3 years).
Notification:
NA
Observations/Alternatives:
NA
Funding Source:
NA
Recommendation:
EDA
By a 6-0 consensus, the EDA recommended the Council approve the attached extension on 01/12/2017. The EDA did not discuss marketing strategies in depth, but was interested in making sure the City had coverage by CBRE until the next long- term alternative was selected.
STAFF
Staff is generally comfortable with this approach. However, staff would note, that a 6-month "carryover" clause for the CBRE listing agreement. This compares to the 18 month carryover clause that the City previously had with with Landform.
COUNCIL
The Council discussed a related case (strategy for selling city owned land) on 01/10/2017. At the time, staff indicated this case would come forward at the next Council meeting (hence, the purpose of this case).
By a 6-0 consensus, the EDA recommended the Council approve the attached extension on 01/12/2017. The EDA did not discuss marketing strategies in depth, but was interested in making sure the City had coverage by CBRE until the next long- term alternative was selected.
STAFF
Staff is generally comfortable with this approach. However, staff would note, that a 6-month "carryover" clause for the CBRE listing agreement. This compares to the 18 month carryover clause that the City previously had with with Landform.
The "carryover" clause means: whenever the CBRE contract is officially terminated, the City still has a 6-month "carryover" timeframe in which they are obligated to pay a commission to CBRE on deals CBRE previously worked--i.e. the CBRE prospect list, which is a long list . One could argue, the City could cancel the CBRE contract now, and CBRE would still work their current leads for the next 6 months, on the City's behalf, anyway. The only downfall with that approach is, CBRE would likely not work any new leads during that interim period, and the level of service could potentially be less.
One EDA member did also share the concern identified by staff 01/12/2017. However, generally, it appeared the EDA felt the level of service that would be provided by CBRE under formal contract (vs. during the "carryover" period) would be different; and generally appeared to be the rationalization for moving forward with the formal contract extension.
COUNCIL
The Council discussed a related case (strategy for selling city owned land) on 01/10/2017. At the time, staff indicated this case would come forward at the next Council meeting (hence, the purpose of this case).
Action:
Motion to:
Approve the attached 6-month contract extension for broker services with CBRE; subject to final review and amendments by the City Attorney.
Approve the attached 6-month contract extension for broker services with CBRE; subject to final review and amendments by the City Attorney.
Attachments
Form Review
| Inbox | Reviewed By | Date |
|---|---|---|
| Kurt Ulrich | Kurt Ulrich | 01/19/2017 10:30 AM |
- Form Started By:
- Patrick Brama
- Started On:
- 01/17/2017 11:44 AM
- Final Approval Date:
- 01/19/2017