01-22-2016 BPU RPT 09 - Laserfiche WebLink

Home

Wni =R tvtRUv ii -- RIVERSIDE PUBLIC UTILITIES WON Board Memorandum PUBLIC UTILITIES BOARD OF PUBLIC UTILITIES DATE: JANUARY 22, 2016 ITEM NO: 9 File ID — 16 -0196 — C SUBJECT: BROKER LISTING SERVICES FOR THE MISSION SQUARE OFFICE COMPLEX; PROFESSIONAL SERVICES AGREEMENT WITH NEWMARK GRUBB KNIGHT FRANK, NEWPORT BEACH, CALIFORNIA, CONTINGENCY ONLY BASIS ISSUE: The issue for Board of Public Utilities consideration is the award of a Professional Services Agreement with Newmark Grubb Knight Frank (NGKF) of Newport Beach, California for the professional third party broker services for the leasing of Mission Square Office Complex. RECOMMENDATION: That the Board of Public Utilities recommend that Agreement with Newmark Grubb Knight Frank professional third party broker services for the contingency (fee for services) basis. BACKGROUND: the City Council approve a Professional Services (NGKF) of Newport Beach, California, for the leasing of Mission Square Office Complex on a At its Regular Meeting on November 20, 2015, the Board of Public Utilities amended its Real Property Financial Management Policy to reflect the commercial broker and leasing operation of the Mission Square Office Complex, including the provision of professional third party commercial broker and leasing services. The City's Real Property Manager, in consultation and coordination with Riverside Public Utilities (RPU) staff, prepared a Request for Proposals for Commercial Broker and Leasing Services (RFP 1552) for the Mission Square Building. On October 30, 2015, four (4) proposals were received. Proposals from Newmark Grubb Knight Frank, CBRE Group, Inc., Inland Pacific Advisors, and Lee & Associates were evaluated by staff and representatives from all firms were invited for interviews that took place on December 4, 2015. A selection committee consisting of representatives from RPU and the Community & Economic Development Department recommends award of the Exclusive Authorization of Lease Agreement to NGKF. Under the proposed Agreement, NGKF will be responsible for advertising, marketing, and listing office or retail space in multiple listing services, physically showing the space to prospective tenants, and advising the City on prospective tenants and lease terms. The proposed term of service is five (5) years and the City reserves the right to cancel by providing a thirty (30) day written notice at any time after the first year. The proposed commission is five percent (5 %) of the total rental consideration paid by new tenants for the first five (5) years of the lease term and two and one -half percent (2.5 %) for any term over the initial five (5) year period. In cases where outside brokerage representatives are involved, the procuring broker will be paid a four percent (4 %) commission fee and NGFK will reduce their fee by 50 %, so the total for both commissions would be six and one -half percent (6.5 %) over the initial five (5) year period.