Long Beach, CA
File #: 15-010SA    Version: 1 Name: 031715-SA-listing agreements
Type: SA-Agenda Item Status: Approved
File created: 3/12/2015 In control: As the Successor Agency to the Redevelopment Agency of the City of Long Beach
On agenda: 3/17/2015 Final action: 3/17/2015
Title: Recommendation to authorize City Manager, or designee, to execute listing agreements, and any other necessary documents with Blair Commercial Real Estate, Inc. (dba Coldwell Banker Commercial Blair Westmac), Cresa Partners of Los Angeles, Inc. (dba Cresa Los Angeles), Cushman & Wakefield of California, Inc., and Lee & Associates Commercial Real Estate Services, Inc. - South Bay (dba Lee & Associates-Los Angeles South Bay, Inc.), for the listing for sale of Successor Agency-owned property as needed, for a term not to exceed 12 months and for a commission amount not to exceed 6 percent of the gross sales price. (Citywide)
Indexes: Agreements
Attachments: 1. 031715.sa.item3.pdf
Related files: 14-0066, 33448_000, 33455_000, 33465_000, 33466_000, 15-012OB
TITLE
Recommendation to authorize City Manager, or designee, to execute listing agreements, and any other necessary documents with Blair Commercial Real Estate, Inc. (dba Coldwell Banker Commercial Blair Westmac), Cresa Partners of Los Angeles, Inc. (dba Cresa Los Angeles), Cushman & Wakefield of California, Inc., and Lee & Associates Commercial Real Estate Services, Inc. - South Bay (dba Lee & Associates-Los Angeles South Bay, Inc.), for the listing for sale of Successor Agency-owned property as needed, for a term not to exceed 12 months and for a commission amount not to exceed 6 percent of the gross sales price.  (Citywide)
 
DISCUSSION
Historically, the former Redevelopment Agency (Agency) utilized outside firms on an as-needed basis to supplement Agency staff with necessary real estate broker services for the acquisition and disposition of property, as well as for the leasing of privately-owned property for use by Agency staff and programs.  A Request for Proposals (RFP) process was conducted to secure qualified firms to provide these services in anticipation of the disposition of Successor Agency-owned properties as outlined in the Long Range Property Management Plan.  A review committee comprised of Successor Agency and City staff evaluated the proposals based on the criteria set forth in the RFP document and determined that Blair Commercial Real Estate, Inc. (d/b/a Coldwell Banker Commercial Blair Westmac), Cresa Partners of Los Angeles, Inc. (d/b/a Cresa Los Angeles), Cushman & Wakefield of California, Inc., and Lee & Associates Commercial Real Estate Services, Inc. - South Bay (d/b/a Lee & Associates-Los Angeles South Bay, Inc.), were best qualified to provide the as-needed specialized professional services.  These same brokers were approved by the City Council for use by the City on January 21, 2014; details of the selection process were provided at that time.  
 
The Long Range Property Management Plan was recently approved by the State Department of Finance on March 10, 2015.  To provide flexibility and responsiveness, it is recommended that the City Manager, or designee, be authorized to execute listing agreements with each firm. The listing agreement allows these firms to be the real estate broker of record and act on the Successor Agency's behalf, including listing the Successor Agency-owned property.  Any individual listing agreement would be limited to a term of no more than 12 months and the commission would be an amount not to exceed 6 percent of the gross sales price of the transaction.
 
This matter was reviewed by Deputy City Attorney Richard F. Anthony on March 10, 2015, and Budget Management Officer Victoria Bell on March 12, 2015.
 
TIMING CONSIDERATIONS
Successor Agency action is requested on March 17, 2015, to enable the Oversight Board to take action on March 30, 2015, and immediately begin the disposition process after their action.
 
FISCAL IMPACT
Disposition of Successor Agency-owned property will be handled in accordance with the Long Range Property Management Plan.  No budget impact is anticipated, as the brokers' fees will be up to 6 percent of the gross sale price and will be deducted at the time of sale. As a result, the fiscal impact will not be determined until the time of the transaction.  Net proceeds will be disbursed to the Los Angeles County Assessor.  The County Assessor will be responsible for allocating the proceeds to the taxing entities based on their share of the $1 tax rate.  The City's share is approximately 21 percent of the $1 tax rate.  There will be no local job impact associated with this recommendation.
 
SUGGESTED ACTION
Approve recommendation.
 
 
Respectfully Submitted,
AMY J. BODEK, AICP
DIRECTOR OF DEVELOPMENT SERVICES
 
 
 
 
APPROVED:
 
PATRICK H. WEST
CITY MANAGER