City Council

11. SELECTION OF A COMMERCIAL REAL ESTATE BROKER FOR\nMARKETING AND SOLICITATION SERVICES FOR A PORTION OF\nDISPOSITION AREA 5 AT TUSTIN LEGACY Request for selection of a\ncommercial real estate broker to provide marketing and solicitation\nservices for approximately 14 acres of vacant property within Disposition\nArea 5 at Tustin Legacy.\nRecommendation: Authorize the City Manager to negotiate and execute a\nListing Agreement with CCP Real Estate Advisors, subject to non-\nsubstantive additions or modifications as may be deemed necessary\nand/or recommended by the City Attorney.Fiscal Impact: Compensation\nfor brokerage services is typically based on a commission structure,\nmeaning that the City is not liable for any compensation to a commercial\nreal estate broker until the close of escrow on a land sale or execution of\na ground lease. City staff has negotiated the following tiered commission\nstructure with the recommended broker, CCP Real Estate Advisors, which\naligns with both other responses received and industry standards. Land\nSale: 5.0% of the sale price up to the first $10,000,000.00 4.0% of the\nnext $10,000,000.00 up to $20,000,000.00 3.0% of the sale price amount\nexceeding $20,000,000.00 Ground Lease: 5% of the lease value The final\ncompensation amount will depend on the success of a future conveyance.\nIt is unclear at this time whether the property would be conveyed under a\nsale or ground lease.