City Council

13. SELECTION OF A COMMERCIAL REAL ESTATE BROKER FOR MARKETING\nAND SOLICITATION SERVICES FOR PLANNING AREA 10 OF THE PACIFIC\nCENTER EAST SPECIFIC PLAN Request for selection of a commercial real\nestate broker to provide marketing and solicitation services for Planning Area 10\nof the Pacific Center East Specific Plan comprised of approximately 11 acres of\nCity-owned real property.\nRecommendation: Authorize the City Manager to negotiate and execute a\nListing Agreement with Jones Lang LaSalle IP, Inc. (JLL), subject to non-\nsubstantive additions or modifications as may be deemed necessary and/or\nrecommended by the City Attorney. Fiscal Impact: There will be no impact to the\nGeneral Fund given that commission to a commercial real estate broker is paid\nby the buyer or lessee at close of escrow on a land sale or execution of a\nground lease. However, the following tiered commission structure has been\nnegotiated with the recommended broker, JLL, which is consistent with industry\nstandards. Land Sale: 3.0% of gross purchase price up to the first\n$10,000,000.00 2.0% of gross purchase price between $10,000,000.00 to\n$20,000,000.00 1.0% of gross purchase price exceeding $20,000,000.00\nGround Lease: 4.0% of the total lease payments for Years 1-5 2.0% of the total\nlease payments for Years 6-10 *Commission to be capped at first 10 years of\nground lease payments.