City Council

10.\nSELECTION OF A REAL ESTATE BROKER FOR MARKETING AND\nSOLICITATION SERVICES FOR APPROXIMATELY 21 ACRES OF CITYOWNED PROPERTY WITHIN NEIGHBORHOOD E OF THE TUSTIN\nLEGACY SPECIFIC PLAN Request for selection of a real estate broker\nto provide marketing and solicitation services for approximately 21 acres\nof City-owned real property within Neighborhood E (Planning Areas 9-12)\nof the Tustin Legacy Specific Plan.\nRecommendation: Authorize the City Manager to negotiate and execute a\nListing Agreement with Cushman & Wakefield, subject to non-substantive\nadditions or modifications as may be deemed necessary and/or\nrecommended by the City Attorney. Fiscal Impact: There will be no impact\nto the General Fund given that commission to a commercial real estate\nbroker is paid at close of escrow on a land sale or execution of a ground\nlease. The City and Cushman & Wakefield have negotiated the following\ncommission: 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: 3.0% of the total lease payments for Years 1-10\n*Commission to be capped at first 10 years of ground lease payments.\nThe final compensation amount to be paid will depend on the success of a\nfuture conveyance. It is undetermined at this time whether conveyance\nwill occur under a sale or ground lease.