City Council

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