City Council

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