City Council

10. SELECTION OF A REAL ESTATE BROKER FOR MARKETING AND SOLICITATION SERVICES FOR APPROXIMATELY 21 ACRES OF CITYOWNED PROPERTY WITHIN NEIGHBORHOOD E OF THE TUSTIN LEGACY SPECIFIC PLAN Request for selection of a real estate broker to provide marketing and solicitation services for approximately 21 acres of City-owned real property within Neighborhood E (Planning Areas 9-12) of the Tustin Legacy Specific Plan. Recommendation: Authorize the City Manager to negotiate and execute a Listing Agreement with Cushman & Wakefield, 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 at close of escrow on a land sale or execution of a ground lease. The City and Cushman & Wakefield have negotiated the following commission: 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: 3.0% of the total lease payments for Years 1-10 *Commission to be capped at first 10 years of ground lease payments. The final compensation amount to be paid will depend on the success of a future conveyance. It is undetermined at this time whether conveyance will occur under a sale or ground lease.