City Council

7. SELECTION OF A REAL ESTATE BROKER FOR MARKETING AND SOLICITATION SERVICES FOR THE SOUTH HANGAR SITE Request for selection of a real estate broker to provide marketing and solicitation services for the South Hangar and portions of the surrounding leased property, totaling approximately 32 acres, within Neighborhood D (Planning Areas 8, 13 & 14) of the Tustin Legacy Specific Plan. Recommendation: It is recommended that the City Council take the following actions: 1. Authorize the City Manager to negotiate and execute a Listing Agreement with CBRE, Inc., 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 direct fiscal impact given that commission to a real estate broker is paid by the prospective sublessee upon execution of a sublease. The following commission structure has been negotiated with the recommended broker, CBRE, and is consistent with industry standards. Sublease: 3.0% of the total sublease payments for Years 1-5 1.5% of the total sublease payments for Years 6-10 0.75% of the total sublease payments for Years 11-15 0.37% of the total sublease payments for Years 16-20 *Commission to be capped at first 20 years of sublease payments.