HomeMy WebLinkAboutAgenda Report - October 3, 2007 E-07AGENDA ITEM
-7
k9% CITY OF LODI
COUNCIL COMMUNICATION
TM
AGENDA TITLE: Adopt resolution awarding the Brokerage Services to sell surplus City -owned real
estate properties to Coldwell Banker Commercial, The Duncan Company, Inc. of
Woodbridge, CA (EUD)
MEETING DATE: October 3,2007
PREPARED BY: Electric Utility Director
RECOMMENDED ACTION: Adopt a resolution awarding the Brokerage Services to sell surplus
City -owned real estate properties to Coldwell Banker Commercial,
The Duncan Company, Inc. of Woodbridge, California.
BACKGROUND INFORMATION: On April 11, 2006, staff provided the City Council a list of unutilized real
estate properties currently owned by the City. The City decided to sell
these surplus properties.
One of the unutilized sites is the Electric Utility Department(EUD) property located at 500 South Guild Avenue. This
lot is approximately 9.09 acres as per APN 049-250-61 in the San Joaquin County Assessor's Book of Parcels Map
Book 21 Page 159 as shown in Attachment A. It is surrounded by: Central California Traction Company on the
North, Thurman Street on the South, Guild Avenue on the Eastern side, and a City of Lodi property (APN 049-250-
13)to the West. This EUD property had an appraised value of $2.5 million on October 2006.
Initially, a Requestfor Proposal was advertised for approximately two monthswithout employing the services of
realty agents and/or brokerage firms. There were several inquiries and almost all of the bid documents that were
placed on the site were taken. However, no proposals were received by the June 22, 2007 deadline
As a result, staff believes that the services of a professional commercial brokerage firm may be necessary to obtain
qualified proposals in a timely manner. The new Request for Proposal (RFP) was enhanced to reflect a two-tiered
brokerage fee structure. Bidders were also allowed to propose lower fees and other alternate proposals that would
be deemed advantageous to the City. The RFP was advertised for bid and more than ten (10) brokerage companies
requested copies. On September 19, 2007, staff received proposals from three companies with the following
results:
Brokerage Company Sale Price Brokerage Fee
Cornish &Carey Commercial Greaterthan $2 million w°!
Roseville, CA Less than $2 million 6%
Baker Pearson Real Estate, Lodi, CA Any sale amount 4-t),/o
Coldwell Banker Commercial — The Duncan Up to $2 million 4%
Co. Inc., Woodbridge, CA Sale price minus $2 million 6%
The proposal of Baker Pearson Real Estate was the most attractive with a flat fee of 4.5% but their experience is
concentrated mainly on residential properties and lacks marketing experience for commercial properties. Coldwell
Banker's (Coldwell) proposed that a 4% fee be paid on that portion of the sale price up to $2 million and 6% fee for
the portion of sales price over $2 million.. Whereas, Cornish & Carey Commercial will charge 6% commission for
sale price less than $2 million and a 5% fee for properties sold greater than $2 million.
APPROVED: 17
CTO ing, City Manager
Adopt resolution awarding the Brokerage Services to sell surplus City -owned real estate properties to Coldwell Banker
Commercial, The Duncan Company, Inc. of Woodbridge. CA (EUD)
October 3,2007
Paget of 2
Considering the commercial marketing experience and a well -structured two-tiered brokerage fee proposal of
Coldwell, staff hereby recommends to the City Council to award the Brokerage Services to Coldwell Banker
Commercial —The Duncan Co. Inc. of Woodbridge, CA.
FISCAL IMPACT: Proceeds from real estate sales will enhance the City's financial position.
FUNDING AVAILABLE: Not applicable.
i
v s, Budget Manager
i
e orrow`�
Electric Utility Director
PREPARED BY Demy Bucaneg, Jr., P.E., Manager, Engineering a Operations
GFM/DB/Ist
Brokerage Company
sale pri
Brokerage Fee
Cornish & Carey Commercial, Rosevilie, CA
Greaterthan $2 million
5%
Less than $2 million
6%
Baker Pearson Real Estate, Lodi, CA
Any sale amount
4.5%
Coldwell Banker Commercial, the Duncan
Inc., Woodbridge. CA
Up to $2 million
4%
Sale price minus $2 million
6%
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council hereby
awards the brokerage services to sell surplus City -owned real estate properties to
Coldwell Banker Commercial, the Duncan Company, Inc., of Woodbridge, CA; and
BE IT FURTHER RESOLVED that the City Manager is hereby authorized and
directed to execute any and all contracts/agreements for these services on behalf of the
City of Lodi.
Dated: October 3, 2007
I hereby certify that Resolution No. 2007-195 was passed and adopted by the
City Council of the City of Lodi in a regular meeting held October 3, 2007, by the
following vote:
AYES: COUNCIL MEMBERS— Hansen, Hitchcock, Katzakian, and
Mounce
NOES: COUNCIL MEMBERS— None
ABSENT: COUNCIL MEMBERS— None
ABSTAIN: COUNCIL MEMBERS —Mayor Johnso-n
ADIIJOHL
City Clerk
2007-195