pages: CityCouncil/2015-10-20.pdf, 25
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CityCouncil | 2015-10-20 | 25 | Councilmember Oddie stated it is a smart move to be the land banker as the value goes up. Councilmember Ezzy Ashcraft stated her questions have been answered and she is convinced of the approach, which should be turned into a document for Council to approve. Mayor Spencer stated how much Cushman and Wakefield has been paid or the contract was not provided, which is critical information; the presentation indicated Cushman and Wakefield was involved in the VF Outdoor campus, which she thought it was Joe Ernst. The Chief Operating Officer - Alameda Point responded Cushman and Wakefield were the broker for Joe Ernst; the City did a Request for Proposals (RFP) and the City Council selected Cushman and Wakefield and PM Realty; the current contractor includes a 5% commission on land sales. Mayor Spencer stated the report needs to include the contract, projects and how much has been paid; a statement cannot be made that it is cost efficient without numbers; how much Cushman and Wakefield has been paid in the past two years. John McManus, Cushman and Wakefield, corrected one comment; stated they represented VF Outdoor; the contract ends in 2018 and includes provisions if City is not happy with performance; the lease schedule is 5% the value of the lease for years 1 to 5 and 21/2% of years 6 to 10; tonight, Matson was represented by Transwestern Group; half of the fees would be paid to Transwestern and half to Cushman and Wakefield; in every case there are outside brokers; fees would be reduced if there are not outside brokers. Mayor Spencer stated that she was looking for the contract to be included; Matson is an existing customer; Cushman and Wakefield did not find them; inquired the percentage is the same whether or not Cushman and Wakefield finds tenant. Mr. McManus responded the schedule is 50% for a renewal if the tenant stays in the building; the fee is half for relocation. The Chief Operating Officer - Alameda Point stated for the new lease Cushman and Wakefield will be receiving full commission, which is standard industry practice; stated Cushman and Wakefield does all the front line work, not the City. Mayor Spencer inquired what incentives Cushman and Wakefield have to bring new clients to the City; stated that she understands Joe Ernst is bringing tenants to the City, not Cushman and Wakefield. Mr. McManus provided examples of new tenants: Wrightspeed, Winery 43, Fred Grandy, Universal Studios, and Restoration Hardware. Regular Meeting Alameda City Council 25 October 20, 2015 | CityCouncil/2015-10-20.pdf |