City Council
MEETING DATE: 8/9/2017
TITLE:
Title
Authorization of a Vacant Land Listing Agreement
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FROM:
Tami E. Scott, Administrative Services Director
RECOMMENDATION:
Recommendation
Staff recommends the City Council authorize execution of a Vacant Land Listing Agreement with Mario Perez, REMAX Consultants for disposition of forty-four scattered in-fill housing lots located throughout the City.
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BACKGROUND:
The City and the City, in its capacity as the Housing Successor to the former Cathedral City Redevelopment Agency, currently owns 44 vacant scattered lots throughout the city limits. Since our contract with Kosmont Companies has concluded, it was timely to complete a Request for Proposal for Real Estate Brokerage Services (RFP), which was prepared and distributed to both the Palm Springs and the California Desert Association of Realtors. Both Associations distributed an electronic version of the RFP to their members. This RFP resulted in the submittal of twelve proposals.
DISCUSSION:
The submittals were evaluated by a panel consisting of city staff and a board member of the City Urban Revitalization Corporation (CURC). The three top proposers were as follows in no particular order:
Jeff Robinson, Coldwell Banker Commercial Lyle & Associates- Terms were for a 12- month listing agreement with a 6% Commission.
Peter Zarenejad of Michael Hilgenberg Keller Williams Realty- Terms were for a 12-month listing agreement with a commission of 6%-10%, with a minimum of $1000.
Mario Perez of Peter Terracciano REMAX Consultants- Terms were for a 12-month listing agreement with a commission of 5%.
Criteria used to evaluate the twelve responses included experience in dealing with vacant land transactions, knowledge of the Cathedral City and Coachella Valley market, specifically the current listing of City and CURC vacant land, the proposed marketing plan for these parcels and desired compensation. After evaluation, the three top respondents were invited to interview. After conducting the interviews, the panel recommends that the City and the City in its capacity as the Housing Successor Agency enter into an exclusive vacant land listing agreement with Mario Perez REMAX Consultants for a term of twelve months with compensation set at 5%, for approximately 44 parcels. Upon concurrence of the City Council, CURC has also approved entering into an identical vacant land listing agreement for disposition of nineteen (19) vacant land parcels owned by CURC.
FISCAL IMPACT:
All sales proceeds resulting from the vacant land listing agreement with the City as the Housing Successor Agency will be deposited into a restricted fund wherein the monies can only be used for affordable housing purposes. All sales proceeds on City owned parcels will be deposited in the City's General Fund. Any commissions or fees resulting from a sales contract resulting from this listing agreement will be derived from the sales proceeds, hence there is no additional cost of entering into this agreement.
ATTACHMENTS:
Vacant Land Listing Agreement
Parcel List