HomeMy WebLinkAbout08 AMENDED LISTING AGREEMENT WITH CCP REAL ESTATEDocusign Envelope ID: 3EFE5DEg-C71E-480B-80B0-BFC4B657B312
MEETING DATE
TO
FROM
Agenda Item 8�
Reviewed.' 91
City Manager
Finance Director N/A
MAY 20, 2025
ALDO E. SCHINDLER, CITY MANAGER
BRIAN MONCRIEF, DEPUTY CITY MANAGER — REAL PROPERTY
SUBJECT: AMENDED LISTING AGREEMENT WITH CCP REAL ESTATE
ADVISORS FOR APPROXIMATELY 52 ACRES OF CITY -OWNED
REAL PROPERTY WITHIN NEIGHBORHOOD E (PLANNING
AREAS 9-12) OF THE TUSTIN LEGACY SPECIFIC PLAN
SUMMARY:
Amended Listing Agreement with CCP Real Estate Advisors to provide marketing and
solicitation services for approximately 52 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 an amended Listing Agreement with
CCP Real Estate Advisors, 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 CCP Real Estate Advisors 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 property would be conveyed under a
sale or ground lease.
Docusign Envelope ID: 3EFE5DEg-C71E-480B-80B0-BFC4B657B312
City Council Agenda Report
Amended Listing Agreement
May 20, 2025
Page 2
CORRELATION TO THE STRATEGIC PLAN:
Execution of an amended Listing Agreement for real estate brokerage services contributes
to the fulfillment of the City's Strategic Plan Goal A: Economic and Neighborhood
Development. Specifically, this item implements Strategy 1, which is to develop critical
phases of Tustin Legacy.
BACKGROUND AND DISCUSSION:
On July 17, 2024, the City issued a Request for Qualifications (RFQ) for real estate brokerage
services with the goal of finding a broker experienced in the marketing, disposition,
development and tenanting of experiential retail, entertainment and hospitality uses within
Orange County. On November 19, 2024, the City Council authorized the City Manager to
enter into a Listing Agreement with the recommended broker, CCP Real Estate Advisors
(CCP), to represent the City on a future Request for Proposals (RFP) process for
approximately 14 acres of vacant property within Neighborhood E (Planning Areas 9-12) of
the Tustin Legacy Specific Plan (TLSP) for an experiential retail and entertainment district
with hospitality. The aforementioned Listing Agreement between the City and CCP Real
Estate Advisors was executed on January 6, 2025.
Staff is now recommending that the City Council expand the offering to 52 acres of
Neighborhood E of the TLSP (Site) to potentially accommodate a variety of land uses that
may require a larger footprint than 14 acres. A separate agenda item on the May 20t" agenda
requests City Council authorization to release a competitive offering for the Site. Assuming
City Council approval to release a competitive offering for the Site, staff is recommending an
amended Listing Agreement with CCP to reflect the new acreage and to revise the
commission schedule.
CCP is a well -qualified local firm headquartered in Newport Beach led by Chris Fredrick,
Founder and President. In addition, CCP is also including John Few, Managing Principal of
SRS Real Estate Partners, as part of the proposed brokerage team. CCP has extensive
experience in the brokering, development and tenanting of experiential retail, entertainment
and hospitality uses desired by the City for the proposed RFP.
Following execution of an amended Listing Agreement, CCP will assist the City as follows
before an RFP for the Site is issued-
- Identify opportunities and constraints of the property
- Research and recommendations on developers and tenants to pursue
- Develop selection criteria for the developer selection process
- Prepare sample underwriting, graphics, market research with comparable analysis on
the subject property/City/region market for inclusion in the RFP and prepare a Broker's
Opinion of Value
Docusign Envelope ID: 3EFE5DE9-C71 E-480B-80B0-BFC4B657B312
City Council Agenda Report
Amended Listing Agreement
May 20, 2025
Page 3
Evaluate project feasibility and suggest creative solutions to achieve desired
development goals of the City
Create or identify appropriate software to enable initial developer document
disclosure, execution, developer submittals, and developer questions
- Prepare, distribute, and administer the RFP for the property in accordance with the
City's vision and City standard terms and conditions
Following the RFP release, CCP will assist the City with negotiations, reviewing proposals,
and recommending a developer for City Council consideration. Staff currently anticipates that
the RFP for the Site will be released in June/July 2025.
Signed by:
Brian Moncrief
Deputy City Manager — Real Property
Signed by:
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Kenne Iguee
Real Property Manager
Signed by:
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Ryan Swiontek
Deputy Director of Real Property