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SR-802-001-03 (2) RMD: EDD: MR: AJ: F:\RESOURCE\SHARE\STAFFREPORTS\PIER LEASING GUIDELINES FY? 03.DOC Council Meeting: March 11, 2003 Santa Monica, California To: Mayor and City Council From: City Staff Subject: Proposed Guidelines for Leasehold Management of Santa Monica Pier for Calendar Years 2003 and 2004 Introduction This report recommends that Council approve proposed guidelines for leasehold management of City property located on Santa Monica Pier for calendar years 2003 and 2004. Background In November 1983 City Council created the Santa Monica Pier Restoration Corporation (PRC) as a non-profit, public benefit corporation to oversee the reconstruction and commercial revitalization of the Pier. The responsibilities and authority of the PRC were formalized and broadened in December 1985, with Council approval of a Services Agreement with the PRC and by-laws for the corporation. The relationship between the City and PRC was reaffirmed and modified upon Council approval of a new Services Agreement on December 19, 2000, transferring to City Economic Development Division staff, supported by the Office of the City Attorney, responsibility for lease and license negotiations and administration of approved uses of the Pier. The PRC remains responsible for establishing, subject to Council approval, policies and guidelines for operation of the Pier, for promoting and marketing of the Pier as a community asset, for 1 hosting and managing special events and activities on the Pier, and as advocates for Pier-related capital projects and improvements. The PRC formulated a set of public policy statements, goals and objectives for future development and use of property on the Pier, set forth in the General Use and Development Plan adopted by the PRC in September 1987 and approved by Council in February 1988. The 1988 Plan identified a multi-step program for the commercial revitalization of the Pier through attraction of diverse products and services appealing to the varied public visiting the Pier. The appropriate tenant mix distribution identified at that time included retail, restaurant and entertainment/amusement uses. A primary objective of the PRC?s development program was to revitalize the Pier in a manner that preserved its historic design and use characteristics while serving the future recreational needs of the community and the economic requirements of the City. The Pier?s economic position was to be improved by increasing the commercial area available for leases and licenses, and improving the quality of products and services offered while maintaining it as an affordable destination. Council oversight and review of PRC activities continues through its appointment of members to the PRC Board of Directors and through review and approval of an annual Plan of Work, annual Leasing Guidelines and annual budget proposed by the PRC. The Plan of Work sets forth the goals and objectives of the PRC for the ensuing fiscal year, and the Leasing Guidelines set forth the standards and methodology used by City staff to implement the commercial objectives of the PRC stated in the Plan of Work. 2 The City provides funds for PRC activities and program implementation through the allocation of budget resources. Guidelines for design and future development and use of property on the Pier were set forth as public policy statements in the 1988 General Use and Development Plan. As called for in Section 5.1 of the 2000 Services Agreement, draft leasing guidelines for Santa Monica Pier were reviewed with and approved by the Leasing Committee and PRC Board. At its meeting held February 13, 2001, Council approved the Leasing Guidelines for fiscal years 2000-01 and 2001-02, subject to the Guidelines being returned for periodic review and possible modification by the PRC Board and City Council as the means by which each year?s Plan of Work is to be implemented. The PRC and Economic Development Division staff has concluded the following leases, licenses and operating agreements on behalf of the City since February 2001 for commercial use of the Pier in accordance with the approved Leasing Guidelines: ? 200 Santa Monica Pier ? new operating agreement for management and maintenance of the Santa Monica Carousel with Roth Management Company ? 200 Santa Monica Pier ? new booking agent agreement for management of parties and events in the Carousel Building with Kids Play, Inc. ? 200 Santa Monica Pier ? new concession agreement for operation of a gift shop featuring carousel-related and pier-related items with Airport Concessions, Inc. ? 301 Santa Monica Pier ? new lease for development and operation of a family- oriented restaurant with Bubba Gump Shrimp Company 3 ? 330 Santa Monica Pier ? new lease for continued operation of a convenience restaurant with Surf View Café ? 350 Santa Monica Pier ? amended and restated lease for continued operation of a family-oriented amusement facility with George Gordon Enterprises (Playland Arcade) ? 380 Santa Monica Pier ? amended and restated lease for continued operation of a family-oriented amusement facility with Santa Monica Amusements (Pacific Park) ? 401 Santa Monica Pier ? amended lease for expansion of family-oriented restaurant with Pacific Faire, Inc. (Mariasol Cantina) ? 404 Santa Monica Pier ? new lease for continued operation of a fishing bait and tackle facility with Santa Monica Pier Bait & Tackle ? Historic Vending Operations ? new vending license agreements for continued operation by four long-standing concessionaires (Churro Man; Oatman Rock Shop; Thermal Base Photos; Beachcomber Gifts) ? Vending Cart Operations ? transitioned from master cart license agreement with Promenade Services, Inc. to new cart license agreements with individual operators Also during the past fiscal year, the PRC and Economic Development Division staff solicited proposals for leasehold development and operation of 250 Santa Monica Pier (formerly Ash Grove and Arcadia). 4 Discussion Council approved the PRC?s Plan of Work for fiscal year 2002-03 on May 21, 2002. This Plan of Work identified the following lease and license-related issues as needing to be addressed during the current fiscal year: ? 1600 Oceanfront Walk ? continue work with UCLA and/or Heal the Bay for planned expansion of Ocean Discovery Center ? 250 Santa Monica Pier ? assist in developing a viable new leasehold occupancy for the site Proposed Leasing Guidelines for calendar years 2003 and 2004 setting forth the standards and methodologies to be utilized by City staff to implement the commercial objectives of the PRC as stated in the Plan of Work are conveyed as Attachment A. The proposed Leasing Guidelines were presented to and reviewed with the Leasing Committee on November 25, 2002, and approved by the PRC Board of Directors at its meeting held December 4, 2002. Significant modifications in the proposed Leasing Guidelines from those approved by Council on February 13, 2001, are summarized as follows: ? PREFERRED USES : 250 Santa Monica Pier (former Ash Grove and Arcadia) has been changed from ?music and entertainment venue with food and beverage service? to ?casual breakfast, lunch and dinner restaurant or cafe, with or without alcohol service, and preferably with evening music and entertainment? ? LOCAL PREFERENCE : The limited size and density of commercial development and casual recreational ambiance are important factors in defining the unique 5 character of Santa Monica Pier. That unique character must be preserved in order to protect the Pier?s economic viability. Therefore, leasing and licensing of City-owned buildings and Pier deck area will be subject to a preference for locally owned, independent, non-formula businesses and activities that are financially and operationally capable of providing the Preferred Uses. Such preference will be reflected in bonus ratings and recommendations for responses submitted as part of a public Tenant Recruitment process. A formula business is that which requires by contractual or other arrangement the maintenance of standardized name, services, décor, uniforms, facility design, signage and trademarks/logos, menu and format substantially identical to a similar business located elsewhere. ? RENEWAL OPTIONS : Lease and license renewals or options to extend the terms of occupancy will not be offered. As vacancies arise either by natural expiration or earlier termination, recruitment for each opportunity site will be conducted in accordance with these Leasing Guidelines. Current operators may respond to a public Tenant Recruitment process in the same manner as any prospective new operator. It is recognized, however, that reliability and continuity of quality commercial service are valuable assets to the public experience of the Pier. In order to support existing quality Pier businesses operating and maintaining their premises in full compliance of their lease or license, such businesses will be subject to a preference reflected in bonus ratings and recommendations as part of staff review of responses submitted in accordance with the public Tenant Recruitment process. 6 ? EXPANSION OF LEASEHOLDS : Minor physical expansion of existing leasehold occupancies (for example, enlargement of an outdoor patio) may be approved for tenants who wish to further diversify their business operations through the investment of additional capital in structures, structural improvements or equipment, or otherwise improve operations consistent with the goals and objectives of the Leasing Guidelines. ? LABOR PEACE : The City owns the Pier and has a financial or proprietary interest in Pier businesses engaged in visitor-serving commercial activities. Some of these businesses are in industries that have a history of labor/management conflict. Risk of interruption of rental revenue and common area maintenance fees received by the City from Pier businesses would be minimized if such businesses were assured of labor peace. An appropriate labor peace provision would minimize the City?s exposure to revenue interruption and disruption of public recreational enjoyment of the Pier. New agreements for leasehold use will provide that the tenant may not engage in practices that impede employees? ability to organize and contract with a labor organization for the purpose of collective bargaining. Such prohibited practices include harassment, intimidation, ?captive audience? anti-union meetings or illegal terminations of workers in retaliation for organizing. Tenant engagement in prohibited practices would constitute an event of default under the terms of lease. Affected leases would be those businesses having five or more full or part-time employees and engaged in restaurant or visitor-serving entertainment activities such as arcades, amusement parks and nightclubs. 7 Budget and Financial Impact The City currently budgets for and funds anticipated costs of the Pier Restoration Corporation, and budgets for anticipated lease rental and license revenue and costs associated with City staff operation, maintenance and management of the Pier through Economic Development Division of Resource Management Department. Anticipated enhanced revenue based upon the proposed Leasing Guidelines will be a part of the fiscal year 2003-04 budget. Approval of the proposed Leasing Guidelines will not affect the fiscal year 2002-03 budgeted amount. Recommendation Staff recommends that City Council approve the Leasing Guidelines for calendar years 2003 and 2004 for use of Santa Monica Pier commercial area, and that the City Manager be authorized to implement the Leasing Guidelines as approved. Attachment A: Santa Monica Pier Leasing Guidelines for calendar years 2003 and 2004 Prepared by: Jeff Mathieu, Director of Resource Management Mark Richter, Economic Development Manager Elana Buegoff, Senior Administrative Analyst 8 SANTA MONICA PIER LEASING GUIDELINES FOR CALENDAR YEARS 2003 and 2004 GUIDELINE OBJECTIVES Promote and maintain the compatible uses of City-owned property located on the Santa Monica Pier in a manner supporting an attractive, safe and accessible environment for visitors and the residential community; preserve and enhance the Preferred Uses through operation of the facility in a manner supporting this diverse and affordable public recreational and community asset; promote high quality of goods, food and services provided by the commercial operators; establish the pricing of leasehold occupancy consistent with optimizing the Preferred Uses and assisting in the support of fiscal self-sufficiency of the Pier Fund; and assure access to and use of City-owned properties by the general public for the Preferred Uses through a leasing program that promotes the orderly management of tenancies. PREFERRED USES Current uses of City-owned structures and deck area on Santa Monica Pier are diverse, and have been intended to preserve the Pier as a unique community recreational resource. The Pier is an internationally recognized attraction serving residents and visitors representing a broad range of incomes, ages and lifestyles. The current lease and license agreements represent the implementation of the Santa Monica Pier Development Program adopted in 1988. 9 Diversity will be maintained but focused on those purposes that support the historic character of the Pier and offer choices of services and pricing within the general use categories while retaining the intended emphasis on low density, unique recreational and entertainment-oriented activities. Preferred Uses include, but are not limited to, a range of entertainment and commercial products and services that will appeal to and serve both the residential community and area visitors. Buildings and deck area on Santa Monica Pier that are and will be available for lease or license, and associated Preferred Uses for each, consist of the following: ? 1600 Oceanfront Walk ? 4,533 s.f. enclosed structure area Current Operation: Ocean Discovery Center Term: 8-year lease, commencing 07-01-95 Preferred Use: marine research and educational facility accessible to the public ? 200 Santa Monica Pier ? 8,236 s.f. enclosed structure area Current Operation: Roth Management Company Term: 1 year Operating Agreement, commencing 09-01-01 (on holdover) Preferred Use: public access to Carousel at supported pricing, with evening and off-hours use of the Carousel building for parties, receptions and special events ? 200 Santa Monica Pier ? 260 s.f. gift shop within Carousel Building Current Operation: Airport Concessions Inc. Term: thirty-three month license, commencing October 1, 2002 with two one-year extension options 10 Preferred Use: Carousel-related and general souvenir, gift items and books featuring local history and themes ? 250 Santa Monica Pier ? 5,015 s.f. enclosed structure and 1,064 s.f. patio area Current Operation: Vacant. Preferred Use: casual breakfast, lunch and dinner restaurant or café with or without alcohol service, and preferably with evening music, entertainment and/or other live performances ? 256 Santa Monica Pier ? 3,035 s.f. enclosed structure and 1,073 s.f. patio area Current Operation: Rusty?s Surf Ranch Term: 20-year lease, commencing 11-01-94 Preferred Use: lunch and dinner restaurant with alcohol service, and with evening music and entertainment ? 258 Santa Monica Pier ? 2,557 s.f. enclosed structure and 1,392 s.f. patio area Current Operation: Santa Monica Pier Seafood Term: 23-year lease, commencing 05-01-91 Preferred Use: limited or full service family-oriented restaurant with or without alcohol service ? 301 Santa Monica Pier ? 4,534 s.f. enclosed structure and 2,198 s.f. patio area Current Operation: Bubba Gump Shrimp Co. Restaurant Term: 25-year lease, commencing 05-04-02 11 Preferred Use: full service family-oriented restaurant with or without alcohol service ? 310 Santa Monica Pier ? 1,292 s.f. enclosed structure Current Operation: Blazing Saddles Bicycle Rentals and Sales Term: 43-month lease, commencing 04-01-00 Preferred Use: recreation-oriented bicycle rentals, with ancillary sales of bicycle- related gear and merchandise ? 330 Santa Monica Pier ? 1,525 s.f. enclosed structure and 584 s.f. patio area Current Operation: Surf View Café Term: 24-month lease, commencing 07-01-01 Preferred Use: limited service convenience restaurant without alcohol service ? 350 Santa Monica Pier ? 8,603 s.f. enclosed structure and 641 s.f. patio area Current Operation: Playland Arcade Term: 30-year lease, commencing 07-01-90 Preferred Use: amusement and self-operated games arcade with ancillary retail sales ? 370 Santa Monica Pier ? 10,985 s.f. gross deck area Current Operation: Club Route 66 (not yet constructed) Term: 40-year lease, not yet commenced Preferred Use: full service restaurant with alcohol service and with evening music and entertainment 12 ? 380 Santa Monica Pier ? 75,000 s.f. gross (56,891 s.f. net) deck area Current Operation: Santa Monica Amusements/Pacific Park Term: 50-year lease, commencing 05-26-96 and as amended and restated effective September 26, 2002 Preferred Use: amusement rides and games with ancillary retail sales and food and beverage sales with or without alcohol service ? 401 Santa Monica Pier ? 6,204 s.f. enclosed structure and 2,217 s.f. patio area Current Operation: Mariasol Restaurant Term: 35-year lease, commencing 01-01-91 Preferred Use: limited or full service family-oriented restaurant with or without alcohol service ? 404 Santa Monica Pier ? 292 s.f. enclosed structure Current Operation: Santa Monica Pier Bait & Tackle Term: 24-month lease, commencing 07-01-01 Preferred Use: fishing bait and tackle sales with ancillary retail sales, fast food and convenience food ? Municipal Pier Deck Area Current Operation: up to thirteen individual vending cart operating licenses, including three historic operators (Thermal-Base Photo, Churro Man, Oatman Rock Shop), two food vending carts and eight apparel/service carts Term: 36-month licenses, cancelable on 30 days notice 13 Preferred Use: Pier and/or beach-oriented retail sales and limited food service DESIGN GUIDELINES The historic character and eclectic, thematic appearance of the Pier are important aesthetic elements to be retained, preserved and enhanced. The City has previously adopted Design Guidelines to serve as an architectural standard for the Pier. All public and private structural modifications and other improvements proposed for implementation on the Pier will be subject to review for consistency with the Design Guidelines, without exception. If tenants or City make modifications to structures on the Pier deck or build new structures to implement the Preferred Uses as a mutually agreed condition of a lease, the PRC and City shall first review and approve the proposed scope of work and improvement design in accordance with the Design Guidelines. All necessary architectural reviews, licenses and building permits must be obtained, and the work inspected for compliance with applicable codes. LOCAL PREFERENCE The limited size and density of commercial development and casual recreational ambiance are important factors in defining the unique character of Santa Monica Pier. That unique character must be preserved in order to protect the Pier?s economic viability. Therefore, leasing and licensing of City-owned buildings and Pier deck area will be subject to a preference for locally owned, independent, non-formula businesses and activities that are financially and operationally capable of providing the Preferred Uses. Such preference will be reflected in bonus ratings for responses received from locally owned independent businesses as part of a public Tenant Recruitment process. 14 A formula business is that which requires by contractual or other arrangement the maintenance of standardized name, services, décor, uniforms, facility design, signage and trademarks/logos, menu and format substantially identical to a similar business located elsewhere. RENEWAL OPTIONS Lease or license renewals or options to extend the terms of occupancy will not be automatically offered to existing tenants upon expiration of agreements. As vacancies arise either by natural expiration or earlier termination, recruitment for each opportunity site will be conducted in accordance with these Leasing Guidelines. Current operators may respond to the public Tenant Recruitment process in the same manner as any prospective new operator. It is recognized, however, that reliability and continuity of quality commercial services are valuable assets to the public experience of the Pier. In order to support and encourage businesses on the Pier to operate and maintain their premises in an exemplary manner, such businesses will be subject to a renewal preference reflected in bonus ratings for responses received as part of a public Tenant Recruitment process. TERM OF YEARS As vacancies arise either by lease and license expiration or earlier termination, available space will be offered for Preferred Uses for non-renewable lease terms up to five years if substantial new capital investment in structures, structural improvements or equipment is not warranted. 15 If a tenant is required to make substantial new capital investment in structures, structural improvements or equipment to implement the Preferred Use consistent with intended purposes of the premises, lease terms of ten years to twenty-five years may be offered varying with amortization and financial requirements of the new investment. EXPANSION OF LEASEHOLDS Minor physical expansion of existing leasehold occupancies (for example, enlargement of an outdoor patio) may be approved for tenants who seek to enhance, improve or modify their business operations consistent with the Preferred Uses through the investment of additional capital in structures, structural improvements or equipment in a manner that does not limit or diminish operator diversity on the Pier. Such expansion shall not diminish the opportunity for tenant diversity, and must advance the Preferred Uses for the benefit of the Pier and City. DIVERSITY OF TENANCIES In order to promote operator diversity in the development and use of leasehold opportunity sites, the prospective grant of multiple leaseholds and/or license areas to an individual tenant, licensee or operator will not be permitted. LABOR PEACE The City owns the Pier and has a financial or proprietary interest in Pier businesses engaged in visitor-serving commercial activities. Some of these businesses are in industries that have a history of labor/management conflict. Risk of interruption of rental revenue and common area maintenance fees received by the City from Pier businesses would be minimized if such businesses were assured of labor peace. An appropriate 16 labor peace provision would minimize the City?s exposure to revenue interruption and disruption of public recreational enjoyment of the Pier. New or substantially amended agreements for leasehold operation will provide that the tenant may not engage in practices that impede employees? ability to organize and contract with a labor organization for the purpose of collective bargaining. Such prohibited practices include harassment, intimidation, ?captive audience? anti-union meetings or illegal terminations of workers in retaliation for organizing. A substantial amendment is defined as a change of use of the property, an increase in seating or square footage of more than 25%, or an extension of lease duration. Tenant engagement in prohibited practices will constitute an event of default under the terms of lease. Affected leases would be those businesses having five or more full or part-time employees and engaged in restaurant or visitor-serving entertainment activities such as arcades, amusement parks and nightclubs. PERIODIC REVIEW OF RENTAL RATES Minimum rents and participation by City in percentage rents based on gross receipts from commercial lease and license activities will be established at estimated fair market rates and set forth in any public Request for Qualifications and/or Request for Proposals issued for any available leasehold or license opportunities. Responses received for lease and license opportunities may exceed the minimum and percentage rents set forth in the Requests. Leaseholds with Preferred Uses for research and public educational purposes (e.g. UCLA Ocean Discovery Center) and Operating Agreements subject to supported pricing 17 standards (e.g. Carousel) will be maintained without application of fair market rental rates. The City will seek to reasonably minimize its costs associated with these activities by recovering Common Area Maintenance costs from leaseholds, by participating in ancillary gross receipts from commercial activities at educational facilities and the Carousel, and by making facilities subject to Operating Agreements available for event rental at rates approved by the PRC and Council. COMMON AREA MAINTENANCE COSTS Leasehold tenants will pay as a condition of occupancy of Pier building or deck areas a proportionate share of the City?s cost to manage, maintain and provide security to Santa Monica Pier. As of January 1, 2000, the applied Common Area Maintenance cost was $5.00 per leased square foot per year, increasing with biennial CPI adjustment as of July 1. Monthly payment of Common Area Maintenance fees as additional rent shall be a condition of each lease granted for the Pier. The Common Area Maintenance cost will be reanalyzed and adjusted on five-year intervals, commencing with July 1, 2000. FACILITY CONDITION REVIEW All City-owned structures and deck area available for lease will be inspected prior to new leasehold occupancy and brought by the City or new tenant to a decent, safe and sanitary condition appropriate for the Preferred Use. If tenants must make improvements to a building or deck area to implement the Preferred Uses as a mutually agreed condition of a lease, City staff will first review and approve the proposed scope of work and improvement design. The prospective tenant will provide the proposed scope of work and preliminary improvement design in accordance with Tenant 18 Recruitment procedures. All improvements on the Pier shall be in accordance with the Design Guidelines. All necessary building permits must be obtained, and the work inspected for compliance with applicable codes. Appropriate rental credits for the approved work performed would be negotiated as part of the lease. TENANCY RELATIONSHIPS All City-owned buildings and deck areas on Santa Monica Pier appropriate and suitable for leasing or licensing by the City to individual tenancies or licensees for the Preferred Uses will be in accordance with agreements prepared by the City. Each tenant or licensee will be responsible for interior maintenance and repair and utility consumption at its sole expense, and the City will generally retain responsibility for maintenance and repair of roofs and exterior of City buildings and of the Pier deck. Structures constructed by tenants for the Preferred Uses would be subject to interior and exterior maintenance and repair by the tenant at its sole expense. Subletting of leased premises is prohibited except provided in the lease to provide ancillary services. Subletting of license premises is prohibited without exception. TENANT RECRUITMENT All City-owned buildings and deck areas on Santa Monica Pier appropriate and suitable for leasing or licensing will be subject to a public marketing and solicitation process to identify prospective tenants and licensees with financial and experience qualifications for the Preferred Use of the available space. Vacancies will be the subject of public Requests for Qualifications and/or Requests for Proposals publicized utilizing: 19 ? Media advertising, including general circulation newspapers or local/limited circulation publications ? Direct mail to waiting list and/or other targeted individuals having expressed previous interest in leasehold occupancy or license operation for the available Preferred Use ? Posting notice on the Pier Restoration Corporation?s, City?s and Resource Management Department?s internet web site As appropriate, vacancies may also be publicized utilizing: ? Direct contact or outreach to prospective tenants ? Dissemination by fax, e-mail or telephone to local commercial real estate brokers ? Press releases and other direct marketing performed by the PRC Requests for Qualifications and/or Requests for Proposals will be drafted by City staff, and approved by the Leasing Committee of the PRC prior to release. The Request for Qualifications and/or Request for Proposals will set forth the Preferred Uses of the available space, proposed terms and conditions for the leasehold or license opportunity, and criteria for reviewing and rating responses. All respondents and prospective tenants will file a Lease Application. Information contained in the Lease Application will be utilized for confirmation that the proposed tenancy is a Preferred Use for the available space, and verification of experience, references and financial capability to perform leasehold obligations. Responses will also state preliminary terms and conditions for the proposed lease or license. 20 Responses to Request for Qualifications and/or Request for Proposals will be analyzed and rated by a review team comprised of City staff and the Executive Director of the PRC. Representatives of City Engineering Division and/or Planning and Community Development may be included as appropriate. The review team will provide its analysis and recommendation as to a preferred respondent, inclusive of appropriate bonus ratings for local independent business respondents and complying tenant renewal proposals, to the Leasing Committee of the PRC. The recommendation may be to reject all responses, solicit additional information from one or more respondent, or to enter exclusive lease or license negotiations with a preferred respondent. The Leasing Committee will consider the review team analysis, and make its recommendation the PRC Board. The Board may authorize City staff to enter exclusive negotiations with a preferred respondent subject to specific terms and conditions, or reject all proposals, or direct that additional information be solicited from one or more respondent prior to making a determination. City staff will conduct exclusive negotiations with each preferred respondent as authorized by the PRC Board. The City Attorney will prepare all lease and license agreements for review and execution by the prospective tenant or licensee. The executed agreement will be submitted to the Leasing Committee for its review in terms of consistency with the PRC Board authorization. If determined to be in accordance with the authorization to enter exclusive negotiations, the lease or license will be recommended to the PRC Board for approval. Upon approval of a lease or license by 21 the PRC Board, the agreement will be approved as to form by the City Attorney and transmitted to the City Manager for execution. The City will neither pay nor receive commissions for leasing of City-owned property. Staff will cooperate with commercial real estate brokers who are authorized to negotiate leases and licenses on behalf of prospective tenants. 22