sr-012412-3pCity of City Council Report
Santa Monies
City Council Meeting: January 24, 2012
Agenda Item: 3P
To: Mayor and City Council
From: Andy Agle, Director of Housing and Economic Development
Subject: Professional Services Agreements for Real Estate and Economic
Development Consulting Services
Recommended Action
Staff recommends that the City Council:
1. Authorize the City Manager to negotiate and execute a Professional Services
Agreement (PSA) with Keyser Marston Associates in the amount of $80,000; and
2. Amend an existing PSA (Contract No. 9113 (CCS)) with Allan D. Kotin &
Associates in the amount of $70,000 for a new contract total of $225,000.
Executive Summary
This report recommends awarding a contract to Keyser Marston Associates (KMA) in
the amount of $80,000 and extending an existing contract with Allan D. Kotin &
Associates in the amount of $70,000 for the purposes of providing professional real
estate and economic development advice and support to City staff regarding complex
property transactions involving property leasing, property acquisition and /or formulation
of public /private development partnerships. The total cost of the recommended action
is $150,000.
Discussion
The City of Santa Monica Housing and Economic Development Department's Economic
Development Division periodically requires specialized real estate consulting services to
advise staff and Council on complex property transactions involving property leasing,
property acquisition and /or formulation of public /private development partnerships.
These projects generally relate to commercial and industrial properties, capital projects
such as parking structures, and private development within the City's retail and
commercial districts. These projects include the Fourth and Arizona redevelopment
site, the Downtown Santa Monica movie theatre development and the Bergamot Station
Arts Center development and leasing guidelines.
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The consultant's services would be on an as- needed basis, providing technical
assistance on a variety of different projects and properties, including the redevelopment
of the Fourth and Arizona site and the leasing structure for the Bergamot Station Arts
Center. The consultants may be asked to review and comment upon developer pro -
formas, advise staff regarding the structuring of real estate transactions and deals,
participate in negotiations, and provide other relevant economic information, as
requested. Consultants' services would also likely include attending public meetings
and presenting to the City Manager and City Council, as necessary and providing
assistance with:
• Pro forma analysis
• Economic impact analysis
• Fiscal Impact analysis
• Financial feasibility
• Joint venture and ground lease structuring
• Ground lease negotiation
• Developer selection
Contractor /Consultant Selection
In December 2011, staff released a Request for Qualifications (RFQ) for professional
real estate and economic development consulting services. The RFQ was posted on
the City's online bidding website, Planet Bid. In addition, five consultants who have
worked with the City on previous projects were invited to submit qualifications. A total
of thirteen responses were received by the January 18, 2012 deadline. Staff reviewed
the proposals and selected the recommended firms due to their relevant experience,
staffing capacity, relative price and strong local government references.
KMA has previously assisted City with the Civic Center Village and the Downtown
Parking Strategy Update. Based on their experience and qualifications, KMA is uniquely
positioned to provide expertise to staff on a number of upcoming projects. Their scope
of work would include the Bergamot Station Arts Center developer selection process
and leasing guidelines, and undertaking fiscal impact analysis for several other projects.
It is recommended that a contract be awarded to KMA for $80,000.
Allan D. Kotin & Associates has worked with the City on a variety of real estate
acquisition and lease structuring projects, including the Fourth and Arizona site and the
AMC Movie Theatre development proposal. It is recommended that the existing
contract be extended by $70,000 to continue the implementation of these Downtown
Santa Monica projects.
Financial Impacts & Budget Actions
Funds for these contracts were transferred to the City by the Redevelopment Agency
pursuant to Cooperation Agreement No. 9267, executed September 1, 2010, between
the Agency and the City, under which the City is implementing these redevelopment
projects. The contract to be awarded by Keyser Marston Associates is $80,000. The
contract amendment to be awarded to Allan D. Kotin & Associates is $70,000 for
additional scoping to be added to the existing contract for a new contract total of
$225,000. Funds in the amount of $150,000 are available in account
R01077617.589000.
Prepared by: Jennifer Taylor, Economic Development Administrator
Approved:
Forwarded to Council:
I&, �m hk h4 - - �0� -
Andy Agl it for Rod Gould `
Housing and Economic Development City Manager
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Reference Amended
Contract No. 9113 (CCS)
and Contract No. 9539
(CCS).