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HomeMy WebLinkAboutE-10 PSA Jones Lang Lasalle BrokerageCONSENT ITEM E-10 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL VIA: TROY L. BUTZLAFF, ICMA-CM, CITY MANAGER FROM: KURT CHRISTIANSEN, FAICP, ECONOMIC AND COMMUNITY DEVELOPMENT DIRECTOR DATE: JANUARY 3, 2017 SUBJECT: APPROVE AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT WITH JONES LANG LASALLE BROKERAGE, INC., TO RENDER COMMERCIAL REAL ESTATE BROKERAGE CONSULTING SERVICES SUMMARY: On May 20, 2016, the City entered into a Professional Service Agreement (PSA) with Jones Lang LaSalle Brokerage, Inc. (JLL), to render commercial real estate brokerage services for commercial areas to the City. The term for the PSA was from May 20, 2016 through November 30, 2016. This action approves an amendment to the Professional Services Agreement with JLL extending the term of the agreement for the remainder of the fiscal year and in an amount not-to-exceed $17,500. RECOMMENDATION: Staff recommends that the City Council take the following actions: 1) Approve an amendment to the contract with JLL to render services for commercial areas extending the term through June 30, 2017; and 2) Authorize the City Manager to execute, in a form acceptable to the City Attorney, an amendment to the Professional Services Agreement with JLL, in an amount not-to-exceed $17,500. DISCUSSION: JLL is a financial and professional services firm that specializes in commercial real estate services and investment management. JLL has been focusing on coordinating marketing efforts for commercial properties within the City boundaries and driving new retailer interest by: 1. Coordinating targeted retailer and broker solicitations and retention efforts; and 2. Initiating and attending meetings with prospective retailers and their agents or property developers as directed by the City. APPROVED COUNCIL MEETING 1/3/2017 Approve Amendment with Jones Lang LaSalle Brokerage, Inc. January 3, 2017 Page 2 JLL has been providing these services to the City since May 20, 2016. During this time, JLL has assisted the City on several major projects including:  A-2 Property at Azusa Avenue and Ninth Street;  Former “D-Club” Site at 975 W. Foothill Boulevard;  Foothill Boulevard/Dalton Avenue Property;  Block 37; and  The Edgewood Shopping Center. The proposed amendment will enable JLL to continue providing support services at a fixed monthly retainer of $2,500. Retaining such services will be beneficial to the City to ensure future development moves forward and stays on schedule. In addition, it will enable the City to identify key opportunity sites and aid the City’s effort in diversifying the City’s tax base. The term of the agreement is through June 30, 2017 and can be terminated by the City at any time with a 30 day written notice. FISCAL IMPACT: Although the current fiscal year’s budget only included funding for commercial real estate brokerage consulting services through the end of November 2016 (account number 1035611000-6399), there are sufficient budget savings under 1035611000-6399 and 1035630000-6399 to cover the extension of services through the end of fiscal year 2016-17 . Prepared by: Reviewed and Approved: Carina Campos Kurt Christiansen, FAICP Economic Development Specialist Economic and Community Development Director Reviewed and Approved: Reviewed and Approved: Louie F. Lacasella Troy L. Butzlaff, ICMA-CM Management Analyst City Manager Attachments: 1) Amended Professional Services Agreement with Jones Lang LaSalle Brokerage, Inc. ATTACHMENT 1 AMENDMENT TO AGREEMENT FOR COMMERCIAL REAL ESTATE BROKERAGE CONSULTING SERVICES This Amendment to the Professional Services Agreement with Jones Lang LaSalle Brokerage, Inc., is made and entered into this 3rd day of January, 2017, by and between the CITY OF AZUSA, a municipal corporation ("City") and Jones Lang LaSalle Brokerage, Inc. ("Consultant") and amends that certain "Professional Services Agreement with Jones Lang LaSalle Brokerage, Inc." (the "Agreement") dated May 20, 2016 between the same parties. R E C I T A L S A. On or about May 20, 2016, City and Consultant entered into a “Professional Services Agreement” pursuant to which Consultant agreed to render commercial real estate brokerage consulting services for commercial areas within the Azusa City boundaries (“Project”). B. City and Consultant desire to amend the Agreement to modify the length of the term and compensation amount. A G R E E M E N T The Agreement is hereby amended as follows: 1. 3.1.2 Term. The term of this Agreement shall be from January 3, 2017 to June 30, 2017, unless earlier terminated as provided herein. Consultant shall complete the Services within the term of this Agreement, and shall meet any other established schedules and deadlines. The Parties may, by mutual written consent, extend the term of this Agreement if necessary to complete the Services. 2. 3.3.1 Compensation. The compensation of this agreement shall be increased by $17,500 (SEVENTEEN THOUSAND FIVE HUNDRED) dollars. ATTACHMENT 1 3. Except as expressly provided herein, all other terms and conditions of the Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto executed this Amendment to be effective as of the Date first written above. CITY OF AZUSA, A municipal corporation By: ______________________ City Manager ATTEST: ___________________________ City Clerk APPROVED AS TO FORM: Jones Lang LaSalle Brokerage, Inc. ___________________________ _____________________________ City Attorney Name: Title: