HomeMy WebLinkAboutFIN-08-046 - Real Estate Services Contract ExtensionReport To:
Finance and Corporate Services Committee
Date of Meeting:
April 21, 2008
Submitted By:
Dan Chapman, GM Financial Services
Hans Gross, Director of Project Administration and Economic
I nvestment
Prepared By:
Rob Morgan, Capital Investment Advisor
Ward(s) Involved:
All
Date of Report:
April 8, 2008
Report No.:
FIN-08-046
Subject:
REAL ESTATE SERVICES CONTRACT EXTENSION
That Council extend the Real Estate Services contract which had been awarded to Coldwell
Banker Commercial - Peter Benninger Realty for an additional one year period with an option to
renew for one additional one year term.
On April 16, 2007 Council passed a resolution awarding the Real Estate Services contract to
Coldwell Banker Commercial —Peter Benninger Realty. The contract provided for advisory
services and standard real estate services on an as-required basis for a one year period with an
option to renew for two (2) additional one year terms.
The intent of the real estate contract was for the provision of strategic consulting advice for the
acquisition and disposition of properties. Specialized real estate services are also required to
assist with the implementation of the Corporation's Asset Management Strategy and
prioritization of projects for Capital Investment. The retention of this service replaced the role
provided in the past by the Land Purchasing Officer and also eliminated the need to continue to
utilize one-off real estate services.
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Staff are recommending that the Real Estate Services contract with Coldwell Banker — Peter
Benninger Realty be renewed for one year with the option to renew for one additional year in
accordance with Proposal P07-020 Real Estate Services approved by Council April 16, 2007.
Staff have utilized the real estate providers' services approximately 12 times during the last year
with a total cost to the corporation of approximately $69,000. These real estate assignments
have ranged in scope from a lease rate market valuation for a city owned retail storefront to a
complex asset value analysis involving the real estate provider's team of Planners and
Engineers as well as real estate expertise. Real Estate services have also been used to acquire
a key parcel of land for Storm Water Management purposes. Specific information on individual
assignments are available to Council upon request.
The City has benefited from the use of the Real Estate Services contract in several ways which
include:
• Value gained through market intelligence relating to a site's development potential,
marketability and compatibility with the surrounding neighbourhood
• Allows municipality the ability to ensure it is realizing fair market rents for its leasehold
properties
• Asset management strategy in terms of disposition and best use of assets and valuation
of properties
• Business plan analysis in terms of the market, financial/revenue analysis for
development - related sites
• Site analysis and assistance in selection of a preferred site for municipal facilities
FINANCIAL IMPLICATIONS:
Assignment costs are funded through the Asset Management Reserve Fund or through
individual capital project accounts.
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Staff feel that the municipality has benefited from the real estate services utilized over the last
year. The provision of these services has allowed for the effective positioning of City owned
assets for sale or lease while also providing the corporation with beneficial site and market
analysis essential to the completion of business cases and other Capital Projects. Staff are
recommending the contract be extended for one year with an option to renew for one final year.
Hans Gross P. Eng.
Director, Project Administration
and Economic Development
W
- i•• Morgan
Capital Investment Advisor
cc. Carla Ladd, CAO
Dan Chapman
GM, Financial Services
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