HomeMy WebLinkAboutReal Estate Services Contract Extension-SSD-05-006J
-~~
~~I'I'(;H(EI~ ER
SfYQ(e91C Sel"VICeS
Economic Develop, nef:t
- - ~ -
Report To: Finance and Corporate Services Committee
Date of Meeting: February 6, 2006
Submitted By: Pauline Houston, GM, Financial Services, Hans Gross,
Director, Project Administration
Prepared By: Rob Morgan, Capital Investment Advisor
Ward(s) Involved: All
Date of Report: January 16, 2006
Report No.: SSD-05-006
Subject: REAL ESTATE SERVICES CONTRACT EXTENSION
RECOMMENDATION:
That the Real Estate Services contract with Coldwell Banker Commercial -Peter Benninger
Realty and Royal LePage Commercial for a third and final one year period until February 23,
2007.
BACKGROUND:
On February 23, 2004 Council passed a resolution awarding the Real Estate Services contract
to Coldwell Banker Commercial -Peter Benninger Realty and Royal LePage Commercial Inc.,
Toronto. 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. This year, 2006, is the third year of the current contract.
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.
REPORT:
Staff are recommending that the Real Estate Services contract with Coldwell Banker -Peter
Benninger Realty and Royal LePage Commercial Inc., Toronto be renewed for the final year of
the current contract.
Staff have utilized the real estate providers' services 9 times during the last year with a total
cost to the corporation of approximately $13,994.00. These real estate assignments have
primarily focused on property valuations.
The City has benefits 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
Staff will reassess the value of the services, and should they still be needed, a new contract will
be requested through the City's Tender process.
FINANCIAL IMPLICATIONS:
The budget for real estate services and studies for the year 2005 was $200,000. The source of
the funding for these costs is primarily the Asset Management Reserve Fund, with some special
projects funded by individual capital project budgets.
The asset management budget for 2006 for real estate services and studies is $200,000.
CONCLUSION:
It is staff's opinion 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.
pans cross r. cng. rauiine houston
Director, Project Administration GM, Financial Services
and Economic Investment
Rob Morgan B.E.S.
Capital Investment Advisor
cc. Carla Ladd, CAO