HomeMy WebLinkAboutCAO-09-018 - Real Estate Services Contract Extension~~~I - ..
Economic Develapn~enc
Report To: Finance and Corporate Services Committee
Date of Meeting: March 30, 2009
Submitted By: Dan Chapman, GM Financial Services
Hans Gross, Director of Project Administration and Economic
Investment
Prepared By: Rob Morgan, Capital Investment Advisor
Ward(s) Involved: All
Date of Report: March 23, 2009
Report No.: CAO-09-018
Subject: REAL ESTATE SERVICES CONTRACT EXTENSION
RECOMMENDATION:
That Council extend the Real Estate Services contract which had been awarded to Coldwell
Banker Commercial -Peter Benninger Realty for a third and final one year period ending April
16, 2010.
BACKGROUND:
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 real estate services have also been used
extensively for the valuation of land including, but not limited to the acquisition of easements
across privately held lands.
REPORT:
Staff are recommending that the Real Estate Services contract with Coldwell Banker -Peter
Benninger Realty be renewed for the final year of the current contract in accordance with
Proposal P07-020 Real Estate Services approved by Council April 16, 2007.
Staff have utilized the real estate providers' services approximately 10 times during the last year
with a total cost to the corporation of approximately $20,000. These real estate assignments
have ranged in scope from a market valuation of property for a land exchange to the acquisition
of land for the construction of sidewalks. Specific information on individual assignments are
available to Council upon request.
The City 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
• Assessment and negotiation of lease rates for City owned buildings.
FINANCIAL IMPLICATIONS:
Assignment costs are funded through the Asset Management Reserve Fund or through
individual capital project accounts.
CONCLUSION:
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 with Coldwell Banker Peter Benninger Realty be extended for the
final year of the current contract.
Hans Gross P. Eng.
Director, Project Administration
and Economic Development
Dan Chapman
GM, Financial Services
Rob Morgan B.E.S.
Capital Investment Advisor
cc. Carla Ladd, CAO
Rod Regier, Executive Director, Economic Development