Item Coversheet

Resolutions - R7  W




COMMISSION MEMORANDUM

TO:Honorable Mayor and Members of the City Commission 
FROM:Jimmy L. Morales, City Manager 
DATE:July  26, 2017
 



SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING THE FINAL NEGOTIATED AGREEMENTS BETWEEN THE CITY AND CBRE, INC. AND THE KONIVER STERN GROUP, RESPECTIVELY, PURSUANT TO REQUEST FOR QUALIFICATIONS NO. 2016-152-WG (THE "RFQ") FOR REAL ESTATE BROKERAGE SERVICES; AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE THE AGREEMENTS BETWEEN THE CITY AND CRBE, INC. AND KONIVER STERN GROUP, RESPECTIVELY, IN THE FORM ATTACHED TO THE COMMISSION MEMORANDUM ACCOMPANYING THIS RESOLUTION.

RECOMMENDATION

Approve the Resolution.


ANALYSIS

On July 13, 2016, the Mayor and City Commission approved the issuance of 2016-152-WG, for Real Estate Brokerage Services.  On August 30, 2016 the City received a total of two (2) proposals, one from CBRE, Inc., and the other from The Koniver Stern Group, Inc.

 

On March 1, 2017, the Mayor and City Commission approved Resolution 2017-29785 accepting the recommendation of the City Manager pertaining to the ranking of proposals, pursuant to Request for Qualifications No. 2016-152-WG (the RFQ), for Real Estate Brokerage Services, authorizing the Administration to enter into negotiations with both proposers; CBRE, Inc and The Koniver Stern Group, Inc.; and further requiring the administration to present the final agreement to the Mayor and City Commission for approval prior to execution.

 

As directed by the City Commission, negotiations have been ongoing with the CBRE, Inc. and The Koniver Stern Group, Inc.  Said negotiations resulted in the awarded firms providing customary real estate services to the City for City-owned facilities such as; procuring tenants and assisting in negotiating leases for available various types of properties, such as office, retail and restaurant facilities; developing and implementing marketing/advertising and leasing plans; providing comparative marketing analysis; consulting on the marketability of future City developments; lease analysis and due diligence regarding tenant; and sample standard reports, also with the reporting period of marketing, advertising, and other activities involving prospective tenants for the landlords. 

 

The Commission shall be four percent (4%) of the Base Rent, payable to the Consultant in two payments, fifty percent (50%) upon lease execution and fifty percent (50%) upon occupancy of the premises by tenant and rent commencement.  In the event tenant is represented by a broker, Consultant shall be paid three percent (3%) of the Base Rent, and tenant’s broker shall be paid three percent (3%) of the Base Rent.

 

Therefore, after considering the results of the rankings pursuant to the RFQ, as well as subsequent negotiations agreed to by CBRE, Inc. and The Koniver Stern Group, Inc., I recommend that the City Commission approve the Resolution authorizing the Administration and the City Attorney’s to finalize the Agreements with each of the proposers, CBRE, Inc. and The Koniver Stern Group, Inc., as negotiated by the Administration; and further authorize the Mayor and City Clerk to execute final agreements with each.


CONCLUSION

The City Manager recommends that the City Commission approve the Resolution authorizing the Administration and City Attorney’s Office to finalize the agreements with both, CBRE, Inc. and The Koniver Stern Group, Inc., as negotiated by the Administration; and to further authorize the Mayor and City Clerk to execute final agreements with each.

 

KEY INTENDED OUTCOMES SUPPORTED
Ensure Expenditure Trends Are Sustainable Over The Long Term

FINANCIAL INFORMATION

No grant funds will be utilized for this project.
Legislative Tracking
Tourism, Culture and Economic Development/Procurement

ATTACHMENTS:
Description
Resolution
CBRE Agreement
Koniver Stern Group Agreement