Downtown Needles, CA: Listing agreement for El Garces building approved between the City of Needles and The Ivy Group with Heidi Smith. During the Needles City Council Meeting held on Wednesday, November 12th, 2014, members of the Needles City Council approved Resolution No. 2014-74 approving a listing agreement between the City of Needles and The Ivy Group with Heidi Smith from River Rail Realty in connection with securing short and long term users for the El Garces Transportation Depot, also known as the El Garces Train Depot and El Garces building located at 950 Front Street next to Santa Fe Park in Downtown Needles, California. According to background information stated in the agenda packet provided by the City Clerk’s Office at the City of Needles, in the spring of 2014, the City of Needles completed the current phase of renovation/restoration efforts for the El Garces Transportation Depot. Concurrent with the completion of the work, the City of Needles Staff circulated a Request For Qualification (R.F.Q.) to identify commercial real estate professionals to assist with the leasing of the El Garces for users. The City of Needles received one (1) former proposal (from The Ivy Group) and one informal perposal (from Heidi Smith). After reviewing the proposals and considering market/geographical conditions, it was determined the most efficient course of action was to enter into a six (6) month listing in agreement with The Ivy Group with a co-listing with Heidi Smith. This arrangement was designed to previde national/regional marketing in combination local expertise to show the property. Since April (the beginning of the six month period), The Ivy group has completed the following: 1) Secured three (3) one day users. 2) Currently working with four (4) additional one day users. 3) Shown space to two (2) long term users. 4) Responded to six (6) long term users. 5) Marketed property through Loop-Net, Co-Star, Craigslist and direct email campaign. 6) Installed a 4x8 display banner at property. 7) Direct mail to 200 potential users. 8) Between The Ivy Group and City of Needles staff/consultant, there are four (4) permanent long-term users in active negotiations. As for the agreement to the considered, according to information stated in the agenda packet provided by the City Clerk’s Office at the City of Needles, at the time of the original agreement, it was not contemplated that The Ivy Group and Heidi Smith would be handling the one day users. That said, they took on the responsibility to insure that the community had opportunity to utilize the facility. For the first six (6) months, they did this without compensation. The action staff is asking the Needles City Council to take is in approve a new list listing agreement to cover a one year period from October 10th, 2014 through October 10th, 2015 (a one year period). Compass station 2 the broker is perform ments base as follow: 1) Short Term Users: 15 percent of the fee recieved from one day users. 2) Long Term Users: Commission is as follows: A) 3 percent to the listing broker (The Ivy Group). B) 3 percent to the tenant broker C) 2 percent to the showing broker (Heidi Smith). It is note it that the commission structure for long term users is 2 percent hired in the industry room norm but this agreement as previously stated provides the opportunity for the city in needles to have a super regional/national broker the specializes in marketing in a local broker available for bolt showing and handling short term users. If there is any financial impacts issues, according to information stated in the agenda packet provided by the City Clerk’s Office at the City of Needles, there is no cost to the City of Needles to approve this Agreement. At such time as short term or long term users (through use agreement and leases) are secured, there is a commission due to the broker as described in the staff report. If there is any critical timeline issues, according to information stated in the agenda packet provided by the City Clerk’s Office at the City of Needles, City of Needles Staff requires action on this item so that there is no additional lapse in the representation of the El Garces for the short and long term users. If there is any environmental issues, according to information stated in the agenda packet provided by the City Clerk’s Office at the City of Needles, not applicable. As for the recommendation, according to information stated in the agenda packet provided by the City Clerk’s Office at the City of Needles, adopt Resolution No. 2014-74 approving a listing agreement between the City of Needles and The Ivy Group / Heidi Smith in connection with securing short and long term users for the El Garces Transportation Depot and authorizing the Needles City Manager to execute said agreement. According to information posted on the City of Needles website, the City of Needles invites members of the community (as well as businesses and organizations) to reserve and utilize the El Garces Community Room! Located at 950 Front Street, the historic El Garces Transportation Depot has recently completed a substantial restoration/rehabilitation. One of the key features of the building itself is a Community Room (historically known as the Luggage Room) that is now available for special events. City of Needles Mayor Doctor Edward Paget, M.D. states, “The El Garces is an amazing asset for the community. The Community Room, since completing its rehabilitation, has already been used for over 65 days for a corporate training event and we look forward to its continued use by members of our community.” The room can generally hold a maximum of about 140 persons and is envisioned to be used for meetings, parties, membership gatherings and other special events. The room is available on a first-come first serve basis. There is a fee of $300. River Rail Realty, the same entity that is offering portions of the building for lease is handling the reservation and application process to use the Community Room. To pick up an application and copy of the City Council adopted room use policies to reserve the El Garces Community Room, simply stop by River Rail Realty which is located at 920 West Broadway in Downtown Needles, California during regular business hours and see Heidi Smith. It is requested that applicants give Heidi Smith a call at: 1 (760) 326-2660 prior to stopping by. During public comments, Mr. Michael Bracken, Managing Partner, Development Management Group lnc. spoke about having a national/regional marketing in combin with a local contact for the property as well as about having this listing agreement during the time as different events are expressing interest in using the El Garces building. As members of the Needles City Council spoke on the agenda item, several members of the Needles City Council spoke in support of this agenda item saying that it would be a waste City a Needles Staff and money when the City of Needles is trying to save money, and it would be foolish to put out a new Request For Proposal (R.F.P.) when the City of Needles already have somebody who will do the job which is working. Several members of the Needles City Council continued saying that Heidi Smith, representing the The Ivy Group and who are contracting with her, should be compensated for her time and work handling the short term leases, keeping a schedule, and showing the property to people interested including recently showed the property to a tour group. But, Needles City Council Member Tony Fraser spoke up having a problem with increasing the lease without other people having a chance to. Needles City Council Member Tony Fraser thinks thst it shouldnt be put out or given to anybody without an Request For Proposal (R.F.P.) and cannot say to just give that person, whoever it is, 15 percent which would mean $150.00 per 1,000.00 uses which Needles City Council Member Tony Fraser asked Needles City Manager Rick Daniels if this was right which Needles City Manager Rick Daniels replied Yes. After discussing the agenda item, members of the Needles City Council approve to adopted the resolution. According to the City Clerk’s Office at the City of Needles, motions and votes on this agenda items were the following: - Motion to adopt Resolution No. 2014-74 approving a listing agreement between the City of Needles and The Ivy Group / Heidi Smith in connection with securing short and long term users for the El Garces Transportation Depot and authorize the city manager to execute said agreement. Motion passed 5-1 (Needles City Council Member Tony Frazier voted No.). ** You can read the full agenda item at the following City of Needles website address: ** cityofneedles/2014%20website%20file%20posting/1%20-%20City%20Council%20-%20NPUA%20-%20SARDA/11%20-%20November%202014/cc_111214-12.pdf ** You can watch the videos for this agenda item at the following ZachNews on YouTube website addresses: ** - Needles City Council: 11-12-2014: Item 12: https://youtube/watch?v=3K2-LGN9pyc&list=UU8kHHmIKSCaecTm5-j_i6oQ - Needles City Council: 11-12-2014: Item 12: Part 2: https://youtube/watch?v=iVsHh4cvZ8U&list=UU8kHHmIKSCaecTm5-j_i6oQ - Needles City Council: 11-12-2014: Item 12: Part 3: https://youtube/watch?v=dcTa3_OBFb8&list=UU8kHHmIKSCaecTm5-j_i6oQ For more information regarding the Needles City Council Meetings, please contact Dale Jones in the City Clerk’s Office at the City of Needles at: 1 (760) 326 -2113 Ext. 345.
Posted on: Thu, 20 Nov 2014 00:54:02 +0000
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