Memo from City Manager to City Council Regarding Direction on the Request for Proposals for Leasing and Property Management at Alameda Point and Other City Properties (Base Reuse 819099), November 5, 2013
In response to City's feedback, PM Realty was willing to work with CCG; however CCG preferred to be the sole leasing and property manager. As an international property management company, PM Realty is used to working in conjunction with a broker and finds that to be a more traditional approach. Because PM Realty's core strength and service is property management, it would welcome the opportunity to relinquish leasing to an outside broker. Further, its response to strengthening its leasing program was to re-engage and designate C&W as the City's broker. PM Realty asked that C&W receive a commission from the new leases to be paid under a traditional commission structure. C&W has extensive knowledge of Alameda Point and has worked and marketed the property in the past. The proposed C&W team would be led by John McManus, who is familiar with Alameda and is the broker responsible for the recruitment of VF Outdoors.
When posed the questions regarding their proposal CCG said it preferred to do both property management and leasing, and not parcel out the tasks. CCG thought it was vital to have management control over the property to ensure that expectations are met and to eliminate opportunities for miscommunication or poor coordination. However, at the City's request, CCG submitted a leasing-only proposal which included a flat fee for the leasing services, plus a commission structure. CCG's response to the panel's feedback regarding property management was a proposal to retain some of the existing property management staff to supplement its existing team and to maintain institutional knowledge.
Staff recommends that the City Council consider the following options for proceeding with leasing and property management and provide direction to staff: