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CITY COUNCIL AGENDA REPORT
City of Anaheim
ECONOMIC DEVELOPMENT DEPARTMENT
DATE: JUNE 10, 2025
FROM: ECONOMIC DEVELOPMENT DEPARTMENT
SUBJECT: FIRST AMENDMENT TO PROFESSIONAL SERVICES
AGREEMENT BY AND BETWEEN THE CITY OF ANAHEIM
AND KOSMONT REAL ESTATE SERVICES DBA KOSMONT
REALTY
ATTACHMENT (Y/N): YES ITEM # 10
GOVERNMENT CODE § 84308 APPLIES: YES
RECOMMENDATION:
That the City Council, by Motion:
1. Approve the First Amendment to Professional Services Agreement by and between the City of Anaheim and Kosmont Real Estate Services dba Kosmont Realty to increase the not-to-exceed contract amount by $200,000, from $200,000 to $400,000 for on-call broker services to support current and future economic development activities; and
2. Authorize the City Manager, or designee, to execute and administer the First Amendment on behalf of the City.
DISCUSSION:
On September 28, 2023, the Economic Development Department issued a Request for Proposals (RFP) for on-call commercial real estate broker and consultant services. A total of nine (9) firms submitted proposals in response to this request. In accordance with the qualifications-based selection process outlined in City Council Policy 4.1, a review panel was convened consisting of staff from the Economic Development, Housing & Community Development, and Public Works departments.
Proposals were evaluated based on each firm’s relevant experience, range of services offered, fee structure, familiarity with applicable services and regulations, and knowledge of property analysis and strategic planning within the local market. Based on this evaluation, the top three (3) firms— Kosmont Real Estate Services (Kosmont), CBRE, Inc., and Jones Lang LaSalle Brokerage, Inc. (JLL)—were recommended for contract award. City Council approved the recommendation, and the City entered into Professional Services Agreements with each of the recommended firms (Original Agreements). Staff is requesting an amendment to the Original Agreement with Kosmont to increase compensation by $200,000 for a two-year period, for a total not-to- exceed amount of $400,000. The term of the agreement will terminate on June 30, 2026.
First Amendment to a Professional Services Agreement with Kosmont Real Estate Services June 10, 2025
Since execution of the Original Agreement, Kosmont has served as the lead advisor on several high-priority real estate projects, including Surplus Land Act compliance, property disposition and development, broker opinion of value, and litigation settlement negotiations. Most recently, Kosmont developed a streamlined process for Economic Development to identify and negotiate commercial lease opportunities on behalf of other City departments. Kosmont also serves as staff liaison to the California Department of Housing and Community Development (HCD), leveraging their strong working relationship and experience with HCD to help the Economic Development Department navigate state regulations and resolve outstanding policy questions.
The Kosmont team includes real estate experts, economic consultants, finance professionals, and former city officials. The firm’s familiarity with Anaheim’s real estate portfolio, including detailed knowledge of local assets, leasing challenges, and internal processes, allows them to provide specialized guidance that is tailored to the specific needs of the City. The increase in contract authority is necessary to maintain continuity of existing projects and support the increasing demand for municipal real estate services from the Economic Development Department.
Funding for this agreement will come from the Economic Development Department’s FY 2024/25 and 2025/26 budget for Broker Services. This agreement will ensure uninterrupted implementation of the current and future projects as needed for the Economic Development Department.
IMPACT ON BUDGET:
There is sufficient funding in the Economic Development Department’s budget to accommodate the $200,000 increase in contract authority.
Respectfully submitted,
Sergio M. Ramirez
Director of Economic Development
Attachments:
1. First Amendment
2. Original Agreement