DATE: 08/05/2026
TO: Honorable Mayor and City Council Members
FROM: Economic Development Department
2026-259
REQUEST FOR CITY COUNCIL ACTION
SUBJECT:
BROKER AGREEMENT FOR LEASING SERVICES AT THE HUB. WITH GROUND
REVIEW BROKERAGE CORPORATION, A CALIFORNIA CORPORATION
EXECUTIVE SUMMARY:
This staff report asks the City Council to authorize staff to enter into a contract with Ground Review Brokerage Corporation for leasing services at The Hub.
RECOMMENDED ACTION:
That the City Council:
a. Approve the Broker Agreement for Leasing of Commercial Property at The Hub. with Ground Review Brokerage Corporation, a California corporation, for professional commercial retail brokerage services.
b. Find that competitive bidding has been satisfied and pursuant to Corona Municipal Code 3.08.140(D), Purpose of Bidding is Otherwise Accomplished. Authorize the City Manager, or their designee, to execute the Agreement and any related documents necessary to implement the Agreement, in a form approved by the City Attorney.
c. Authorize the City Manager, or their designee, to issue a purchase order to Ground Review Brokerage Corporation, in the amount of $200,000. d. Authorize an appropriation in the amount of $200,000 from the Corona Mall Property Fund (FD_1130) to the Economic Development Department’s Operating Budget for estimated broker compensation in FY 2027.
e. Authorize the City Manager, or their designee, to prepare and process any budgetary adjustments, purchase orders, and change orders resulting in additional brokerage fees due to an increase in lease revenues.
BACKGROUND & HISTORY:
The Hub. is a key City-owned commercial property intended to support downtown revitalization, business attraction, and community-serving retail activity. As tenant interest and leasing activity continue, the City requires specialized commercial retail brokerage support to market available spaces and assist with lease negotiations.
Ground Review Brokerage Corporation has demonstrated that it is experienced in providing commercial brokerage services, is licensed in the State of California, and is familiar with the City’s plans for The Hub. Under the Broker Agreement (Agreement), Ground Review Brokerage Corporation would provide services for designated City-owned properties listed in the Agreement (Exhibit 1), including properties located along East Sixth Street and South Main Street.
ANALYSIS:
The proposed Agreement establishes Ground Review Brokerage Corporation as the City’s broker for specified leasing services at The Hub., for a two-year term, unless terminated earlier in accordance with the Agreement.
Ground Review Brokerage Corporation’s services include maintaining market knowledge, promoting the property to prospective tenants, responding to tenant inquiries, drafting lease documents in coordination with the City Attorney, negotiating and finalizing lease agreements, and recommending rental rates based on market data. Any lease negotiated by Ground Review Brokerage Corporation must be approved by the City before it is presented to, or executed by, a prospective tenant.
Unless otherwise approved by the City, leases must include a minimum base rent of $2.50 per square foot per month and a minimum term of 60 months. The Agreement also requires use of the City’s lease template, with any deviations or additions subject to prior approval by the City’s Economic Development Director.
The Agreement protects the City’s interests by requiring Ground Review Brokerage Corporation to identify each prospective tenant in writing, and by excluding compensation for tenants already in negotiations with the City unless the City determines broker services are needed to continue and conclude the transaction. The Agreement also includes standard municipal provisions regarding insurance, indemnification, conflicts of interest, confidentiality, licensing, termination, and Government Code claims procedures.
The Agreement may be terminated by the City without cause upon seven business days’ written notice. Following termination, Ground Review Brokerage Corporation may be entitled to compensation only for certain registered prospective tenants who have executed a City-approved letter of intent and entered into a lease within 180 days after the expiration or termination of the Agreement.
Ground Review Brokerage Corporation has been a part of the development of the concept and design for The Hub. since its acquisition by the City. The firm brings a unique set of qualifications and extensive experience in creative leasing and tenant curation.
Basis for Determination of Competitive Bidding
The Corona Municipal Code 3.08.140(D), Purpose of Bidding is Otherwise Accomplished, states, “When the purchasing agent and the authorized contracting party, with the approval of the City Manager, determine that it is in the best interest of the City and it's administrative operations to dispense with public bidding for non-public projects…” Ground Review Brokerage Corporation’s established knowledge of the project allows the City to move efficiently into active leasing without the delays that would occur if the City initiated a new solicitation process. Promptly beginning the leasing program is critical to activating The Hub., generating rental revenue, and supporting the City’s broader economic development strategy. A competitive bid process would extend the project timeline, delay tenant acquisition efforts, and risk misalignment with the City's curated leasing approach, as developed over the past several years.
FINANCIAL IMPACT:
Broker compensation is performance-based and applies only to leases tied to the Agreement and executed by the tenant and the City.
The commission structure is calculated based on annual base rent as follows:
6% of annual base rent for years one through five;
4% of annual base rent for years six through ten; and 2% of annual base rent for the balance of the lease term.
For the initial lease term, broker compensation is paid in installments: fifty percent within thirty days of mutual lease execution, and the remaining fifty percent when the tenant opens for business. If a lease is terminated early, the Agreement requires Ground Review Brokerage Corporation to provide the City with a credit for unearned compensation for the remaining portion of the lease term, subject to the terms of the Agreement.
The suites associated with this Agreement total 62,321 square feet. Based on a minimum lease rate of $2.50 per square foot, projected annual lease revenue is approximately $1,869,630, once all suites are fully occupied. Broker compensation, calculated at 6%, is estimated at $112,178 for this base rental rate. However, to date, negotiated rents are substantially higher than the minimum, therefore, the initial requested appropriation is $200,000 to cover current and future tenants. Approval of the recommended actions will authorize an appropriation of $200,000 from the Corona Mall Property Fund (FD_1130) to the Economic Development Department’s Operating Budget to fund estimated broker compensation in FY 2027.
There is no upfront payment due upon approval of the Agreement. Compensation will be tied to successful leasing activity and funded through property-generated lease revenues.
ENVIRONMENTAL ANALYSIS:
This action is categorically exempt pursuant to Section 15061(b)(3) of the Guidelines for the California Environmental Quality Act (CEQA), which state that project is exempt from CEQA if the activity is covered by the common sense exemption that CEQA applies only to projects that have the potential for causing a significant effect on the environment.
Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. This action is to approve a Broker Agreement with Ground Review Brokerage Corporation, and there is no possibility that approval of the recommended actions will have a significant effect on the environment. Therefore, no environmental analysis is required.
PREPARED BY: JOEL BELDING, ECONOMIC DEVELOPMENT DIRECTOR REVIEWED BY: JUSTIN TUCKER, ASSISTANT CITY MANAGER
ATTACHMENTS:
1. Exhibit 1 – Broker Agreement for Leasing of Commercial Property at THE HUB., with Ground Review Brokerage Corp