DATE: October 7, 2026
TO: Honorable Mayor and City Council Members
FROM: Economic Development Department
2026-055
REQUEST FOR CITY COUNCIL ACTION
SUBJECT:
PROFESSIONAL SERVICES AGREEMENT FOR OPERATIONS, MARKETING, AND SPECIAL EVENT SERVICES AT THE HUB.
EXECUTIVE SUMMARY:
This staff report asks Council to approve a Professional Services Agreement with Ground Review Corona, LLC, for Operations, Marketing, and Special Events Services at The Hub.
RECOMMENDED ACTION:
That the City Council:
a. Approve the Professional Services Agreement with Ground Review Corona, LLC, for operations, marketing, and special events services for a term of five (5) years in the not-to-exceed amount of $3,111,696, and waive any and all minor irregularities in the proposal.
b. Authorize an Exception to Bid pursuant to Section 3.08.140(D) of the Corona Municipal Code - Purpose of bidding is otherwise accomplished, as outlined in the Determination for Competitive Bidding section of this staff report. c. Authorize the City Manager, or his designee, to execute the Professional Services Agreement with Ground Review Corona, LLC, in the not-to-exceed amount of $3,111,696, including any non-substantive extensions, change orders, purchase orders, and amendments up to 10% of the contract amount ($311,169). d. Authorize the City Manager, or his designee, to issue purchase orders annually to Ground Review Corona, LLC, in the annual amounts outlined within the Professional Services Agreement.
e. Authorize an appropriation in the amount of $315,000 in the Economic Development Department’s Operating Budget within the Corona Mall Properties Fund (FD_1130) for FY 2027.
BACKGROUND & HISTORY:
The Hub. is a City-owned property in Downtown Corona that serves as a multi-tenant destination for retail, dining, and entertainment. The property includes indoor tenant spaces and a shared outdoor communal area, designed to support events and community gatherings.
On December 24, 2024, the City of Corona acquired The Hub. as part of its strategic downtown revitalization efforts, with the goal of creating an active, vibrant dining and retail experience in the heart of the Downtown. Following acquisition, the City has been recruiting tenants, designing building renovations for two buildings within the center, and identifying professional firms to assist with the maintenance and operations of the site.
The best business practice for commercial center owners is to retain services for property management, a center operator, and a leasing agent. On July 1, 2026, the City entered into a contract for property management with G&E Real Estate Management Services, Inc., dba Newmark (Newmark). On August 5, 2026, the City entered into a Broker Agreement for leasing of commercial property at The Hub. with Ground Review Brokerage Corporation.
ANALYSIS:
To ensure the effective operation and long-term success of The Hub., the City initiated several specialized competitive procurement processes to secure qualified operators for various services at The Hub. This proposed professional services agreement focuses on marketing, operations, and special event programming to ensure that The Hub. is a thriving activity and community space that can aid in driving the City’s broader downtown revitalization efforts.
Request for Proposals (RFP) No. 26-039AS for The Hub. Programming and Operating Services was advertised on March 16, 2026, pursuant to CMC Section 3.08.110 nonpublic projects formal bidding procedure, and posted on the City’s bidding portal, PlanetBids. To encourage a more competitive solicitation process, and due to lower-thananticipated interest, the City issued Addendum No. 1 on April 7, 2026, to respond to questions from potential bidders, followed by Addendum No. 2 on April 14, 2026, which extended the proposal submission deadline to April 28, 2026.
During the bidding period, more than two hundred vendors received notification of this opportunity, and in an effort to receive as many proposals as possible, the Economic Development staff also extended direct invitations to several experienced shopping center and food hall operators. Even with this broad outreach, only four firms reviewed the RFP documents during the bidding process, two of which had any relevant experience.
On April 28, 2026, two proposals were received through the PlanetBids, one from Ground Review Corona, LLC (an affiliate of the previously mentioned Ground Review Brokerage Corporation), and the second from the Latin & Asian Hospitality Group – Samuel and Lucas Food Trucks Company. Ground Review Corona, LLC, presented relevant experience in the management and operations of thriving commercial centers. The Latin & Asian Hospitality Group, a catering and food truck operator company, only depicted some experience in managing small cafes, food trucks, and catering events, lacking experience in some of the more specialized services sought by the City through this RFP.
Following the review of the two proposals, it was determined that neither proposal adequately addressed the scope of work defined in the RFP. Staff canceled the solicitation and notified the proposers.
However, given Ground Review Corona, LLC’s demonstrated experience, their partnership with the City in the development of the concept and design for The Hub., and their assistance with the recruitment of tenants to the center, staff approached the firm to further discuss their services and negotiate a specialized scope of the contract. With Newmark on contract for property management, and the evolving needs for The Hub. in general, the goal of this negotiation was to refine the scope of work to focus the outstanding specialization needed for the center and develop a competitive compensation schedule, resulting in the attached Professional Service Agreement (PSA) for the City Council’s consideration.
The draft PSA sets an initial 5 year term, ending in September 2031, with the compensation structure for the duration of the term, inclusive of:
Annual Base Fee;
10% of Base Rent / Project Revenues per occupied unit beginning on month 13; 10% of Percentage Rent Projection NTE 25% above each tenant’s breakpoint; and
Events fee estimated at 5% of base fee.
These terms equate to a maximum annual allowance of the following:
Year 1 2 3 4 5
Months 1-12 13-24 25-36 37-48 49-60
Calendar Year
2026/202
7 2027/2028 2028/2029 2029/2030 2030/2031
Monthly Base Fee $25,000 $26,250 $27,563 $28,941 $30,388 Annual Base Fee $300,000 $315,000 $330,750 $347,288 $364,652 10% of Base Rent/Project
Revenues $0 $194,880 $276,542 $296,285 $315,502
10% of PR NTE 25% Above
BP $0 $66,799 $70,139 $73,646 $77,328
Events Fees (Estimated at
5% of Base) $15,000 $15,750 $16,538 $17,364 $18,233
Gross Potential Revenue $315,000 $592,429 $693,969 $734,583 $775,715 These rates assume The Hub. is occupied at full capacity, therefore the amounts memorialized in the PSA represent the maximum amount payable to Ground Review Corona, LLC in the event that all spaces are occupied. Actual payments to Ground Review Corona, LLC will be made based on actual occupancy at the time payment is requested. The total not-to-exceed amount for all 5 years is $3,111,696.
FINANCIAL PERFORMANCE OF THE HUB.
The Hub. will generate revenue from three primary sources: promotional fees, common area maintenance (CAM) fees, and rents. The promotional fees will be used for marketing and events programming, with the intent of increasing awareness of The Hub. and attracting customers to the center. The CAM fees will fund services such as landscaping, security, site repairs, and site cleaning, to ensure the center operators in a clear and safe manner. The rents will fund repayment of the bonds that are being issued for building renovations and start up activities, special events programming, and periodic capital improvements for the center.
The five year projected revenue for The Hub. is approximately $12,500,000 between gross revenue between rents, common area maintenance payments, and promotional fees. Assuming the City achieves this leve of revenue, the contract under consideration willhave a not to exceed amount of $3,111,696 for the five year term. Projected total expenses for this time frame are approximately $5,000,000 for the array of contracted services, with a net operating income of approximately $7,000,000 returned to the City in the first five years. With programmed rent, CAM charges, and promotional fee payments increasing at a set rate, every year, of approximately five percent per year, revenue growth will outpace projected expense growth.
DETERMINATION FOR COMPETITIVE BIDDING
As noted above, the City previously conducted a competitive solicitation for these services and received two proposals. Following the evaluation, the City determined that neither proposal adequately met the City's needs and canceled the solicitation without award.
Following cancellation of the solicitation, the Department engaged Ground Review Corona, LLC regarding the revised service requirements and negotiated a scope and pricing that meet the Department's current operational needs and differs from the scope originally solicited. Given the limited response to the City's prior competitive solicitation, the unsuccessful outcome of that process, the subsequent refinement of the City's requirements, and the additional time and administrative resources that would be required to conduct another solicitation, staff believes proceeding with the proposed agreement is in the City's best interest. Accordingly, the staff recommends that the City Council authorize an exception to bid for this service pursuant to section 3.08.140 (D) - Purpose of bidding is otherwise accomplished.
FINANCIAL IMPACT:
Approval of the recommended actions will result in an appropriation in the amount of $315,000 to the Economic Development Department’s Operating Budget within the Corona Mall Properties Fund (FD_1130) for the remainder of FY 2027. This includes $300,000 for the Year 1 base operator compensation, and $15,000 for anticipated additional costs associated with operator activities and special event programming under the agreement.
Compensation for Ground Review Corona, LLC includes a base monthly payment of $25,000 for the first year, with a 5% annual increase beginning the Year 2. The contract also includes a payment of 10% of the gross monthly rental income beginning in Year 2, which incentivizes tenant retention at the center going forward. Extraordinary tenant earning also generate a source of revenue for the operator, with 10% of any percentage rent paid by tenants being remitted to the operator. These extraordinary earnings conditions are not guaranteed and, when they do occur, may vary month to month across the tenants at The Hub.. The agreement also provides for an administrative fee for special events programming, covering weekly, monthly, and annual events to be held at the site, to support tenant customer attraction efforts and reinforce The Hub. as the center of downtown cultural and entertainment activities. The not-to-exceed amount of the contract of $3,111,696 is meant to capture the combination of the guaranteed fee, plus the maximum possible amounts for the percentage-based compensation.
Actual compensation will vary based on a percentage of gross revenues generated at the property; however, the minimum amount provides a conservative and predictable cost basis for budgeting purposes, with additional funding being allocated during the City’s budgeting process to reflect the current state of The Hub. revenue generation. Years Two through Five have not-to-exceed amounts of $592,429, $693,969, $734,583, and $775,715, reflecting increased center occupancy, guaranteed escalation in rent payments over the term of the tenant leases, maximized event programming, and consistent extraordinary earnings conditions from all tenants.
While The Hub. is in its startup phase, with not all retail suites occupied or the food hall completed, the City will provide the funding for this agreement. Once the center is fully occupied, rent revenues from the center tenants will fully fund this contract, as well as all other contracts needed for the full operation and maintenance of The Hub..
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 Professional Services Agreement with Ground Review Corona, LLC, 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, PLANNING & DEVELOPMENT DIRECTOR REVIEWED BY: JUSTIN TUCKER, ASSISTANT CITY MANAGER
ATTACHMENTS:
1. Exhibit 1 – Professional Services Agreement with Ground Review Corona, LLC