Agenda Item
City Council
Item #: 3.6. 8/22/2023 File #: 23-0535
TO: Honorable Mayor and Members of the City Council
FROM: Tom Kisela, City Manager
1. SUBJECT
Agreement with Paul Kott Realtors, Inc. for real estate broker services.
2. SUMMARY
Professional Services Agreement with Paul Kott Realtors, Inc. for real estate broker services to assist with the lease or sale of City properties.
3. RECOMMENDED ACTION
Approve the agreement with Paul Kott Realtors, Inc. for real estate broker services; and authorize the Mayor and City Clerk to execute on behalf of the City.
4. FISCAL IMPACT
The compensation for this agreement is limited to a percentage of the purchase price or value from the sale or lease of City properties.
5. STRATEGIC PLAN GOALS
Goal 2: Be a fiscally healthy community
b: Analyze future fiscal needs and potential revenue opportunities. d: Effectively manage and develop City assets.
6. DISCUSSION AND BACKGROUND
The City owns a small number of properties that it has purchased, or acquired from the former redevelopment agency, that are intended for future government purposes. These properties are typically leased out to generate revenue for the City while they are not being used as a public facility.
The City Council has asked staff to review the existing portfolio of properties and provide options to better utilize these properties or dispose of those properties that may no longer be needed for government purposes. The proposed Professional Services Agreement with Paul Kott Realtors, Inc. (PKR) would provide a professional real estate broker to assist staff with this effort.
PKR has extensive knowledge of the local real estate market and experience with the lease and sale of commercial and residential properties. This expertise will allow staff to provide an accurate analysis of the potential for each City property and ensure the effective management and development of these assets. Any lease or sale of property would require City Council approval and under the agreement PKR is compensated on a commission basis with a percentage of the lease City of Orange Printed on 8/16/2023Page 1 of 2
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Item #: 3.6. 8/22/2023 File #: 23-0535
value or sale proceeds.
7. ATTACHMENT
· Professional Services Agreement with Paul Kott Realtors, Inc.
City of Orange Printed on 8/16/2023Page 2 of 2
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