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CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: June 5, 2024
To: Honorable Mayor and City Council Members
From: Rochelle Clayton, Acting City Manager;
Joshua Dramitinos, Deputy Director of Economic Development Department: City Manager's Office
Subject: Amendment No. 1 to the Professional Services
Agreement with Kosmont Real Estate Services (All
Wards)
Recommendation:
It is recommended that the Mayor and City Council of the City of San Bernardino, California authorize Amendment No. 1 to the Professional Services Agreement with Kosmont Real Estate Services, a California Corporation, for Pre-Disposition Real Estate Advisory/Due Diligence Services, extending the Agreement until June 21, 2025; and authorize the City Manager to execute Amendment No. 1 with Kosmont Real Estate Services.
Executive Summary
The recommended action will extend the term of the Professional Services Agreement with Kosmont Real Estate Services, a California Corporation, for one additional year. through June 21, 2025.
Background
The City is seeking real estate advisory services from Kosmont Realty, a California Corporation, for the future disposition, sale, and development of the property located at 295 Carousel Mall (Carousel Mall Property), as well as other potential City-owned properties. These services would include initial property due diligence, assistance in achieving Surplus Land Act (SLA) compliance, and assistance with any public-private negotiations that may follow. Kosmont Realty is a licensed California brokerage firm with extensive experience in property transactions between public agencies and private parties. Additionally, Kosmont Realty is a partner with the League of California Cities (of which the City is a member) and they have performed real estate advisory services for many municipalities including Inglewood, Hollywood, Redondo Beach, Norco, and Santa Ana.
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Discussion
Amendment No. 1 to The Professional Services Agreement (“Agreement”) will continue to authorize Kosmont to perform pre-disposition real estate advisory and due diligence services on City-owned properties and will maintain the original not-to-exceed contract amount of $90,000. These advisory and due diligence services include evaluating the marketability of City-owned properties, navigating the regulatory requirements of the SLA for those properties, and assisting the City in evaluating the notices of interest that are submitted in response to a Notice of Availability.
2021-2025 Strategic Targets and Goals
Amendment No. 1 to the Professional Services Agreement with Kosmont Companies is consistent with Key Target No 1b: Continue to seek opportunities to secure long- term revenue sources.
Fiscal Impact
There is no General Fund impact associated with this action. Sufficient funding already exists in the Professional Contractual Services budget for the City Manager’s Office.
The original not to exceed contract amount of $90,000 will remain in effect.
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California authorize Amendment No. 1 to the Professional Services Agreement with Kosmont Real Estate Services, a California Corporation, for Pre-Disposition Real Estate Advisory/Due Diligence Services, extending the Agreement until June 21, 2025; and authorize the City Manager to execute Amendment No. 1 with Kosmont Real Estate Services.
Attachments
Attachment 1 – Amendment No. 1 to the Professional Services Agreement Attachment 2 – Professional Services Agreement with Kosmont Real Estate Services
Ward:
All Wards
Synopsis of Previous Council Actions:
June 21, 2023 The Mayor and City Council approved a Professional Services Agreement with Kosmont Real Estate Services for Real Estate Advisory and Due Diligence Services.