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Home My WebLink AboutReso 95-146 - Establishing adopting a marketing/leasing policy for the RABP ' . • � RESOLUTION N0. �- I�b A RESOLUTIOAi OF Z'HE CITY COUNCIL OF THE CITY OF REDDING ESTABLISHIAIG AND ADOPTING A M�IRKETING/LEASIPIG POLICY FOR THE REDDING AIRPORT BUSINESS PARK (RABP) . WHEREAS, the City Cnuncil of the City of Redding is charged with the responsibility of establishing municipal policies to guide the various functions of the City, and, where necessary, establishing procedures by which said functions are performed; and WHEREAS, regulatory policies established by the City Council are usually adopted by Ordinance and included in the Municipal Code. However, other policies are also established, which by their nature do not require adoption by Ordinance; these policy statements, adopted by Resolution of the City Council, need to be consolidated in a reference document for easy access; and WgiEREAS, on August 4 , 1987, by Resolution No. 87-261, the City Council adopted a Council Folicy Manual to achieve said objectives; and WHEREAS, on December 5, 1989, by Resolution No. 89-456, the City Council adopted Airport Development Policies as an integral , part of said Council Policy Manual; and WHEREAS, City Council wishes to establish a policy per- taining to Marketing/Leasing of the Redding Airport Business Park (RABP) at the Redding Municipal Airport, as set forth in Exhibit "A" attached hereto and incorporated herein by reference; NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of `�� the City of Redding as follows : 1 . That all of the above recitals are true and correct; �� 2 . That attached hereto as Exhibit "A" and incorporated IJ� herein by reference is a policy statement to be incorporated in � � • • the Council Policy Manual pertaining to Marketing/Leasing of the Redding Airport Business Park {RABP) at the Redding Municipal Airport . 3 . That the Council Policy attached hereto as Exhibit "A" be and hereby is adopted as the Council Policy of the City of Redding pertaining to Marketing/Leasing of the Redding Airport Business Park (RABP) at the Redding Municipal Airport. I HEREBY CERTIFY that the foregoing Resolution was intro- duced and read at a regular meeting of the City Council of the City of Redding an the 6th day of .3une , 1995, and was duly adopted at said meeting by the following vote: AYES: COUNCIL MEMBERS: P. Anderson, R. Anderson, McGeorge, ir!urray and Kehoe PIOES: COUNC I L MEMBERS: None P►BSENT: COUNCIL MEMBERS: None ABSTAIN: COUNCIL MEMBERS: None / �/r/ �� DAVID K OE, M�y City o Redding ATsES�i'� FORM OVED: � /� �� , �y��Cr`�-� ��Z'�s�' C�NN�� ST �HMAY,��:, �City Clerk W. LEONARD WI TE - City Attorney . , . � � ci� o� ��Din��, c�c.i�o��viA Councii Policy SUBJECT Reso�ution Policy Effective Marketing/L�asing Policy Number Number Date Page for the Redding Airport Business Park (RABP) 1 PURPOSE: The purpos� of this Policy is �hreefold: 1 . To formally establish the City's intent to compensate a real estate broker, if that broker is deterntined to be the procurinq cause of a lease wi�hin �P; 2 . To se� forth a realistic rate of re�urn ugon which rental amounts will be based within the RABP; arxd ' 3 . To provide a means , through ei�.her an "Option Agreement" or a °'First Right of Refusal Agr�ement'• �hereby a poten�ial lessee might re�erve a par�icular parc�l of land within the RA7BP for a short p�riod of time in orc3er to facilitate co�pletion of a specffic sit� evaluatian. POLICY• I . BAOKEA PP►RTICIPA'Y`ION A. The City will allow a licensed real e��ate broker to par- ticipate in the leasinq vf RA�P la►s�d and shall pay a cammission to such broker if: i) The broker is certified by lesse� to be �he procurinq cause of �he lease; 2) The broker certifies �hat he/she is not the lessee, an employee of the lessee, or does not ewn or have sub- stantial cont�ol over or in the l�sse�°s busin��s; and 3) The braker certifies that he/sh� has sepresented t.?ie City's in�erest in the lease transaction. B. The City has the sole right to accept or reject any offers to l�ase and no commissions will be paid an a �ransac�ion which the City has rejected. C. No rental ra�es will be lowerPd solely due to �he abs�nce of broker involvement. EXHIBIT "A'� � ` • • � , -p�'�/ n p� /� p��/ � l./� / l 11� ��LJ�� C/`��'��1 V! {�OU�1C11 PO�ICy SUBJECT Reso�ution Poiicy Effective Number Number Date Page Marke�ing/Leasing Policy gos the Redding Airport 2 �usin�ss Fark ItABP D, The monetary commission payable shall be �stablished at the �quival�nt to the first year r�nt on �he suk�j�ct lease, subject to receip� of rental paymer�ts by l�ssee. E. Cammission payment� deem�d by the City to �e inc�arr�d and payable shall be paid only a�fter scheduled le��e palrments ha�re b�en re�eived by the City and in acco�d�ance with a farmula r�hich provides �hat twelve �nd en�-half ( 12� ) percent of the total co�nmissian due is payable �t the end af each thr�e (3) r�onths period during �he firs� t��nty- four (24) �onths of the lease teran. F. 'I'�e Ci�y �aill pay comanisgions for traxisactions involving psesen� l�ssees acquiring additioraal sites provid�d the �ceal ��a�� bro}eer meets the r�quire�n�nts Q��lined in Faragr�ph A. G, . The Ci�y shall not pay commissions on any br��s-out (divided) le�ses a� sublea�es . Also, the Citg� �hall not pay commissior�s on any "First Right of Ytefus�l'° oa' °'Op- tien tc L�a�e" �ransactions . H. L�asing commissioras shall b� established at lease onset �nd no adjus�an�nts shall be made in ��e �stablished ' commission due to ��anges in the lease r�ntal rat�s . I . In the event more than one broker is involv�d in any one lease tran�ac�ion, the City will only g�al► a �inqle ca�tr►ission, which will be de�ermia�ed fre�m the cer- tification of the lessee �stablis�ing the grocuring broker. II . LEASE TEF�M & RP�'I`ES A. A l�ase agr�ement for land within the �P may have a fixed term of 30, 35 , or 40 yeass, d�per�elinq upon the ren�al rate initially established. S�e�ifi.cally, a lease texm of 30 years shall be based upon an ini.tial ra�e of geturn equal to 7 .0 percent of the M�rket Value, a lease �erm of 35 years shall be based upon 7 .5 percent, and a lease �erm of 40 years shall be based ugan 8 .Q pereent. I •, • �,• � . • � C�IlY C)� REDDI�Ca, CALI�'ORiVlA Council Policy S U BJ ECT Aesolution Policy Efiective Marketinq/Leasinq Policy ��mber Number Date Page for �he Reddinq Airport Business P�rk (RABP) 3 B. Rental sa�es shall be established/adjust�d every 5 years in accordance with the following: YEAItS MEZ�FiOD 1 - 5 (7 .0, 7 .5, or 8 .0$) OF APPR�IS�D �'74LUE 6 - 10 1/2 OF CPI INCItEASE 11 - 15 (7 .5, 8 .0, or 8 .5$) OF APP�II�ED/ESTINl�T�D VP,LUE 16 - 20 1/2 OF CPI INCR�SE 21 - 25 (8 . 0, 8.5, or 9 .0$� OF APPRe�ISED/�ST%AgA�D VPiI.UE 26 - 30 1/2 OF CPI ZNCREASE 31 - 35 (8.5, 9 .0, or 9 .5�5) OF �PPRI�ISED/ESTIMA�D V�II.iJI� 36 - 40 1/2 OF CPY I2dCR�SE OPTIOPtS (7.0, 7.5, or 8 .0�) OF APPAd#ISED/ES'�I��D �AALZTE P7ot�: EacY�t o� tts� �bov� p�sc�rt�a.g�s �ta rolat�c! �o ths ayaplicabla 1�a�s� tarm� 1_g� � 30� 3 S� os 40 y��r�� A1�o� ��cYi � y�ar end�ustm�nt �ha11 not b� gr��r t2zma 10� og th� pr�vious� but n�v�r 1.��s� C. An "Optian to Extend" a lease aqreement ntay be n�qotiated in conjunction with the initial establish�tent of suc� lease agreement, but in no event shall the amourits of the fixed term and the options carerbined exceed 50 ye�ss . D. A "First Riqht of Refusal" w3th a �ifteen ciay call-period may be of�ered for a rat� that is one half the calculated regular monthllr rental rate. E. An "Option to Lease" for a period of sixty days r,�.y be of- fered for a rate equal to the calcul��ed reqular monthly. rental rate. F. Gross leasinq of Iand within RABP consistinq of fi�re or more acres may have a rental which is phased in over a three ye�r period, i .e. , 33 1/3$ for the first eiqht�en month� and 66 2/3� for the secand eighteen months.