HomeMy WebLinkAboutMemo-Substitution For Item RE.18 Marlins Stadium Garage Retail SpacesCITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
TO: Honorable Mayor and DATE: July 21, 2011
Members of the City Commission
SUBJECT:
FROM: Johnny Martinez, P,REFERENCES:
City Manager
Substitution for Item RE.18
Marlins Stadium Garage Retail Spaces
ENCLOSURES: Negotiated term sheet
Please be advised that the proposed term sheet of the selected Proposer, as included in "Exhibit 1" to
RE.18, scheduled for the July 28, 2011 Commission meeting, is substituted by the attached negotiated
term sheet.
Staff from the Department of Public Facilities will be available to address any questions or concerns.
Please feel free to contact the department director, Madeline Valdes, at (305) 416-1461.
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SUBMITTED INTO THE
PUBLIC RECORD FOR
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THIS DOCUMENT IS A SUBSTITUTION
TO ORIGINAL. BACKUP ORIGINAL
CAN BE SEEN AT END OF THIS DOCUMENT.
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TERRANOVA
Proposed Fee Structure (Revised 7/20/2011)
Fee Structure
Leasing &
Market Research
Services
• Terranova shall be entitled to certain fees for the delivery of the
below listed items. Fees shall be paid upon delivery and shall
not exceed $30,000 in aggregate. The fees are non-refundable,
however, a credit shall be issued against future leasing
commission equal to the total amount of fees expended. A
delivery schedule shall be fiirther negotiated in the contract:
o A competitive market analysis, tenant mix report and
targeted tenant "depth chart". (Cost: $5,000);
o Delivery of the marketing package to include custom
graphics and logo, a custom designed brochure, site
plan, E-mail campaign and custom window signage.
(Cost: $4,000 due upon delivery);
o A comparative stadium retail report to discuss similarly
situated retail around stadium projects in other Cities.
(Cost: $3,000);
o A Report recommending various changes to the physical
plant including: a uniform signage and awing plan to
include graphical renderings, specifications and price
estimates and a complete review and recommendations
for retail storefront design and interior improvement
reconunendations (Cost: $5,000);
o A Submarket Report featuring the Stadium project. This
report will be similar in nature to the "Urban Retail
Report" included in our presentation. The submarket
reports are widely distributed by Terranova and will
ultimate land in the hands of other brokers and potential
tenants. This report is an essential marketing tool for
the Project. (Cost: $5,000);
o A complete document review of the City's form lease to
include recommendations for future lease deals. Review
is limited to a review of business issues in the lease and
is not to provide legal advice. As part of the review,
Terranova will prepare a template Landlord's Work
Exhibit (Cost: $5,000);
o Terranova shall design and execute a public relations
campaign that will highlight available space at the
project. The campaign will consist of producing and
distributing press releases and follow up with reporters.
($8,000)
Terranova Corporation • 801 Arthur Godfrey Road, Suite 600 • Miami Bench, Florida 83140 • Telephone (806) 006-8700 • Fax (306) 672-7800
Licensed Real Estate Broker
www.terra oovncarn.cora
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THIS DOCUMENT IS A SUBSTITUTION
TO ORIGINAL. BACKUP ORIGINAL
CAN BE SEEN AT END OF THIS DOCUMENT.
Marketing
Property
Management
• A 6% commission on the net rental value (up to 10 years of
term) of any fully executed lease (50% due upon the lease
execution & 50% due on the earlier of 1- the rent
commencement date; or 2- the elate the tenant opens for
business);
• Terranova will be the exclusive listing agent for the property
during the contract term and any option periods. Terranova
does cooperate with tenant's agents, but payment terms are
negotiated by Terranova and paid by and out of Terranova's
leasing co1m11ission;
• The leasing contract shall be guaranteed for 6 months;
• At the natural expiration of the contract or upon notice of early
termination, the agent shall supply the City with a list of any
active negotiations (the "Protected Prospects"). City will agree
to pursue leases with those Protected Prospects in good faith
(good faith to be further defined in the contract) and Terranova
shall earn a full commission on any lease executed with a
protected prospect during the 12 month period after the contract
terminates.
• Leasing agent shall provide a monthly update report on leasing
status.
• City shall reimburse Terranova for any marketing expenses
related to mailings, signage, advertising or marketing events;
• However, there shall be an aggregate cap on the total
reimbursements of $8,000 during any 12-month period;
• Any marketing expense above an aggregate cap shall be borne
by Terranova.
• $5,000 per month plus the reimbursement of the portion of an
on -site property manager's salary and benefits (estimated at no
more than $15,000/year).
• The management contract shall be guaranteed for 6 months;
• The term of the management agreement shall begin
concurrently with the execution of the first lease at the ProjecE
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Terranova Corporation • 801 Arthur Godfrey Road, Suite 600 • Miami Beach, Florida 88140 • Telephone (305) 605-8700 • Fax (305) 672-7800
Licensed Real Estate Broker
www.terranovncarn.con]
Leasing &
Market Research
Services
Marketing
Property
Management
SUBSTITUTED
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TERRANOVA
Proposed Fee Structure
• $5,000 flat monthly fee during months 1-6 of Leasing Services.
This fee is inclusive of all services including:
o Research on other ballpark -related projects in other
cities;
o A comprehensive market survey and corresponding
competitive mark analysis and report;
o A competitive use analysis and report;
o Periodic attendance at meetings or hearings of the
stakeholders;
Active marketing of the of the listings.
• Begu . ' ng with the 61h month, a $5,000 monthly retainer which
may be set by future leasing commissions.
A 6% co . 'zission on the net rental value (up to 10 years of
term) of an Ily executed lease.
.• Preapproved o . -of-pocket expenses
• If the contract is - - inated before the end of the 12th month. a
$20;000 .fee will b- harged to compensate proposer for its
considerable startup : '.enses.
.• $10,000 Upfront Budget fo ignage, mailings, window signs
and other marketing materials . d a kickoff broker's event;
• Beginning in the 2nd month, $1, 0 per month continuing until
the retail bays are fully leased.
.• The greater of 4% of gross project reven. - or $5,000 per month
plus the reimbursement of the portion of a .n-site property
manager's salary and benefits (estimated at more than
$1 5,000/year).
• If specialized accounting software is required, th 'roposer's
reasonable costs to purchase the software and train counting
staff must be reimbursed. Terranova's accounting st
currently operate and are trained in Yardi software.
• If the contract is terminated before the end of the 12th mo
$20,000 fee will be charged to compensate proposer for its
considerable startup expenses.
Terranova Corporation • 801 Arthur Godfrey Road, Suite 600 • Miami Beach, Florida 33140 • Telephone (305) 695-6700 • Fax (305) 672-7800
Licensed Real Estate Broker
www.terranovacorp.com