Steve Glueck, Director of Community and Economic Development. Resolution 2508, Extension of Real Estate Listing Contract

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1 Council Memorandum To: From: Through: The Honorable Mayor and City Council Steve Glueck, Director of Community and Economic Development Jason T. Slowinski, City Manager Date: August 2, 2016 Re: Resolution 2508, Extension of Real Estate Listing Contract Purpose of Agenda Item: This item is presented for a Council determination regarding an extension of the real estate listing contract with Cushman and Wakefield (formerly known as Cassidy Turley Commercial Real Estate Services, Inc. dba DTZ) for surplus City property in the Catamount Filing No.1 Subdivision, near the city shops. If enacted, the Resolution would extend the contract until the middle of July Background: In the summer of 2006, City Council reviewed proposals from three real estate brokerage firms, and authorized a contract with the current broker (then known as Fuller and Company) for the potential surplus property associated with the purchase for the city shops. At that time, the 6 potential sale parcels had not been platted, and were also physically not ready for sale. The property improvements and final plat were completed in Two of the six lots were sold in late Throughout the recession beginning in 2008/2009, there was no land sale activity in the industrial and office sectors in this part of the metro area. During 2014, there was one offer (for lot 2 of the subdivision) presented to Council, and later withdrawn by the purchaser based upon non-compliance with current zoning. Another letter of intent for an amount substantially less than asking price was countered by staff, with no further discussion. At that time, staff recommended and Council agreed that the primary factor in lack of sales continued to be the generally weak west side industrial land market and that most businesses were still better off purchasing or leasing a building rather than building from scratch. With the current upswing in interest in light industrial property, and the contract under consideration by City Council for Lots 1 and 2, staff can recommend that Council grant another extension to the listing contract, to (hopefully) complete the sale of Lots 1 and 2 and market the remaining two lots.

2 Fiscal Impact: The primary fiscal impact of this decision is the need to sell sufficient parcels to repay the loan from the Wastewater Fund for the pro-rata share of the original land purchase. Regardless of whether this contract is extended, the Sales and Use Tax Fund is relying on the eventual sale of at least three of the four remaining lots. Alternatives: Action by Council on this request is discretionary. Council may wish to extend the contract, or seek new proposals now, or other possible courses. As noted above, staff recommends that the contract be extended until the middle of July Recommendations: Staff recommends that City Council review the attached materials and, on August 11, 2016, determine whether to approve Resolution Attachments: Resolution 2508 and Contract Extension Property brochure Page 2

3 RESOLUTION NO A RESOLUTION OF THE GOLDEN CITY COUNCIL AUTHORIZING THE EXTENSION OF AN EXCLUSIVE RIGHT TO SELL LISTING CONTRACT WITH CUSHMAN AND WAKEFIELD WHEREAS, in 2007, City Council declared certain city-owned properties within the Catamount Subdivision Filing No.1 Subdivision to be surplus; and WHEREAS, by Resolution 1693, City Council secured professional real estate services related to the planning and potential sale of these properties from Fuller and Company; and WHEREAS, by Resolutions 2070, 2140, 2200, 2278, 2411, and 2449, City Council extended the original contract with Fuller and Company and recognized a series of names change to Cassidy Turley/Fuller Real Estate and later to Cassidy Turley Commercial Real Estate Services, Inc dba DTZ and later to Cushman and Wakefield; and WHEREAS, City Council wishes to further extend the contract until July THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GOLDEN, COLORADO: The Mayor is authorized to execute on behalf of the City of Golden, an Agreement to Amend/Extend the existing Exclusive Right To Sell Listing Contract with Cushman and Wakefield substantially complying with the agreement attached hereto as Exhibit A. Adopted this day of, ATTEST: Marjorie N. Sloan Mayor Susan M. Brooks, MMC City Clerk APPROVED AS TO FORM: David S. Williamson City Attorney

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6 FOR SALE Catamount Business Park Golden, Colorado Business Park Catamount Business Park, situated in Golden s attractive foothills setting, is zoned for office, flex, warehouse and light manufacturing. This is a growing and affluent area enjoying a stable business climate and historically low vacancy rates. Limited commercial/industrial land in the foothills communities preserves value and influences appreciation. 1 Pine Ridge Rd. 2 3 Catamount Business Park offers a master drainage plan with off-site detention ponds, preserving and maximizing usable ground for each lot owner. Catamount Business Park features generous native landscaping and an appealing streetscape. These features enhance the quality and value of the remaining lots available for sale. Please see reverse for aerial. 5 A 4 Catamount Dr. 7 6 B 8 Golden Gate Canyon Rd. Lot Acres Total Price $948, $707, Sold $475, City of Golden Public Works Landmarks Commission Echo Serve $444,530 A N/A Open Space/Drainage B N/A Open Space/Drainage 1515 Arapahoe Street, Suite 1200 / Denver, Colorado / phone / fax / cushmanwakefield.com

7 FOR SALE Catamount Business Park Golden, Colorado To Boulder SITE McIntyre St. To Denver GOLDEN INTERSTATE 70 Denver West Office Park To Highlands Ranch 6th Ave. To Denver To Vail INTERSTATE 70 For more information, please contact: 1515 Arapahoe Street, Suite 1200 Denver, Colorado Chris Ball, sior, ccim Senior Vice President Esther Kettering, mba Senior Vice President T F cushmanwakefield.com Cushman & Wakefield Copyright No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by the property owner(s). As applicable, we make no representation as to the condition of the property (or properties) in question.