HomeMy WebLinkAbout19103 - RESOLUTIONS - 7/30/1997 RESOLUTION NO. 19103
OF 'THE CITY COUNCIL OF THE CITY OF PALM
SPRINGS, CALIFORNIA, ESTABLISHING A REAL
ESTATE COMMISSION POLICY FOR THE LEASE
OF AIRPORT PROPERTY.
WHEREAS the Palm Springs Regional Airport, which is owned and operated by the City of
Palm Springs, has available over 300 acres of property available for leasing purposes; and
WHEREAS the recent addition of a new access roadway from Ramon Road to the Terminal
Building has provided roadway access to previously land-locked properties; andl
WHEREAS to ensure continued below market rate rentals for the Airport's signatory air
carriers, it is essential to develop additional non-airline revenue sources; one such source is
land lease; and
WHEREAS any successful land leasing program will depend on real estate professionals
bringing their clients forward; and
WHEREAS the lack of a current "Leasing Commission Policy" will be a disincentive to real
estate professionals,
NOW THEREFORE BE IT RESOLVED by the City Council of the City of Palm Springs as
follows:
Section I . Resolution No. 8780, establishing brokers commission for the sale or lease of
City property shall hereby not apply to Airport property. '
Section 2. Leasing-Real Estate Commissions shall be as follows:
A. Commission Policy: In consideration for a broker's diligent pursuit of a
Lessor(s) for Airport Property, solely representing the lessee and not a
sub-agent of the Airport, utilizing Standard Form ,Airport Lease
documents, Palm Springs Regional Airport agrees to pay Broker
Commissions as follows:
7'% of the actual land rent for the first 12 months
7% of the actual land rent for the second 12 months
6% of the actual land rent for the third 12 months
5% of the actual land rent for the fourth 12 months
5% of the actual land rent for the fifth 12 months
4% of the unadjusted base land rent for the next 60 months
2% of the unadjusted base land rent for the balance of the term
B. Commencement of Rent: For the purpose of computing the amount of
the commission due, the first month when any rental is paid shall be
deemed to be the first month of rental.
C. Actual Land Rent: For the purposes of computing the commission due, ,
'.actual land rent" shall be "base land rent" less any incentives provided
lessee during the first five (5) years of the lease.
D. Base Land Rent: For the purposes of computing the commission due,
"base land rent" shall be the amount so defined in the lease document.
This amount, without adjustment, shall be utilized to calculate
commission due for years (6) six through (2'5) twenty-five.
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E. Term of More Than 25 Years: If the initial term is in excess of 25 years,
then the commission shall be calculated only upon the first 25 years of
thelease.
F. Month-to-Month Tenancy: The commission shall be 50% of the first
month's rent but in no event less than $75O. In the event a month-to-
month tenant subsequently executes a lease, either directly with the
Airport or through the original broker, within 24 months from the date
of first occupancy of the month-to-month tenant, the broker shall
receive a leasing commission with respect to such lease in accordance
with the provisions of this schedule.
G. Commission Payment: One-half of the leasing commission shall be paid
upon the mutual execution of the lease (within 10 days), and the
balance shall be paid at the commencement of construction.
H. Airport's Right To Lease: Nothing in this policy shall prevent the Airport
from seeking its own leases without the assistance of a broker. Brokers
shall register clients with the Airport on forms provided by the Airport.
Section 2. City Department Finder's Fee. Should any department of the City of Palm
Springs bring a lessor to the Airport staff's attention and a lease is
consummated, said department shall receive a commission as outlined in
Section 1 of this Resolution.
ADOPTED this 30th day of July 1997.
AYES: Members Barnes, Hodges, Oden, Spurgin and Mayor Kleindienst
NOES: None None
ABSENT: None None
' ATTEST: CIT OF PALM R S, IFORNIA
13
Cafy Clerk City Manager
REVIEWED & APPROVED AS TO FORM
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