TO: HARBOR COMMISSION
FROM: KATHERINE BUCK, WATERFRONT AND ECONOMIC DEVELOPMENT MANAGER
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DISCUSSION AND POSSIBLE ACTION REGARDING AN UPDATE ON THE WATERFRONT PROPERTY MANAGEMENT, BROKERAGE SERVICES, AND MARINA MANAGEMENT REQUESTS FOR PROPOSALS
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BACKGROUND
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The City has contracted with a third-party property manager for its waterfront properties since 2012. On February 21, 2012, the City entered into an Agreement for Management Services with Landmark Acquisition Company (“Landmark”) to manage the Pier Plaza office complex, the International Boardwalk, a portion of Fisherman’s Wharf, the Pier Parking Structure storage units, and the Fisherman’s Wharf Sanitation District. On May 6, 2014, the agreement was amended to expand the services to the Redondo Beach Marina and the businesses located at 161-245 N Harbor Drive. On January 5, 2016, the City Council approved a Second Amendment which assigned the agreement to Leonardo Marina Management Inc. (“Leonardo”), a wholly owned subsidiary of Landmark, with Landmark remaining jointly responsible for the agreement.
On August 15, 2023, the City Council approved a Third Amendment consenting to the assignment of the agreement from Leonardo to Concord Property Management Group, LLC (“Concord”). Property management operations continued in the on-site office at Pier Plaza, and Concord remits monthly net income to the City for each property. The initial term of the agreement ran from August 15, 2023 to August 14, 2024. It now renews automatically in three-month periods and cannot continue beyond August 14, 2029. The City may terminate the agreement without cause with 30 days’ written notice.
Since 2012, brokerage and leasing services for the properties have also been provided by BC Urban, LLC, as a subcontractor to Landmark. Its services include developing a marketing strategy, conducting outreach to existing and prospective tenants, negotiating leases, and providing leasing and marketing updates. The City’s current agreement with Concord still retains BC Urban as a subcontractor, and BC Urban is compensated through commissions.
Staff, in collaboration with the City Council Economic Development Subcommittee, has released three Requests for Proposals (RFPs) for the City’s waterfront: Property Management, Brokerage Services, and Marina Management. The RFPs seek qualified firms to support the management, leasing, and operation of the City’s waterfront properties and marina.
There are several reasons for releasing the RFPs. First, the current agreement is not on the City’s Standard Agreement for Project Services. Staff would like to transition to the City’s standard agreement to ensure that the terms and provisions governing the waterfront management vendors are consistent with those used for other City vendors. Additionally, the City currently has one comprehensive agreement covering all three scopes of work. Establishing three separate agreements, one for each service area, will improve the efficiency of monitoring vendor performance and tracking expenditures.
Finally, with the current management team having served the City for more than a decade, Staff believes it is an appropriate time to invite other qualified firms to bring fresh perspectives, industry expertise, and new ideas to the management and operation of the waterfront. This process will allow the City to evaluate available services and approaches and ensure the waterfront continues to provide a high-quality experience for visitors.
Staff posted the RFPs on the City’s OpenGov page, shared the RFPs with a list of potential firms with relevant experience, and invited the incumbent firm to submit.
The City released RFP/Q#2627-001 Waterfront Property Management Services on Monday, September 14th and led a site walk for prospective firms on Monday, September 28th. The submissions were due on Wednesday, October 21st and the City received seven proposal submissions.
The City released RFP/Q#2627-002 Waterfront Real Estate Brokerage Services on Monday, September 21st and hosted a site walk with prospective firms on Wednesday, October 7th. Proposal submissions were due on Wednesday, October 28th and the City received three submissions.
On Monday, September 28th, the City released RFP/Q#2627-003 Marina Operations Management Services and hosted a site walk with prospective firms on Friday, October 9th. Proposal submissions were due Friday, November 6th at 5:00pm.
Staff is reviewing the submissions and will be conducting interview in the next few weeks to make the final recommendation on firm selection.
RECOMMENDATION
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Receive and file the update provided by the Waterfront and Economic Development Manager.