Title
Property Management Services Agreement for Village Shopping Center - Amendment 1 (Ordinance S-47376)
Description
Request to authorize the City Manager, or his designee, to execute an amendment to Agreement 142612 with Newmark Knight Frank Management (Newmark) for property management services to provide additional funding and time to the agreement to extend the term and increase the management fee. Further request to authorize the City Controller to disburse all funds related to this item. The total agreement value will not to exceed $21,000.
Report
Summary
In April 2016, a property management services agreement was awarded via a Request for Proposals (RFP) process to Newmark for the Village Shopping Center (VSC), a City-owned multi-use shopping center located at 1945 W. Dunlap Ave. The agreement expires April 13, 2021, with no remaining options to extend.
VSC is owned by the Public Transit Department (PTD), which seeks to consolidate property management of VSC and the Public Transit Building, located at 302 N. 1st Ave., under a single agreement for greater efficiency. RFP PTD20-009 was issued in January 2021, and a new agreement is expected to be in place on or about July 1, 2021. This extension would allow sufficient time to complete that RFP process, execute a new agreement, and ensure seamless customer service for tenants at VSC and the Public Transit Building.
Procurement Information
The initial agreement with Newmark was procured in accordance with Phoenix City Code Chapter 43 and Administrative Regulation 3.10.
Contract Term
The extension will be for the period from April 14, 2021, to June 30, 2021, with three one-month options to extend.
Concurrence/Previous Council Action
The City Council approved Property Management Services Agreement 142612 (Ordinance S-42427) on April 6, 2016.
Financial Impact
The initial agreement was authorized for an expenditure not-to-exceed $175,000. This amendment will increase the authorization for the agreement’s cost by an additional $21,000, for a new total not-to-exceed agreement value of $196,000. Newmark's current monthly management fee of $2,500 has not been adjusted since 2016 and would increase to $3,500 under this amendment. It is anticipated that lease revenues from the Village Shopping Center will offset all expenses associated with this amendment. Funds exceeding those generated are available in the Public Transit Department's Operating budget.
Location
1945 W. Dunlap Ave.
Council District: 5
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Finance and Public Transit departments.