Title
Building Property Management Services Agreements for Public Transit Department Office Building and Village Shopping Center (Ordinance S-48537)
Description
Request to authorize the City Manager, or his designee, to execute amendments to Property Management Services Agreements: 139423 with Lincoln Property Company; and 142612 with Newmark Knight Frank Management, to provide additional time to the agreements. Further request to authorize the City Controller to disburse all funds related to these items. The additional aggregate expenditures for services included in these amendments will not exceed $1,571,263.
Report
Summary
In September 2014, the City awarded Agreement 139423 to Lincoln Property Company for the management of the City-owned building located at 302 N. 1st Ave. in downtown Phoenix, which serves as the Public Transit Department (PTD) Headquarters, as well as the offices of the tenants, the Maricopa Association of Governments and the Community and Economic Development Department's Business and Workforce Development Center.
In April 2016, the City awarded Agreement 142612 to Newmark Knight Frank Management for the management of the City-owned Village Shopping Center (VSC), a multi-use shopping center located at 1945 W. Dunlap Ave.
On Dec. 2, 2019, a Request for Proposals (RFP PTD19-005 Property Management Services for the 302 N. 1st Ave. property) was issued to replace Agreement 139423. The RFP resulted in just one proposer: Lincoln Property Company. As a result, the evaluation panel determined it would be in the best interest of the City to cancel the solicitation and later reissue the RFP when other City-owned property management opportunities could be included in a future multi-site solicitation that would generate commercial interest and ensure adequate marketplace competition.
On Jan. 6, 2021, a new Request for Proposals (RFP PTD20-009 Property Management Services) was issued to obtain property management services for PTD Headquarters in downtown Phoenix and the VSC at 1945 W. Dunlap Ave. Two offerors submitted proposals, with both being determined to be non-responsive, and the solicitation was cancelled on April 2, 2021.
The PTD requests extending Agreements 139423 and 142612 for an additional year, with two one-year options to allow the City additional time to determine the future of the properties.
Contract Term
These amendments will extend the end date of each agreement’s terms from July 1, 2022 to June 30, 2023, with two one-year options to further extend the end date of the agreements through June 30, 2025 if both options are exercised.
Financial Impact
- The initial authorization for Property Management Services Agreement 139423 was for an expenditure not-to-exceed $7.5 million. Amendments increased the authorization for the agreement by $1,693,733. This amendment will increase the authorization by an additional $1,438,867, for a new total not-to-exceed agreement value of $10,632,600.
- The initial authorization for Property Management Services Agreement 142612 was for an expenditure not-to-exceed $175,000. Amendments increased the authorization for the agreement by $52,500. This amendment will increase the authorization by an additional $132,396, for a new total not-to-exceed agreement value of $359,896.
The total cost related to these items will not exceed $1,571,263, including the two one-year options to extend, with $1,438,867 attributed to the property management of PTD Headquarters and $132,396 attributed to the property management of the VSC.
Funding is available in the Public Transit Operating budget.
Concurrence/Previous Council Action
The City Council approved:
PTD Headquarters - 302 N. 1st Ave.
- Property Management Services Agreement 139423 - (Ordinance S-41137) on Aug. 27, 2014;
- Property Management Services Agreement 139423 - Amendment (Ordinance S-45608) on May 1, 2019;
- Property Management Services Agreement 139423 - Amendment (Ordinance S-46745) on June 17, 2020; and
- Property Management Services Agreement 139423 - Amendment (Ordinance S-47650) on June 2, 2021.
Village Shopping Center - 1945 W. Dunlap Ave.
- Property Management Services Agreement 142612 - (Ordinance S-42427) on April 6, 2016;
- Property Management Services Agreement 142612 - Amendment (Ordinance S-47376) on March 17, 2021; and
- Property Management Services Agreement 142612 - Amendment (Ordinance S-47915) on Sept. 8, 2021.
Location
PTD Headquarters - 302 N. 1st Ave.
Village Shopping Center - 1945 W. Dunlap Ave.
Council Districts: 5 and 7
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Public Transit Department.