Loading...
HomeMy WebLinkAboutFire Station #1 Sale Proposal_CBRE_City of Bozeman_04.30.21_RedactedA RESPONSE TO CITY OF BOZEMAN: REQUEST FOR PROPOSALS REALTY PROFESSIONALS FOR THE SALE OF FIRES STATION 1 (34 NORTH ROUSE AVE.) PREPARED FOR: CITY OF BOZEMAN APRIL 30, 2021 1. COVER LETTER 2. FIRM CONTACT INFORMATION 3. EXPERIENCE AND QUALIFICATIONS 4. LOCAL PERSPECTIVE 5. PROPOSED APPROACH TO MARKETING 6. DESCRIPTION OF WORKING RELATIONSHIP 7. COMMISSION STRUCTURE AND LISTING AGREEMENT TERM 8. REFERENCES 9. REQUIRED SUBMISSION MATERIALSTABLE OF CONTENTS 1. COVER LETTER Sincerely, CHRIS BURDETT Executive Vice President 5 West Mendenhall Street, Suite 512. Bozeman, MT 59715 T: +1 206 292 6070 C: +1 206 292 9910 chris.burdett@cbre.com 04/30/2021 CITY OF BOZEMAN P.O. Box 1230, Bozeman, MT 59771 Via Email: Agenda@bozeman.net Dear City of Bozeman, As the City of Bozeman looks to sell Fire Station 1 in order to support thoughtful development of Downtown Bozeman and to monetize surplus City property, a partnership with specialized expertise and an understanding of the unique nature of commercial sales in Bozeman will be essential to maximize potential returns. As one of the foremost real estate organizations in the world, CBRE has a reputation of integrity and respect among our peers in the community. With over 100,000 employees working in more than 500 offices worldwide, CBRE’s coverage and capabilities extend broader and deeper than any other real estate services provider. We will leverage this global network of resources and information to customize a plan for the City, ensuring access to the services required and eliminating unnecessary or irrelevant spends. Our team is positioned to leverage the collective knowledge and experience of our industry professionals, locally, regionally, and nationally, to deliver on this plan for you. We have zero learning curve regarding public process, transparency, and procedures for disposition on behalf of public institutions. Our goal is to be much more than a real estate provider. We want to be an advocate, advisor and resource. If the City awards CBRE the Professional Services Agreement, as presented in Exhibit B, the following revision would be requested under Section 7, Indemnity/ Waiver of Claims/Insurance: “CBRE’s insurance carriers will not provide 30 days notice of cancellation and/ or modification to third parties such as CBRE clients or vendors but in the unlikely event of cancellation, CBRE will notify the City directly.” Thank you for the opportunity to present our capabilities. 2. FIRM CONTACT INFORMATION FIRM CONTACT INFORMATION Firm Name: CBRE, Inc. Managing Broker: Chris Burdett, Montana Real Estate License #17527 Address: 5 West Mendenhall Street, Suite 512. Bozeman, MT 59715 Phone Number: 206.715.9910 Website: www.cbre.com Email Address: chris.burdett@cbre.com 6 CBRE | City of Bozeman Response for Proposals 3. EXPERIENCE AND QUALIFICATIONS EXPERIENCE AND QUALIFICATIONS CBRE OVERVIEW CBRE marks its 115th year of continuous operations in 2021, tracing our origins to a company founded in San Francisco in the aftermath of the 1906 earthquake. Since then, we have grown into the largest global commercial real estate services and investment firm (in terms of 2020 revenue) through organic growth and a series of strategic acquisitions. CBRE and our Advisory and Transaction Services team has been the #1 ranked property sales firm in the world for 14 years in a row, with over $181 billion in total global sales in 2020. The tools, expertise, networks, and contacts we have used to achieve this ranking will be deployed on behalf of the City of Bozeman to ensure the most visibility for Fire Station 1. With 100,000 employees working across 500 offices globally, including an office in downtown Bozeman, 15 major business lines, and 100 specializations, CBRE has the resources to deliver results across the full real estate lifecycle. Our brokerage teams have access to both national and homegrown networks and relationships to attract interest on challenging properties, with the market savvy to negotiate from a position of strength on attractive parcels in strong markets. With thousands of CBRE marketing experts, graphic designers, research analysts, and specialists in Capital Markets, Property Marketing, Financial Consulting, and more, the City of Bozeman will have the broadest service offering at its fingertips. CBRE MONTANA – LOCAL MARKET EXPERTISE CBRE Seattle, the Northwest regional headquarters, currently boasts over 1,900 professionals with 1,131 completed transactions in the market worth nearly $1 billion in total revenue in 2020. In addition to Seattle, our team has an office in Bozeman, Montana which oversees transactions in MT, ID, WY and the Dakotas. Historically, since 2015, the CBRE Bozeman office has completed over $50m in transaction volume, and just over $250m around the Northwest. CBRE currently represents several transactions around the State of Montana, including but not limited to, all the United States Postal Services lease renewals, as well as several commercial sales in Bozeman, Helena, Billings, and Whitefish. The PIES team has sold over 3,000 acres and $300 million in surplus property for public sector clients including the State of South Carolina ($64M), State of Florida ($44M), and multiple cities and counties including Miami, Dallas, Austin, Fort Myers, San Diego, and more. They bring national best practices from your peer organizations and zero learning curve regarding public process, transparency, and procedures for disposition. Our PIES team will be headed up by Karlen Beitman, Mountain-Northwest Regional Manager. Karlen has over a decade of experience in working directly with public sector real estate, both with CBRE and in his prior role as Director of Real Estate for the Denver International Airport. Karlen will serve as the primary point of contact for the City and will provide advice and public sector guidance to the team. 8 CBRE | City of Bozeman Response for Proposals We are a national team that works exclusively with states, counties, and cities to develop and implement cutting-edge real estate strategies. 25States 50+Cities & Counties 100+MSF 20+Team Members 20+Years ofExperience CBRE PUBLIC INSTITUTIONS & EDUCATION SOLUTIONS 9 CBRE | City of Bozeman Response for Proposals EXPERIENCE WITH SIMILAR PROPERTIES PROJECT:5 West | Bozeman, Montana CLIENT:Homebase SIZE:37,688 SF LIST PRICE: SALE PRICE:Under Contract LENGTH OF MARKETING:9 months DESCRIPTION:Sale of a legacy asset in downtown Bozeman. PROJECT:Sherwin-Williams | Kalispell, Montana CLIENT:MMB Management SIZE:3,999 SF LIST PRICE: SALE PRICE: LENGTH OF MARKETING:7 months DESCRIPTION:Sale of single tenant new construction asset within a master planned development. PROJECT:Tractor Supply Co. | Lolo, Montana CLIENT:DMB Development SIZE:19,097 SF LIST PRICE: SALE PRICE: LENGTH OF MARKETING:6 months DESCRIPTION:Sale of investment property with national credit tenant in-place. 10 CBRE | City of Bozeman Response for Proposals EXPERIENCE WITH SIMILAR PROPERTIES PROJECT:Former Animal Shelter | Commerce City, Colorado CLIENT:Adams City, Colorado SIZE:40,000 SF LIST PRICE: SALE PRICE: LENGTH OF MARKETING:Property was marketed to adjacent property own- ers over a 5 month period DESCRIPTION:Sale of a former animal shelter, deemed as a sur- plus City Asset due to construction of a new facility PROJECT:East Building | Aurora, Colorado CLIENT:Ability Connection of CO SIZE:114,239 SF LIST PRICE: SALE PRICE: LENGTH OF MARKETING:6 months DESCRIPTION:Sale of a charter school building to an education owner/user 11 CBRE | City of Bozeman Response for Proposals DEDICATED TEAM CHRIS BURDETT EXECUTIVE VICE PRESIDENT Chris is part of CBRE Capital Markets group focusing primarily on commercial transactions with an emphasis in the Hospitality space. With over 25 years in brokerage, Chris has transacted on over $2b worth of commercial real estate, including hotels, Multi-family, commercial and industrial products. His role as Supervising Broker in Montana has continued to define his experience working with CBRE national practice leaders as the Single Point of Contact (SPOC) for the State of Montana. In doing so, Chris has worked on and closed over $50m in transactions in the State of Montana since 2018. KARLEN BEITMANMOUNTAIN-NORTHWEST REGIONAL MANAGER Karlen will serve as the Single Point of Contact for the City on all matters relative to this assignment. Karlen will use his decade-plus experience in the industry to coordinate with Chris on the ground in the region, ensuring that all standards and protocols required by the City during the process are adhered to and providing a simple solution going forward. With all of these resources combined, CBRE will be able to provide services and deliverables for every aspect of the requirements outlined by the City of Bozeman. Please see resumes of each team member on the following pages for further details. EXECUTIVE OVERSIGHTJOHN MILLERSENIOR MANAGING DIRECTOR CAPITAL MARKETS/ PUBLIC INSTITUTIONS AND EDUCATION SOLUTIONS (PIES) GROUP CHRIS BURDETTEXECUTIVE VICE PRESIDENT CBRE CAPITAL MARKETS ROLE: LOCAL TEAM LEAD MARKETING/RESEARCH/CLIENT SERVICES ROLES: Develop marketing materials, support virtual marketing, conduct market research, support disposition process. KARLEN BEITMANMOUNTAIN-NORTHWEST REGIONAL MANAGERCBRE PUBLIC INSTITUTIONS AND EDUCATION SOLUTIONS*PRIMARY POINT OF CONTACT 12 CBRE | City of Bozeman Response for Proposals T: +1 206 292 6070 C: +1 206 292 9910 chris.burdett@cbre.com Licensed Broker In: MT, WY, ID, WA, AK SELECT CLIENTS • Home Base • Blackridge Development • Cross Harbor • Stockman Bank • King City • Coast Hotels • FDIC • Fluke Capital • Jeld Wen • LNR • Rialto Capital • City of Bremerton • City of Seattle • City of Portland • Providence Hospital Group • Peninsula Group • Port of Seattle • Quadrant • RBS • Red Lion Hotels • Situs • Sterling Savings • Vulcan • AEW • AIG • Touchstone • Provenance Hotels • Stonebridge CHRIS BURDETT Executive Vice President PROFESSIONAL BACKGROUND Chris Burdett is Executive Vice President for CBRE Hotels Capital Markets in Montana and is responsible for the day-to-day activities and investment advisory services in the Northwest region of the United States. Chris brings with him over 25 years of varied experience in the commercial real estate and franchise industries and has participated in just under $2b worth of commercial real estate dispositions. Chris continues to be highly active in Montana and surrounding states representing a wide variety of clients from the United States Postal Services, Walmart, hospitality related investors as well as local owner/operators of commercial real estate. In addition, he has represented many city, City and civil organizations around the northwest on a variety of commercial real estate projects. SIGNIFICANT ASSIGNMENTS • Represents USPS on over 200 leases in the State of Montana • Represented Bankruptcy Trustee for Yellowstone Club • Represented Bozeman Developer on disposition of 37,000 sf in 5 West • Represented Kalispell Developer on disposition of Sherwin-Williams Building • Represented Lolo Owner on disposition of Tractor Supply single tenant building • Represented Sellers of Rainbow Lodge, Big Sky, MT • Represented Sellers of La Quinta Hotel, Bozeman, MT • Represented Red Lion Hotels in disposition of 11 properties – WA, ID, MT • Represented the Peninsula Group in the disposition of 12 Super 8 – WA, OR, MT • Represented Sterling Savings on the sale of Multiple REO Assets – WA, OR, MT • Represented City Bank and the FDIC on the sale of Multiple REO Assets – WA,MT • Represented Port of Seattle in land sale for Marriott Hotel development – WA • Represented Fluke Capital in Bellevue land sale for Marriott development – WA • Represented OPUS/City of Bremerton in land sale for Hilton development – WA EDUCATION • Washington State University, School of Hospitality Business Management -BS 1990, • University of Washington, School of Built Environments, 1996 -Certificate of Commercial Real Estate Development from the Runstad Center for Real Estate Studies BOARDS & AWARDS • Chair Emeritus Washington State University, Carson College of Business • Board of Advisors 2017-2020 • Board Member Washington State University School of Hospitality Business Management2007-present • 2019 Recipient –Broker of the Year –NAIOP, Commercial Real Estate Development Association • Member –MTLHA, NAIOP, ICSC, ULI and AHLA 13 CBRE | City of Bozeman Response for Proposals T + 1 303 583 2018 C +1 312 221 3838 karlen.beitman@cbre.com 1225 17th Street Suite 3200 Denver, CO 80202 KARLEN L. BEITMAN Mountain-Northwest Regional Manager, Denver PROFESSIONAL BACKGROUND Karlen L. Beitman is the Regional Manager for the Mountain-Northwest and the National Expert for non-aviation commercial real estate development on airport property within CBRE’s Public Institutions and Education Solutions practice. In this role, Mr. Beitman provides strategic planning, development advisory, portfolio consulting and brokerage services to states, counties and municipal agencies in the Mountain States Region and to aviation entities Nationwide. Before joining CBRE, Mr. Beitman served as the Director of Real Estate for Denver International Airport. In this role, he was responsible for generating non-aviation revenue through the planning and development of office, retail, hotel and industrial commercial real estate located on airport property. Mr. Beitman directed activities such as strategic planning, financial analysis, municipal and FAA entitlements, marketing and ground leasing. Prior to his position with Denver International Airport, Mr. Beitman held several roles at McCaffery Interests, a private development company in Chicago. In his most expansive role, he oversaw the asset and property management for a 2 million-sq.-ft. portfolio of mixed-use office, retail, hotel and multifamily projects. In other roles with McCaffery Interests, Mr. Beitman reported directly to the CEO as Project Manager of Executive Affairs responsible for key real estate developments. Mr. Beitman began his career in real estate with Newmark Knight Frank as a GIS Analyst. PROFESSIONAL AFFILIATIONS / ACCREDITATIONS • Licensed Colorado Real Estate Broker • Member of NAIOP, ULI and ICSC • Member of CBRE’s LGBTQ & Allies network group AWARDS • The National Academy of Television Arts & Sciences – Chicago/Midwest: Wrote and produced an Emmy®-Award winning short film for the Obama Presidential Library • Emmy® Award for Outstanding Achievement for Writing - 2014 • Emmy® Nominee for Outstanding Achievement for Public/Current Affairs Programming - 2014 EDUCATION • University of Illinois–Chicago, Master of Urban Planning & Policy, Geospatial Analysis and Visual Certification, 2011 • Roosevelt University, Master of Business Administration - Northern Builders Scholar 2012-2014 SELECT CLIENTS • Adams City, CO • Douglas City School District, CO • El Paso City, CO • Denver International Airport • Ability Connection of Colorado • Panera Bread • Firestone Tires • Five Guys • Pret a Manger 14 CBRE | City of Bozeman Response for Proposals 4. LOCAL PERSPECTIVE The City of Bozeman currently has five operating parking lots in the core, including one of those as a four-story structured parking garage. There are three primary zones in the core are including the Downtown Parking Management District, an overlay zone known as the Parking Benefit Zone and the Residential Parking Permit District. The City and surrounding neighborhoods continue to struggle with parking offering limited free parking during the business day and on weekends. The City of Bozeman Parking commission and Transportation committees are continuously looking for solutions to the very real issue of not enough parking in the downtown core, coupled with the continued growth of development and in-migration into the downtown core and surrounding areas of Bozeman. The extension of authority of the Parking Commission as well as Parking Benefit Zones continue to be examples of the thought process the City is engaged with to control parking. In addition, more off-street parking is required in all planning and development in the downtown business district. 16 CBRE | City of Bozeman Response for Proposals 5. PROPOSED APPROACHTO MARKETING Property Marketing is essential in communicating the value of any property. It will set the tone for a new development or define a community’s story. CBRE’s thoughtful, expert approach to marketing assets leverages our perspective and technology to entice potential investors and developers and make a tangible difference in the successful development of Fire Station 1. CBRE’s regional Property Marketing Studios are a no-cost resource for the industry’s most popular types of marketing materials such as brochures, flyers and email campaigns. The Studios’ teams pair design expertise with accelerated speed-to-market to deliver materials that will set Fire Station 1 apart from its competition. We will develop a custom strategy for the sale of Fire Station 1 but only after carefully reviewing all property information, investing time to understand stakeholder objectives, completing financial analysis tasks, and considering the impact of City Council approvals and other unique public-sector elements. Following the development of a marketing plan/strategy for Fire Station 1, CBRE will develop and distribute dynamic marketing material to potential buyers, investors, and developers. Following the execution of a signed listing agreement, CBRE will prepare professionally developed and designed marketing materials to set the stage for the offering. SPOTLIGHT ON PROPERTY MARKETING CREATIVITY IN ACTION - CBRE MARKETING From marketing strategy development to collateral production, our consultative marketing professionals offer the City a complete in- house marketing shop. Our designers, writers, web publishers and communications teams will support the team’s marketing and special projects needs efficiently and at no extra cost. NEXT LEVEL EXPOSURE CBRE leads all commercial real estate brokerage firms in terms of print and online media coverage, according to Cision, an independent media monitoring company. 18 CBRE | City of Bozeman Response for Proposals OM: DIGITAL FIRST EXPERIENCE +Delivers concise, graphical, data and story- driven marketing, specifically designed for the executive investment committee + Captures the attention of the decision makers by driving them to focus on the high- level information of the investment +Enhances speed-to-market and increases efficiencies in the marketing process + Supporting documents such as reports, in-depth financial models, and deep-dive market information made available in the Deal Flow virtual deal room WEB PRESENCE +An engaging, full-featured, mobile-friendly executive summary presentation + Potential investors can interact with a virtual tour, review investment highlights, access and sign a confidentially agreement, and more +Available on the Deal Flow platform LAUNCH EMAIL +Targets active, qualified buyers +Includes standard touch points and virtual marketing materials +Distributed through the Deal Flow platform APPROXIMATELY 100,000 SF LEASABLE CLASS “A” OFFICE BUILDING LOCATED IN THE FABER PLACE OFFICE PARK FOR LEASE4401 LEEDS AVENUE, NORTH CHARLESTON SC R OC 207 shovel ready lots in 3 neighborhoods Can be purchased together or separately WatersIDe Expansion capacity totaling 360 acres WWW.CBRE.COM/CHARLESTONSC CHARLESTON, SC 29401 FOR LEASE CLASS A OFFICE SPACE19 CBRE | City of Bozeman Response for Proposals OVER THE LAST THREE YEARS: 800,000+ INVESTORS 11,500+ LISTINGS CREATED 2,000,000+ EXECUTIVE SUMMARIES VIEWED 345,000+ CONFIDENTIALITY AGREEMENTS SIGNED 5,000,000+ DOCUMENTS DOWNLOADED 50,000+ CLIENTS & CAPITAL SOURCES CBRE Deal Flow connects investors to the largest, most diverse for-sale inventory, and we put this data to work to anticipate trends and drive our industry-leading sales volume. Deal Flow brings together a highly targeted audience of pre-qualified buyers and matches them with global office inventory to accelerate performance and deal velocity. Combined with CBRE’s market insights and CBRE Econometric Advisors’ predictive analytics, CBRE Deal Flow connects properties and portfolios with the right buyers at the right time. CBRE DEAL FLOW: YOUR GLOBAL GATEWAY $264.6B SOLD WORLDWIDE IN 2019 19,650 SALES TRANSACTIONS WORLDWIDE IN 2019 20 CBRE | City of Bozeman Response for Proposals MARKETING: MAXIMIZE VISIBILITY. INFLUENCE PERCEPTION. DRIVE ACTION. When you engage CBRE, you unlock the industry’s leading marketing platform. Our approach is not to simply check a box or utilize technology for technology’s sake. Our approach is to develop a marketing strategy specific to your goals, deliver high quality creative work, and apply tactics and technologies that will communicate the unique value of this opportunity. WHEN YOU CHOOSE CBRE, YOU RECEIVE: Unmatched Insights CBRE delivers an informed perspective, an understanding of leading-edge practices across markets and an unmatched ability to invest in the most effective tools and technologies. Dedicated Resources CBRE has skilled teams across the country committed exclusively to developing world-class marketing materials. Scalable Strategy We achieve effective marketing through strategic use of only the most compelling tactics for your budget and goals. Compelling Technology CBRE is continually investing in our evolving marketing technology platform. We are committed to leveraging the best technologies for your property. REMOTELY TOUR: CBRE’s Integrated Virtual Products SCRIPTED INVESTMENT THESIS VIDEO +Story-driven video featuring exterior drone footage and complementary narrative that succinctly communicates market and investment highlights +Lead CBRE sales professional to virtually “greet” prospects with elevator pitch, followed by tour path highlights and brief closing message + Through Deal Flow, video will be featured in the launch email and available on the property landing page INTERACTIVE VIRTUAL TOUR +An immersive, 360-degree camera walk- through, high resolution property photos, and 3D floor plans for select spaces packaged in a single experience + Scripted, navigated and presented by lead sales professional over video conferencing software, for a personalized virtual tour experience + Can be made accessible through Deal Flow and all digital marketing material 21 CBRE | City of Bozeman Response for Proposals ACCESS THE LARGEST REAL ESTATE NETWORK IN THE WORLD MARKET BROADLY TO: What’s the benefit for the City of Bozeman? No missed opportunities, maximum competition for your assets, and the broadest marketing platform in the industry. Upon engagement CBRE will: PREPARE HIGH QUALITY MARKETING DELIVERABLES FOR THE PROPERTY CUSTOM BRANDING CUSTOM OFFERING MEMORANDUM CUSTOM INTERACTIVE WEBSITE 530 OFFICES IN 111 COUNTRIES WITH 9,200+ BROKERS 2,500 NATIONAL AND INTERNATIONAL CORPORATION ACCOUNT LEADERS AT CBRE 30 MULTI-NATIONAL CORPO- RATIONS EXCLUSIVELY REPRESENTED BY CBRE 800,000 ACTIVE GLOBAL INVESTORS ON OUR EXCLUSIVE MAJOR INVESTOR LIST 30 CBRE SPECIALTY PRACTICE GROUP LEADERS IN LAND, MULTIFAMILY, SENIOR HOUSING, AFFORDABLE HOUSING, LIFE SCIENCES, RETAIL, AND MORE 1,000+ CBRE INVESTMENT SALES & CAPITAL MARKETS PROFESSIONALS 1000+ DEVELOPMENT COMPANIES LOCALLY, NATIONALLY, AND INTERNATIONALLY 60% OF THE FORTUNE 500 22 IN-HOUSE AFFORDABLE HOUSING SPECIALISTS 22 CBRE | City of Bozeman Response for Proposals PHASE I PLANNING PHASE III NEGOTIATIONS PHASE IV PSA/DUE DILIGENCE PHASE V CLOSING LAUNCH TO MARKET COORDINATE PROPERTY TOURS WITH INVESTORS CALL FOROFFERS DUE DILIGENCE SIGN-OFF CLOSINGSTRATEGIC MARKETING PREP ASSEMBLE OFFERING MATERIALS BEST & FINALBIDS DUE BUYER SELECTED PSA EXECUTED DUE DILIGENCE COMMENCES PHASE II MARKETING 3-4 WEEKS 6-12 WEEKS 45 DAYS 30 DAYS3-4 WEEKS TARGETED OUTREACH BEGINS SAMPLE PROJECT TIMELINE 23 CBRE | City of Bozeman Response for Proposals 6. DESCRIPTION OF WORKING RELATIONSHIP 1. A dedicated project lead, invested in the project and empowered to make decisions regarding transaction strategy, timing, and milestones. We understand that approvals for the project itself and final execution are required from multiple stakeholders, but day to day decision- making authority vested with the City’s project lead is very helpful. 2. A strategy to obtain buy-in on the project from City Council members prior to final vote on transactions. Beneficial projects have been stymied in the final hour when Council members have not been briefed in advance by City staff about a proposed project and its benefits. We strongly suggest and can contribute to a strategy to inform Council members about upcoming projects and their benefits and trade-offs so that we can address concerns prior to a final vote. 3. Clear and candid communication and a trusting environment between the City’s project team and the CBRE team. Real estate projects take time, make news, and can generate feedback from multiple stakeholders. Throughout the process we need to understand your pain points, key milestones, and desired outcomes so that we can work effectively to achieve those goals and deliver a project with an airtight business case and documented process that will withstand scrutiny. 4. Finally, strong due diligence documentation for any parcel for sale will support a faster transaction cycle. Any existing documents regarding surveys, title, environmental reports if applicable, should be gathered in advance where possible to facilitate preparing the transaction and offeror review. A clean due diligence process helps prevent last minute re-trades from bidders and a smooth closing process AT CBRE WE PRIDE OURSELVES IN STREAMLINING THE TRANSACTION PROCESS FOR OUR CLIENTS TO PROVIDE A SEAMLESS EXPERIENCE. THIS PROCESS IS FACILITATED BY THE FOLLOWING CONTRIBUTIONS FROM OUR CLIENTS: 25 CBRE | City of Bozeman Response for Proposals 7. COMMISSION STRUCTURE AND LISTING AGREEMENT TERM COMMISSION STRUCTURE COMMISSION RATE PAYABLE TO CBRE The total fee to be paid to the CBRE team for Real Estate Marketing and Brokerage Services shall be 6% of the sale price*. In the event the buyer is represented by a broker a negotiable portion of the 6% will be allocated to the buyer’s broker. PROPOSED TERM OF CONTRACT FOR THE SELLING RIGHTS OF THE PROPERTY 12 month initial period with a 6 month extension * Within 30 days after the expiration or termination of our Agreement or any particular engagement to provide the Services, CBRE shall provide the City with a list of all parties with whom CBRE was engaged in active negotiations with respect to leases or other transactions for which fees could be earned under this Agreement. CBRE shall also provide the City with written evidence of such negotiations. If within 180 days after such expiration or termination date, the City enters into any agreement of sale, lease, sublease or other written agreement with a party on such list for which a fee would have been earned hereunder, CBRE shall earn the fee provided for under this Agreement to the same extent as if the Services had not expired or terminated. Upon the expiration of the 180-day period, CBRE may present to the City for its consideration an extension of the fee protection period for any existing transactions which remain active and imminent. The City shall not be obligated to extend such period, but the Parties shall negotiate in good faith a fair compensation arrangement for the work performed by CBRE (or its Sub-agents) prior to termination. This paragraph shall survive the termination or expiration of our Agreement. 27 CBRE | City of Bozeman Response for Proposals 8. REFERENCES REFERENCES BLACKRIDGE DEVELOPMENT Jon Braxton jbraxton@blackridgeco.com 406.582.8100 HOME BASE Andy Holliran andy@hbpartners.com 208.661.9990 JWT COMPANIES Don Cape dcape@jwtcompanies.com 406.579.2316 DOUGLAS CITY SCHOOL DISTRICT Derek A. Stertz dstertz@dcsdk12.org 303.483.3804 29 CBRE | City of Bozeman Response for Proposals A. MT STATE BROKERAGE LICENSE B. SIGNED AND COMPLETED APPENDIX A 9. REQUIRED SUBMISSION MATERIALS 31 CBRE | City of Bozeman Response for Proposals 32 CBRE | City of Bozeman Response for Proposals CHRIS BURDETT Executive Vice President+1 206 292 9910 chris.burdett@cbre.com KARLEN BEITMANPublic Institutions & Education Solutions Mountain-Northwest Regional Manager +1 303 583 2018 karlen.beitman@cbre.com CBRE © 2021 All Rights Reserved. All information included in this letter/proposal pertaining to CBRE, Inc.—including but not limited to its operations, employees, technology and clients—is proprietary and confidential and supplied with the understanding that such information will be held in confidence and not disclosed to any third party without CBRE’s prior written consent. This letter/proposal is intended solely as a preliminary expression of general intentions, is for discussion purposes only, and does not create any agreement or obligation by CBRE to negotiate or continue negotiations. CBRE shall have no contractual obligation with respect to the matters referred to herein unless and until a definitive, fully- executed agreement has been delivered by the parties. Prior to delivery of a definitive executed agreement, and without any liability to the other party, either party may (1) propose different terms from those summarized herein, (2) enter into negotiations with other parties and/or (3) unilaterally terminate all negotiations with the other party hereto.