Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
CBRE Request for Qualifications for North Park
CBRE presents a proposal for COMMERCIAL REAL ESTATE SERVICES PREPARED FOR: City of Bozeman, Montana North Park Property July 15, 2013 PRESENTED BY: Mike Elliott Senior Vice President 406.599.0466 City of Bozeman | Montana | North Park Page 1 CBRE © 2012 All Rights Reserved. All information included in this proposal pertaining to CBRE—including but not limited to its operations, employees, technology and clients—are proprietary and confidential, and are supplied with the understanding that they will be held in confidence and not disclosed to third parties without the prior written consent of CBRE. This letter/proposal is intended solely as a preliminary expression of general intentions and is to be used for discussion purposes only. The parties intend that neither shall have any contractual obligations to the other with respect to the matters referred herein unless and until a definitive agreement has been fully executed and delivered by the parties. The parties agree that this letter/proposal is not intended to create any agreement or obligation by either party to negotiate a definitive lease/purchase and sale agreement and imposes no duty whatsoever on either party to continue negotiations, including without limitation any obligation to negotiate in good faith or in any way other than at arm’s length. 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 summa- rized herein, (2) enter into negotiations with other parties and/or (3) unilaterally terminate all negotiations with the other party hereto. CBRE and the CBRE logo are service marks of CBRE, Inc. and/or its affiliated or related companies in the United States and other countries. All other marks displayed on this document are the property of their respective owners. 1. Business Questions 2. Statement of Experience and Qualifications 3. Individual or Firm’s Experience 4. Demonstrated Familiarity with Bozeman’s Unified Development Code 5. Demonstrated Familiarity with Commercial Site Selection 6. Strategic Local, Regional, National Marketing Plan 7. Narrative of Client Responsibilities 8. Proof of Real Estate License - Montana 9. Commission Costs 10. Proposed Timeline and Purchase and Sale Agreement 11. Relevant Recent Comparable Sales 12. References 13. Promotional Materials - Samples 3 4 6 9 10 14 17 19 20 21 25 26 27 Contents Page 2 City of Bozeman | Montana | North Park Mike Elliott Senior Vice President COMMERCIAL REAL ESTATE SERVICES 233 Eidelwise Avenue #11 P.O. Box 10250 Bozeman, MT 59719 +1 406 599 0466 Tel +1 406 794 0414 Fax mike.elliott@cbre.com www.cbre.com Mr. Brit Fontenot Economic Development Director P.O. Box 1230 Bozeman, MT 59771 RE: Sale of the North Park Property – Agent Request for Qualifications Dear Brit: Enclosed, please find six (6) copies and one (1) electronic copy of CBRE’s proposal to act as the City of Bozeman’s agent in the sale of approximately 85 acres of industrially zoned property (M -2) referred to as North Park. Our team understands the City of Bozeman’s real estate goals and objectives along with the City’s desire to create jobs and diversify the local economy. For many years, we have worked in Bozeman and throughout Montana and bring a strong understanding of North Park. We have worked on this property in the past with potential users as well as with the DNRC. We have also represented DNRC users in a strategic consulting capacity to support structured relationships with end users of their property throughout the State of Montana. Currently, we are working on similar projects in the region, with results benefiting the community and region alike. Two examples include: the Great Falls Logistics Park, a rail access park comprised of 1,000 acres; and the Cheyenne Logistics Hub, a 7,000 acres property in Cheyenne, Wyoming. No other commercial real estate firm can claim to provide the City of Bozeman with single agent experience of more than $5 billion in diversified real estate transactions with specialized expertise in Montana. It is this local expertise, coupled with our team’s relationships and CBRE’s global platform that will ensure the successful sale of North Park. By aligning with CBRE, the City of Bozeman will benefit from our team’s national marketing and relationship platform including access and connection to more than 55 specialized land sales brokers in 32 offices in the U.S. and Canada. Our Land Services team maintains a database of more than 31,000 “active” land investors, ranging from sophisticated, high net worth individuals, to foreign investors, and privately held family real estate investment trusts. This platform and team approach will ensure that the City of Bozeman has access and exposure to all of the resources and qualified buyers (with both capital and development expertise) available in today’s marketplace to achieve maximum value for your real estate. I look forward to working on behalf of the City of Bozeman and my team is prepared to start working on this assignment today. Please don’t hesitate to call me with any questions. Sincerely, Mike Elliott, Senior Vice President City of Bozeman | Montana | North Park Page 3 Business Questions Individual or firm’s legal name, address, telephone number, fax number, web site (if any), and e-mail address. 1. Legal Name of Firm CBRE Group, Inc. 2. Principal Business Address 11150 Santa Monica Blvd. Suite 1600 Los Angeles, CA 90025 3. Type of Organization Commercial Real Estate Services Firm 4. Bidder Representative and Contact Information Mike Elliott, Senior Vice President 233 Eidelwise Avenue #11 P.O. Box 10250 Bozeman, MT 59719 T 303 6281741 C 406 5990466 F 406 7940414 mike.elliott@cbre.com 5. Tax ID Number CBRE’s federal tax ID number is 952743174 6. DUNS Number CBRE’s Dun & Bradstreet number is 61-760-8104. Currently our Dun & Bradstreet rating is 5A3. 1 Page 4 City of Bozeman | Montana | North Park INDUSTRY LEADING GLOBAL BROKERAGE PRESENCE CBRE is the market leader for brokerage services throughout North America. This scale will provide the City of Bozeman, Montana with best-in-market brokers, access to subject matter experts across North America and the best- in-class tools and technology. All of the major commercial real estate firms can provide “a broker” to the City of Bozeman in its major markets. But no other firm can duplicate CBRE’s leading market share and market depth. With over 6,700 real estate brokers globally, we know of opportunities, risks and shifts in local markets well be- fore our competition. We want to bring this advantage to the City of Bozeman. CBRE will leverage our local and worldwide scale, market knowledge, and resources to provide the City of Bozeman with reduced rental rates, efficien- cies in capital projects, streamlined lease administration, and best-in-class building management services. As evidenced in the map below, the knowl- edge, local expertise, and commitment to serve your footprint is embedded within CBRE’s platform. CBRE Land Services is a network of experienced commercial property pro- fessionals focusing exclusively on real estate land transactions. Our mission is to accelerate our clients’ success through superior market knowledge, in- dustry-leading technology, a team approach, collaboration among lines of business, sharing of best practices and a global real estate perspective. CBRE GLOBAL BROKERAGE PRESENCE Statement of Experience & Qualifications 63 Countries 443 Offices 42,050 Employees 2 Statement of experience and qualifications of the individual, firm and firm’s staff which will be assigned to the sale. CCIM or equivalent commercial sales experience preferred. City of Bozeman | Montana | North Park Page 5 PROFESSIONAL PROFILE MIKE ELLIOTT Mr. Elliott leads the Northern Rocky Mountain State’s initiative for CBRE, providing brokerage and real estate consulting services in Montana, Colorado, Wyoming, Utah, North and South Dakota and Idaho. With more than 20 years of experience, Mr. Elliott has completed more than $5 billion in diversified national and international real estate transactions. His background includes experience in the hospitality and energy sector, including oil and gas tenant representation, hospitality develop ment, consulting, investment sales and asset management. Prior to joining CBRE, Mr. Elliott worked for Jones Lang LaSalle as a Managing Director. He also served as the CEO and Founding Principal of Catalyst Real Estate Solutions, LLC, and Grubb & Ellis | Catalyst, where he oversaw all operations for development, investments, real estate brokerage, management and consulting for Montana, North Dakota, South Dakota, Idaho and Montana. CREDENTIALS Education University of Denver, Masters; Real Estate and Construction Management University of Denver, Bachelor of Science; Business Administration Licensed Real Estate Broker : Montana, Colorado, North Dakota & South Dakota Professional Affiliations/Accreditations Past Committee Denver Metro Commercial Association of Realtors® Past NAIOP Membership committee Past Co-Chair of the Advisory Board of University of Denver’s Burns School of Real Estate and Construction Management Past Board of Directors of THRIVE non-profit, Bozeman Montana Past Board of Directors of Prospera (SW Montana Economic Development) Past Licensed Colorado Real Estate Appraiser MIKE ELLIOTT Senior Vice President T 406.599.0466 F 406.794.0414 mike.elliott@cbre.com PARTIAL CLIENT LIST - Petroleum Development Corp. - Shell - Bakken Residential, LLC - Borjacks - Newpark Resources, Inc. - Cactus Wellhead - Ursa II - Granite Peak Development, LLC - Poseidon - ExxonMobil - Chevron - Xerox - CH2MHill - Boeing - State of Montana - GSA 2 Statement of experience and qualifications of the individual, firm and firm’s staff which will be assigned to the sale. CCIM or equivalent commercial sales experience preferred. Statement of Experience & Qualifications Page 6 City of Bozeman | Montana | North Park CBRE CAPABILITIES • Experienced commercial property professionals focused on land transactions • Comprehensive ability to evaluate the highest and best use of a particular parcel(s) of land • Land entitlement experts offer their extensive knowledge of local market regulatory environment • Comprehensive understanding of current market conditions and market values • CBRE Land Services provides the corporate resources, central leadership, best practices, client support and brokerage expertise necessary to successfully satisfy the needs of our land owner clients • CBRE Land Services maintains a database of 31,000 land investors, high net worth individuals, foreign investors and family offices • Tightly integrated across our service lines including Capital Markets, Global Corporate Services, Asset Services, Valuation and Consulting, and CBRE Research • Unparalleled track record of closed land sale transactions CBRE LAND SERVICES TEAM SUMMARY • 55 members in 32 offices in the US and Canada focused on land • From 2006 to 2012 we have transacted over $5.7 billion of consideration, covering over one million acres • We have sold over one million acres of land worth nearly $400 million 2012 statistics: • 363 transactions - our group has had nearly 1,500 total transactions since 2006 • 95,738 acres, for a total of over 1.1 million acres since 2006 • Total consideration approximately $1.2 billion, up 20% from $987 million in 2011 • Sales and acquisitions of equity, entities and debt collateralized by land • Experience in foreclosures, short sales, note sales, and bankruptcy • Sales on behalf of the FDIC, financial institutions, private equity developers, investors, and closely held family businesses • Services include acquisition, disposition and consulting CBRE HISTORICAL LAND TRANSACTION VOLUME 3 A description of the individual or firm’s experience with high visibility commercial sales of developable, zoned industrial and/or for manufacturing, high value raw property suitable for specific needs. Individual or Firm’s Experience City of Bozeman | Montana | North Park Page 7 RECENT NOTABLE ASSIGNMENTS 3 A description of the individual or firm’s experience with high visibility commercial sales of developable, zoned industrial and/or for manufacturing, high value raw property suitable for specific needs. Individual or Firm’s Experience Page 8 City of Bozeman | Montana | North Park RECENT NOTABLE ASSIGNMENTS 3 A description of the individual or firm’s experience with high visibility commercial sales of developable, zoned industrial and/or for manufacturing, high value raw property suitable for specific needs. Individual or Firm’s Experience City of Bozeman | Montana | North Park Page 9 Mike Elliott, Senior Vice President, CBRE, has been working as a real estate broker in Bozeman, Montana for more than a decade. He is familiar with the Bozeman’s codified zoning and subdivision standards under the Unified Devel- opment Code. The Code was designed to protect community resources and promote efficient investment by outlining development standards, siting specific uses, assigning special districts and outlining procedures for subdi- visions. The Code also provides general guidelines for transportation, parking, landscaping, signage, telecommuni- cations, wetland regulations, floodplain regulations and includes an outline for administrative process and penalties and definition of terms. Additionally, Mike and his team are familiar with the Market Analysis and Feasibility Study prepared by CTA Architects Engineers Planners with MXD Development Strategists for the 275-acres parcel of land known as the North Park Site in North Bozeman. The team has worked on this property in the past with the DNRC and the City of Bozeman and recognizes that the North Park site represents one of the best opportunities for strategically planned growth. Buyers for the North Park site will include developers interested in building hotel, light industrial, flex space, office, retail or various recreational uses. CBRE understands the important nature of the rail in close proximity of North Park and feels that this will be of utmost importance to any future purchaser. The expansion of a rail spur could result in a Foreign Trade Zone for the City of Bozeman with increased potential for new jobs. Mike will leverage his knowledge of the Unified Development Code to work with qualified buyers and their brokers to ensure that they understand the opportunities and potential challenges that may exist under the Unified Development Code. As referenced in the Land Use Development Strategy of the Market Analysis and Feasibility Study, the proposed development infrastructure costs could be up to approximately $17.7 million in 2012 dollars. Design assumptions utilize Bozeman’s Uniform Development Code as guidelines for construction and cost projections. The following are general design assumption for the preferred option: • Roadways to include concrete curb and gutter with asphalt road • Boulevard Road is separated by a ten foot landscape planting median • Ductile iron water lines • Two major detention basins planned for development • Street lighting throughout the boulevard roadway and at intersections throughout the remainder of the development • All utilities including electric underground • Entry signage at four locations with development • Street trees on 50’ centers throughout all roads • An asphalt bike trail following the greenway corridor of the Mandeville Creek • A 400’ bridge deck over Interstate 90 with four 12’ lanes and 2 two-foot striping lanes on the outside for comfort for bicyclists The 85 acre North Park site is zoned M-2. While not necessarily required, rezoning might be of interest to a potential buyer. While the process of rezoning can be cumbersome, this particular site may be easier to rezone, since this is considered a step down zoning and compliant with the neighboring property controlled by the DNRC. It is recom- mended that the rezoning would occur at the time the property is platted, sold or planned for a tenant. 4 Demonstrated familiarity with the City of Bozeman’s Unified Development Code (Chapter 38, Bozeman Municipal Code). Demonstrated Familiarity with Bozeman’s Unified Development Code Page 10 City of Bozeman | Montana | North Park DISPOSITION EXPERTISE CBRE has extensive experience developing a variety of appropriately tai- lored disposition strategies for a broad range of product types in practically every type of market, and under a variety of market conditions. CBRE has successfully executed, where appropriate, terminations, buyouts, assign- ments, subleasing, and structured sales, sale / leasebacks, asset exchanges, and auctions (for owned assets). CBRE also has significant experience with portfolio valuations associated with the sale of operating units, divisions or subsidiaries, and business/portfolio acquisitions by third parties. With each engagement, CBRE’s approach involves an array of strategies and best-in- class practices to maximize value, reduce risk/exposure, efficiently achieve portfolio reduction targets in as timely a manner as possible, and accomplish overall objectives of the organization. CBRE’s rigorous and strategic approach to commercial site selection incorpo- rates a combination of elements including: • Detailed review and analysis of the assignment in view of the City of Boz- eman’s goals and objectives. • Detailed market analysis, including property valuations, timing consid- erations relative to alternative course of action, examination of potential parties in the market and market opportunities for bundling. • Recommendations and execution of property specific solutions. • Use of a dedicated Single Point of Contact (Mike Elliott) with direct involvement to coordinate a network of qualified market specific experts and resources. LAND BUYER PROFILE Who Why Where from 5 Demonstrated familiarity with commercial site selection processes. Demonstrated Familiarity with Commercial Site Selection City of Bozeman | Montana | North Park Page 11 WE UNDERSTAND YOUR CHALLENGE Our team understands the City of Bozeman’s goals and objectives. As your full-service real estate advisor, we will provide the City of Bozeman with: • Local & National Expertise/Leadership Experienced and diverse team including senior leadership with extensive land sales record. • National Network of Land Professionals CBRE is the only national firm with a dedicated Land Services Group with expertise in the nuances and complexities of a land sale. • Market Intelligence Providing unparalleled local market information to make the due dili- gence seamless for investors. • Proprietary Database All of our land brokers contribute buyer profiles to a central contact database. WHY CHOOSE CBRE LAND GROUP FOR YOUR COMMERCIAL SITE SELECTION PROCESS? 5 Demonstrated familiarity with commercial site selection processes. Demonstrated Familiarity with Commercial Site Selection Page 12 City of Bozeman | Montana | North Park • CBRE Platform and Brand Largest and most diversified real estate services platform in the world. • Experience Utilizing our significant recent and long-term experience in the market, spe- cifically in the land and development sectors. • National Team Resources Market Analysis & Feasibility Studies Market Trends & Forecasts Property Acquisitions & Dispositions Portfolio Acquisitions & Dispositions Strategic Site Selection Development Consulting Financial Analysis Highest and Best-Use Studies Economic, Demographic & Mapping Services Appraisal Reviews Financing / Equity Sources Arbitration & Consultation INVESTOR AND DEVELOPER SERVICES The CBRE Land Services Group brings together local market knowledge and national scope, serving the property needs of investors and developers, and providing a competitive advantage by capitalizing on market conditions. Our professionals are tightly integrated across our service lines including Capital Markets, Global Corporate Services, Asset Services, Valuation and Consult- ing, and CBRE Research, enabling the team to provide a broad spectrum of comprehensive real estate services. SPECIALTY PRACTICE GROUPS CBRE executes strategic, integrated and comprehensive commercial real es- tate services for tenants/occupiers, property owners and narrowly-focused, vertical industries in the land, industrial, office and retail sectors. Our clients draw frequently and seamlessly from other CBRE services to provide clients what they need functionally anywhere in the world, offering a complete spec- trum of commercial real estate brokerage services to owners, investors and occupiers of all property types. Our professionals strive to consistently deliver levels of service and success beyond our clients’ expectations. By developing a long-term relationship with CBRE, the City of Bozeman can be sure that it has the industry’s most talented and committed people working toward the success of its business. 5 Demonstrated familiarity with commercial site selection processes. Demonstrated Familiarity with Commercial Site Selection City of Bozeman | Montana | North Park Page 13 The City of Bozeman can access a host of Specialty Groups within CBRE to optimize its real estate portfolio, including: Labor Analytics Group Representing over 25% of the Fortune 100, LAG focuses on labor market intelligence delivering innovative solutions and strategies for existing locations, site selection, and economic incentive negotiations. The LAG leverages labor market intelligence to select the best performing locations and assess current markets and portfolios through workforce strategy. Through award-winning analytics, custom site selection, comprehensive community evaluation, skilled economic incentive negotiation and expert real estate transaction services, CBRE LAG delivers operational efficiencies. Economic Incentives Group CBRE’s EIG has extensive experience in all 50 states and has negotiated incentives across every industry sector. Our expertise and knowledge of eco- nomic development have secured economic incentives for all industries and company types. EIG captures and aggressively tracks economic incentive ac- tivity as well as statutory and discretionary incentive programs introduced at the federal, state and local level to ensure meaningful economic incentive programs are negotiated for the clients we serve. Emerging Markets Group Through our established global network, we support our clients’ real estate, IT, telecommunications and security requirements in emerging markets. In a number of geographies we work with source 8, the worlds leading complex and emerging markets consultancy. CBRE Capital Markets Combining the company’s investment sales and mortgage banking capa- bilities, CBRE Capital Markets offers complete capital markets solutions any- where around the globe. Investment Properties, working in tandem with Debt & Equity Finance, assures clients that all alternative recapitalization strategies are evaluated. Valuation & Advisory Our Valuation and Advisory Services provide accurate, reliable and timely valu- ations that are critical to the success of every real estate transaction or financing. 5 Demonstrated familiarity with commercial site selection processes. Demonstrated Familiarity with Commercial Site Selection Page 14 City of Bozeman | Montana | North Park TECHNIQUE/APPROACHES The Team’s overriding goal is to assist the City of Bozeman in the search and securitization of a qualified buyer for North Park who has both capital and expertise in the development of industrial and/or logistics parks. We plan to maximize the value of the 85 acres of industrial zoned property (M-2) (“The Property”) for the City of Bozeman as well as the neighboring DNRC property. With our team leading the sales and marketing process, the results will include job creation for the City of Bozeman as well as a more diversified economy. This goal will be accomplished through hands- on management and consulting of a carefully planned marketing process, which will include the following steps: 1. Information Gathering The Team will undertake an extensive underwriting process designed to identify the most favorable aspects of the Property and understand challenges that may exist. This assessment will shape the development of marketing materials, with the goal of highlighting the property’s strengths. CBRE also believes that it is important to be proactively prepared to respond to any concerns, real or perceived, that a buyer may raise through underwriting or due diligence. During this stage, CBRE will assemble all critical documentation relating to the property. The documentation will likely include title work, surveys, topographical information, legal descriptions, environmental reports, subsidence studies, geotechnical reports, city correspondence and planning documents, site plans, density studies, utility information, market reports and other pertinent data. This information will be compiled with the assistance of the City of Bozeman and maintained in a format that is safe and secure. 2. Marketing Program and Materials The power of CBRE’s marketing platform lies in the Team’s ability to provide the property with more exposure to qualified prospects than any other firm in the industry. CBRE maintains personal relationships with the most aggressive groups that are active in the Market. Prior to launching the property to the market, the CBRE Team will review and refine the list of prospects based upon those buyers with a demonstrated appetite for, and ability to, successfully acquire similar opportunities. Further, the CBRE Team will utilize its proprietary network of prospects, that includes over 31,000 contacts, in addition to leveraging the CBRE TRAC system. The CBRE TRAC system is an inter-company web-based tool that enables the Team to monitor all best in class transactions and investors who are CBRE clients in search of similar opportunities. Once CBRE and the City of Bozeman are in agreement regarding a compelling marketing message, the following marketing materials will be created: • Teaser Piece - This initial electronic marketing piece will introduce the opportunity to the list of prospects that CBRE has assembled. The teaser piece will provide a brief description of the property and the imminent process, which will generate initial enthusiasm about the offering. After the teaser piece has been released, the CBRE Team will contact logical prospects and decision makers directly. The Team will educate the market with a complete understanding of the Property and guide the market to attribute maximum value to the opportunity. • Offering Memorandum - CBRE will work with the City of Bozeman to develop an institutional quality Offering Memorandum that will be ready following the release of the teaser piece to share with qualified prospects. Once investors sign a confidentiality agreement (accessed via the customized website addressed below), they will be given access to the Offering Memorandum which will tell the property’s “story,” and will contain detailed and supporting property information reasonably required to qualify a buyer’s interest before providing access to further, confidential due diligence. The Offering Memorandum will include a comprehensive property profile that will highlight its positive attributes, outline the offering process, and answer many of the basic questions most prospects will seek. Additionally, the Offering Memorandum will act as an outline for the most important talking points, ensuring a concise and consistent 6 A detailed description of all facets of the proposed plan to actively advertise and market the property and documentation of the promotional and or financial resources available to the individual or firm to carry out this strategic marketing and advertising plan at a local, regional and national level. Strategic Local, Regional, National Marketing Plan City of Bozeman | Montana | North Park Page 15 message. Realizing that the Offering Memorandum is both a reflection of the City of Bozeman and CBRE, it is important that the finished product is high quality and institutional in nature. The CBRE Team suggests creating a hard copy Offering Memorandum, in addition to an electronic version for this assignment. Realizing that prospects respond differently to print material and electronic correspondence, the Team prefers not to take any chances with the assignment and create marketing materials in both formats. This two step process insures that maximum exposure is given to the the City of Bozeman property. • Website - A customized website will be created for the property and accessible after the release of the teaser piece and upon execution of the confidentiality agreement. The website will act as an electronic version of the Offering Memorandum. Further, with the City of Bozeman’s approval, the Team will be able to provide a special data room that will host the due diligence material, which will only be accessed by qualified prospects that have executed the confidentiality agreement. CBRE’s proprietary website technology will allow the Team to track a prospect’s activity on the data room. This is a useful tool to gauge the interest level of specific prospects, and more importantly investigate the upfront due diligence review of a specific buyer, in the event an offer is submitted. Ultimately, this approach will help protect the City of Bozeman against a renegotiation down the road. 3. Tracking and Qualifying Active Prospects Upon initial feedback from interested parties after the teaser piece is released, prospects will be entered into an analysis spreadsheet. All relevant information on these investors will be included for the City of Bozeman and the CBRE Team to review. CBRE’s goal will be to quickly qualify and narrow the initial potential buyers list, to create an “A” list. These buyers will either have signed confidentiality agreements to access the Offering Memorandum and access to the website, or based upon other information, should be a strong player for the offering. The discipline of narrowing the list each week will ultimately produce a select group upon whom the Team will focus extra attention and personal contact. After prospects have submitted proposals, the Team will also follow up with all responses to determine the sources of capital, resumes and other relevant information. This will ensure that CBRE and the City of Bozeman understand the investors’ motivations for either submitting a bid or declining the offering. The Team will ascertain motivation and research each responder’s financial capability. 4. Selection of Short List / Interview Process The CBRE Team will make recommendations regarding the strongest candidates to the City of Bozeman based upon the response analysis and qualifications outlined above. A short list of investors will be generated and CBRE and the City of Bozeman will either a) request a best and final bid, or b) proceed directly to the personal interview process. The best and final process will occur if there are a number of bids with similar economics. Personal interviews with principals from the potential buyers groups occur when there is a very short list of candidates. In addition to qualifying pricing, the interview phase should also include discussions regarding any internal approval process and any due- diligence materials that may need explanation. 5. Contract Negotiation Once a purchaser has been chosen, following the interview and/or bid process, the transaction will advance to the negotiation of a purchase and sale agreement. The collective CBRE Team has negotiated and completed hundreds of contracts for the purchase and sale of commercial real estate, which will provide the City of Bozeman with a competent negotiating team. This negotiation assistance will be in coordination with the legal counsel of the City of Bozeman, if needed. 6 A detailed description of all facets of the proposed plan to actively advertise and market the property and documentation of the promotional and or financial resources available to the individual or firm to carry out this strategic marketing and advertising plan at a local, regional and national level. Strategic Local, Regional, National Marketing Plan Page 16 City of Bozeman | Montana | North Park 6. Contract Phase After the purchase and sale agreement has been executed, the CBRE team will assist the City of Bozeman with the opening of escrow, ordering title work, and coordination in fulfilling any contractual commitments. Also, CBRE will prepare a list of critical dates to outline the important obligations required by both sides of the transaction. This will assist the Team’s ability to inform the Seller about the progress and efforts of the purchaser. CBRE will be available to answer any questions that may arise from the purchaser’s side as they review due diligence. CBRE will conduct market tours, and provide insight to the purchaser into market dynamics and active prospects in the market both through personal contact and proprietary market information deliverables. Due to the Team’s depth of experience, the credibility of their information in the market is greatly enhanced. Further, the Team is very familiar with the entitlement process; therefore, the City of Bozeman can feel confident that the CBRE Team is shadowing the purchaser as an advocate of the seller throughout the process. All of these steps will ensure a smooth and successful transaction. 7. Closing CBRE will be prepared to review any closing documents that are relevant to the transaction, and will ensure that all required critical dates are met by both the City of Bozeman and the selected buyer. RESEARCH CBRE invests heavily in research, analysis, and the latest technological innovations in order to sustain a premier service delivery platform. The six-member Denver Research team carefully tracks and analyzes the Denver market, coordinating with counterparts across the country (including CBRE Econometric Advisors – a group of highly qualified in-house economists) to understand national conditions and trends and employ cutting edge research and analytic techniques. A summary of CBRE’s Research Department and capabilities is described below: • Largest real estate research organization of its kind in the industry • Over 100 local researchers throughout the United States • Primary research on local properties, tenants, transactions, ownership and economic data • Proprietary internal database exclusively offered to our clients • Information on markets that CoStar does not cover, allowing clients access to information not available to anyone else • Integration with CBRE Econometric Advisors (EA) to deliver sophisticated modeling, forecasting and analysis • Convenient access to data and reports via web and email services • Integration with marketing and sales professionals The value to the City of Bozeman will be the access it gains to proprietary, in-depth reports and data created on a quarterly basis which will provide information on all active users and purchasers in the local market, relevant comps and transaction information as well as local and national trends. This information will help to facilitate informed, sound decision making. 6 A detailed description of all facets of the proposed plan to actively advertise and market the property and documentation of the promotional and or financial resources available to the individual or firm to carry out this strategic marketing and advertising plan at a local, regional and national level. Strategic Local, Regional, National Marketing Plan City of Bozeman | Montana | North Park Page 17 The relationship between the City of Bozeman and CBRE is a true, collabora- tive partnership. We will work together to present North Park both locally and nationally in an opportunistic fashion to qualified buyers. It is important that all parties understand the scope of the assignment and how we can structure the transaction so that there is a clear message to the community and buyers alike. As Mike Elliott will be the Single Point of Contact for the City of Boze- man, it is just as important that there is a single point of contact on behalf of the City. This will reduce any miscommunication and ensure speed and efficiency in the process. Prior to going to the market with the offering, it will be necessary for all of the due diligence information on the property to be gathered by CBRE and analyzed. The due diligence information may include but is not limited to: Approved Entitlement Documents • Final Plat • Final Development Plan • Fee schedules as provided by the City • Reimbursement agreements, including Public Improvement Agreements • Tax Abatement Agreements (County) • Title work (any and all prior title policies) Construction Documents • Approved and signed engineering docs for site development • Survey • Easements and access agreements Third Party Reports • Phase I, Phase II reports • Approved site drainage report • Water and wastewater engineering reports (hydraulic studies) • Geotechnical reports Can Serve Letters: • Water • Sanitary Sewer • Gas • Electric • Phone/Cable • Approved Traffic Impact study • Wetlands/Environmental reports (if required and available) Miscellaneous • Real and personal property tax bills and assessed value for the prior 2 years • Warranty agreements which Seller may have for improvements on the Real Property • Construction, maintenance and operations contracts • All architectural and engineering plans for improvements on the Real Property 7 A narrative describing the expectations or responsibilities of the City as a client in order to complete a successful sale. Narrative of Client Responsibilities Page 18 City of Bozeman | Montana | North Park • Surveys, engineering, seismic, environmental and geological reports for the Real Property in Seller’s possession • Copies of any governmental approvals relative to the Real Property in City’s possession • Copies of all current insurance policies • Copies of all leases and agreements that will affect the property includ- ing but not limited to property management agreements, warranties, etc. Once we go to market with the property, we would request that the City would be availably to meet with any interested parties. We would also ask that the City would assist with answering questions buyer may have or help with re- searching particular information potential users may request. The most important need from CBRE of the City of Bozeman is to be as re- sponsive to potential buyers or CBRE’s questions as possible, since a delay in time generally reduces the potential for projects to be completed successfully. A 12 – 24 hour response time (or sooner) from the City will help CBRE to secure a qualified buyer in a timely manner. 7 A narrative describing the expectations or responsibilities of the City as a client in order to complete a successful sale. Narrative of Client Responsibilities City of Bozeman | Montana | North Park Page 19 8 Proof of the necessary state license requirements to sell real property in the state of Montana. Proof of Real Estate License - Montana Page 20 City of Bozeman | Montana | North Park Commissions are due only upon close of the sale. Broker assumes all marketing costs. The market commissions are equal to 6% of the total sale price and will be due upon close of the property; 3% will be paid to the Buyer’s broker, and 3% will be paid to the Seller’s broker. Commission Costs 9 A description of the proposed commission costs for the sale and a description of any and all costs that will be paid by the City in order to complete the sale. City of Bozeman | Montana | North Park Page 21 NORTH PARK MARKETING PLAN 1. DISCOVERY & PACKAGING | UNTIL AUGUST 9, 2013 Thorough property due diligence Professional property photos, maps, aerials, site plan Underwriting evaluation Finalize financial analysis and investor list Draft confidentiality agreement Complete brochures, CampaignLOGIC and CBRE Marketplace site Complete Offering Memorandum 2. MARKETING | AUGUST 12 THROUGH OCTOBER 4, 2013 (8 WEEKS) Send email brochures to 31,000+ potential buyers Leverage recent listings and transactions, in contacting the “active” investors in this type product Property offering posted to team websites, Loopnet and CoStar Execute confidentiality agreement through CBRE Marketplace Create competitive environment Direct investor contact Detailed property tours 3. NEGOTIATE | OCTOBER 7 THROUGH OCTOBER 18, 2013 (2 WEEKS) Offers received Strongest offers negotiated Buyer interviews Agreement reached 4. DUE DILIGENCE | OCTOBER 21 THROUGH NOVEMBER 15, 2013 (3-4 WEEKS) Contracts completed Provide updates to due diligence material within CBRE Marketplace Address concerns and issues Monitor process Coordinate estoppels 5. CLOSING | NOVEMBER 2013 Documents executed Escrow funded Closing celebration! COMMENTS Comprehensive due diligence will be completed for North Park and all of the marketing materials will be ready to launch on the scheduled date. We would allow an additional week to compensate for the Labor Day holiday. North Park will most likely go through at least one best and final round. Additional information is provided to the finalists at this point as they prepare their final offer. By providing additional information during the best and final round, investors will minimize their due diligence period. 10 A proposed time line for the sale and proposed contract terms for the selling of the Property. Proposed Timeline and Purchase and Sale Agreement Page 22 City of Bozeman | Montana | North Park __________ CONFIDENTIALITY AGREEMENT We understand that your organization (the "Company") is interested in pursuing the above referenced property (the "Property") involving Owner (collectively the "Owner"). To assist you in your evaluation of that certain property currently managed or controlled by Owner, we will provide you with certain information concerning the Property. As a condition to furnishing you with such information, Company agrees to treat confidentially such information and any other information (collectively the "Evaluation Material") which Owner, its affiliates, partners, lenders, employees, agents, attorneys, accountants, advisors or references (collectively the "Representatives") furnish to your Company. The term Evaluation Material will also include any analysis, compilations, studies or other documents prepared by Company or Company's Representatives containing, or based in whole or in part on, any information furnished by Owner. Company agrees that the Evaluation Material will be kept confidential by it and its Representatives and shall not, except as hereinafter provided, without the prior written consent of Owner, be disclosed by it or its Representatives other than for the purpose of evaluating the Property. Moreover, Company further agrees to transmit Evaluation Material only to those of its Representatives who need such information for the purpose of evaluating the Property and who shall (i) be advised by Company of this letter agreement (the "Agreement") and (ii) agree with Company to be bound by the provisions hereof. Company shall be responsible for any breach of this Agreement by its Representatives. In the event that the Property is not effected after Company has been furnished with Evaluation Material, Company will promptly deliver to Owner the Evaluation Material and all copies thereof, except for the portion of compilations, studies or other documents prepared by Company or its Representatives, without retaining any copy thereof. That portion of the Evaluation Material which consists of analysis, compilations, studies or other documents prepared by Company or its Representatives will be held by it and kept confidential and subject to the terms of this agreement, or destroyed at the request of Owner. Such destruction will be confirmed by Owner. The term Evaluation Material does not include information which (i) becomes generally available to the public other than as a result of disclosure by Company or its Representatives, (ii) was available to Company on a non-confidential basis prior to its disclosure to Company by Owner or its Representatives, or (iii) becomes available to Company on a non-confidential basis from a source other than Owner or its Representatives; provided, however, that such source is not bound by a confidentiality agreement with Owner or its Representative. Although Company understands that Owner has endeavored to include in the Evaluation Material information known to it which it believes to be relevant for the purposes of Company's investigation, Company further understands that except as may otherwise be agreed in writing, Owner does not make any representation or warranty as to the accuracy or completeness of the Evaluation Material. Company agrees that neither Owner nor its Representatives shall have any liability to Company or any of its Representatives under this agreement for any cause whatsoever. This agreement shall be governed and construed in accordance with the laws of the State of Colorado, may not be changed, waived or terminated orally and shall be binding upon the parties and their successors or assigns. The Company confirms the understanding that any agreements between the Company and Owner concerning the Property will exist only when such agreement is in writing and duly executed by the parties thereto. AGREED TO AND ACCEPTED BY: (Please Print Clearly) Company: Address: City, ST, Zip: Phone: Fax: E-Mail: Please provide to receive important updates about this offering. By: Title: Date: Signature: CBRE INC 1225 17th St Suite 2950 Denver, CO 80202 Broker Name: Michael Elliott Senior Vice President PLEASE EXECUTE AND RETURN TO Michael Elliott Email: mike.elliott@cbre.com 10 A proposed time line for the sale and proposed contract terms for the selling of the Property. Proposed Timeline and Purchase and Sale Agreement The following documents would support the proposed contract terms for the sale of the property: City of Bozeman | Montana | North Park Page 23 Date: Name: Address: Re: Dear : This letter of intent outlines the basic terms under which __________________ or its nominee or assignee (“Purchaser”) is prepared to consider the acquisition of the existing vacant property at _________ consisting of ______ SF on ____ acres in _____________ (the “Property” ) from its current owner (“Seller”) and to begin negotiations of a mutually acceptable agreement of purchase and sale (”Purchase Agreement”). 1. Purchase Price: Earnest Money a) The purchase price of the Property will be ___________ Dollars ($). Subject to customary prorations and adjustments. The Property will be conveyed free and clear of all liens and encumbrances except for Permitted Encumbrances (defined below). b) ______Thousand Dollars ($___,000) in cash shall be deposited in escrow under escrow instructions satisfactory to Seller and Purchaser, as initial earnest money, with a title company of Purchaser’s choosing (the “Title Insurer”) upon the execution of the Purchase Agreement. All the interest on the earnest money shall accrue for the benefit of the Purchaser. The earnest money will be credited to the Purchase Price at Closing. The earnest money shall constitute liquidated damages which shall be the sole remedy of Seller in the event of Purchaser’s default under the Purchase Agreement. With certain exceptions to be delineated in the Purchase Agreement, Earnest money should become released to Seller complete of Due Diligence. 2. Due Diligence Period: Leases and Contracts a) The Purchase Agreement will call for Seller to provide Purchaser with copies of the following, and such other information as may be specified in the Purchase Agreement: development costs, operating statements, warrantees and other contracts; the latest property tax bills and value renditions; environmental reports concerning the Property; any governmental permits, licenses or approvals; surveys and site plans; existing title policy, any soils, 10 A proposed time line for the sale and proposed contract terms for the selling of the Property. Proposed Timeline and Purchase and Sale Agreement Page 24 City of Bozeman | Montana | North Park AGREEMENT FOR PURCHASE AND SALE OF REAL PROPERTY AND JOINT ESCROW INSTRUCTIONS THIS AGREEMENT FOR PURCHASE AND SALE OF REAL PROPERTY AND JOINT ESCROW INSTRUCTIONS (“Agreement”) is entered into as of ____________________ (“Effective Date”), by and between __________ (“Seller”), and ____________ (“Buyer ”), with reference to the Recitals set forth below. This Agreement shall also constitute the joint escrow instructions of Seller and Buyer to _______________________ (“Escrow Holder”). Buyer and Seller are sometimes hereinafter referred to individually as a “Party” and collectively as the “Parties”. RECITALS A. Seller owns real property consisting of approximately _____ acres of land located near the City of ____________(the “City”), County of ___________ (“County”) in the State of __________ commonly known as Parcels ______________ (the “Project”). The legal description of the property is attached as Exhibit A to this contract and incorporated by reference. B. Seller desires to sell to Buyer and Buyer desires to purchase from Seller, on the terms and conditions set out below, the Property; NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and the respective covenants and commitments of the Seller and Buyer as set forth herein, Seller and Buyer hereby agree as follows: AGREEMENT 1. Agreement for Purchase and Sale. 1.1 Purchase. Seller hereby agrees to sell to Buyer, and Buyer hereby agrees to purchase from Seller, the Property pursuant to each of the terms and conditions set forth in this Agreement. All water rights, ditch rights, and ditch easements appurtenant to the Property, owned by the Seller, are to be transferred to Buyer at closing. All existing easements that can be transferred by Seller will be transferred to Buyer at closing. No warranty exists as to the extent of such rights or easements. The property will be delivered at Closing to Seller with approved __________ zoning by the City. One hundred percent (100%) of all water and mineral rights and mineral leases appurtenant to the Property and owned by Sellers shall be conveyed to Buyer at closing. If no mineral rights are owned by Seller then the rights will not transfer. This shall include but not be limited to hard rock minerals such as gold and silver, as well as oil, gas and hydrocarbons. Any oil and gas leases will be assigned to the Buyer at Closing. No warranty exists as to the extent of such rights. 10 A proposed time line for the sale and proposed contract terms for the selling of the Property. Proposed Timeline and Purchase and Sale Agreement City of Bozeman | Montana | North Park Page 25 * At the request of our clients, CBRE sale price information remains confidential. Address List Price Sale Price Time Relevant Information YellowStone Club Montana $115,000,000 Confidential*Nine months CBRE was able to generate over 100 prospects qualified to purchase an as- set over $100 Million and increased stalking horse bid by 15% in a bank- ruptcy sale pursuant to a plan of reor- ganization. The offering was viewed by nearly 40,000 people globally. CBRE provided testimony regarding the marketing process and price to help the parties and Court understand fair market value. The marketing process took 5 months from listing to close. Black Bull Run Montana $8,200,000 Confidential*Nine months CBRE was hired by the US Trustee to conduct a 363 sale process to solic- it qualified investors for overbids to a stalking horse offer. The transaction in- cluded 314 home sites (236 finished lots and 78 unfinished lots), plus develop- ment sites for the main clubhouse and permanent golf course maintenance fa- cility. The sale also included highly-ac- claimed Black Bull Weiskopf golf course clubhouse and two tennis courts. Great Falls Montana $5,000,000 Confidential*Three months Currently listed, the estimated time on market is 3 months. This is a 1,000 acre rail serve industrial park in Great Falls, Montana. The property is very close in nature to North Park. Cheyenne Logistics Hub Wyoming $100,000,000+Confidential*Under Contract This property was marketed and sold in various sections with the develop- ment of both the BNSF rail line and Union Pacific rail line. This is a 10+ year build-out project. The relevance of this project is that it is a large par- cel of land in the region which is rail served, such as the potential with North Park. 11 A list of the individual or firm’s last three sales involving unimproved property (raw property) within City limits and which was zoned for manufacturing and/or other industrial uses and at least one example of the sale of commercial/industrial property valued at, or in excess of, one million dollars ($1,000,000.00). Include for each property: the list price of the property; the sale price of the property; the length of time the property was on the market; and any unique aspects or other information relevant to each sale. Relevant Recent Comparable Sales Page 26 City of Bozeman | Montana | North Park RELEVANT TEAM REFERENCES Doug Olson Managing Partner Northfield Development Co. Direct: 970.379.6816 Reference for Mike Elliott’s current listing at 55th Crossing in Minot ND. The property is a 700 acre mixed use development. Bill Maly Catalyst Development, LLC 9503 South Hackberry Street Highlands Ranch, CO 80129 303.929.2414 bill@catalyst-dev.com Reference for Mike Elliott who served as listing agent on 500 acre parcel in Williston, ND Scott Blumfield 625 Central Avenue W, Suite #206 Great Falls, MT 59404 (cell) 406.750.0276 | (office) 406.403.0864 Reference for Mike Elliott – Disposition of 1,000 logistics and energy acres in Great Falls, MT References 12 Three professional references and full contact information for the listed references. City of Bozeman | Montana | North Park Page 27 Promotional Materials - Sample 13 Up to 5 (five) pages of promotional material or company brochures that illustrate the individual or firm’s experience, expertise and philosophy. Mike Elliott Page 28 City of Bozeman | Montana | North Park 13 Up to 5 (five) pages of promotional material or company brochures that illustrate the individual or firm’s experience, expertise and philosophy. Promotional Materials - Sample City of Bozeman | Montana | North Park Page 29 13 Up to 5 (five) pages of promotional material or company brochures that illustrate the individual or firm’s experience, expertise and philosophy. Promotional Materials - Sample Page 30 City of Bozeman | Montana | North Park 13 Up to 5 (five) pages of promotional material or company brochures that illustrate the individual or firm’s experience, expertise and philosophy. Promotional Materials - Sample City of Bozeman | Montana | North Park Page 31 13 Up to 5 (five) pages of promotional material or company brochures that illustrate the individual or firm’s experience, expertise and philosophy. Promotional Materials - Sample