Agenda

Back to Calendar Return

Item # 4.b.

City Council (FY24)

Meeting Date:	01/23/2024
Department:	Economic Development
Pillars:	Innovation in Entrepreneurship & Business

AGENDA CAPTION:

*POSTPONED* Consider action on a Resolution approving a Professional Services Agreement (PSA) between the Town of Addison and Harvest MXD for commercial real estate brokerage services and authorizing the City Manager to execute the agreement in an amount not to exceed $120,000 per year.

BACKGROUND:

In September 2020, Chris Harden and Maureen Cooper, then representatives of Cushman and Wakefield, were appointed as the Commercial Real Estate (CRE) brokers for the Town of Addison's Transit-Oriented Development (TOD) project at Addison Circle. Their leadership was pivotal in guiding the Town through the Request for Proposals (RFP) process in April 2021, which included the marketing of the site and the creation of marketing materials.

The RFP process culminated in the Town's selection of AMLI and Stream as co-developers, and Harden and Cooper played instrumental roles in the negotiations of the initial Memorandum of Understanding (MOU) with the developers in April 2022. However, due to challenging market conditions caused by inflation and rising interest rates, the project experienced a stall.

In early 2023, both Cooper and Harden departed from Cushman & Wakefield but continued their representation of the Town through Harvest MXD, a newly established company founded by Harden. By the summer of 2023, Stream Realty Partners withdrew from the project, citing the "continued deterioration of the capital markets," particularly impacting new office development.

Following an extensive search, Harden and Cooper successfully secured Quadrant Investment Properties to step in as the new office developer, revitalizing the project's momentum.

CONTRACT AND FEE STRUCTURE:
Continued Agreement: The Town seeks to continue its agreement with Harvest XD, represented by Harden and Cooper.
Fee Structure: The agreement includes a consulting fee not-to-exceed $120,000.00 per year, excluding the success fee as detailed in the Agreement.
Annual Renewals: Execution of annual renewals of this agreement is proposed for subsequent fiscal years.
Back Payment Approval: Approval of back payment to Harvest XD for services rendered from January 2023 to December 2023.

NEXT STEPS:
The Town will continue its close collaboration with Chris Harden, Maureen Cooper, and Quadrant Investment Properties to ensure the success of the Transit-Oriented Development project at Addison Circle. This includes maintaining a vigilant approach to monitoring market conditions and making necessary adjustments to the project strategy as required to adapt to changing economic landscapes.

RECOMMENDATION:

Administration recommends approval.

Attachments
Resolution - Harvest MXD Professional Services Agreement
Harvest MXD - Professional Services Agreement