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Item # 4.b.

City Council (FY24)

Meeting Date:	03/05/2024
Department:	Economic Development
Pillars:	Optimize the Addison Brand
Milestones:	Effectively utilize and promote the Silver Line development with a first mile/last mile solution

AGENDA CAPTION:

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 $608,400.00

BACKGROUND:

In September 2020, Chris Harden and Maureen Cooper, then representatives of Cushman and Wakefield, were appointed as the Commercial Real Estate 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 stalled. 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, and further negotiated the final Memorandum of Understanding (MOU), revitalizing the project's momentum.

The Town seeks to continue its broker agreement with Harvest MXD, represented by Harden and Cooper, to advance the Transit-Oriented Development project at Addison Circle. This will involve engaging in detailed negotiations and finalizing definitive agreements with the co-developers Quadrant Investment Properties and AMLI.

The Professional Services Agreement establishes the payment of $120,000 accrued for the consulting period beginning January 1, 2023 through December 31, 2023 and a success fee not to exceed $488,400 that will be paid as follows:

• One-half (1/2), $244,200, within thirty (30) days of the execution of the Definitive Agreements
• One-half (1/2), $244,200, within thirty (30) days of the first groundbreaking.

RECOMMENDATION:

Administration recommends approval.

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