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1 RESOLUTION NO. /.;? 74/
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2 RESOLUTION OF THE CITY OF SAN BERNARDINQ ESTABLISHING A
POLICY FOR THE PAYMENT OF A BROKER'S FEE TO REAL ESTATE BROKERS
3 WHO SECURE LESSEES FOR CITY OWNED PROPERTY OFFERED FOR LEASE.
4 WHEREAS, City has certain lots and parcels of real property
5 at the present time and anticipates that it will have other lots
6 and parcels in the future that are or will be surplus properties
7 that the City may determine should be offered for lease; and
8 WHEREAS, in order to accomplish the lease of the aforesaid
9 properties the services of licensed real estate brokers may be
10 necessary to locate lessees for specific lots and parcels of real
11 property; and
12 WHEREAS, the Mayor and Common Council have determined that
13 the payment of a broker's commission to any licensed real estate
14 broker who initiates, locates and effectuates the lease for any
15 of said properties as designated by the Mayor and COmmon Council
16 may be warranted and desirable; and
17 WHEREAS, City desires to establish a procedure and policy
18 whereby commissions may be paid to licensed real estate brokers
19 for obtaining such lessees for surplus City owned parcels of real
20 property,
21 NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON
22 COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS:
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SECTION 1. Subject to the terms and conditions hereinafter
24 set forth, the Mayor and Common Council of the City of San
25 Bernardino may authorize the payment of a broker's commission to
26 any real estate broker licensed by the State of California who
27 locates a prospective lessee on whose behalf such broker initiates
28 and secures an executed lease of any lot or parcel of real propert
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Idesignated by the City as being available for such lease in
accordance with the following procedures;
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(a) The Mayor and Common Council shall first designate
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that a real estate commission will be paid to a licensed real
estate broker for a particular lease transaction, and shall
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advertise that such a commission will be paid for the transaction.
(b) The licensed real estate broker shall notify the City
of San Bernardino of his intention to request a broker's commis-
sion for the transaction at the time he presents his proposed
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lessee.
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(c) No real estate broker's commission shall vest and be-
12 come due and payable to the broker until the commission is
13 approved by the Mayor and Common Council and until the lease is
14 fully executed by all parties thereto. i
15 SECTION 2. Licensed real estate brokers who obtain lesseesj
16 for designated parcels of City owned real property pursuant to
17 the foregoing shall be entitled to a brokerage commission computed
18 on the following basis:
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(a) For the total lease rentals for the first five (5)
20 years, or portion thereof, of a lease term, commissions at the
21 rate of 4 1/2' of said lease payments.
23 of a lease term, or any part thereof, commissions at the rate of
(b) For total lease rentals for the second five (5) years
24 3 1/4% of said lease payments.
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(c) For total lease rentals for years in excess of ten
26 (10) years of the lease term, commiSSions at the rate of 2% of
27 said lease payments.
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SECTION 3. Any real estate broker's commission payable
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hereunder shall be paid as follows:
(a) For a lease term of five (5) years or less, 1/2 of the
commission shall be paid upon the execution of the lease and the
remaining 1/2 shall be payable on a date one year thereafter, pro-
vided, the lease is still in effect.
(b) For a lease term of five (5) years or more, 1/2 of the
commission shall be payable upon execution of the lease and 1/2
payable one year later or, in the alternative, the payment of the
lease commission may be made pursuant to a schedule established by
the Mayor and Common Council. The determination of the Mayor and
Common Council as to the time of payments shall be final and con-
clusive.
(c) In the event any lease is legally terminated for any
reason, there shall be no commissions payable for any lease
rentals not paid by the lessee to the City; and, in the event a
licensed real estate broker has been paid a commission on rentals
not earned and unpaid because of such termination, then the real
estate broker shall, upon demand, refund to City any commissions
paid on such unearned lease payments.
(d) In the event the term is for a specific term with an
option for an additional term, no liability shall arise for any
commission for the term covered by the option until such time as
the option is exercised and the lessee legally committed for the
term of the additional term covered by the option.
SECTION 4. The City will not pay a broker's commission
for any lease which is not consummated or for a lease of real
property not specifically identified by the Mayor and Common
Council as property to be leased subject to a real estate
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broker's commission. The City shall not be obligated to pay a
I commission to any broker who is an officer or has a financial
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I interest or decision making authority with the proposed lessee
I in any lease transaction.
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I SECTION 5. In the event of any dispute covering a
I commission payable hereunder, the determination by the Mayor and
Common Council shall be final and conclusive.
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I HEREBY CERTIFY that the foregoing resolution was duly
adopted by the Mayor and. Common Council of the City of San
Bernardino .at ~ 4--4,ANh--~..I~ A'lh../~meeting thereof,
on the ~~~day Ofv1 ~ ' 1977, by the following
vote, to wit:
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The foregoing resolution is hereby
,/);7;7' 1977.
AYES:
NAYS:
ABSENT:
of
held
S r':<.{J4 day
no
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LUCILLE GOFORTH, Citytlerk
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