HomeMy WebLinkAboutResolution - 6074 - Adopt Lubbock International Land Brokerage Policy - 10_22_1998Resolution No. 6074
Item No. 30
October 22, 1998
RESOLUTION
WHEREAS, the City of Lubbock fords that there is a need for a policy regarding
land brokerage at Lubbock International Airport; and
WHEREAS, the Airport Board of the City of Lubbock approved said policy.
NOW THEREFORE;
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the City Council of the City of Lubbock hereby adopts the Lubbock
International Land Brokerage Policy. Said Policy is attached hereto and incorporated in
this Resolution as if fully set forth herein and shall be included in the minutes of the
Council.
Passed by the City Council this 22nd day of October , 1998.
1� '
APPROVED AS TO CONTENT:
AS TO FORNL:
ALSAk/Intem Airport PolicyRES
ccdocs/October 13, 1998
Resolution No. 6074
Item No. 30
October 22, 1998
LUBBOCK INTERNATIONAL AIRPORT
LAND BROKERAGE POLICY
A. The City shall allow brokerage participation in airport land leases that have an
initial term of 20 years or greater. The City will retain and reserve the right to
solicit and acquire tenants through internal capabilities.
B. The City has the sole right to accept or reject any offers to lease and no
commissions will be paid on a transaction which the City has rejected.
C. No rental rates shall be lowered solely due to the absence of broker involvement.
D. The monetary commission payable shall be established at the equivalent to the
first year's rent on the lease, subject to receipt of rental payments by lessee.
E. Commission payments deemed by the City to be incurred and payable shall be
paid at a rate of 12 %s% of the total commission at the end of each 3-month period
during the first 24 months of the lease term. Commissions shall be paid only after
scheduled lease payments have been received by the City.
F. The City shall pay a commission to a licensed real estate broker only if:
1. The broker is certified by lessee to be the procuring cause of the lease.
2. The broker certifies that he is not the lessee, an employee of the lessee, or
does not own or have substantial control over or in the lessee's business.
3. The broker certifies he has represented the City's interest in the
transaction.
Said certification shall be presented to the City on or before the effective date of
the lease.
G. The City shall pay commissions for transactions involving present lessees
acquiring additional sites provided the real estate broker meets the requirements
outlines in Paragraph F.
H. The City shall pay no commissions on any break-out leases or subleases.
I. Leasing commissions shall be established at lease onset and no adjustments shall
be made in the established commission due to changes in the lease rental rates.
J. In the event more than one broker is involved in any one -lease transaction, the
City shall only pay a single commission, which will be determined from the
certification of the lessee establishing the procuring broker.
City Council: October 22, 1998