COUNCIL COMMUNICATION

DATE: 8-19-02	SUBJECT: FINAL READING OF ORDINANCE NO. 2002-O-205 Amending Ordinance No. 99-O-363 dated December 20, 1999, to include authorizing the payment of monetary commission to Real Estate Agents whose efforts result in leasing airport office space and/or buildings; providing for an effective date.
INITIATED BY: Cynthia Collazo Assistant City Manager		STAFF SOURCE: Jose L. Flores Airport Director
PREVIOUS ACTION: On August 5, 2002, Ordinance was introduced by City Council, and Staff was instructed to proceed. BACKGROUND: Currently the Airport Land Marketing Policy allows the airport to pay commissions to Real Estate Brokers whose efforts result in the long-term leasing of airport land, only. This proposed amendment will enable the airport to pay commissions on the leasing of office space and buildings. The monetary commission is as follows: Long-term land leases will pay the equivalent of six(6) months rent. Short-term office and building leases of one year or less will pay the equivalent of 5% of the lease. Long-term building leases more than one year will pay the equivalent of one (1) month’s rent. The following are some highlights of the policy: 1. The broker is certified by Lessee to be the procuring cause of the lease. 2. The broker certifies that he/she 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/she has represented the City’s interest in the transaction. 4. The City shall pay no commissions on breakout leases or subleases. 5. 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. 6. 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. 7. The Airport Land Marketing Policy will exclude any properties currently under negotiation.
FINANCIAL IMPACT: The enabling of leasing airport property will have a positive financial impact on airport revenues.
COMMITTEE RECOMMENDATION: The Airport Advisory Committee recommends approval.			STAFF RECOMMENDATION: That the City Manager execute the Amended Airport Land Marketing Policy.

ORDINANCE NO. 2002-O-205

AMENDING ORDINANCE NO. 99-0-363 DATED DECEMBER 20, 1999, TO INCLUDE AUTHORIZING THE PAYMENT OF MONETARY COMMISSION TO REAL ESTATE AGENTS WHOSE EFFORTS RESULT IN LEASING AIRPORT OFFICE SPACE AND/OR BUILDINGS; PROVIDING FOR AN EFFECTIVE DATE.

WHEREAS, the Airport Director recommends that the City Council approve the proposed Airport Land Marketing Policy for the Laredo International Airport, in furtherance of the development of the Laredo International Airport and as a support to the maintenance and operation of the Laredo International Airport.

WHEREAS, the Airport Advisory Board finds that said Airport Land Marketing Policy is in the best interest of the Airport; and

WHEREAS, the City Council of the City of Laredo is of the same opinion.

NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LAREDO THAT:

Section 1: The City Manager be and is hereby authorized to execute an Airport Land Marketing Policy to allow Real Estate Brokerage Participation in the leasing of land, office space and buildings at the Laredo International Airport while the City retains and reserves the right to solicit and acquire tenants through internal capabilities, a copy of which policy is attached hereto as Exhibit A, and incorporated herein as if set out at length for all intents and purposes.

Section 2: This Ordinance shall become effective upon passage hereof.

PASSED BY THE CITY COUNCIL AND APROVED BY THE MAYOR ON THIS THE ____ DAY OF ________________, 2002.

_________________________

ELIZABETH G. FLORES

MAYOR

AN ORDINANCE AMENDING THE AIRPORT LAND MARKETING POLICY

ATTEST:

_____________________________

GUSTAVO GUEVARA, JR.

CITY SECRETARY

APPROVED AS TO FORM:

JAIME L. FLORES

CITY ATTORNEY

BY:__________________________

VALERIA M. ACEVEDO

ASSISTANT CITY ATTORNEY