DATE: April 10, 2018
SUBJECT:
Title
A) RESOLUTION SELECTING PROTEA PROPERTY MANAGEMENT, INC. AS THE SUCCESSFUL PROPOSER OF THE REQUEST FOR PROPOSALS (RFP 17-52ME, WATERFRONT RETAIL OPPORTUNITY) (RFP) AND CONCLUDING THE RFP, RESERVING CERTAIN RIGHTS THEREUNDER
B) RESOLUTION AUTHORIZING PROPERTY MANAGEMENT AGREEMENT BETWEEN THE SAN DIEGO UNIFIED PORT DISTRICT AND PROTEA PROPERTY MANAGEMENT, INC. (PROTEA) ENDING JUNE 30, 2021 WITH TWO OPTIONS TO EXTEND BY ONE YEAR EACH AND GRANTING PROTEA A LIMITATION OF LIABILITY AND A WAIVER OF CONSEQUENTIAL AND EXEMPLARY DAMAGES
Body
EXECUTIVE SUMMARY:
On Monday, August 28, 2017, staff issued the Request for Proposals (RFP 17-52ME, Waterfront Retail Opportunity) (RFP)1 for the interim management and operations of Seaport Village (Seaport) after the lease with Seaport Village Operating Company, LLC (SVOC)2 expires on September 30, 2018, which is currently managed by Terramar Retail Centers, LLC (TRC). Seaport consists of approximately 90,000 square feet of specialty retailers, restaurants, outdoor entertainment, and parking on an approximately 14-acre Bayfront site located at 849 West Harbor Drive in San Diego, CA (Site) (Attachment A). The District received three complete proposals from Gafcon, Inc. on behalf of Protea Property Management, Inc. (Protea), NewMark Merrill Companies (NewMark), and Stream Realty Partners, L.P. (Stream).
At the January 9, 2018 meeting, the Board of Port Commissioners (Board) conditionally selected Protea as the successful proposer to the RFP, subject to the Board's approval of a renegotiated management fee that does not include an incentive management fee, a transition fee, or leasing commissions (as the Board directed staff to remove leasing services from the scope of services). The Board's conditional selection of Protea did not conclude the RFP and the RFP remains open until the Board takes action to conclude it.
On January 24, 2018, staff received a revised management fee proposal (Rev...
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