HomeMy WebLinkAboutE-11 - Proposed Retention Of Real Estate ConsultantCITY OF NEWPORT BEACH
OFFICE OF THE CITY MANAGER
TO: MAYOR AND CITY COUNCIL
FROM: City Manager
SUBJECT: PROPOSED RETENTION OF REAL ESTATE CONSULTANT
RECOMMENDATION:
March 24, 1969 /
C6
It is recommended that the City Council authorize the City Manager
to sign a letter of agreement with the firm of Development Research Assoc-
iates for real estate consulting services in conjunction with the Balms b
Bea Club and Beacon Bay properties,
DISCUSSION:
At the March 17 Study Session meeting, the staff reviewed a series
of real estate consulting firms which have been retained to perform real
estate economic analyses for municipal agencies in Southern California. Of
the five specific organizations discussed, the staff recommended further
consideration be given to the firms of Development Research Associates and
Real Estate Research Corporation. The City Council concurred with this
approach and requested that proposals be secured from these two firms,
analyzed and recommendation made to the City Council for consideration at
the March 24 meeting,
These two organizations were contacted and proposals were solic-
ited for staff analysis. It became readily apparent, upon review of the
two proposals submitted, that the firm of Development Research Associates
was far more capable of providing this service for the City at this time.
The proposal submitted from the firm of Real Estate Research Corporation
was very brief and the list of clients did not include any governmental
agencies in Orange County. A copy of the brief cover letter which accomp-
anied the proposal is attached for reference.
John W. McMahan, President, Development Research Associates, sub-
mitted a more detailed letter of proposal and company brochure, copies of
each of which are also attached hereto. Mr. McMahan's letter indicates that
the project coordinator who would be assisting him in analyzing the Balboa
Bay Club and Beacon Bay properties would be Mr. Dale H. Levander, Vice
President of Development Research Associates. Additional personnel would
be assigned to assist with the analysis as needed. Depending upon the
individuals used on the project, the professional fees would range from
$15 to $37.50 per hour plus direct expenses incurred in connection with
the project.
We have taken the liberty of checking with the four Orange County
municipalities mentioned in the cover letter from Development Research
Associates. Comments from each of the individuals referenced in the letter
are as follows:
Mayor and City Council
Mr. Cline F. Martin
Planning Director
Garden Grove
Mr. Harry E. Gill
City Administrator
Tustin
Darrell Dalton
City Administrator
Yorba Linda
Page 2 March 24, 1969 .
"Development Research Associates
conducted an economic base study
of the City and the impact the new
civic center facility will have on
the surrounding area. The firm will
shortly commence another study on
the impact which the proposed Hunt-
ington Beach Freeway will have on
the City of Garden Grove. The City
of Garden Grove is very pleased with
the services of Development Research
Associates and would recommend them
for the work to be undertaken by
Newport Beach."
"Development Research Associates is
now conducting an economic base
market demand study for the City of
Tustin. While the first phase out-
line has been completed and the firm
is now in the process of gathering
data for the study, the experience
we have had with the individuals
involved thus far has been very
satisfactory. We checked out the
firm very carefully with a number
of other organizations prior to re-
taining their services and entered
into an agreement for this project
primarily as a result of the recommenda-
tions of the other agencies. Dale
Levander is the project coordinator
on the economic base study and is
doing an outstanding job on the pro-
ject thus far."
"This firm is conducting both an
economic base study and an annexation
study for the colluuunity at the present
time. The relationship with the firm
and individuals involved in the pro-
ject has been outstanding. They are
very thorough and smooth in their
approach to the projects and the
experience with their contacts with
citizens in the com unity has been
excellent. In all probability, the
Mayor and City Council
Yorba Linda (continued)
Page 3 March 24, 1969
City will be further retaining this
firm to prepare a series of special
studies, including one on the impact
a specific routing of a freeway will
have on the community, cost benefit
studies on potential annexation pro-
posals and various growth pattern
alternatives for the community, and
another study on marginally producing
oil wells and ways by which these
can be eliminated. Dale Levander is
the project coordinator and is doing
a fine job on the project. As far
as I am concerned, I would not hesi-
tate to recommend their services for
the work to be undertaken in Newport
Beach."
Mr. Tarus Kozbur "Development Research Associates has
Planning Director recently finished an economic survey
Buena Park and analysis of the economic con-
ditions and outlook in Buena Park
and also analyzed and made specific
recommendations on the up -dating of
Buena Park's General Plan which was
adopted by the City Council in 1963.
The firm did a very good job; they
are very thorough and prepare a good
report. I would highly recommend
the retention of their services."
Based upon the exceptional recommendations as summarized above and
the experience which this firm has had in the Orange County area in conducting
economic analyses similar to those required by the City of Newport Beach at
this time, it would appear advisable to enter into an agreement with Devel-
opment Research Associates for consulting services on the Balboa Bay Club
and Beacon Bay properties. The opportunity of having Mr. Dale Levander
assist Mr. McMahan as the project manager is also particularly appealing
and would be of great benefit to the City on these matters. It is therefore
recommended that the City Council authorize the City Manager to sign a letter
of agreement with the firm and move ahead with the economic analyses as soon
as possible.
By:
HLH/JPD:ep
att.
HARVEY L. HURLBURT
Assistant City Manager