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HomeMy WebLinkAboutDONAHUE & COMPANY, INC. - 1997-08-18Mr U 10 A, �� CITY OF HUNTINGTON BEACH 2000 MAIN STREET CALIFORNIA 92648 OFFICE OF THE CITY CLERK CONNIE BROCKWAY CRY CLERK C� i• C C C 1 C• C11Y_SOUNCI_LMEDE_VELOP.INIENT AGENCY APPROVED ITEM DATE: Name E�ji.� . • Street City, State(Zip ATTENTION• Wr-yj. -( en Utz , es DEPARTAIENT: REGARDING: f �annreru [�,�•,,/ B/�9, See Attached Action Agenda Item _ E - Z.Z Date of Approval _ ?— L- 9 7 Enclosed For Your Records Is An Executed Copy Of Tile Above Referenced Item For Your Records. Connie Brockway City Clerk Attachments: Action Agenda Page ✓ Agreement _L,,- Bonds Insurance ✓ RCA Deed Other Remarks: CC: 6P-RW aW/1 . L�velo s �eae.l��t •• ✓ ;�a a Ucpanment RCA Agrcemcnt Insurance Odtcr ,Name Department RCA Name Department RCA Risk %lanagement Department Insurance Copy Vol Agreement Insurance Othcr A2rccmcnt Insurance Other G.FollottuWagmtts transhr (Telephone: 7 t 4-536.52271 I WE V '4r . • CITY OF Nl11UTINGTON BEACH DEPARTMENT OF ECONOMIC DEVELOPMENT 2000 MAIN STREET NUNTINGTON REACH, CA 92648 (ITT Of I11T116101 li1IA TELEPHONE 714-536-55g2 PAX 714-275-50g7 LETTER OF TRANSMITTAL To: City Clerk's Office Subject Request for Proposal for Appraisal Services We are sending you 21 Description by inter -office mail by fax other Date August 27, 1997 RE., Consultants Solicited to Submit Proposal for Appraisal Services - Montgomery Ward Department Store In accordance with your memo of August 15, 1997, please be advised a distribution list of those consultants solicited was included in Attachment 2 to City Council Agenda Item E-12 of the August 18, 1997, meeting. A copy of that distribution list is also attached hereto, for your reference. Thank you. By Luzwi* r Luann Brunson DISTRIBUTION LIST Donahue &Co. Attention: Kevin Donahue, Vice President 23 Corporate Plaza Drive, Suite 160 Newport Beach, CA 92660 Telephone: 714 760.3166 Fax: 714 760.5496 Lea Associates Attention: Robert M. Lea, President 1635 Pontius Ave Los Angeles, CA 90025 Telephone: 310 477.6595 Fax: 310 914.0249 R.P. Laurain & Associates Attention: Ronald P. Laurain, SRPA and ASA 3353 Linden Avenue, Suite 200 Long Beach, CA 90807 Telephone: 562 426.0477 Fax: 562 988.2927 Losson Appraisal Company Attention: Delmer Losson, President 865 Manhattan Beach Boulevard, Suite 102 Manhattan Beach, CA 90266 Telephone: 310 546.2333 Fax: 310 546.2163 Waldron & Associates Attention: Michael F. Waldron 567 San Nicolas Drive Newport Beach, CA 92660 Telephone: 714 721.8282 Fax: 714 721.1252 5 a k.) (�D 1-4 &"Vi Council/Agency Meeting Held:_ f—/,7- T 7 Deferred/Continued to:����� S1 A proved ❑ Conditionally Approved O Denied Z�,4 , City Clerk's gignat�i Council Meeting Date: August 18, 1997 Department ID Number. ED 97-29 CITY OF HUNTINGTON BEACH REQUEST FOR REDEVELOPMENT AGENCY ACTION SUBMITTED TO: HONORABLE CHAIRMAN AND REDEVELOPMENT AGENCY MEMBERS -t SUBMITTED BY: MICHAEL T. UBERUAGA, Executive Director G� PREPARED BY: DAVID C. BIGGS, Director of Economic Development 001 SUBJECT: Approval of Contract for Appraisal Services -- Montgomery Ward Building Statement of Issue, Funding Source, Recommended Action, Alternative Action(*), Analysts, Environmental Status, Attachment(s) Statement of Issue: To help determine the continuing role of the Montgomery Ward store in the revitalization of the Huntington Beach Mall, a determination of the value of the land and buildings owned by the store by a professional appraiser would be a useful tool. Funding Source: Redevelopment operating budget, account number E-TW ED-810-3-47-00. Approve and authorize the execution by Chairperson and Clerk of the professional services contract between the Redevelopment Agency and Donahue & Company, Inc., which incorporates a waiver of errors and omissions insurance requirements, to provide an appraisal report and determination of value for the land and buildings owned by Montgomery Ward, Inc. within 90 days at a fee not to exceed $25,000.00. Alternative Astiign(s): Do not approve the attached contract. REQUEST 6 REDEVELOPMENT AGENVY ACTION MEETING DATE: August '18,1997 DEPARTMENT ID NUMBER: ED 97-29 Analysis: The entire Huntington Beach Mall occupies some 59 acres at the intersection of Edinger Avenue, Beach Boulevard and the 1-405 (San Diego) freeway. The mail was recently acquired by its former manager, Macerich, except for approximately seventeen acres of land and improvements at the west end of the site that are owned by Montgomery Ward. Since purchasing the mall, Macench has presented a conceptual plan for the revitalization of the property which calls for the demolition of most existing structures and provision of a new open air, pedestrian oriented environment with an emphasis on contemporary retail and entertainment uses including theaters and restaurants. This will create a commercial area much different than that provided some thirty years ago when the mall was built and poses the question of the long term compatibility of Montgomery Ward with the future of the mall. Determining the current value of the Montgomery Ward holdings would help formulate a response to this question and to the Agency's role, if any, in the future of the mall. In March 1997, staff distributed a Request for Proposals (Attachment No. 2) to real estate appraisal firms with experience in determining the value of major commercial facilities. Four proposals were received in response to the solicitation; Donahue & Company, Inc R.P. Laurain Lea Associates Waldron & Associates These firms were interviewed on the 12th and 13th of June by a panel consisting of the Economic Development Director, one staff person and a representative of the Agency's real estate economist, Keyser Marston Associates. The panel considered the nature and depth of experience of each firm, its corporate presence and responses to questions in the interviews, ability to perform the work timely and price to formulate the recommended action. On August 7, 1997, the Settlement Committee approved a waiver of the professional liability insurance requirements at the request of staff and Donahue & Company, Inc. A copy of the decision is included as Attachment 3. Donahue & Company does have $2 million in general liability coverage; $2 million in product liability coverage; and $1 million in personal liability coverage. RAA97-29.DOC -2- 08108197 9:27 AM REQUEST &R REDEVELOPMENT AGENCY ACTION MEETING DATE: August 18, 1997 DEPARTMENT ID NUMBER: ED 97-29 Environmental Status: NA Attachments): 1 Appraisal Contract 2 Request for Proposals 3 Settlement Committee Decision RAA97-29.DOC -3- 08/08/97 9:27 AM u u Appraisal Contract ATTACHMENT #1 PROFESSIONAL SERVICES CONTRACT BETWEEN THE REDEVELOPMENT AGENCY OF THE AGENCY OF HUNTINGTON BEACH AND DONAHUE & COMPANY FOR APPRAISAL OF MONTGOMERY WARD PROPERTY THIS AGREEMENT, made and entered into this 18th day of August , 1997, by and between the Redevelopment Agency of the City of Huntington Beach, a political body of the State of California, hereinafter referred to as "AGENCY", and DONAHUE & COMPANY, a California corporation, hereinafter referred to as "CONSULTANT." WHEREAS, AGENCY desires to engage the services of a consultant for appraisal of Montgomery Ward property in the City of Huntington Beach; and Pursuant to documentation on file in the office of the City Clerk, the provisions of HBMC Chapter 3.03 relating to procurement of professional service contracts has been complied with; and CONSULTANT has been selected to perform said services, NOW, THEREFORE, it is agreed by AGENCY and CONSULTANT as follows: WORK STATEMENT CONSULTANT shall provide all services as described in the Request for Proposal, and CONSULTANT's proposal dated April 15, 1997 (hereinafter referred to as Exhibit "A"), which is attached hereto and incorporated into this Agreement by this reference. Said services shall sometimes hereinafter be referred to as "PROJECT." CONSULTANT hereby designates Kevin J. Donahue, who shall represent it and be its sole contact and agent in all consultations with AGENCY during the performance of this Agreement. 2. AGENCY STAFF ASSISTANCE AGENCY shall assign a staff coordinator to work directly with CONSULTANT in the performance of this Agreement. 7/k/&.ap:ddom&ue/&/12/97 3. TIME OF PERFORMANCE Time is of the essence of this Agreement. The services of the CONSULTANT are to commence as soon as practicable after the execution of this Agreement and all tasks specified in Exhibit "A" shall be completed no later than three (3) months from the date of this Agreement. These times may be extended with the written permission of the AGENCY. The time for performance of the tasks identified in Exhibit "A" are generally to be shown in the Scope of Services on the Work Program/Project Schedule. This schedule may be amended to benefit the PROJECT if mutually agreed by the AGENCY and CONSULTANT. 4. COMPENSATION In consideration of the performance of the services described herein, AGENCY agrees to pay CONSULTANT a fee not to exceed Twenty -Five Thousand Dollars ($25,000). 5. EXTRA WORK In the event AGENCY requires additional services not included in Exhibit "A," or changes in the scope of services described in Exhibit "A," CONSULTANT will undertake such work after receiving written authorization from AGENCY. Additional compensation for such extra work shall be allowed only if the prior written approval of AGENCY is obtained. 6. METHOD OF PAYMENT A. CONSULTANT shall be entitled to progress payments toward the fixed fee set forth herein in accordance with the progress and payment schedules set forth in Exhibit "A". B. Delivery of work product: A copy of every technical memo and report prepared by CONSULTANT shall be submitted to the AGENCY to demonstrate progress toward completion of tasks. In the event AGENCY rejects or has comments on any such product, AGENCY shall identify specific requirements for satisfactory completion. Any such product which has not been formally accepted or rejected by AGENCY shall be deemed accepted. 2 7Wg:ag xJdonahue/8/12/97 V LE C. The CONSULTANT shall submit to the AGENCY an invoice for each progress payment due. Such invoice shall: 9) Reference this Agreement; 2) Describe the services performed; 3) Show the total amount of the payment due; 4) Include a certification by a principal member of the CONSULTANTs firm that the work has been performed in accordance with the provisions of this Agreement; and completed. 5) For all payments include an estimate of the percentage of work Upon submission of any such invoice, if AGENCY is satisfied that CONSULTANT is making satisfactory progress toward completion of tasks in accordance with this Agreement, AGENCY shall promptly approve the invoice, in which event payment shall be made within thirty (30) days of receipt of the invoice by AGENCY. Such approval shall not be unreasonably withheld. If the AGENCY does not approve an invoice, AGENCY shall notify CONSULTANT in writing of the reasons for non -approval, within seven (7) calendar days of receipt of the invoice, and the schedule of performance set forth in Exhibit "A" shall be suspended until the parties agree that past performance by CONSULTANT is in, or has been I brought into compliance, or until this Agreement is terminated as provided herein. D. Any billings for extra work or additional services authorized by AGENCY I shall be invoiced separately to the AGENCY. Such invoice shall contain all of the information I i required above, and in addition shall list the hours expended and hourly rate charged for such I time. Such invoices shall be approved by AGENCY If the work performed Is in accordance 1 with the extra work or additional services requested, and if AGENCY is satisfied that the statement of hours worked and costs incurred is accurate. Such approval shall not be unreasonably withheld. Any dispute between the parties concerning payment of such an 3 7;ti&,Vve4m&h►oV12/97 invoice shall be treated as separate and apart from the ongoing performance of the remainder of this Agreement. 7. DISPOSITION OF PLANS, ESTIMATES AND OTHER DOCUMENTS CONSULTANT agrees that all materials prepared hereunder, including all original drawings, designs, reports, both field and office notices, calculations, maps and other documents, shall be turned over to AGENCY upon termination of this Agreement or upon PROJECT completion, whichever shall occur first. In the event this Agreement is terminated, said materials may be used by AGENCY in the completion of PROJECT or as it otherwise sees fit. Title to said materials shall pass to the AGENCY upon payment of fees determined to be earned by CONSULTANT to the point of termination or completion of the PROJECT, whichever is applicable. CONSULTANT shall be entitled to retain copies of all data prepared hereunder. 8. INDEMNIFICATION AND HOLD HARMLESS CONSULTANT hereby agrees to indemnify, defend, and hold and save harmless AGENCY, its officers and employees from any and all liability, including any claim of liability and any and all losses or costs arising out of the negligent performance of this Agreement by CONSULTANT, its officers or employees. 9. WORKERS COMPENSATION CONSULTANT shall comply with all of the provisions of the Workers Compensation Insurance and Safety Acts of the State of California, the applicable provisions of the California Labor Code and all amendments thereto; and all similar state or federal acts or laws applicable; and shall indemnify, defend and hold harmless AGENCY from and against all claims, demands, payments, suits, actions, proceedings and judgments of every nature and description, including attorney fees and costs presented, brought or recovered against AGENCY, for or on account of any liability under any of said acts which may be incurred by reason of any work to be performed by CONSULTANT under this Agreement. 4 7/k/g:aVve/donahue/8/12/97 IV W" CONSULTANT shall obtain and furnish evidence to AGENCY of maintenance of statutory workers compensation insurance and employers liability in an amount of not less than $100,000 bodily injury by accident, each occurrence, $100,000 bodily injury by disease, each employee, and $250,000 bodily injury by disease, policy limit. 10. INSURANCE In addition to time workers compensation insurance and CONSULTANT's covenant to indemnify AGENCY, CONSULTANT shall obtain and furnish to AGENCY the following Insurance policies covering the PROJECT: A. General Liability Insurance A policy of general public liability insurance, including motor vehicle coverage. Said policy shall indemnify CONSULTANT, its officers, agents and employees, while acting within the scope of their duties, against any and all claims of arising out of or in connection with the PROJECT, and shall provide coverage in not less than the following amount: combined single limit bodily injury and property damage, including products/completed operations liability and blanket contractual liability, of $1,000,000 per occurrence. If coverage Is provided under a form which includes a designated general aggregate limit, the aggregate limit must be no less than $1,000,000. Said policy shall name AGENCY, its officers, and employees as Additional Insureds, and shall specifically provide that any other insurance coverage which may be applicable to the PROJECT shall be deemed excess coverage and that CONSULTANTS insurance shall be primary. B. Professional Liability Insurance. CONSULTANT shall acquire a professional liability insurance policy covering the work performed by it hereunder. Said policy shall provide coverage for CONSULTANTS professional liability in an amount not less than $1,000,000 per claim. A claims made policy shall be acceptable. S 7.'klg:aVv-J onahuaW12/97 11. CERTIFICATES OF INSURANCE: ADDITIONAL INSURED ENDORSEMENTS Prior to commencing performance of the work hereunder, CONSULTANT shall furnish to AGENCY certificates of insurance subject to approval of the City Attorney evidencing the foregoing insurance coverages as required by this Agreement; said certificates shall: 1. provide the name and policy number of each carrier and policy; 2. shall state that the policy is currently in force; 3. shall promise to provide that such policies will not be canceled or modified without thirty (30) days prior written notice of AGENCY, except for cancellation in event of non-payment or non reporting of payroll, in which case notice shall be 10 days. CONSULTANT shall maintain the foregoing insurance coverages in force until the work under this Agreement is fully completed and accepted by AGENCY. The requirement for carrying the foregoing insurance coverages shall not derogate from the provisions for indemnification of AGENCY by CONSULTANT under the Agreement. AGENCY or its representative shall at all times have the right to demand the original or a copy of all said policies of insurance. CONSULTANT shall pay, in a prompt and timely manner, the premiums on all insurance hereinabove required. 12. INDEPENDENT CONTRACTOR CONSULTANT is, and shall be, acting at all times in the performance of this Agreement as an independent contractor. CONSULTANT shall secure at its expense, and be responsible for any and all payment of all taxes, social security, state disability insurance compensation, unemployment compensation and other payroll deductions for CONSULTANT and its officers, agents and employees and all business licenses, if any, in connection with the services to be performed hereunder. 13. TERMINATION OF AGREEMENT All work required hereunder shall be performed in a good and workmanlike manner. AGENCY may terminate CONSULTANT's services hereunder at any time with or 6 7/k/g:agred&nahue/8/12/97 without cause, and whether or not PROJECT is fully complete. Any termination of this Agreement by AGENCY shall be made in writing, notice of which shall be delivered to CONSULTANT as provided herein. 14. ASSIGNMENT AND SUBCONTRACTING This Agreement is a personal service contract and the supervisory work hereunder shall not be delegated by CONSULTANT to any other person or entity without the consent of AGENCY. 15. COPYRIGHTS/PATENTS AGENCY shall own all rights to any patent or copyright on any work, item or material produced as a result of this Agreement. 16. AGENCY EMPLOYEES AND OFFICIALS CONSULTANT shall employ no AGENCY official nor any regular AGENCY employee in the work performed pursuant to this Agreement. No officer or employee of AGENCY shall have any financial interest in this Agreement in violation of the applicable provisions of the Califomia Govemment Code. 17. NOTICES Any notice or special instructions required to be given in writing under this Agreement shall be given either by personal delivery to CONSULTANT's agent (as designated in Section 1 hereinabove) or to AGENCY's Director of Economic Development as the situation shall warrant, or by enclosing the same in a sealed envelope, postage prepaid, and depositing the same in the United States Postal Service, addressed as follows: TO AGENCY: TO CONSULTANT: Director of Economic Development City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 Kevin J. Donahue, Vice President Donahue & Company 23 Corporate Plaza Drive, Suite 160 Newport Beach, CA 92660 fd 7/k/g:ag ddonahue/8/12/97 18. IMMIGRATION CONSULTANT shall be responsible for full compliance with the immigration and naturalization laws of the United States and shall, in particular, comply with the provisions of the United States Code regarding employment verification. 19. LEGAL SERVICES SUBCONTRACTING PROHIBITED CONSULTANT and AGENCY agree that AGENCY is not liable for payment of any subcontractor work involving legal services, and that such legal services are expressly outside the scope of services contemplated hereunder. CONSULTANT understands that pursuant to Huntington Beach City Charter Section 309, the City Attorney is the exclusive legal counsel for AGENCY; and AGENCY shall not be liable for payment of any legal services expenses incurred by CONSULTANT. 20. ATTORNEY'S FEES In the event suit is brought by either party to enforce the terms and provisions of this agreement or to secure the performance hereof, each party shall bear its own attorney's fees. REST OF PAGE NOT USED 7ndg:agreadonanuct8/12/97 21. ENTIRETY The foregoing, and Exhibit "A": attached hereto, set forth the entire Agreement between the parties. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their authorized offices the day, month and year first above written. DONAHUE & COMPANY, INC. By: �e — v' J.-Donahue, Vice President U W N ca F. z0e =A-je print name ITS: (circle one) Secretary/Chief Financial REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a political body of the State of California Chairman ATTEST: o Agency Clerk Officer/Ass ecretary - Treasure APPROVED AS TO FORM: R VIEWED AND AP ROVED: ti-Abency Counsel g-13-T7 8� Executive irector:06-ITI TED AND( APP O ED:ow Director of Economic Development 7/k/g:agrec1&nahue/&/12/97 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 PROFESSIONAL SERVICES CONTRACT BETWEEN THE REDEVELOPMENT AGENCY OF THE AGENCY OF HUNTINGTON BEACH AND DONAHUE & COMPANY FOR APPRAISAL OF MONTGOMERY WARD PROPERTY Table of Contents WorkStatement...................................................................................................1 CityStaff Assistance............................................................................................2 Time of Performance............................................................................................2 Compensation......................................................................................................4 ExtraWork..........................................................................................................2 Methodof Payment..............................................................................................2 Disposition of Plans, Estmates and Other Documents.........................................4 Indemnification and Hold Harmless......................................................................4 Workers' Compensation.......................................................................................5 Insurance..............................................................................................................5 Certificates of Insurance......................................................................................6 Independent Contractor.......................................................................................7 Termination of Agreement..................................................................................7 Assignment and Subcontracting..........................................................................7 Copyrights/Patents..............................................................................................7 City Employees and Officials...............................................................................8 Notices................................................................................................................7 Immigration..........................................................................................................8 Legal Services Subcontracting Prohibited...........................................................8 AttorneyFees......................................................................................................9 Entirety................................................................................................................9 7,1dgag w/dauhueW17J97 XAI 1� A 41 JOHN C. DONAHUE. MAI KEVIN J. DONAHUE BARBARA L. ZACHRY. MAI SYDNEY H. HAWRAN, MAI JEFF KAUTTU LAWRENCE M. MAXWELL MICHAEL HURST MARK J. DORRIS OANSEL A. LUK£5 DONAFiUE F3 COMPANY, INC. PROPERTY AND URBAN ECONOMICS 23 CORPORATE PLAZA DRIVE SMITE 160 NEWPORT BEACH. CALIFORNIA 92e6o Mr. Stephen V. Kohler, Project Manager Re: Department of Economic Development City of Huntington Beach 2000 Main Street City of Huntington Beach, California 92648 Dear Mr. Kohler: TELEPHONES: (714) 760-3166 (600) 734-0074 FACSIMILE: (714) 760-5496 April 15, 1997 Appraisal Services Proposal Montgomery Ward Department Stare Our Proposal No. 4256 We are pleased to respond to your request for appraisal services on the herein described property. The subject property consists of a vacated store building formerly doing business as 'Montgomery Ward', a discount retail department store. Although separately owned, the store building is part of the greater Tuntington Beach Mall' located at the confluence of the San Diego (1-405) Freeway, Beach Boulevard and Edinger Avenue. The Montgomery Ward property contains approximately 15.5 acres of commercially zoned land area. Improvements situated thereon consist of a 181,000 square foot store building, 12 bay automotive service center, and a 150 square foot kiosk. Special construction measures were necessary to mitigate the high peat content within the soil. Statement of Qualifications Donahue & Company has been providing real estate appraisal and consulting services in Orange County for over 30 years. We have completed all types of residential and commercial valuation assignments. Litigation support, to include trial testimony, arbitration and mediation, is one of the firm's specialties. Please refer to the attached Corporate Profile for additional details regarding our qualifications and general experience. An abbreviated staff resume is also contained therein. Direct Experience Pertinent to this Assignment and Client References Donahue & Company has completed numerous assignments involving similar characteristics to the Montgomery Ward project. Details are provided on a few recent assignments and references you may contact related to our performance: V Mr. Stephen V. Kohler 2- April 15, 1997 Direct Experience Pertinent to this Assignment and Client References (cont.) * Anaheim Plaza, Anaheim, California Donahue & Company provided varied consulting services on this project for over two (2) years. During this time, we completed a highest and best use analysis, marketing studies and provided analysis related to re -posturing the subject mall. Additional work accomplished included a leasehold analysis of 'The Broadway' department store. Please contact: Mr. Robert M. Zurschmiede (714) 254-4300 Property Services Manager Anaheim Redevelopment Agency 201 South Anaheim Boulevard Suite 1003 Anaheim, California 92805 * 'Bullock's, La Habra Fashion Square, La Habra, California Analysis completed includes extensive highest and best use analysis followed by valuation of fee simple interest. Retrofitting the existing improvements to accommodate an alternative use was also addressed in this report. Please contact: Mr. Larry Thompson (310) 478-7516 Dolle & Dolle Attorneys at Law 11766 Wilshire Boulevard Suite 1450 Los Angeles, California 90025 Atlantic Square Shopping Center, Monterey Parr California This assignment was completed for the City of Monterey Park Redevelopment Agency. Analysis included the current fair market value of the property's fee simple estate. At the time of appraisal, Mr. Keith Breskin was the project coordinator for the RDA; he has since left. Please contact his replacement for reference purposes: Mr. Calvin Tainatongo (818) 307-1259 City of Monterey Park 320 West Newmark Avenue Monterey Park, California 91754 Hourly Rate Schedule Attached to this proposal please find a copy of Donahue & Company's Two Tier Rate Schedule, with reference to our court testimony billing schedule. U U Mr.' Stephen V. Kohler -3- April 15, 1997 Fee Proposal Donahue & Company proposes to appraise the current fair market value of the subject property's fee simple interest. Leasehold and/ or leased fee analysis are not included herein, although we will provide these services at additional cost if requested. Due to the complex nature of this assignment and the question as to the property's highest and best use, we propose a two (2) phase analysis of this subject. Phase I: In this phase, we will contact the property owner in accordance with California Eminent Domain Law, complete a thorough onsite inspection, investigate public records and legal restrictions impacting the subject and analyze its highest and best use possibilities. Having completed this Phase, we will complete one (not both) of the two valuation scenarios listed below. Please note that the fee for Phase I is included in the lump sum estimates for Phases IIA and IIB below. Phase IIA: This analysis assumes that the our conclusion of highest and best use is as if vacant; that is to say the improvements are determined to be non- contributory to value. Land sale data will be gathered, confirmed and analyzed for use in the Sales Comparison Approach, with demolition costs to remove said improvements also considered. Under this scenario, our lump sum appraisal fee is proposed. at $15,000 total. Should our analysis indicate contributory value to the existing improvements, it will be necessary to do additional research and valuation. Phase IIB: Should our highest and best use analysis indicate that the existing subject improvements contribute a value increment over and above the concluded land value, it will be necessary to complete additional valuation analysis. We will consider both the Sales Comparison and Income Capitalization Approaches to value. Comparable Rental and Sale Data will be gathered; industry publications referencing rates of return will be analyzed. Under this scenario, our lump sum appraisal fee is proposed at $25,000 total. Estimated Delivery Schedule Under either valuation scenario, we propose to prepare three (3) copies of a summary format narrative appraisal document. As is our policy, all work will be completed in conformance with, and subject to, the Standards of Professional Practice and Code of Ethics of the Appraisal Institute and the Uniform Standards of Professional Appraisal Practice (USPAP). Assuming your prompt authorization to proceed, we anticipate commencing this assignment approximately June 1, 1997. Estimated delivery is 60-90 days, depending on the outcome of Phase I, the cooperation of the property owner and the availability of necessary information. We request the City provide us with a current title report for the subject property. Mr. Stephen V. Kohler 4- April 15, 1997 In summary, this is a complex valuation problem requiring considerable analysis. We are confident that Donahue & Company can exceed the City's performance expectation and provide valuable information related to your proposed project. Thank you for the opportunity to propose on your appraisal needs. Respectfully submitted, PROPOSAL ACCEPTANCE: DONAHUE & COMPANY, INC. Date By Kevin J. Donahue Vice President Title attachments iLJD:kjd L) RATE SCHEDULE effective January 1, 1997 Due to the diversity of assignments undertaken by our firm, all bids are project -specific. Large projects or those of extended duration may benefit from economies of scale. Where required, appraisal assignments are proposed as lump sum rather than at hourly rates. In complex matters, or when litigation support is necessary, Donahue & Company utilizes a Two Tier hourly rate schedule, with each tier defined as follows: Tier A Hours: This category applies to time spent in a) initial appraisal investigation and subsequent report preparation, b) attorney/client conferences, and c) pretrial preparation including trial notebook, statements of valuation and court exhibit preparation. Tier B Hours: Hours spent in either a) deposition, b) arbitration and/or c) actual trial testimony, including standby, are billable under Tier B rates. Tier A Tier B Senior Appraisers: John C. Donahue, MAI $275 $350 Barbara Zachry, MAI $200 $250 Sydney H. Hawran, IvMl $200 $250 Kevin J. Donahue $150 $225 Jeffrey A. Kauttu $150 $225 Larry Maxwell $150 $225 Staff Appraisers: Michael Hurst $125 $175. Research Personnel $75 N/Ap. Administrative Assistance $35 NIAp. In addition to hourly billings, expenditures incurred for sub -consultants, trial exhibits, messenger services, aerial photographs, etc. will be passed through to the client, with invoice copies attached to the monthly statements. A ten percent (1091o) administrative fee will be added to all pass - through expenses. DONAH E. & COMPANY, INC. U U DONAHUE & COMPANY, INC. CORPORATF,_PROFILF, Donahue and Company is a full service forensic real estate appraisal firm, currently comprised of six senior level analysts, one staff appraiser, a research department and secretarial staff. The company has been in operation locally for 34 years, with broad experience throughout Southern California and the western United States. An extensive in-house research Iibrary is maintained to provide resourceful and reliable information in order to ensure the completion of appraisal assignments in a timely manner. An extensive client list of public agencies, financial institutions, corporate and private clients is available upon request. The firm specializes in litigation related appraisal, inclusive of eminent domain. In addition to collective appraisal experience, senior personnel have significant related professional backgrounds in the areas of title insurance, right-of-way acquisition, land planning, engineering and relocation assistance. This diversity and working knowledge of the State and Federal acquisition guidelines and eminent domain law, as applied to appraisal practice, is of great assistance in undertaking appraisals and/or right-of-way consultation. Pertinent professional background and related experience qualifications are detailed in individual staff resumes. Donahue and Company is currently insured in conformance with required Commercial General Liability and Automobile Liability Coverage. All employees of Donahue and Company are covered by State Workers Compensation. The following is a brief synopsis of each appraiser's resume. John C. Donahue, MAI, President and Chairman of Donahue & Company, Inc., has been a real estate appraiser since 1963. Related experience includes serving as a County of Orange Right -of -Way Agent, and as an acquisition agent from 1959 to 1963. He has a B.A. degree from Whittier College and attended law classes 1961-1963 at Southwestern Law University. The Appraisal Institute (previously the American Institute of Real Estate Appraisers) designated Mr. Donahue as Member Number 5998 in November 1979, and he is currently certified under the Institute's Voluntary Continuing Education Program. In addition, he is a charter member of the Orange County Chapter of the International Right -of -Way Association and has served as a speaker, instructor and lecturer for many professional organizations throughout California. Mr. Donahue is also a California State Certified General Real Estate Appraiser. Specializing in litigation support services, John Donahue's reputation as a forensic witness is prominent throughout the State. He has testified in the Superior Courts of all Southern California Counties, Federal Bankruptcy Court and before Property Tax Appeal Boards. Valuation specialties include all eminent domain -related fields, transportation corridors, easement valuation and mitigation properties. v u -2- Barbara Zachry, MAT, Senior Appraiser, entered the appraisal profession in 1983, joining Donahue & Company in 1986. Related experience includes serving as a Real Property Agent and an Assistant Right -of -Way Agent for the City of Fullerton. She obtained an MA Degree from California State University, Fullerton, a BA Degree from University of California at Los Angeles and was designated as a member of The Appraisal Institute in 1994. Mrs. Zachry specializes in appraising investment grade properties, right-of-way acquisition and all matters relating to eminent domain law. Clientele served included financial institutions, public agencies, law firms and private industry. She is qualified as an expert witness in Orange County Superior Court. Kevin J. Donahue, Senior Appraiser and Vice President of Donahue & Company, joined the firm in 1986. He obtained a BA Degree in finance, concentrating in real estate studies, from California State University, Fullerton. Mr. Donahue is a candidate for the MAI designation and a California State Certified General Real Estate Appraiser. In addition, Mr. Donahue is a member of the International Right -of -Way Association, Chapter 67. He has completed several courses and professional development seminars offered by the Appraisal Institute. Mr. Donahue specializes in full and partial takings in eminent domain matters, special purpose properties, easement acquisition and public agency work. Additional duties as Vice President include contract procurement, production control and personnel management. Sydney H. Hawran, MAI, Senior Appraiser, a native Southern Californian, began her real estate career in 1983. Ms. Hawran was educated at the University of California at Los Angeles and has developed a specialty in the area of Right -of -Way appraisal after spending eight years with the State of California Department of Transportation. Ms. Hawran is a State Certified General Real Estate Appraiser. In the International Right -of - Way Association (IRWA), she recently served as President and International Director for the Orange County Chapter. Ms. Hawran is also an approved Instructor of Standards of Professional Appraisal Practice for the Appraisal Institute and a Certified Appraisal Instructor for IRWA. She has been active in committee leadership of the Southern California Chapter of the Appraisal Institute and is serving as Vice President of the Chapter this year as well as a regional representative. Her work includes a broad range of appraisal assignments for acquisition, condemnation, litigation support and Iending purposes. Ms. Hawran has undertaken significant assignments, being responsible for providing real estate analysis and studies, with emphasis on narrative appraisal assignments within all major real estate categories. Other significant experience includes partial takings and damage analysis for large land holdings and major income properties for eminent domain acquisition purposes. V -3- Jeff Kauttu, Senior Appraiser, joined Donahue & Company in 1991, following eleven years as a title/escrow officer in the Pacific Northwest. He earned a BA Degree from Gordon College and completed two years at the University of Puget Sound School of Law from 1980 to 1982. Mr. Kauttu is a candidate for the MAI designation and has completed all of the required courses offered by the Appraisal Institute. Mr. Kauttu has qualified as an expert witness and has testified in the Superior Court of the County of San Diego, Federal Bankruptcy Court and the U.S. Court of Federal Claims. He has also been designated as an expert witness in litigation in Ventura, Santa Barbara, Riverside and Orange Counties. Mr. Kauttu has experience in the appraisal of commercial, industrial and residential properties. He specializes in the appraisal of environmentally sensitive land, including wetlands and endangered species habitat. Mr. Kauttu's other specialized experience includes the appraisal of public and private beaches, lakes, marinas and in properties subject to fractional interest discounting and historic designation. Lawrence Al. Maxwell, Senior Appraiser, was with Donahue & Company from 1966 to 1969 and then again from 1986 to the present. He has a bachelor's degree in civil engineering earned from the University of Southern California, Los Angeles and has completed numerous appraisal related courses offered by various institutions. Mr. Maxwell's litigation experience and qualification as an expert witness have proven to be successful both in Riverside County and San Bernardino Superior Courts. Mr. Maxwell is a California'State Certified General Real Estate Appraiser. Michael Hurst, Staff Appraiser, joined Donahue & Company in 1994 as a Researcher and quickly proved himself to be a prime candidate for Appraisal Assistant to John Donahue, President. With a valuable background in residential appraisals for financing purposes, Mr. Hurst has completed several multi -parcel appraisal assignments including vacant and improved residential and commercial properties. Detailed resumes for each appraiser are available upon request. LOG f` i ASSIGNED T T -DATE 2 2— CITY OF HUNTINGTON BEACH ''••.r Interoffice Communication Economic Development Department �> i TO: Settlement Committee oo FROM: David C. Biggs, Director of Economic Development `{ -- DATE: July 21, 1997 SUBJECT: Requestfor Waiver of Professional Liability Donahue & Company We want to hire Donahue & Company, a Newport Beach appraisal firm, to appraise the Montgomery Ward department store located at Huntington Center Mall. Approximately one month ago, staff interviewed four appraisal firms that had responded to a Request for Proposals (RFP). A representative of Keyser Marston Associates (KMA), the Department's financial consultant, also assisted in the interview process. Donahue and Company ranked the highest of the four firms due to its expertise with public sector clients and experience with eminent domain appraisals. This firm is extremely well qualified for the assignment. After reviewing the City's new insurance requirements, we discovered that Donahue does not meet the requirement for professional liability insurance. Donahue doe s-have 'general liability coverage in the amount of $2 million and workers compensation'uisu_ raii&, (see Attachment No. 1). Also attached is a letter from Donahue explaining why .the'afirrii 'does F.notM; c .,,- .;���, : - ` may' �'-•� "''" � ^ n ...emu'; ; �tF'\sT _r � professional liability and why it dropped such coverage overnine�years ago (Attaclimenf -ti �_' ;.='. •_,' No. 2). Further, the results of a telephone survey of the other,.firms involved�uitlie process are attached (Attachment No. 3). As you cansee, the 'tw '-most'qualifiecltfir .� -? f'{ - { 1 7 �-.-rylr,4�`' `Ga-{; 1 •!:.'w 5'�.'s �,��:. for the assignment do not have the required insurance. ,-, Xy'-P hird clauns : to have :ti t•a-- `+�:'>f'r-".: '�.r-�7sY #�t`'"`�aa, �r'`c;,yi, ,,t^tii..��`«_y,•a ��. professional liability (unverified); and the fourth did not resporid'to- oulry. .i�yi` ,�{�'a'•"r�x�:;'-'•zAi:�ii ^� -+S.-�,:? Given the limited risk associated with the type of work to be performed and%e provisioT,i'�._n, of insurance that otherwise meets or exceeds City. requirements `mould -request Settlement Committee waive the professiong-liability,regturement: Thank you in advance for your consideration. DCB:GAB:Is �'h r- ,s �l,< g0 Attachmentsyy^��{{���]V °��q',.�•�`~ ��R"y�,.�. JLL-08-1997 13:48 HRH Insurance of Orange P.© /03 A rQAVti DATZ IN YY? 07109M CERTifiCATE t3 iS$U£D AS A MATTER OF INFQFlMAT70N 1R09VCER 71Ai ArrttstronglKobitaille Y AND CONFERS NO RIGHTS UPON THE CERTIFICATE DER. TH CFRTIFlCAT& DOES NOT RIItEND, EXTEND OR Insurance Services €R THE COVERAGt AFFORDED BY THE POLICIES BELOW. P.O. Xiox 34009 COMPANIES AFFORDING COYERACE Fullerton, CA 92834.4009 co A.r�Y ITT - Hartford .swam Donahue & Company Inc. COUPAW 8 23 Corporate Plaza Drive, #160 Newport Beach, CA 92660 COUPA. C ONPANY D BA1I THIS IS TO CEATIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE K N ISSUED TO THE INSURED FLAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT. TERM OR OOND(TION OF ANY CONTRACT OR OTKER DOCUMEM WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIK ikE INSURANCE AFFORDED BY WE POLICIES DESCRIBED HEREIN IS SUBJECT' TO ALL THE TERMS. EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS $MOWN MAY HAVE BEEN REDUCED 8Y PAID CLAtmS. L� TYPE OasKVAAMCE VOUCYNVIIICR DPOLICYITFECTIYE (1OA9QrTQ "UCY[7D'IRATHM DATE (Y WT Q'M tJYfTs A 'u I"fury COMMERCLALGENEAALTIA'BILRY 7=ADL3789 evict" 02110197 GENEPM AGGlfO1TE s 2.1WjM0 1`15100uCTS-CaMMOVAGG S 2 OUO CLAMS MADE © OCCUR PERSONAL d AOY WUMY s I.M.000 EACHOCCUaREMN f 1,0001000 C+KrERbdCONfItACTCPCSPRCi FIRE DA1eAGE Nw OM MT f 300.0m LIED IXP( Mrpvjt� A AUTOIt08LELIASIUTY X ANY AUTO 72i1 CJZ6621 01l10196 MOM, CoMe++IEOsIMCtIcLIMrT s 10" ,0� 60MY VWRY (PK wwo _ ALL VA7ED AUTOS eCHEDUED AUTOS Y = ai emc AUros R�.=o"vIf x ".-O^E0A=3 APE:oY�..f; 1.5 GAIT, FP"' tT?' .0 FOIi,'d:1 MSOPEMYDAMAW i ARAc>' cUAIIUT'Y CITY A-i - —,j�7 'Y AuraONLY-EAACCRXNT i OTKA THAN AUTO ONLY1. ANYAUTO By.: EAO4ACCIOtW 2 r )Attoxrpr S 17IGE33 UA61LITT EACH OC "kElvM S AGGPE'JATE f UMBRELLA FORM f FT1N" TK" U UNWILLA Ffl " wo"KjowCoiurKMAT10MAHo A r T ~ ra CLFAC'HAOCCDCW S EIlPLDYEarL"&ffY A00'L I�""•'-- tLDcSEASE.POLlCYUMIT s n1leFROPPI TOw p PAR}TEI-%WC>, ME OFFTCER8 ARE: EXCL -"_ - :..:..; i-A HED} FL t'SS¢AU • EA EMPLOYEE f oTlsie DEYCMPTgNOF OPERATWX4WL0CATTOKWEMACi %WII4AiFTELTI Certificate bolder Includes City of 11antington Htac1T. its agents, officers, and employees. Certificate holder is ITarntd as Additional Insured as per CG2010 attached. 6"MD AKY OF THE AsOYE DESCM&ED POU= BE CANC i_esD ■UVRE TTsi City of ll u3tkWan beach M RATION DATE T1TEElKO►. TTTE TS' *Q COWANY WILL PROMM300M WA 2000 Win Street 30_ DAYa TYRRTEli NT7TICE SD THE CLRTTflCAIrt MOLDER NAKED Tn THe LEFT. Huntington Beach, CA 92648 • At,TTsORQ F1R['iExTAT1Yrt Attachment 1 to Attachment 3 page 1 of 3 iu�-r�ti-1Jy� 1.�-4y HKH insurance of uran$e P.03/03 V V POLICY NUMBER: 72SBADL3769 • , r � COMMERCIAL GENERAL LIASIL17Y THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDITIONAL INSURED - OWNERS, LESSEES or CONTRACTORS [Form B] This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART SCHEDULE Name of Person or Organization: City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 (If no entry appears above, information required to complete this endorsement will be shown in the Declarations as applicable to this endorsement) WHO IS AN INSURED (Section li) is amended to include as an insured the person or organization shown in the Schedule, but only with respect to liability arising out of `your work' for that Insured by or for you. Certificate holder Includes City of Huntington Beach, its agents, officers, and employees. Certificate holder is named as Additional Insured as per CG2010 attached. Attachment 3 to Attachment 3 CG 20 1011 85 Copyright, Insurance Service Office, Inc.,19i34 Page 2 of 3 TOTAL P.03 I?r OU/1-:0,I 13: d3 C I reAmerk . C O M P E N S A T I O N Camtmc:tae Coc>pes+e dm A LbbIBry L urame Compels CERTIATE OF INSURANCE ISSUE DATE 07/08/97 P19*D CE:R T►I16 CERTIFICATE tS IMUED AS A FLATTER OF INFORMATION ONLY ANO CONFERS CATCaT3tCr1C2l OLdICatC) NO Rzwa uPON THE CCRnFICAT$ HOLDER. Twig C0MFIC4TE DOES NOTAUEND, EMNO OR ALTER THE COVERAGE AFFORDEO BY THE POupES BELCw 6300 Canoga Avenue Woodland Hills. CA 91367 COMPANIES AFFORDING COVERAGE awpmy LrffFA A CweAmeric>a Compens4oa & Liability Insurance Comp=y case 0344A GUO-MIX COMPANY LETTER 1117UR£D COMPANY LETTER G Donahue And Co.. Inc. 23 Corpwatc Plaza Drive 9160 NewportBeach. CA 92660 CIONIPA.NY tETMR D COMPANY LETTER COVERAGES THIS IS TO CERTIFY THAT 7WE POLICIES OF INSURANCE LISTED $ELOW KAYE BEEN MUM TO THE INSURED NAME ABOVE FOR T41E VMIC1 PERIOD INDICATED, NOTWITHSTANDING ANY RECUIREVEYT. TERM OF CONDITION OF ANY CONTRACT OR OTHER O=IJENT WITW RESPECT TO WHICH THIS CERTIFICATE MAY RE dMIIE01OR UALY PERTAIN. TWE INSURANCE AFFORDED BY THE POLICIES DESCRMFO HEREIN IS SUBJECT TO ALL THE TERwS, EXCLUSIONS AND CONDITOgS OF SUCH POL1CtES. LIMITS SHOWW MAY HAVE BEEN REDUCED BY PAID CLAIMS, TYINR 00 04URANCS POUCYNMS" PouM TCIMWllul�'YISMrE oucyflpounop CArl VMV) ALLlIW" QlMCR"L&MUTT CIEWRALAGGREGATE f PAWUCTSCOWP1pPSAGMECIATE ! WCOWER[ZALLIE%fRALUAftdUTV CCAII�IB DACE a OCCUR. PERS04AL i ACtWFM**O 94XPY f [ +mcupt"C:E f OME"ACONTRACTO"PROT. fIREtAMAG:Ec+Vh'OPeRu 3 UEDICAL ExPEk$E XApy oM pa&oel I 3 AVTOYOSILE M I1LITY A►iTAVIO EPA': ,... , � . COMIuhEO VNIC.E vmrt 0 A1tQNMfaral! AV" G71 6CWEDIA O A LROS err jfjj`jiEi -' i ' 1401L Y NAM (Per bw I* FCAEO AUTo3 By: �a•Io+warEOAuras D WPM! UOAZ TY p t, City tittor:Ie !DULY DWRY s � ►I10rEATY OA16+►OL excmLIAIULM EJICH ApOaE4ATF OCGunPEuCE CMER TMAK UM"[tLA F0PLM STATUTORY : 1,000,000 Ir.+a+womom A Woolen" COMP[IIoATION sic C10=9501 1212619S I212&% : I CW O 0 09LUE•POU"LlIFT) fx Lo*fuw Lt►.a+Lsr+R E I Aw 000 MMME-WH tupumll aT►Iell CUPWIONCPOKUTIO►OSILOCAT004IVEKftUII99MCMIN6I{e{DIAL7M" CE971FICATE HOLDER CANCELLATION 6140= ANY OF THE ABOVE: DESCRIBED POLICIES BE CA.yCELLE0 BEFORE TUE Ciry Of HundrigWn BeachlMd MansCement Division EXPIRATION DATE THMOF, THE ISSUIW COMPANY WxL MINNOMM Zfl00 Main Such MAIL 30 CAYS WRITTEN NOTICE TO TI IE CERTIFICATEDE HOLDER NAM=TO THE LEFT, Huntington Beach,. CA 9264 CltMTA v � ktachment 1 to Attachment 3 Page 3 of 3 Request for Proposals ATTACHMENT #2 o^ Qom. -1 t REQUEST FOR PROPOSALS FOR APPRAISAL SERVICES THE MONTGOMERY WARD DEPARTMENT STORE AND ATTENDANT STRUCTURES AND PARKING CITY OF HONIIOOTOM REACH THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH MARCH 1997 V Q X THE ASSIGNMENT The assignment is to determine the fair market value of the fee interest of the Montgomery Ward Department store, its attendant outbuildings and parking area. THE SETTING The subject property is located within the 969,000 square foot Huntington Beach Mall located at the intersection of the San Diego (405) freeway, Beach Boulevard and Edinger'Avenue. Montgomery Ward owns its buildings and the underlying 17 acres with MaceRich owning the balance of the mall. Original mail construction occurred in the early 1960's and, due to a peat soil condition, the entire enclosed mall is constructed atop a pile foundation to depths of approximately twenty feet. Over the last seven years the mall has suffered the loss of two major anchors: J.C. Penney and Broadway. The Penney location has been filled by a Burlington Coat Factory, the Broadway is to be demolished to make way for a 90,000 square foot theater, and there remains a Mervyn's store and the subject Montgomery Ward as anchors. Approximately 50 percent of the in line shop space is vacant and much of the balance is on rent relief. Approximately three years ago the mall underwent a $5 million improvement program that provided new climate control equipment, ceilings and skylights. In an adjacent strip center at the east end of the property, a 40,000 square foot former Barker Bros. furniture store has been replaced by a Barnes and Noble bookstore that includes a Starbuck's Coffee. Staples and Circuit City maintain successful, though small, stores and a Wells Fargo Bank has closed. Most recently, a Romano's Macaroni Grill has opened on a pad at the intersection of Beach Boulevard and Edinger Avenue. In addition to the construction of theaters, a proposed improvement plan calls for the relocation of the Circuit City from the strip center to the mall adjacent to the theaters and expansion of the Staples into the vacated space. The mall was recently sold to MaceRich which has a history with the project both as a former owner and as a contract manager for the previous owner. MaceRich acquired the mall along with two others with the proceeds of its most recent Real Estate Investment Trust (REIT) for a reported $125 million. No information on the contribution to the price made by this property is available. While the 'First Phase' improvement plan described above was devised by the previous owner, the new owner has indicated its intention to pursue the same plan. 2 The Agency is contributing to a CALTRANS landscape project of the 405 freeway adjacent to the mall which will improve visibility of the mall. Construction is underway. Also, CALTRANS has prepared, at the expense of the previous owner, a Project Report for the alteration of the off -ramp from the south -bound freeway at Beach Boulevard that will allow direct access to the mall parking lot near the Barnes & Noble/Starbuck's. Taxable sales for the mall in the 1995-96 fiscal year were $ 115,731,800 (prior to the closing of Broadway), having declined steadily from a high of $ 156,022,900 in 1989-90. THE SUBJECT PROPERTY The entire Montgomery Ward site is approximately 17 acres and includes: a two story department store with a one story segment at the rear comprising approximately 181,115 square feet, a key kiosk of approximately 150 square feet and an tire, battery and automotive outbuilding containing approximately 12 service bays and retail space. The balance of the site is devoted to surface parking. The main building is steel frame construction with a stucco and brick veneer exterior with tile accents at the three exterior entrances. The building also has an entrance directly from the mall. The General Plan designation of the site is CR (commercial regional), F2 (FAR: 0.5), SP (specific plan), MU (mixed use), F-9 (FAR's of 1.5 if MU, 0.5 if CR and 25 du/ac. if residential). The zoning is CG-FP2 (commercial general, FP meaning a portion of the site is in a federally designated flood plain). The Montgomery Ward holdings are located at the west end of the Huntington Beach Mall (see Site Map). Taxable sales of the Montgomery Ward store have declined by 20% from 1992- 93 when compared to 1995-96. YOUR PROPOSAL Your proposal must contain the following: • A Statement of Qualifications • A List of Previous Work Pertinent to this Assignment V Q • The Name, Address and Phone Number of at Least Three References That We May Contact • A Statement of Your Hourly Billing Rates for Each Category of Personnel in Your Firm Including Rates for Court Testimony • A Not To Exceed Fee to Perform This Assignment • The Date You Could Start the Assignment and the Date it Would be Completed Please submit five (5) copies of your proposal to: Stephen V. Kohler, Project Manager Department of Economic Development 2000 Main Street City of Huntington Beach, California 92648 714.536.5457 THE DEADLINE FOR SUBMISSION IS WEDNESDAY, APRIL 16, 1997 12 NOON DISCLAIMER No proposals will be accepted after the deadline. The cost of preparing a proposal and any expenses incurred through the selection process are the sole responsibility of the proponent. The Redevelopment Agency reserves the right to reject all proposals or to change the scope, nature or timing of the work during the selection process. 4 IN DISTRIBUTION LIST Donahue &Co. Attention: Kevin Donahue, Vice President 23 Corporate Plaza Drive, Suite 160 Newport Beach, CA 92660 Telephone: 714 760.3166 Fax: 714 760.5496 Lea Associates Attention: Robert M. Lea, President 1635 Pontius Ave Los Angeles, CA 90025 Telephone: 310 477.6595 Fax: 310 914.0249 R.P. Laurain & Associates Attention: Ronald P. Laurain, SRPA and ASA 3353 Linden Avenue, Suite 200 Long Beach, CA 90807 Telephone: 562 426.0477 Fax: 562 988.2927 Losson Appraisal Company Attention: Delmer Losson, President 865 Manhattan Beach Boulevard, Suite 102 Manhattan Beach, CA 90266 Telephone: 310 546.2333 Fax: 310 546.2163 Waldron & Associates Attention: Michael F. Waldron 567 San Nicolas Drive Newport Beach, CA 92660 Telephone. 714 721,8282 Fax: 714 721.1252 5 Settlement Committee Decision ATTACHMENT #3 V Q CONFIDENTIAL RECORDS Pursuant to Government Code §6245B b. Attorney -Client Privilege Date 8/7/97 Title Donahue & Company Agreement, Insurance_' Modification Number Motion Second by Vote by Signatu4J2e . nnifer McGrath Signature Si nature — g < Karen Foster "Motion Passed Yes " No Yes__C__� No Yes c� No Motion Failed sttymWseftwnM"mMrGM7 JOHN C. DONAHUE, MAI KEVIN J. DONAHUE SARSARA L. ZACHRY. MAI SYDNEY H. HAWRAN, MAI JEFF KAUTTU LAWRENCE M. MAXWELL MICHAEL HVRST MARK J. DORRIS OANIEL A. LUKES July 11, 1997 RAC ElvEED DO oAEHUEAF3 ND COMPANY. URBAN INC. 0 JUL 14 1997 CS 23 CORPORATE PLAZA DRIVE DEPART&JENT NEWPORT EEACH. CAUFORN1A 92660 FCONOp't[C DEyELO K�o a as (800) 73a-0074 FACSIMILE: 97141 70 0-E4S 6 Mr. Greg Brown Department of Economic Development City of Huntington Beach 2000 Main Street Huntington Beach, California 92648 Re: Terms of Contract- Montgomery Ward Building Appraisal Dear Mr. Brown: As you are aware, Donahue and Company has been selected to provide appraisal services on the Montgomery Ward Building. At this time, we are awaiting contract approval. It has come to our attention that the City requires Professional liability Insurance (a.k.a. Errors and Omissions Insurance) for such contracts. We respectfully request that the City waive this requirement. Please allow us to provide the following background information as support for this waiver. 1. Donahue and Company does not have, nor have we ever carried Professional Liability Insurance. This extends to over thirty-three (33) years in business in Orange County. 2. As you are aware, Donahue & Company contracts with numerous City, State and Federal Agencies. Although other agencies do occasionally request E & O insurance, waivers have been given in each occasion. 3, Although we have not investigated this insurance recently, we have applied for it in the past at the request of a client. After'spending several months in the application process while providing extensive data to the carrier, the coverage was found to be cost prohibitive. Attachment 2 to Attachment 3 Page 1 of 2 �' July 11, 1997 Mr. Greg Brown A. To the best of my knowledge, most commercial fee appraisers do not carry Professional Liability Insurance. Please call if you have any additional questions or need further information which will facilitate execution of the pending contract. Respectfully Submitted, DONAHUE & C PANY, INC. evin J. Donahue Vice President KJD: kd Attachment 2 to Attachment 3 Page 2 of 2 2 U Montgomery Ward Appraisal Services Liability Insurance Survey Condemnation _Eminent Domain Professional Genera! = Company; = --Services? _ Liability/E&O? Liability? ' _ Donahue & Company ' Yes No $2 Million 714-760-3166 R.P. Laurain ' Yes No $2 Million 562-426-0477 Lea Associates Yes Yes $1 Million 310-477-6595 [$1 Million] [per Carol, Office Mgr] Waldron & Associates " Yes No response No response 714-721-8282 IP Note: Most qualified firms In the estimation of the Interview panel. 1NSURE.XLS 7118/97 Attachment 3 to Attachment 3 Page I of I REQUEST FOR LATE SUBMITTAL OF RCA Economic Development RCA Department:.. , � Approval of Contract for Appraisal Title Services — Montgomery Ward Building �-'r: •,+fti.L . - sy:: ., 7.-h r.'v.+rli 'F�` .: ;n:o�%7}: �rmc.be 3.,. "r,,.L,rs fe.^ „�': }): ' sa> :• ..�5%,-.-• " :.<.:w; �` f'a�:,l.....- r 't.• : y.•Y • ; Si::- �,sa Y y: r - [Council Meeting Date: August 18, 1997 x= Date of This Request: August 8, 1997 ....._.%.o.,;.:.'4Y„iY�K};w;c::.^-_'`.^,>L'nec:,.:.?.::'�.S:,r.K-:.4:.wx.:.b.,r.!+.K'�...'.<:`.r.'._a•.�d>'r;.o...>..n'iA.-.:•.a�a.,..x�.;..�..a.:^'..+.w,::;.-�.t6'-t;,�,x x...x •_o.: k. r.: ..n:::9.: ..n �.., -. �t • •- REASON (Why is this RCA being submitted late?): Approval was required from the Settlement Committee for waiver of errors and 1 omission of each month, and approval was considered and granted on August 7, 1997. ,:.•{: �,t :`..n:�=>5�35.s�ti_=:iv;r:.x:yAi';r•ri:rvx5.`•v:.;:�4��sr.Y.�I:S: +c .':�`M'Y: 16;a'.:{scc�'wnS .ei..':e !'<-'f:..',..+C:. r-.i-r F.';'ftiti:.k: �:�';•.c:.k'.n"F: .. EXPLANATION (Why is this RCA necessary to this agenda?):_ Appraisal of the Mont2omery Ward building is iM2rative for the successful implementation of the new Huntington Beach Mall. The information garnered from this appraisal is necessary for furth2r .ti �... +•_,:..,X c aid 9?Y ..-F,`.'Y {.:C� .. 5 Rh. .{��. CONSEQUENCES How shall delay of this RCA adversely impact the Ci ? : Recent acquisition of the site by Macerich Co., their_qj2coming plans and develo and Montgomery Ward's recent information vitally important to the City of Huntington Beach. .... ':,r:: ;¢:.; .ti, - •'�• ..r j: :ut'.'o ^`J� h .r•_>• :s.:�::..rf': �H"1F7�x<,y:.;{.,�,��`F,�.r%• �t. O Approved O Denied is '�-Tproved O Denied Rax Silver Michael Uberua a �F$-:n�-�":..Y`S:''C:':u?i.C:xi >.9iv _�� <.:_Jr ... ss'.:,.„7 3. :a-::.-. ---`}��'>„'r.t/•i.^.•1'y'y`}'".$::_�r''.:.`u:%.c':'J?'4'>�i:`.".+q`}.a ��'�t^+r%' Signature: �v EJ�partment Head x: Initials Required wnw..nww n+ N RCA ROUTING SHEET INITIATING DEPARTMENT: Economic Development SUBJECT: Approval of Contract for Appraisal Services -- Montgomery Ward Building COUNCIL MEETING DATE: I August 18, 1997 RCA ATTACHMENTS STATUS Ordinance (wlexhibits & legislative draft if applicable) Not Applicable Resolution (wlexhibits & legislative draft if applicable) Not Applicable Tract Map, Location Map and/or other Exhibits Not Applicable Contract/Agreement tw1exhibits if applicable) (Signed to full by the CifK Attomey) Attached Subleases, Third Party Agreements, etc. (Approved as to fort by City Attomey) Not Applicable Certificates of insurance (Approved by the City Attomey) Attached Financial Impact Statement (Unbudget, over $5,000) Not Applicable Bonds (If applicable) Not Applicable Staff Report (if applicable) Not Applicable Commission, Board or Committee Report (If applicable) Not Applicable Findings/Conditions for Approval and/or Denial Not Applicable EXPLANATION FOR MISSING ATTACHMENTS REVIEWED RETURNED FORWARDED Administrative Staff ) { ) Assistant City Administrator (Initial) ( ) { ) City Administrator (Initial) City Clerk { ) EXPLANATION FOR RETURN OF ITEM: CITY OF HUNTINGTON BEACH INTER -DEPARTMENT COMMUNICATION P�10—i7 nur.nNcsoY BEACH Connie Brocl.�►a}', City Clerk —rp�j F4- Office of the City Clerk A From Maybrice Ilenry r,.� may„ ,,G ,vc Deputy City Clerk IY �' 3t L��c•.�..- .o.a c.'it'eo �4, . The City Clerk's Office/City Administrator's Office Must Return Your Agenda Item Due To The Following Requirements That Have Not Been Met When Your Agenda Item Is Ready To Resubmit, Please Return to: C Pat Dapkus, Management Assistant, City, Ad ministrator's Office 1 Signature(s) heeded A On RCA B On Agreement C Other 2 Attachments A Missing B Not identified C Other 3 Exhibits A Missing B Not identified C Other 4 Insurance Certificate (Proof Of Insurance) A Not attached B Not approved by City Attom;y's Office C Signed form notifying City Clerk that the department will be responsible for obtaining the insurance certificate on this item (See form attached) 5 Wording On Request For Council Action (RCA) Unclear A Recommended Action on RCA not complete B Clarification needed on RCA C Other 6 City Attorney Approval Required • i 7 Agreement Deeds To Be Changed i A Pajc-Z>; G:age ndalmisclrcaform