REAL ESTATE BROKER REFERRALS POLICY STATEMENT

Transcription

1 POLICY STATEMENT Kingman Airport Authority, mc, hereby institutes a policy of providing referral fees to real estate brokers for submitting timely information regarding prospective businesses for the Kingman Airport & Industrial Park. The referral fees shall be subject to the following procedures: Licensed Real Estate Brokers, hereinafter Broker, shall be provided a real estate referral fee for referring prospective businesses to Kingman Airport Authority, Inc., hereinafter Authority, staff under the following circumstances: A. Broker or agent acting on behalf of Broker submits a signed and dated Office Notice of Referral to Authority staff p~jg~ to the prospect having been in contact with Authority staff; B. Broker or agent acting on behalf of Broker acknowledges that he/she has informed prospect of all Pertinent Information (attached) related to and the circumstances under which land can and will be sold and/or leased, as outlined on the attached documents; C. Except as may be requested from Authority staff, Broker or agent acting on behalf ofbroker exits from the process immediately upon referral ofthe prospect, unless the prospect is retaining Broker as their agent and compensating himlher therefore. 2. For this referral, a fee of One Percent (1.0%) of the gross real property sale amount shall be provided to Broker, less any amount paid Broker by prospect. Said fee will be paid by Authority within fifteen (15) working days from receipt ofpayment as a result of acceptance of the highest conforming bid by the Kingman City Council from the referred prospect, it s successors, agents or assigns. However, this fee will be capped at a maximum amount of Twenty-Five Thousand Dollars ($25,000.00). Leases shall be paid by one percent (1%) of the gross rental fees received, and any extensions thereof, up to the maximum amount of Twenty-Five Thousand Dollars ($25,000.00). 3. Since land is sold at public auction and requires that purchasers meet advertised criteria such as construction of facilities and hiring of employees, on selected occasions for major prospects, Authority has guaranteed prospects against risk by agreeing to repurchase the property if the prospect changes their mind or otherwise is unable to meet that criteria. Under the above circumstance, the referral fee must be accompanied by a promissory note to be executed between Broker and Authority requiring payment ofthe fee within fifteen (15) working days of the date such a repurchase agreement is activated. If necessary, the promissory note will be prepared by Authority. There is no time limit or cutoff dated from time of referral to sale or lease the property for payment of the referral fee. Page 1 of 5

2 No Director, Officer or Employee of the Authority is eligible for the payment of real estate referral fees covered under this policy. This policy will be implemented and effective from July 1, 2001 through June 30, 2002 and thereafter shall be reviewed annually to determine renewal for the next fiscal year. PASSED, APPROVED AND ADOPTED by the President and Board of Directors of Kingman Airport Authority, Inc. this 20th day of September, APPROVED: ATTEST: Charles Obney, President Gary Rucker, Secretary (Corporate Seal) Page 2 of 5

3 POLICY STATEMENT PERTINENT INFORMATION KINGMAN AIRPORT & INDUSTRIAL PARK LAND SALES OR LEASES Kingman Airport & Industrial Park (KAIP) is part of a facility of approximately 4,000 acres which includes the Kingman Airfield. This property was developed as the Kingman Army Airfield in WW II to train bomber gunners and used as an aircraft storage point after the war. The approximately 7,000 stored aircraft were destroyed in Declared as surplus property in 1949, the facility was given to Mohave County and eventually transferred to the City of Kingman in Transfer of the facility from federal control to local jurisdiction was only allowed if the federal government could maintain administrative control. The agency maintaining control is the Federal Aviation Administration (FAA). In 1980 Mohave County Airport Authority, Inc. negotiated agreements with the FAA releasing approximately 1,100 acres of non-essential land for industrial development. The agreements sallow sale of the non-essential land with an obligation by the owner and operating authority to reinvest an equal amount of money (from each sale) into the airport within five years of each sale. There are approximately 2,000 additional acres which will be released by FAA for future development. The operating organization which leases the facility from the City of Kingman is Kingman Airport Authority, Inc., a not for profit Arizona corporation and quasi-governmental agency. Kingman Airport Authority, Inc. acts as stewards of the land and as such, each sale or lease at KAIP must have a specific purpose for a specific size and type of business. Each prospective purchaser or leasee must state on an application form the intended use and other appropriate information about the company including financial data. Land is not sold or leased for speculation purposes. Kingman Airport Authority, Inc. has in the past, denied requests to purchase land and may do so again if the proposed business is inappropriate or believes that the transaction will not be in the best interest of the Authority, facility andjor community. The KAIP is zoned AD (Airport Development) by Mohave County Planning and Zoning and is covered by Restrictive Covenants. The zoning and covenants allow businesses involved in manufacturing, distribution, transportation, aviation and related uses except businesses which manufacture, treat, store, handle or dispose of hazardous or toxic materials as their primary function. The property is owned by the City of Kingman and as publicly owned property, state law dictates that it must be sold at public auction at the fair market price. Price is determined by use of a local real estate appraiser engaged by the Airport Authority. The price is non negotiable and the minimum bid accepted is the official appraised value. Page 3 of 5

4 5. Each prospect and use must be approved by the City of Kingman with a recommendation from Kingman Airport Authority, Inc. before the land sale can be advertised and completed. All prospective bidders must be pre-qualified by the Airport Authority acting as the City s exclusive agent in order to submit a conforming bid. 6. Unlike traditional developments with all parcels surveyed prior to sales commencing, KAIP tailors parcels to meet prospect needs. It is therefore, the exclusive responsibility of the Airport Authority staff to negotiate directly with the prospective business representative(s) specific needs such as land size, location, configuration, utility and rail needs, etc. 7. A typical land sale transaction will take about ninety (90) days to complete. The process involves surveying the subject parcel, having an appraisal conducted, approval ofthe Airport Authority (with a recommendation from the Industrial Park Committee), City Council authorization to advertise the parcel for sale and acceptance of the bid. Upon completion of this process, the mayor executes a Quit Claim Deed which is then recorded with Mohave County. There is no escrow agency, closing or title insurance policy like those found in private land sales. 8. If a state or federal permit is required for the proposed operation, the land sale cannot be completed until the prospective company has had a local ADEQ public hearing regarding the issue of that permit. 9. All land sales include a Three Thousand Dollar ($3,000.00) administrative fee which covers the cost of prospect evaluation, survey, appraisal, legal fees, advertising and Mohave Planning and Zoning, zoning pert. 10. Land at the Kingman Airport & Industrial Park is sold at the fair market appraised value and includes paved roads, twelve inch (12 ) water lines with hydrants every 300 feet and City of Kingman sewer. Received and Acknowledged on this day of, 20 Signature of Broker Received and Acknowledged on this day of, 20 Signature of Prospect Page 4 of 5

5 OFFICIAL NOTICE OF REFERRAL I,, an authorized agent representing (Name of Individual) representing to Kingman Airport Authority, Inc. as a possible prospect for a Kingman Airport & Industrial Park land sale or lease. I certify that I have read, understand and conveyed all pertinent information related to Kingman Airport & Industrial Park land sales/leases to the prospect and that to the best of my knowledge, he/she understands the history, procedures and restrictions affecting this property. I further certify that I understand that all fees paid in connection with this referral will be made directly to the broker stated in this Notice unless I, AND THAT BROKER notify Kingman Airport Authority, Inc. in writing prior to any fee being paid that the brokerage has changed with instructions of what broker should receive the fee. I acknowledge that under certain circumstances, the referral fee may be accompanied by a promissory note requiring repayment of the entire fee to Kingman Airport Authority, Inc. Signature of Agent/Broker Printed or Typed Name of Agent/Broker Received and accepted by Kingman Airport Authority, Inc., this day of 20 at AM/PM. Signature of Airport Authority Representative Typed or Printed Name Page 5 of 5