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<br />:.R....-e...... P:O.:' .:R.............:.T.....:. <br /><, . '-." .. . <br />.' . . . <br />! :. .:: ;":-:-: . ,..'.... '.. ..: ; <br />. .' . <br />. .. . <br />. .. . <br />, . -..-. ..' <br /> <br />6.1E <br />.. Page 1 <br /> <br /> <br />July 9, 2007 <br /> <br />SUBJECT <br />Agreement with Vogel Strategies for the Negotiation with Syufy (Century Theater) <br />regarding the use of their site by US 101 <br /> <br />RECOMMENDATION <br />Approve and Authorize the City Manager to Execute the Agreement with Vogel <br />Strategies, a Consultant, for a month to month extension to his present contract in <br />an amount not to exceed $60,000 or six months. <br /> <br />BACKGROUND <br />The City has an interest in having the old Century Theater site (east of US 101) <br />close and develop into an auto mall. To that extent the City is contracting the <br />services of Phil Vogel (Vogel Strategies) to assist in negotiations with the SyuTy's <br />and in locating interested auto dealerships who would like to be part of such a <br />development. <br /> <br />The contract with Vogel Strategies expired on April 14 2007 and the new contract <br />will be effective as of April 15, 2007. Phil is currently in negotiations with several <br />dealerships who might be interested in this site. Upon receiving Letters of Intent <br />from dealerships it is likely that Phil and Jim Holden (the attorney representing the <br />city) will have to have additional negotiations with the Syufy's. Phil's present <br />contract is a retainer of $10,000 a month. The City is asking for an additional <br />$60,000 (up to 6 months) to complete the ongoing negotiations. The contract can <br />be cancelled with a 30 day notification. We believe that the negotiations are in a <br />crucial stage and that the city will know within the next couple of months if we can <br />achieve an agreement with all parties. <br /> <br />AL TERNA TIVES <br />An alternative approach is to ask staff to perform these services. Staff does not <br />have the extensive knowledge of, nor contact with dealerships to perform these <br />services as effectively and efficiently as the consultant. <br /> <br />FISCAL IMPACT <br /> <br />The maximum cost to Redwood City for this additional agreement will not exceed <br />$60,000. The City previously asked for $120,000 in April 2006, and the additional funds <br />will bring the total to $180,000. The budget amendment for these funds were approved <br />by (C~Gi~'7'~une 25th, ~_ E~~nomic Development is a priority of the Council. <br /> <br />) /1 ,./,-'j / <br />. ,'..."-/"---L. <br />'(j Evere <br />City Manager <br /> <br /> <br />ATTACHMENTS <br />1. Agreement between Vogel Strategies and the City of Redwood City <br />