HomeMy WebLinkAbout6C2 '.SpiJTH B
Department of
. community Investment
„
Memorandum
Monday, December 10, 2012
TO: Redevelopment Commission
FROM: Don Inks
SUBJECT: Management Services Agreement for the Bosch Site
As we prepare to take possession of the former Bosch site at the end of 2012, we need to ensure
the buildings will be well maintained. Attached is a Management Services Agreement from Cressy &
Everett Management Corp. to provide property management services for the site. The management
fee would be $600 per month. Additional services at the site, noted in the following paragraph, are
expected to total about $100,000 during the first 4 months of 2013. By May 1, 2013 we expect
Curtis Products will take possession of the property under the terms approved at the last
Redevelopment meeting. Accordingly, the Redevelopment Commission is being asked to approve
the Management Services Agreement with Cressy & Everett and authorize staff to work with Cressy&
Everett to implement the additional services at a cost not to exceed $100,000 during the first 4
months of 2013.
Attached to the Agreement is the proposal for management services detailing the activities to be
continued at the site, including security, fire protection, building and mechanical maintenance,
grounds maintenance and utilities. Cressy& Everett will also be responsible for third party vendors,
initiating, reviewing and monitoring their services. Cressy & Everett has in-house staff capable of
maintaining the building and HVA systems and will provide these services at the rates ($39/hour to
$79/hour) indicated in the proposal.
Attached to this staff report is the projected budget to manage this property for a calendar year. The
Redevelopment Commission, as part of its 2013 appropriations has provided up to $650,000 for
holding costs at this site. That amount includes the attached budget amount of$468,698, plus
property taxes.
The Redevelopment Commission is being asked to approve the Management Services Agreement
with Cressy& Everett and authorize staff to work with Cressy& Everett to implement the additional
services at a cost not to exceed $100,000 during the first 4 months of 2013.
227 W. JEFFERSON BLVD. SOUTH BEND, IN 46601 I P: 574-235-9371 I FAX: 574-235-9021 I SOUTHBENDIN.GOV
O
N - .■-•
OQ _o N
c 7 N L
D a aJ E
C O c N
.0
o
L an
a) m .D N C
N a, L C L- -O
u
Q 3 ro aN. O ..-_, 47
CO ° N O rl Dl N N .6 U CO 0/
CD
y u
L.
ro N N -I O O O a dl C F0.0 bO.o CO O O N
-1 CO a a C -C ra (c ro ro p N
J T = O O O �. N N DO
Cl w CC a) Y w O. a 7, O 7 7 7 C N
Cr .--1 .,Y a, U i6 r0 -C CO a, a a, c rO
l.,_• a) ra 3 c — ' o ro a CL a ro °
_c o. •v C E E N ti 7 7 7
O N N u, .0 V U V A L
0 N 7
Q C Y 0 c
0 0 0 >. 0
co 0 ..71 -,.,77, .c 6 C O O O N
N 'j
'O O V E N C
aI N a) L 'O O O O
oe o o a- Y O
._ro C a
a c c ° > a, " " '
., _,f 0, c, 'D C (coo ,.c C E a
7 7 N .... O 7 C c c 7 C C C
• E E c v ~ `a _, v .° ° v o 0 0 0 0 0 0 0
b N >. c v rG rb m L E E
o ° a, a) > v c .7, .7, .E a aai -0 ra m m v -0 v N aN'
jn L aJ O N N N N a) ro to r0 rO tO r0
2 Co Co w ii ro -J 3 a E w w w CC Y Co m m m ao m m m
el a, N 0 0 0 0 O N O V O O 0 0 0 0 ,0 (000 co
+-• 1. 0 lD 0 O LO 1■ CO W O O in 0 0 0 N Ni 0 0 0)
ro Co N N in N co O to CO O Ul :J'f O O O M C) N N Co
E O} .--■ rn N r-' N .4 N .-i U', N a O O dl rY .-i .-■ t--= 00 N.
W
ro
7
c
QV} VT VT tn. t? to V} VT Vl tR V} VT t/} t/} t/}VT u} V} V? 1.?
Y
aJ
a)
co
C 3
ro ro
=a N
c 0 m
,a o a
C
I 3 a,
al m ro C a,
m N N N U
S '-1 Y >. O C ro
v C ro V C
7 o a, C O 00 W N C ,- a) aJ O V N C O
N _ u GD C ro U
Z y C ro 7 C 6 C
ro N ro C 0 c b4 ai G
W a N c 1- N ro I C y C C GD C QJ
tl. 2 i/1 G
TS C_ rC C_ a) L.L.
W X 0 O O ro co c -O C N _ > C
• N 7C U ro u u ro C 7 rc 3 O O a,
• Co rl ° v -c r 2 C 0 .ro m 0o v°1, c ro CU v t,o
Q *= .� o o ro a a v io a 0 Co w
Z ra E o m 3 u u `� v ? a y ° c Q
N O N N tG y OC > 7 O 00 O O N v N CU co /O O L.
W Cr '-1 in < ii w v) in I a. w Co U U` 0 w i 7. 5, H 2 h
•
MANAGEMENT SERVICES AGREEMENT
This Management Services Agreement(this"Agreement")is made as of the day of December 2012,
by and between the CITY OF SOUTH BEND,DEPARTMENT OF REDEVELOPMENT, ("Owner")
and CRESSY&EVERETT MANAGEMENT CORP.,an Indiana corporation ("Manager")with reference
to the following facts:
A. Owner is the owner of the buildings located at 401 N.Bendix,South Bend,Indiana(the
"Buildings"). Any reference to"Property"in this Agreement shall be deemed to the Buildings and
the accompanying land.
B. Manager represents that it is in the business of managing properties similar to the Property and
possesses the skills and experience necessary for the efficient,professional management of the
Property.
C. Owner desires to engage the services of Manager in connection with managing the Property and
Manager desires to provide such services to Owner. b:
Now therefore,in consideration of the following promises,obligations and agreements,Owner and Manager
agree as follows:
ARTICLE 1-BASIC TERMS
1.1 Effective Date. Managers appointment under Article 11 shall become effective as of January 1,2013
(the"Effective Date"). ; -. 4.4
1.2 Term. The term of this Agreement shall`comnierlce on the Effective Date and shall continue for a
period of four(4)months,and thereafter the term shall be automatically renewed for additional
periods of one month each subject at all times to the rights of termination set forth in Article IX.
1.3 Limits on Non-Emergency Purchase and Repairs. The limit on the amount Manager may incur for
non-emergency purchases or repairs under Section 3.4 is Five Thousand Dollars($5.000.00).
Owner's prior written approval is required under'Section 3.4 for any contract for more than Five
Thousand Dollars($5"".000.00).
1.4 Address of Owner Unless changed by written notice to Manager, the address of Owner for notices
under Section 10.2 shall be: .
City of South Bend,Department of Redevelopment
Attn: Don Inks
County City Building
227 W.Jefferson Blvd. S uite 1200 S
South Bend„IN 46601 ,.
1.5 Address of Manager. Unless changed by written notice to Owner,the address of Manager for
notices under Section 10.2 shall be:
Cressy&Everett Management Corp.
Attn: Robert E.Dunbar,Jr.,COO
4100 Edison Lakes Parkway, Suite 350
Mishawaka,IN 46545
1.6 Fees. Subject to Article VIII.the management fee payable to Manager for its services under this
Agreement shall be six hundred($600.00)dollars per month. In addition to this monthly
management fee,Manager will invoice Owner on a monthly basis for facility maintenance services
provided by its technicians at the then current rates.
Page 1 of 10
ARTICLE II-APPOINTMENT
Owner hereby appoints Manager as the manager for the Property as of the Effective Date,and for the
term stated in Section 1.2.Owner hereby authorizes Manager to exercise such powers and to take
such actions with respect to the Property as may be necessary for the performance of Manager's
obligations under this Agreement. Manager hereby accepts such appointment on the terms and
conditions hereinafter set forth.
ARTICLE III-DUTIES OF MANAGER
3.1 General Duties.
(a) Manager,on behalf of Owner, shall use diligent efforts to manage and operate the Property. j.
Manager shall comply with other instructions of Owner as set,forth herein or as may from
time to time be provided in writing by Owner to Manager. Manager shall perform its
services in a professional and diligent manner and shall manage, operate,repair,maintain
and service the Property consistent with industry standards in the locale where the Property
is located. In particular,Manager shall have the duties and obligations set forth hereafter in
this Article III.
(h) Manager shall use its own technicians to perform routine inspections and on site facility
maintenance of the Property based upon a mutually agreed schedule with Owner.
3.2 Utility and Service Contracts. All contracts for gas,electricity, water,trash collection,sewer,
landscaping,snow removal,janitorial service.security service and such other services shall be in the
name of the Owner and negotiated by Owner or Manager as directed,by Owner.
3.3 Employment of Personnel. a'`` L. a:
(a) All persons employed in connection with the operation and maintenance of the Property :
shall be employees of Manager and shall not be employees of Owner. Manager shall
employ,pay,supervise,direct and discharge all employees necessary for the operation and
maintenance of the Property,and shall use reasonable care in the supervision of such
employees.Manager shall be responsible for complying with all laws,regulations and
agreements affecting such employment,including without limitation payment of all
expenses. taxes and other obligations regarding such employment.
a
(b) , Owner may not directly or indirectly,during the term of this Agreement and for a period of
one year following the date of expiration or earlier termination of this Agreement,solicit for
employment any individual then employed by Manager with whom Owner had contact in
ounection with this Agreement prior to the date of expiration or earlier termination. Owner
ac cuowledges and agrees that a breach of the provisions of this Section 3.3(b)could not
adega4te y.. compensated by money damages,and therefore,Manager shall be entitled,in
additioi tto ny other right and remedy available to it,to an injunction restraining any breach
or threatened breach,and Manager shall not be required to post a bond in any proceeding
brought for such purpose.Owner further acknowledges and agrees that the provisions of this
Section 3.3(b)are necessary and reasonable to protect Manager in the conduct of its
business. Nothing herein shall be construed as prohibiting Manager from pursuing any other
remedies,at law or in equity,for any such breach or threatened breach.
3.4 Maintenance and Repairs.
(a} Manager shall perform,or cause to be performed under contracts with vendors. suppliers.
contractors, subcontractors or consultants,entered into by Owner and/or Manager,all
Page 2 of 10
ordinary maintenance,repairs,alterations,replacements and installations,all decorating and
landscaping,and the purchase of all supplies necessary for(i)the proper operation of the
Property,and (ii)compliance with covenants,conditions and restrictions affecting the
Property,to the extent Manager has been notified in writing by Owner of any such
covenants,conditions and restrictions. Notwithstanding the foregoing,Manager shall not
make any purchase or order any work costing more than the limit on the amount authorized
for non-emergency purchases and repairs set forth in Section 1.3 without Owner's prior
written approval,except in circumstances reasonably deemed by Manager to be an
emergency requiring immediate action for the protection of the Property or other persons or
to avoid the suspension of necessary services. Manager shall promptly notify Owner of the
necessity for,the nature of,and the cost of such emergency repairs or compliance.
(b) Manager shall obtain all necessary receipts,releases,waivers,discharges and assurances
necessary to keep the Property free of any mechanics',labor'ers'. materials suppliers'or
vendors'liens in connection with work, materials or supplies for.which Owner contracts and
for which Manager directly contracts pursuant to the terms of this Agreement.
3.5 Monitoring of Third Party Contractors.Manager shall monitor all independent contractors,
consultants,suppliers, vendors and entities retained by Owner for the operation,repair, maintenance
and servicing of the Property or for any other activity within the scope of this Agreement.
3.6 Not applicable.
3.7 Not applicable.
3.8 Compliance with Laws. Subject to the other provisions of this Agreement,at Owner's expense,
Manager shall use its best efforts to cause the Property to comply with federal,state and municipal
laws,ordinances,regulations and orders relative to the use,operation,repair and maintenance of the
Property and with the rules.regulations or orders of the local Board of Fire Underwriters or other
similar body. Manager shall use its best efforts to remedy the violation of any such law,ordinance.
rule,regulation or order of which it has actual knowledge and which violation occurs after the
Effective Date,at Owner's expense. Expenses incurred in so complying and in correcting any such
violation shall be approved in advance by Owner. Notwithstanding the foregoing,however.
Manager's responsibilities under this Section 3.8 shall not extend to matters as to which the
expenditure of Owner's funds is required but such funds are not made available by Owner.
ARTICLE IV-REPORTS,AND OTHER FINANCIAL MATTERS
4.1 Not applicable.
4.2 Records. Manager agrees to keep separate records,either paper or electronic,with respect to the
management and operation of the Property and to retain those records for a period of two(2)years.
ARTICLE V-RESPONSIBILITIES OF OWNER
5.1 Documents Provided by Owner. In order for Manager to set-up and establish operations Owner shall
provide to Manager such information,documents and certificates regarding the Property as Manager
shall reasonably request and as Owner has in its possession,including,but not limited to,the
following to the extent available:
(a) Legal description of the Property and any improvements.
(b) Site plans and specifications.
(c) An inventory of Owner's personal property at the Property, including all tools,equipment
and supplies.
Page 3 of 10
(d) A list of all vendors.
(e) All pertinent books and records relating to the operation of the Property.
(f} All third party contracts in force.
(g) All insurance information on the property.
(h) All vendor insurance certificates.
(i) Procedures for reporting claims and evaluating safety and loss prevention conditions.
The above and any and all books and records are and shall remain the property of Owner but shall be made
available to Manager for its use and knowledge in assuming the duties and responsibilities of Manager tinder
this Agreement.
5.2 Owner's Obligations. Throughout the term of this Agreement,Owner agrees to perform the
following:
(a) To pay Manager for its services in the amounts and in the manner and at the times described
in Article VIII.
(b) To promptly reimburse Manager,upon written demand. to the full extent of all funds
advanced by Manager for Owner's account in carrying out the terms and conditions of this
Agreement.
(c) To communicate with Manager through Manager's assigned manager for the Property at the
property management level.
(d) To maintain adequate funds to fund all expenditures to he made by Manager pursuant to the
terms of this Agreement.
(e) To disclose promptly to Manager,upon Manager's request,the property and liability loss
history of the Property as set forth in the records of the Owner and Owner's insurance
carriers.
(f) To disclose promptly to Manager,in writing,any unresolved past or present claims,
conditions,or occurrences which may become future claims,conditions,or occurrences
which would not be covered by insurance policies maintained by Owner,including those
policies required to he maintained by Owner under this Agreement.
(g) To promptly inform Manager in writing of the existence on the Property of any Hazardous
, Substance,the presence of which either:
� (i requires investigation or remediation under any federal,state,or local laws,rules,
codes,statutes,regulations,orders,notices,determinations,ordinances,or other
requirements;or
(ii) causes or threatens to cause a nuisance upon the Property or adjacent properties or
poses or threatens to pose any hazard to the health and safety of any persons on or
about the Property.
(g) To require all contractors and consultants that may be hired by Owner as set forth in Article
III to obtain and maintain liability insurance in an amount sufficient to adequately insure
against any identified or suspected environmental hazard at the Property or any other hazards
relating to any such inspections,test,studies,and remediation activities. All such liability
policies shall name Manager as an additional insured. Manager shall be entitled to receive a
certificate of insurance.
Page 4 of 10
•
(h) To not make any payments.whether for commissions,bonuses or other reasons,directly to
Manager's employees.
ARTICLE VI-INDEMNIFICATION AND SUBROGATION
6.1 Indemnification.
(a) Subject to Section 6.2,Owner shall protect,defend,indemnify and hold Manager,its agents,
employees and contractors harmless from and against any and all claims,damages,demands,
penalties,costs,liabilities,losses and expenses(including reasonable attorneys'fees and
expenses at the trial and appellate levels)to the extent arising out of or relating to the
negligence or willful misconduct of Owner or Owner's agents,employees or contractors,
except to the extent caused directly by the negligence or willful misconduct of Manager,its
agents,employees or contractors.
(b) Subject to Section 6.2,Manager shall protect,defend,indemnify and hold Owner, its agents,
employees and contractors harmless from and.against any and all claims,damages,demands,
penalties,costs,liabilities,losses,and expenses(including reasonable attorneys'fees and
expenses at the trial and appellate levels)to the extent(a)arising out of or relating to any act,
omission,negligence,or willful misconduct of Manager or Manager's agents,employees.
contractors,customers or invitees in or about the Property,including without limitation any
default under this Agreement,or(b)arising out of or relating to any of Manager's personal
property or equipment,except to the extent caused directly by the sole negligence or willful
misconduct of Owner,its agents '=,, ployees or contractors.
tg sr
(c) "Indemnified Party"and"Indemnitor filtall mean Manager and Owner,respectively,as to
Section 6.1(a)and shall mean Owlner and Manager,respectively,as to Section 6.1(b). If any
action or proceeding is brought against the Indemnified Party with respect to which
indemnity may be sought under this Section 6.1,the indemnitor,upon written notice from
the Indemnified Party,shall assume the investigation and defense thereof,including the
employment of counsel and payment of all reasonable expenses. The Indemnified Party
shall have the right to employ separate counsel in any such action or proceeding and to
participate in the defense thereof,but the Indemnitor shall not be required to pay the fees and
expenses of such separate counsel,;unless such separate counsel is employed with the written
approval and consent of the Indemnitor.
(d) The indemnities in this Section 6.1 shall survive the expiration or termination of this
Agreement.
6.2 Waiver of Claims. Notwithstanding anything contained in this Agreement to the contrary,Owner
and Manager hereby waive any rights each may have against the other on account of any loss of or
damage to their respective property.the Property,its contents,or other portions of the Property
arising from any risk which may be insured against by a special form policy of property insurance.
Owner and Manager shall cause their respective insurance companies to include an endorsement to
their respective.property insurance policies containing an express waiver of any rights of subrogation
by the insurance company against Owner and Manager,as applicable.
ARTICLE VII-COSTS AND EXPENSES
Owner shall pay all taxes,special assessments,ground rents,insurance premiums and mortgage payments
affecting the Property as they become due and before any delinquency date.
Page 5 of 10
ARTICLE VIII—FEES
Owner shall pay Manager as compensation for the management services rendered hereunder fees at the rate
and amounts specified in Section 1.6. Such Fees shall be payable within ten(10)days following Owner's
receipt of invoice from Manager.
ARTICLE IX-TERMINATION
This Agreement may be terminated prior to the expiration of the initial term or of any renewal term,as the
case may be.on the following terms and conditions,it being understood and agreed,however,that
termination shall relieve neither Owner nor Manager from liabilities or claims accruing and arising up to and
including the date of termination;
(a) Owner shall have the right to terminate this Agreement in the event that Manager
fails to keep,observe or perform any covenant,agreement,term or provision of this
Agreement,to be kept,observed,or performed by Manager,and such failure
continues for a period of thirty(30)days after written notice thereof by Owner to
Manager.
(b) In the event that the Property is leased or sold to a party which is not affiliated with
Owner,Owner shall have the right to terminate this Agreement as it,applies to the
Property so sold with thirty(30)days' prior written notice to Manager.
(c) Owner shall have the right to terminate this Agreement if a petition for bankruptcy,
reorganization or rearrangement is filed under any federal or state bankruptcy or
insolvency laws by Manager.or if any such petition is filed against Manager and not
removed or discharged within sixty(60)days thereafter.
(d) Manager shall have the right to terminate this Agreement in the event Owner fails to
keep observe or perform any covenant,agreement,term or provision of this
Agreement to be kept observed,or performed by Owner and such failure continues
for a period of thirty(30)days after written notice thereof by Manager to Owner,or
if Owner materially fails to comply with any law,regulation or ordinance relating to
or affecting Owner's ownership of the Property.
(e) If any building on the Property is destroyed and Owner,for any reason,elects not to
rebuild the building.then this Agreement shall terminate as to such building as of
the date of notice to Manager that Owner has elected not to rebuild the building after
such destruction.
(f) In the event there is a condemnation of all or any substantial part of any Property,
then this Agreement shall automatically terminate as to such Property as of the date
of such taking.
ARTICLE X-MISCELLANEOUS
10.1 Status of Manager. It is the intention of the parties to create a relationship wherein Manager is an
independent contractor in the management,operation and maintenance of the Property. Nothing
herein contained shall be construed as creating the relationship of employer-employee or establishing
any partnership or joint venture arrangement between Owner and Manager.
Page 6 of 10
10.2 Notices. Any statement,notice,recommendation,request,demand,consent or approval under this
Agreement must be in writing and personally delivered or sent by overnight courier service,or sent
by United States registered or certified mail,postage prepaid,return receipt requested,and shall be
deemed to have been given upon the date of personal delivery or the next business day following
deposit with an overnight courier or five days after deposit in the United States mail,provided that in
the case of communications sent by overnight courier service or United States registered or certified
mail,the communication is addressed as set forth in Section 1.4 if sent to the Owner and as set forth
in Section 1.5 if sent to Manager. Either party may, by written notice,designate a different address.
10.3 Ownership of Fixtures and Personal Property. Manager acknowledges that Owner owns all fixtures
and personal property situated on or about the Property and used in or necessary for the operation,
maintenance and occupancy of the Property except for such items as are purchased by Manager out
of its own funds and for which it is not reimbursed by Owner.
10.4 Assignment. This Agreement shall not he assignable by Manager without the express prior written.
consent of Owner,except that Manager may assign this Agreement without such consent to an
affiliate of Manager pursuant to a merger or reorganization of its parent company,or any subsidiary
of the parent or Manager. This Agreement shall be for the benefit of and shall be binding upon the
heirs,successors and assigns of the parties hereto.
10.5 Severability. Each provision of this Agreement is intended to be severable. If any term or provision
hereof or the application thereof to any entity or circumstance shall be determined by a court of
competent jurisdiction to be illegal or unenforceable for any reason whatsoever,such term,provision
or application thereof shall be severed from this Agreement and shall not affect the validity of the
remainder of this Agreement or the application of such term or provision to any other entity or
circumstance.
10.6 Costs of Suit.If Owner or Manager shall institute any action or proceeding against the other relating
to this Agreement,the unsuccessful party shall reimburse the successful party for its disbursements
incurred in connection therewith and for its reasonable attorneys'fees,as fixed by the court.
10.7 Waiver. No consent or waiver,express or implied,by either party to or of any breach or default by
the other party in the performance of its obligations hereunder,shall be valid unless in writing. No
such consent or waiver shall he deemed or construed to be a consent or waiver to or of any other
breach or default in the performance by such other party of any other obligations of such party
hereunder. The failure of any party to declare the other party in default shall not constitute a waiver
by such party of its rights hereunder.irrespective of how long such failure continues. The granting
of any consent or approval in any one instance by or on behalf of Owner shall not be construed to
waive or limit the need for such consent in any other or subsequent instance.
10.8 Remedies Cumulative. No remedy herein contained or otherwise conferred upon or reserved to
Owner shall be,considered exclusive of any other remedy,but such remedy shall be cumulative and
in addition to every other remedy given hereunder or now or hereafter existing at law.in equity or by
statute. Every power and remedy given by this Agreement to Owner may be exercised from time to
time and as often as occasion may arise or as may be deemed expedient.
10.9 Entire Agreement. This Agreement contains the entire agreement between the parties and
supersedes all prior oral or written agreements, understandings,representations and covenants,to the
extent that they are inconsistent with this Agreement.
10.10 Amendment. This Agreement may not be amended or modified except by an agreement in writing
signed by the party against whom enforcement of such change or modification is sought.
Page 7 of 10
10.11 Governing Law. This Agreement and the obligations of Owner and Manager shall be governed by,
and construed and enforced in accordance with,the laws of the state where the Property is located.
Agreed to and accepted this day of December, 2012 by the following duly authorized
representatives;
OWNER MANAGER
City of South Bend,Department of Redevelopment Cressy and Everett Management Corp.
By By Robert E. Dunbar,Jr.
Its: Its: Chief Operating Officer
t F
t
Page 8 of 10
March 12,2012
Don Inks Via Email Only
City of South Bend dinksi@sourhbendin.gov
227 W.Jefferson Blvd
Suite 1200 5
South Bend, IN 46601
Re: 401 N.Bendix Drive
South Bend Indiana
Dear Don:
It is my pleasure to offer you this proposal for management services of the 401 N. Bendix Drive in South Bend, Indiana
(the"Property").
As you know,we are a licensed and insured regional full-service asset management and commercial real estate
brokerage organization. We currently manage over four million square feet of space. Our portfolio consists of office,
medical office,retail and industrial properties as well as two sizable commercial associations and common interest
developments. We customize our management services to respond to each client's objective,whether it is a full-
service offering of Financial Administration,Facility or Maintenance Management,Owner or Tenant Relations,Third
Party Vendor Relations and Construction Management,or some hybrid of the above. We staff an in-house
maintenance team capable of handling nearly all types of facility repairs. Our strong relationship with various
contractors and vendors in the community and presence in the regional market will provide you with an opportunity
to secure the most cost effective and responsive vendors to meet your needs.
In addition,as the largest commercial real estate company in northern Indiana and southwestern Michigan,we have
over twenty real estate advisors that are active in all aspects of commercial real estate transactions.
Based upon our discussions,the tour we took of the Property and information that has been provided, it is our opinion
that there are a number of areas that will need to be addressed to maintain the facilities safety and integrity. Based
on our experience and the history of the facility,we believe the following services should be continued at the
Property:
• Guard Service-128 Hours a week
• Camera Monitoring/Recording
• Alarm Monitoring
• Fire Protection Testing
• Elevator Maintenance
• Snow and Ice Management
• Daily service tech 5 days a week
• On call service tech 24/7
• Maintenance on HVAC equipment
• Maintenance on plumbing
• Maintenance on electrical
• Maintenance on the roof
• Maintenance on doors and windows
• Monthly pest control
• Quarterly janitorial
• Grounds maintenance/weed control
• Utilities-Gas,Electric and Water
Page 9 of 10
Based on the overview of service needed at the property, I am proposing a facility management structure which
contemplates CEMC handling all facets of your facility management—from regular building inspections,to providing our
own maintenance techs to make any building repairs/maintenance as needed and oversight of any third party vendors
such as guard service,snow removal,lawn care and any other vendors as directed. I am proposing a monthly
management fee of six hundred($600)dollars based upon the use of our technicians for nearly all service related needs.
This management fee is separate from any on-site maintenance technician and supervision cost allocation in paragraph 2
below. The projected operating costs of the facility are outlined on the accompanying spreadsheet.
In conjunction with our assumption that this will be a facility management appointment, our scope of services and cost
structure is as follows:
1. Third Party Vendors
As part of its contract,CEMC will initiate,monitor and review services and maintenance provided by
outside contractors to ensure quality and responsiveness. Whenever possible,we will work with
vendors that supply us products and services on other buildings in our large portfolio to take advantage
of cost savings for the owner.
2. Maintenance Administration
CEMC is capable of handling an array of building maintenance,repair and system monitoring issues at
the Property with its own maintenance technicians. This includes,but is not limited to, HVAC,
mechanical,electrical,plumbing, light general construction,exterior building and grounds maintenance
and other related jobs.
In order to maintain the Property,CEMC will provide a dedicated team of Level 2 and/or Level 3
technicians to handle routine needs as well as a Level 1 tech for the HVAC system monitoring,
maintenance and repairs. Maintenance,repair and system monitoring work as well as supervision that
may be required will be performed on an"as needed"basis and will be billed at our then current rates.
Our rates for 2012 are$39/hour for Level 3,$54/hour for Level 2 and$79/hour for Level 1.
3. Construction Management
In the event you need construction management services to perform any improvements or other
related construction projects,CEMC will coordinate all aspects of any construction for work as required
in your Property. Our fee structure for this service is based upon the size and scope of the project.
We look forward to being the City's resource for transitioning the Property from Bosch's control to the City of South
Bend's responsibility. Thank you very much for the opportunity to provide you with this proposal. I look forward to
discussing this proposal and putting together a Management Agreement for review and execution.
Sincerely,
CRESSY AND EVERETT MANAGEMENT CORP.
Robert H. Pryor,CPM
Senior Property Manager
Page 1 of 10