Sausalito is considering enlisting help with its city-held properties.
On Tuesday, the Sausalito City Council unanimously approved a request for proposals to hire a property management company. The city began a six-month process in February to analyze its property portfolio, with an ultimate goal of developing leasing policies.
City Manager Chris Zapata said the request for proposals does not commit the city to hiring a service, rather the effort is aimed at evaluating options.
“It’s just to see what we get back,” Zapata said. “It may be that you don’t want to do it, but I think we need to go out and kick that tire real good because the hybrid that we’ve been using is effective sometimes, ineffective others. I want to see what is out there in the private sector to manage our properties.”
Past approaches, including management by city staff, contracting management to outside sources, and a combination of both, have yielded mixed results.
City staff recommended getting brokers’ opinions on the value of the city properties. Previously, the City Council asked staff to catalog its smaller properties and lots, however staff recommended including larger facilities, such as the former fire station on Spencer Avenue, to determine its value.
Sausalito currently has 39 active leases, bringing in approximately $2.24 million in revenue a year. Renters include the Sausalito Yacht Club, the Sausalito Center for the Arts, Bank of America and the Southern Marin Fire Protection District.
Resident Peter Van Meter said he would hesitate to get brokers’ feedback on property value. Van Meter said he was a commercial real estate broker for 25 years.
“Broken opinion of value is something that you get what you pay for, and basically you’re looking for something that’s free,” Van Meter said. “Usually that broker is doing this with the expectation of getting some business from the person asking that question. That’s not going to be the situation with the city.”
Resident Steven Woodside said he believes the city should focus on leasing to charitable nonprofits. He said such organizations offer many community benefits to the city, and the city should take a close look at how, and to whom, it leases properties to and what benefits the renter provides.
“It’s a delicate balance that the city will be asked to try to balance, when you consider whether some of the properties that it owns are made available to entities that are in fact delivering a community benefit by law.”
Vice Mayor Joan Cox said she would like to see the city pursue the path Woodside suggested.
“I think that’s something that we should do in concert, perhaps with a property manager, if we’re able to hire one,” Cox said.
