Let’s add one more wrinkle to this convoluted mess. The CMPA board knew about the new fee structure for CBRE that was set forth in the RFP as early as November 2014, according to attorney Scott Remington.
Remington, who represents the Studer Community Investments, wrote the CMPA board a response to the RFP from CBRE on November 14, 2014:
“Further, we read the RFP to propose that any Lessee of these parcels should pay a commission to CBRE not just based on the value of the parcel, but also on future improvements developed. We found this to be highly unusual, and could not agree to this. We would be willing to pay a cashed out commission of 4% of the values of the parcels as described above.”
The Board may not have understood the new CBRE fee structure would give the broker $2.5 million, but the members definitely had knowledge of the the new structure four months ago.