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Mount Clemens hears CBRE plan to market riverfront and water‑plant sites; firm outlines RFP timeline and fees
Summary
At a work session, CBRE outlined a marketing and RFP approach for two city-owned parcels — a former water plant and a 4.6‑acre riverfront site — and described timelines, due diligence steps and a compensation structure that includes a 5–6% sales commission for the water‑plant sale and a $10,000/month advisory retainer for the riverfront with a developer‑paid success fee.
CBRE representatives presented a two‑pronged plan to Mount Clemens commissioners to prepare and market a former water plant and a 4.6‑acre riverfront parcel, emphasizing early due diligence and broad developer outreach.
The firm’s public‑institutions lead, Anne Rom, described the water‑plant parcel as “a property we want to maximize proceeds for” to help offset conversion costs tied to the city’s shift of drinking‑water service to GLWA. CBRE said that work would begin with feasibility testing followed by an RFP process.
CBRE’s multifamily lead, Jack Chomp, and land specialist Joe Kemp said the riverfront site is rare in the market and recommended a structured RFP: a 60–90 day proposal window for initial submissions, targeted outreach to a national list of developers and staged due diligence. “This is a rare gem,” Chomp said, noting the parcel’s 4.6‑acre size and waterfront frontage. Kemp added that early coordination with Harrison Township and prepared environmental and survey reports would broaden the buyer pool and shorten closing time.
On timing, CBRE estimated that, if much of the site due diligence is completed ahead of market, a sale could close in roughly 10–14 months; getting to a development agreement alone could take 12–18 months depending on zoning and entitlement needs.
On compensation, CBRE said the water‑plant sale would carry a brokerage fee of 5% if CBRE is sole broker (6% if a buyer broker is involved) payable at closing. For the riverfront advisory role the firm proposed a $10,000 monthly retainer while it runs the RFP and technical studies; CBRE said the developer would pay a tiered success fee on closing (the firm described a tiered percentage schedule and said it would rebate 50% of the retainers paid once a development agreement is executed).
Commissioners asked specific questions about the marina and public parking currently on the riverfront parcel, whether a developer would be required to keep public slips and parking, and how the city could preserve public space. CBRE said those items would be set in the RFP and development agreement in consultation with the commission and neighboring jurisdictions.
Why this matters: The city is weighing between a straightforward sale and a more controlled public‑private development path that could preserve community amenities while generating revenue. Commissioners pressed both consultants later in the meeting for concrete fee comparisons and examples of net proceeds under different sale and development scenarios.
Next steps: Commissioners directed staff to collect follow‑up questions and fee comparisons to be shared with the firms; no procurement decisions were made at the work session.
