REAL ESTATE COMMISSION POLICY

1. All real estate brokers with whom the Port conducts business must be licensed by the State of Washington.
2. All contact between the Port and real estate brokers will be through the Port Manager.
3. Any Real Estate Commission Agreement between real estate brokers and the Port must be in writing and must be executed by the Port Manager, the broker, and approved by the Port Commission.
4. The rate of commission shall not exceed seven percent of the total lease payments, excluding leasehold tax or other applicable taxes, for the first five years of the lease period, unless otherwise approved by the Port Commission.
5. In the event that a tenant fails to make lease payments to the Port due to bankruptcy, insolvency or default of the lease, commission payments will cease, unless and until the bankruptcy, insolvency or default is remedied and lease payments are received.
6. The terms of the payment for any commission for a long-term lease will be negotiated at the time of execution of the lease. The Port may agree to pay a larger portion of a commission on a deferred lease payment up-front in certain instances for: a) quality tenants, and b) longer term leases; providing however, that in no event may the percentage commission be computed on more than five year lease payments as provided in paragraph 4 herein. Commissions for month-to-month leases will be paid only as monthly rentals are received by the Port.
7. The broker will provide a signed statement detailing any personal or financial interest he may have in the transaction covered by the Commission Agreement, except for the commission itself. In the alternative, a signed statement declaring that there is no conflict of interest shall be provided.
8. A commission will not be paid on leases involving Port tenants, lease renewals, or options exercised on leases existing as of the date of this resolution.
9. Brokers will be required to register prospective tenants with the Port Executive Director by presenting a letter, signed by broker and prospective tenant, disclosing any business relationship between the broker and prospective tenant. Any real estate brokers employed by the Port shall be advised that they are the agent of the Port and not the agent for a prospective tenant.