How do I sell my city-given Relocation Assistance contract?

Question

The city of San Marcos (in San Diego County, CA) gave my client a $600k contract in addition to what he got for the sale of his business when they bought him out.

This contract is Relocation Assistance that is to be used to help build a new location. It is "financial assistance in the form of fee waivers and financing of public infrastructure requirements." This could be improving the sidewalks, beautifying the median, upgrading sewage, etc. That's what the $600k is for.

My client ended up doing a long-term lease for his new space and now has this contract just sitting there. How do I sell that contract and to whom?

The contract is assignable, provided that I "assign, transfer and/or sell all or part of...Relocation Assistance to a sales tax-generating use elsewhere within City's jurisdictional boundaries that is reasonably acceptable to City." In other words, it has to be sold to a business that will produce tax revenue for the city, aka a developer, yes?

How to do I find a company that wants to buy the contract and for what discounted rate should I sell it for?

Thank you!

Christian Efseaff · Answer

That's some good insight, thanks @Justin R.!

Justin R. · Answer

@Christian Efseaff I don't know anything about San Marcos' processes, but if it was the City of SD, I'd try going down to the Development Services department to see how to get access to data for recently submitted or approved projects ... I assume that would be public record.

Maybe check with City Council meeting agenda/minutes since commercial projects of that magnitude are probably going to receive some sort of discretionary process review that has to be publicly disclosed.

Or maybe approach the large construction firms that are active in that area?  If they don't have something going on, they probably know another contractor who does ... and that contractor can put you in touch with clients actually operating a business who may be interested in buying.

Pretty specific thing you've got to sell, and you'll need a rather large project in order to capture the full $600k in value ... not going to be many of those to choose from.

Good luck!