1. All PIDC and PAID owned property will be offered on an open listing basis. All inquiries regarding available properties or arrangements for tours of property should be made through the appropriate PIDC staff.

2. A broker-represented client must be personally introduced to a member of the PIDC Market Development staff to discuss the availability of land owned and/or marketed by PIDC. If the client has had previous direct contact with PIDC staff regarding land availability, a broker's commission cannot be paid. In addition, telephone calls and written correspondence may not solely be the basis for an introduction of a client to PIDC.

3. In order for a commission to be paid on the sale or leasing of a property, the required meeting with a member of the PIDC staff must include at a minimum the discussion of development or leasing opportunities for a particular PIDC or PAID property or within a specific development district (e.g., Byberry East Industrial District or the Philadelphia Naval Business Center).

4. When a broker-represented client submits a final development or leasing plan for PIDC approval, it is expected that the broker has had direct contact with PIDC staff regarding the client at least within the ninety (90) days preceding the submission. It is essential that a broker continues to actively and personally represent a client with PIDC in order to be paid a sales commission.

5. In the event of a lease transaction, PIDC or PAID will pay a leasing commission that is equal to six percent (6%) of the agreed upon base rent (net of all tax, insurance, utility, common area, rent free periods, or other operating costs) over the term of any lease, including renewals and/or extensions. With regard to transactions at The Navy Yard, commissions will also be paid on expansions and/or relocations that occur between PIDC or PAID owned property at The Navy Yard.

6. All leasing commissions will be paid quarterly, in arrears, on an "as collected" basis.

7. In the event of a sales transaction, PIDC or PAID will pay a sales commission that is equal to six percent (6%) of the sales price. This commission will be paid at closing, out of the proceeds of sale. No commission will deemed to be earned or payable unless closing takes place and title to the property is transferred. With regard to transactions at The Navy Yard, a sales commission will be paid to the original procuring agent if a Navy Yard tenant later purchases the Navy Yard property that it originally leased.

8. Unless members of the brokerage community present PIDC or PAID with a written agreement signed by a prospective buyer or tenant, brokers will be deemed to be agents of PIDC or PAID. All legal and ethical obligations that are imposed upon owners' agents will apply.

9. If a broker has been engaged as the agent of a prospective buyer or tenant, PIDC and PAID reserve the right to select and engage an agent to represent PIDC or PAID specifically with respect to this prospective buyer or tenant. If a broker is acting as the agent of a prospective tenant or buyer and PIDC or PAID engages its own agent specifically with respect to the transaction, the PIDC or PAID agent will be compensated separately and the total sales or leasing commission will remain six percent (6%).

10. PIDC and PAID will only pay a commission to the member of the brokerage community who is the procuring cause of a sale or lease, as such term is defined by the Code of Ethics and Standards of Practice of the National Association of REALTORS®. In order to be recognized as the procuring cause, a broker must provide PIDC with a letter from an authorized officer of the prospective tenant or buyer recognizing the agent as the broker of record prior to the closing of a sale or lease. Further, PIDC and PAID will only recognize an agent as the procuring cause of a prospective sale or lease for as long as the prospective buyer or tenant continues to be actively interested in The Navy Yard and the agent continues to be actively involved in the prospective tenant's sale or lease of Navy Yard property, as determined by PAID.

11. PIDC or PAID, or its designee, will hold all deposits, including earnest money and security deposits.

12. In the event of a dispute over the payment of a commission, the following procedure will be followed:

    1. First, all commission payments arising from the dispute will be put into an escrow account.
    2. Second, the dispute will be submitted to binding arbitration in accordance with the Code of Ethics and Standards of Practice of the National Association of REALTORS®, the TriState Commercial and Industrial Association of REALTORS®, the Pennsylvania Association of REALTORS®, or the Society of Industrial and Office REALTORS®.
       

PIDC and PAID have developed this policy in conjunction with the leadership of several professional associations. If you have any questions about this policy, please contact
JOSEPH J. AYLMER at 215-496-8101.