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Consent Case #~ <br />AUTHORIZE STAFF TO ENTER INTO A COMMERCIAL ONE-TIME <br />SHOWINGCONTRACT WITH KELLER WILLIAMS PREMIER REALTY <br />By: Kurtis G. Ulrich. City Administrator <br />Background: <br />The City has been approached by a real estate broker representing a potential land <br />purchaser of two acres of property within the Ramsey Town Center. Staff is requesting <br />Council authorization to enter in into a Commercial, One Time Showing Contract with <br />Keller Williams Premier Realty for the sale of this property. Under this agreement, the <br />City as the seller will .pay the broker 3.5% of the selling price of the property as <br />commission if a sale is successfully negotiated. <br />With this authorization, staff will proceed to negotiate a purchase agreement for the sale <br />of the property, which .will come back to a Council meeting for approval by ordinance. <br />This -sale would be contingent upon the successful purchase of the property from <br />MinnWest bank as anticipated on June 26. While the City has not paid commissions on <br />the sale of industrial land in the past, .local real estate brokers and landowners have <br />indicated that the payment of a commission on commercial property is standard practice <br />for the real estate industry -and that a commission of 8-10% is not unusual. <br />Consequently, a 3.5% commission is a fair and reasonable request. <br />Recommendation: <br />Staff is recommending that the City Council authorize staff to enter into a Commercial <br />One Time Showing Contract with Keller Williams Premier Realty. <br />Council Action: <br />Motion to authorize staff to enter into a Commercial One Time Showing Contract with <br />Keller Williams Premier Realty, paying a 3.5% commission, subject to approval by the <br />City Attorney and City Administrator. <br />Reviewed by: <br />City Administrator <br />CC: 05/12/09 <br />-41- <br />