Agenda - Council - 02/22/2011 - Laserfiche WebLink

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CC Regular Session Date: 02/22/2011 By: Aaron Backman Administrative Services Title: Revised Real Estate Services Agreement for Bury & Carlson Site Background: At the February 15, 2011 City Council Work Session the Economic Dev. /Marketing Manager updated members regarding the status of the activities and discussions pertaining to the Minneapolis manufacturer that is considering buying the Bury & Carlson site for a new manufacturing facility. The Econ. Dev. /Marketing Manager introduced Jeff LaFavre of Integrust Advisory Group that has been assisting the City regarding this project. Mr. LaFavre has extensive real estate experience and is proposing to represent the City in negotiations with the prospect. He had submitted an exclusive listing agreement that was provided to the City Council members for their consideration. That agreement included a 5.0% brokerage fee based on the fair market value of the property and was effective for 12 months. Under that agreement, Mr. LaFavre could market the site to other prospects. The councilmembers indicated that they wanted an agreement that would pay Mr. LaFavre for his services to the City, however, they wanted the agreement to be limited to the prospect at hand Mr. LaFavre indicated that he would come back with a revised agreement for the City Council's consideration. Attached is the revised listing agreement with an attached rider (p. 4). The 5.0% brokerage fee is now based on the property's current assessed value, $1,266,000. The agreement would be for 12 months, but would be null and void if the current prospect goes away. Funding Source: Direct fees pertaining to an agreement with Integrust Advisory Group would come from land sale proceeds, EDA funds, and /or TIF funds. Council Action: Consider approving a revised commercial exclusive listing agreement with Integrust Advisory Group pertaining to the Bury & Carlson site that is limited in scope to the current prospect. Revised Agreement Information Attachments Form Review Inbox Reviewed By Date Kurt Ulrich Kurt Ulrich 02/17/2011 03:35 PM Form Started By: Aaron Backman Started On: 02/17/2011 11:24 AM Final Approval Date: 02/17/2011 Item #: 7. 3.