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

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Motion by Councilmember Elvig, seconded by Councilmember Jeffrey, to waive the reading of the ordinance per City Charter and adopt Ordinance #11 -02 authorizing the sale of property legally described on attached Exhibit A, contingent upon recording of Cross of Hope Addition plat. A roll call vote was performed by the Recording Secretary: Councilmember Jeffrey aye Councilmember Wise aye Councilmember McGlone aye Councilmember Backous aye Councilmember Elvig aye Co.uncilmember Tossey aye Mayor Ramsey aye Motion carried. 7.03: Revised Real Estate Services Agreement for Bury & Carlson Site Development/Marketing Manager Backman reviewed the staff report. He added there are three alternatives the City could be looking at in compensation for Mr. LaFavre. One option is to leave the compensation as proposed at 5 %. This would be based on the current assessed value of $1,266,000. The second option is to pay for services rendered to date. There would be an hourly fee. The third option is to pay an hourly rate on the first 60 hours, and a 2% rate on the assessed value at closing. The hourly rate would be paid whether the project moved forward or not. The first option of a 5% fee is paid on contingency. Development/Marketing Manager Backman explained there are a few options for proceeding. The first is to look at selecting one of the above three options. The second option is to deny all proposed options. The third is to wait and see what develops. He noted he has told Mr. LaFavre he is at risk, and if the Council does not approve compensation, he is out the time he has put in. He indicated Mr. LaFavre recognizes this. Mayor Ramsey clarified the cap is 2% plus 60 hours in the third option. Development/Marketing Manager Backman answered in the affirmative. He further clarified if there was a joint broker fee, the buyer would be responsible for their side of the joint broker. Councilmember Elvig inquired what Mr. LaFavre brought to the table. Development Marketing/ Manager Backman responded Mr. LaFavre is making suggestions on how to approach the company in working with the lease, and is putting together materials regarding important items about the lease. He is helpful in the overall deal making. Motion by Councilmember Elvig, seconded by Mayor Ramsey, to approve 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 including an hourly rate on the first 60 hours, and a 2% rate on the assessed value at closing City Council / February 22, 2011 Page 5 of 9