Agenda - Council - 10/10/1995 - Laserfiche WebLink

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~ CompaniI Business Offer for Real Estate Services presented to The City of Ramsey, Minnesota September 29, 1995 by Welsh Companies Welsh companies believes that the most appropriate approach to marketing the City's development land in and around the Ramsey Industrial Park is the "outsourcing" model. We believe that this approach will allow the City or Ramsey to manage the flow of tasks in the marketing effort, as well as manage the City's financial investment in the marketing efforts. At the same time, the City can take full advantage of Welsh Companies' stature as the largest full-service real estate firm in the region. With this approach, Welsh Companies would work on an hourly basis under the direct supervision of the City Administrator or the City's Economic Development Coordinator to develop the prospect lists, the marketing materials and coordinate the promotional events or activities that the City feels are appropriate. Because of our-size, Welsh Companies is able to focus on attracting core groups of prospects, while also taking advantage of opportunities throughout the metro Twin Cities market. All costs for materials, postage, etc. would be passed thrOugh to the City without markup. Professional- level Welsh Companies' staff time would be billed at a rate of $125.00 per hour, technical staff time would be billed at $75.00. Time would be billed in 1/4 hour increments from Welsh Companies time sheets with no charge for support staff. The basis for the selling commissions would be 10 cents per square foot ($4,356.00/acre) for the development land. All hourly labor would be credited against selling commissions with total compensation to Welsh Companies to be the higher of either the sum of the selling commissions or the sum of the hourly labor. In the event that the project was slow to sell out and sum of the hourly labor exceeded the selling commissions, Welsh Companies would absorb the selling commissions. If the project sells out very quickly and the hourly labor was less than the selling commissions, Welsh Companies would absorb the hourly labor in the selling commissions. We believe that this approach would be attractive to the City of Ramsey for two reasons:-one, it vests direct management control of the project with the City, and two, it creates a partnership approach where the City and Welsh Companies share the risks and reward of a successful sales campaign. Welsh Companies recognizes that the City of Ramsey is, in effect, in competition for land sales with the City of Anoka. Furthermore, the Anoka Electric Cooperative may also be marketing land within the City of Ramsey within the same time frame as the City's planned land sales. Welsh Companies proposes a land marketing strategy for the City's land that focuses on attracting smaller manufacturing businesses such as machine shops, stamping, grinding and fabricating firms, while allowing the utility to focus their attention on attracting larger energy users to the City by developing and implementing a land sales campaign that aggressively markets A.E.C. land to substantial energy users. By approaching the project in a coordinated way, the City can achieve and maintain competitive parity with the City of Anoka in land sales and attract a mix of industries that can develop into an integrated economic sector and grow as the City grows. ~J~ C sgrove Welsh Companies This offer is valid through November 30, 1995. I I I I I I I I I I I I