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

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UNITED PROPERTIES September 28, 1995 Mr. Ryan R. Schroeder City Adminisla'ator City of Ramsey 15153 Nowthen Blvd. NW Ramsey, MN 55303 Dear Ryan: United Properties is pleased to be considered roi' the land marketing assignment of your industrial park. We understand that the City's goal is to attract viable, industrial companies to its industrial park by offering incentives such as free land and tax increment financing. Using such incentive tools, we think that our three-pronged approach to business park marketing, as described in our September 22, 1995 letter to you, will accomplish your goal in the quickest time possible. We are suggesting two alternatives for the City's consideration for structuring a marketing relationship with United Properties. We are flexible with regard to which alternative the City chooses: ALTERNATIVE A Land Sale Commissions United Properties will market the land for sale and earn traditional land sale commissions based on mutually agreeable land values for each site. If an outside broker is involved, a 10% co~nmission will be paid to United Properties. United will be responsible for compensating the outside broker involved. For direct deals completed by United Properties, an 8% commission will be paid. Commissions will be paid for all land transactions, including any spec development projects or build-to-suit projects developed by United Properties. We will mutually agree in advance on land values for each site in the industrial park as a basis for compensation, even though the City may choose to contribute the land as an incentive, at a lower price, or even free. ALTERNATIVE B Development Agreement United Properties will be given exclusive development rights to your industrial park to market the land for sale, including any build-to-suit or spec development initiated by United Properties. Instead of paying land sale commissions, the City agrees to give United Properties the land for each transaction at no cost. To earn compensation for its services, United can sell the land for profit. United will pay broker co~nmissions from any land profit earned. With the exception of the companies that the City is cmrently working with, all land inquiries will be directed to United Properties. 3500 West 80th Street Minneapolis, Minnesota 55431 612 831-1000 Fax: 612 893-8804 I I I I I I I I I I I I I I I I I I I