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HRA Regular Session Meeting Date: 01/08/2013 By: Darren Lazan, Housing & Redevelopment Authority Information Title: Update on Edgewood Project, and Approve Commission Agreement - Premier Commercial Properties 5. 6. Background: In October of 2012, the HRA approved an Option Agreement with Edgewood Property Management for the purchase of one of two sites within The COR. Over the last 60 days, Edgewood has conducted market studies and evaluated the two sites presented by the development team, and chosen Site A, the 3 acre parcel located at the northeast quadrant of Center Street and Ramsey Parkway as depicted in the current development plan. On December 15th, pursuant to the agreement, Edgewood exercised this option, and final Purchase Agreements have been forwarded for their execution. The required earnest monies have been deposited in trust with their agent, and will be transferred to the title company with the executed agreements. As outlined in the Purchase Agreement, the buyer (Edgewood) is represented by Premier Commercial Properties, and is entitled to a commission paid by the seller. The attached agreement should be approved and executed by the HRA when escrow is opened. Notification: Observations: Seller traditionally pays brokerage fees in commercially standard transactions. This was documented in the Option/Purchase Agreement approved by the HRA, and Premier has certainly earned their commission on this project as they assisted the buyer in his evaluation of the site, and assisted in the document structure and execution. Recommendation: The development team recommends approval of the attached commission agreement in the amount of four percent (4%) of the purchase price or approximately $37,374.48 based on current parcel configuration. This will be adjusted as necessary with the final plat. Funding Source: Land Sale Proceeds at closing Council Action: Approve the attached commission agreement with Premier Commercial Properties in the amount of four percent (4%) of the purchase price or approximately $37,374.48 based on current parcel configuration, due at closing. Commission Agreement Purchase Agreement Parcel Map Attachments Form Review