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Councilmember LeTourneau stated he is more concerned about calling out only the known <br />buyers and agreed with letting the others go to the broker as Phase 1. <br />Economic Development Manager LaFrance stated the other part of the conversation is to gather <br />additional information on Phase 2 properties and then forwarding those properties to the broker. <br />Assistant to the City Administrator Brama stated the concern is whether it is worth potentially <br />paying commission on a sale that the City could have sold internally. <br />Councilmember LeTourneau stated he thinks the opportunity cost is worth the risk, as the City is <br />not enjoying its attempt to sell this property. <br />Councilmember Tossey agreed and noted the City has tried for years but does not know how to <br />sell this property. <br />Councilmember Kuzma suggested identifying any clear -cut prospect and then selling everything. <br />Mayor Strommen noted there are Phase 2 parcels that need additional due diligence prior to <br />turning over to the broker. <br />The consensus of the Council was to direct staff to prepare an addendum outlining the City <br />contact list for inclusion in the listing agreement. Consensus was also reached to approve listing <br />Phase 1 properties including the Windsorwood property located in northwest Ramsey, 6203 <br />Rivlyn Avenue, and North Commons residential sites. Phase 2 properties include the former <br />Ramsey Municipal Center, Hageman Holdings property, and Listing 45 property. <br />Assistant to the City Administrator Brama described the terms as contained within the contract, <br />noting it includes a schedule of land sale commissions. He explained a revision made to the <br />language relating to sale of office /industrial land to apply a land value of $2 /square foot value <br />and then apply CBRE's commission to it. He indicated these agreements will be revised as <br />directed by the Council and placed on the Council's Consent Agenda of January 14, 2013. <br />Assistant to the City Administrator Brama stated staff will bring back a subsequent case to <br />discuss pricing strategy on January 28, 2014. It was noted there will be a "meet and greet" <br />session with CBRE prior to the January 14, 2013, Council meeting. <br />Councilmember Riley asked whether the City is positioned to negotiate minimum fees, noting <br />there is potential to pay 10% on some of the residential land (Windsorwood). He also asked <br />about earnest money and if it reflected standard real estate terms. <br />Assistant to the City Administrator Brama stated there are minimum fees for sale of residential <br />parcels because the value of that type of property is relatively low. Thus, the standard <br />commission does not yield a profit for private firms. He explained that originally it was <br />proposed to be a straight minimum of $5,000 and staff negotiated a lower benchmark. However, <br />if the Council finds the rates to be too generous, staff could renegotiate a lower rate. With regard <br />City Council Work Session / January 7, 2014 <br />Page 10 of 13 <br />