Agenda - Council Work Session - 01/07/2014

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CC Work Session 2. 5. Meeting Date: 01/07/2014 Title: Discuss Real Estate Broker Services Contract with CBRE and Phase One Property Listing Purpose /Background: Background: The City of Ramsey owns a large inventory of developable land available for purchase by the private sector. In an effort to reduce the number of tax exempt parcels in the Ramsey, and encourage private market development, the City Council has identified the sale of developable City owned land a priority. Recently, the City Council directed Staff to work with CBRE to negotiate a contract for professional real estate broker services to facilitate the sale of City owned land. Purpose of Case: The purpose of this case is to review and amend two items: 1. Professional Services Agreement with CBRE (listing agreement) 2. Inventory of land (phase one listing) Attachments: Professional Services Agreement CBRE Phase One Listings (included in first contract) Phase Two Listings (not included in first contract, future date) NOTE: Upon approval of the professional services agreement and inventory of land to be included in the phase one listing (January 14 CCRS), Staff will bring back a subsequent case to discuss pricing strategy. Contract Highlights: *After one year, three month notice early termination clause (three year contract) *5% commission fee (7% co- broker) *After termination of contract, six month carry -over period (for commission) *No penalty for pulling properties from listing agreement (cancelation fees) *No upfront fees (standard signs, marketing, research) *Minimum fees on office /industrial sales ($2.00 per sq. ft. min. price) Timeframe: Upon approval of the professional services agreement and inventory of land to be included in the phase one listing (January 14 CCRS), Staff will bring back a subsequent case to discuss pricing strategy (January 28 CCRS). Funding Source: Future land proceeds. Responsible Party(ies): Administration Outcome: Information