Agenda - Council - 08/26/2014 - Laserfiche WebLink

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ALTERNATIVES: Three alternatives have been identified by Staff (below). This includes proposals from two brokers in which the City has existing formal relationships. (1) Premier Commercial Properties Premier Commercial Properties provides property management services for City owned properties located on U.S. Highway 10. Additionally, Premier provides broker services (via a listing agreement) to lease City owned property/buildings along U.S. Highway 10. The existing relationship with Premier has been positive and effective. This firm has a strong regional presence, network and history with the City of Ramsey. Staff is confident Premier is capable of effectively marketing/leasing the RMC. Proposal: Premier Agreement Term: 14 months/open Gross Asking Price: $18.50 per square foot (psf) ($56,036 annually) Commission Charges: $1.00 psf for 1 year lease ($3,029, $4,543 w/co-broker) $2.00 psf for 2 year lease ($6,058, $9,087 w/co-broker) $3.00 psf for 3 year lease ($9,087, $13,630 w/co-broker) $3.00 psf for 4 year lease ($9,087, $13,630 w/co-broker) $3.00 psf for 5 year lease ($9,087, $13,630 w/co-broker) Capped at 5 years; no additional charges apply. Showing Charges: $0.00 (2) CBRE In early 2014, CBRE entered into a broker agreement with the City of Ramsey to market/sell City -owned property. Currently, CBRE is listing 18 City -owned properties available for development. Additionally, CBRE has struck listing agreements with other key land owners within the City; and is pursuing development that will provide momentum to the success of the City's future business park and The COR. The existing relationship with CBRE has been positive and effective. This firm has a strong national and metro -wide presence. Staff is confident CBRE is capable of effectively marketing/leasing the RMC. Proposal: CBRE Agreement Term: open Gross Asking Price: $18.00 per square foot (psf) ($54,522 annually) Commission Charges: $1.00 psf for 1 year lease ($3,029, $4,543 w/co-broker) $2.00 psf for 2 year lease ($6,058, $9,087 w/co-broker) $3.00 psf for 3 year lease ($9,087, $13,630 w/co-broker) $3.00 psf for 4 year lease ($12,116, $18,630 w/co-broker) $3.00 psf for 5 year lease ($15,145, $22,717 w/co-broker) Not capped at 5 years; additional charges apply. Showing Charges: $50 per showing (3) Amended Process The City Council does have the ability to chose a different alternative. Listed below are general options: • Don't lease the RMC altogether; don't move forward with the proposed contract. • Open this process to a larger pool/formal request for proposals (RFP). • Pursue a non -market rate user for the RMC; don't attempt to lease at market rate. • Significantly amend the proposed contract; and table this case. IMPORTANT NOTES: • Lease will require tenant improvement package; a new wall and other minor amenities will be needed. The City will likely need to be creative to get a quality user (i.e. first XX months of "net lease dollars"