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Economic Development Authority(EDA) 4.4. <br /> Meeting Date: 10/06/2016 <br /> Submitted For: Patrick Brama,Administrative Services <br /> By: Patrick Brama,Administrative Services <br /> Title: <br /> Begin Discussion RE Strategy for Marketing and Selling City Owned Land <br /> Purpose/Background: <br /> PURPOSE <br /> Begin a preliminary discussion RE the City's strategy for selling city owned land. <br /> NOTE: staff is not looking for any specific/formal direction from this case. This case is structured as an <br /> update and scoping exercise. Staff is looking for preliminary feedback from the EDA, for the EDA to identify <br /> questions that need to be answered as discussions unfold in the future, and for the EDA briefly review a list <br /> of opportunities for staff to further investigate. This case will come back to the EDA in December/ <br /> January--at which time,the EDA/Council will need to decide (A)if they want to continue their contract with <br /> CBRE and/or(B)if the City should utilize any other strategies to help market/sell city-owned land. <br /> BACKGROUND <br /> In 2012,the Council completed an exercise to determine Ramsey's inventory of city-owned land. The City of <br /> Ramsey owns over 250 parcels city-wide. The majority of these parcels are wetlands,existing or planned trails, <br /> existing or future right of ways (ROW)and greenways.About 20 city owned parcels are available for sale and <br /> development by the private sector. In 2013, staff was directed to market and sell surplus city owned land. <br /> On January 28, 2014,the City of Ramsey entered into a contract with CBRE to provide professional real estate <br /> brokerage services. The contract with CBRE is set to expire January 28, 2017. The CBRE contract includes a <br /> six-month carryover commission clause. This contrasts with the former Landform contract that had an 18-month <br /> carryover commission clause. <br /> CBRE listed 19 different properties(about 25 parcels). CBRE has placed signs on available properties,and <br /> completed professional listing brochures for all 19 properties. Said listings have been placed on CoStar, <br /> MnCAR, LoopNet, CBRE's website, and on the City's website. CBRE has shared these listings via email <br /> blasts to their contacts on several occasions. CBRE has reached out to a long list of prospects individually RE <br /> their listings in Ramsey(roughly XXXX). Periodically, CBRE provides the EDA/City Council with updates. <br /> In late 2015,CBRE worked with staff to create a detailed community profile--that highlights the momentum <br /> - taking place throughout the community(attached). Additionally, CBRE and staff developed a pricing strategy <br /> table for the sale of city-owned properties. CBRE has acted as an advisor to the City's Economic <br /> Development and Community Development staff on many occasions. The working relationship between staff <br /> and CBRE is positive and professional. CBRE has closed four deals,has two deals under contract(purchase <br /> agreement),and are currently working to get two more deals under contract. <br /> NUMBERS <br /> (1) Closed Deals: since 2013,the City has closed on the sale of eight properties, totaling 39.82 acres,and <br /> $4.216M. CBRE was involved with four sales. These sites include: the former municipal center site (GS <br /> Land),Windsorwood,McDonald's,Common Bond,Casey's,PSD LLC,and Purmort(two deals). <br /> (2) Deals Under Contract: the City(and CBRE)currently have two other purchase agreements executed and <br />