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Economic Development Authority(EDA) 4. 1. <br /> Meeting Date: 12/08/2016 <br /> Submitted For: Patrick Brama,Administrative Services <br /> By: Patrick Brama,Administrative Services <br /> Title: <br /> Continue Discussion RE Strategy for Marketing and Selling City Owned Land <br /> Purpose/Background: <br /> PURPOSE <br /> Continue discussion RE the City's strategy for selling city owned land and marketing The COR. This case was <br /> brought to the EDA originally in September. <br /> Requested Action from EDA <br /> (1) should they city move forward with renewing a long term contract with CBRE now?If we are good with <br /> the current strategy,no further discussion may be warranted. <br /> --or-- <br /> (2) should the city take a step back,not renew a long term contract with CBRE now, and look at all available <br /> options for marketing city owned land,including CBRE? <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. <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 monthly. CBRE has reached out to a long list of prospects individually RE their <br /> listings in Ramsey(roughly XXXX). <br /> Periodically,CBRE provides the EDA/City Council with updates. In late 2015,CBRE worked with staff to <br /> create a detailed community profile--that highlights the momentum taking place throughout the community <br /> - (attached). Additionally,CBRE and staff developed a detailed pricing strategy table for the sale of <br /> city-owned properties. <br /> CBRE has acted as an advisor to the City's Economic Development and Community Development staff on <br /> many occasions. The working relationship between staff and CBRE is positive and professional. CBRE has <br /> closed four deals,has three deals under contract(purchase agreements), and are currently working to get two <br /> more deals under contract. <br /> CBRE has been paid$150,938 in commissions. If the currently executed purchase agreements close,CBRE <br /> would be paid an additional$63,750 (total of$214,688 in commissions). This contrasts with the 3-year <br /> Lanform contract which cost the city roughly$1.8M (commissions plus other professional services). The <br /> CBRE contract includes a six-month carryover commission clause. This contrasts with the former Landform <br /> contract that had an 18-month carryover commission clause. <br />