Agenda - Economic Development Authority - 12/08/2016

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Staff is generally comfortable with the "traditional broker approach" which is currently being deployed(i.e. CBRE). This approach is cost-effective. CBRE charges 5%commission only on deals that close (market ranges from 5-8%). CBRE doesn't charge any other fees (many other options do). Utilizing CBRE puts the city in a low risk situation(if a deal closes,they get paid, if not--we don't lose anything). CBRE has a large network of contacts,they utilize many other well-known listing networks, and they have a big reach. CBRE is a respected and well established firm--their listing materials,website,and staff are very professional. This case is being presented to the EDA with several alternatives because staff has received continues feedback from various elected and appointed officials,members of the public,and businesses about the city's need to attract restaurants and retail. Which,has resulted in the direct questioning of the city's current approach(utilizing a traditional broker). With the above in mind, staff believes the city should consider the following two general options: (1)Keep CBRE and combine their efforts with a different alternative(i.e. firms that specialize in marketing, public relations,research, etc.). This would allow for an enhancement of our current efforts--and allow us to focus on targeted industries with a more pro-active and calculated approach. (2)Consider a different alternative,not CBRE(i.e.value added broker,master developer, economic development professional services firm). Action: Requested Action from EDA (1) should they city move forward with renewing a long term contract with CBRE now?If we are good with the current strategy,no further discussion may be warranted. --or-- (2) should the city take a step back,not renew a long term contract with CBRE now,and look at all available options for marketing city owned land, including CBRE?If yes, feedback on the strategies provided in this case would be helpful(for staff to prepare for the next meeting). Staff would like to narrow down the list as much as possible. Attachments CBRE Listings CBRE Contract CBRE Prospect List Buxton Research 2011 New Community Profile Form Review Inbox Reviewed By Date Kurt Ulrich Kathy Schmitz 12/01/2016 08:18 AM Patrick Brama(Originator) Patrick Brama 12/01/2016 08:29 AM Form Started By:Patrick Brama Started On: 11/07/2016 11:06 AM Final Approval Date:12/01/2016