Agenda - Council Work Session - 01/10/2017

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CC Work Session 2.3. Meeting Date: 01/10/2017 Submitted For: Patrick Brama,Administrative Services By: Patrick Brama,Administrative Services Information Title: Update on EDA Discussion RE Strategy for Marketing and Selling City Owned Land Purpose/Background: This case is being brought to the City Council for the sake of providing an update; and an opportunity to comment/ make suggestions,before the EDA continues forward with this process. Please see recommendation section of this case f s the EDA is recommending moving ford. PURPOSE Continue discussion RE the City's strategy for selling city owned land and marketing The COR. This case was brought to the EDA in September and December of 2016. Original Purpose of Case(EDA September 2016) (1) should the city move forward with renewing another 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? BACKGROUND In 2012,the Council completed an exercise to determine Ramsey's inventory of city-owned land. The City of Ramsey owns over 250 parcels city-wide. The majority of these parcels are wetlands, existing or planned trails, existing or future right of ways (ROW)and greenways.About 20 city owned parcels are available for sale and development by the private sector. In 2013, staff was directed to market and sell surplus city owned land. On January 28, 2014,the City of Ramsey entered into a long-term contract with CBRE to provide professional real estate brokerage services to help market/sell city-owned land. The contract with CBRE is set to expire January 28, 2017. CBRE listed 19 different properties(about 25 parcels). CBRE has placed signs on available properties,and completed professional listing brochures for all 19 properties. Said listings have been placed on CoStar, - MnCAR, LoopNet,CBRE's website,and on the City's website. CBRE has shared these listings via email blasts to their contacts monthly. CBRE has reached out to a long list of prospects individually RE their listings in Ramsey. Periodically, CBRE provides the EDA/City Council with updates. In late 2015,CBRE worked with staff to create a detailed community profile--that highlights the momentum taking place throughout the community (attached). Additionally, CBRE and staff developed a detailed pricing strategy table for the sale of city-owned properties. CBRE has acted as an advisor to the City's Economic Development and Community Development staff on many occasions. The working relationship between staff and CBRE is positive and professional. CBRE has closed four deals,has three deals under contract(purchase agreements),and are currently working to get two more deals under contract.