Agenda - Economic Development Authority - 01/12/2017

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Economic Development Authority (EDA) 4. 3. Meeting Date: 01/12/2017 Submitted For: Patrick Brama,Administrative Services By: Patrick Brama,Administrative Services Title: Extend CBRE Listing Agreement through July 2017 Purpose/Background: REFERENCE This case is in reference to the discussions had by the EDA in September and December of 2016 RE the City's strategy for marketing/selling city-owned land. Please see those EDA cases for background. PURPOSE The purpose of this case is to recommend the City Council approve the attached short-term contract extension with CBRE(6 months). This short-term CBRE contract should provide enough time for the City to decide what their next long-term contract will be/with who (typically 3 years). Notification: NA Observations/Alternatives: NA Funding Source: NA Recommendation: At the December EDA meeting,the EDA indicated an interest in a short-term/or month-to-month contract with CBRE. The EDA generally wanted coverage from CBRE until the next long-term solution was in place. Staff is generally comfortable with this approach. However, staff would note,that a 6-month carry over clause for the CBRE listing agreement exists (this does contrast from the 18 month carry over clause with Landform). Therefore,whenever the CBRE contract is officially terminated,the City still has a 6-month window in which they are obligated to pay a commission to CBRE on deals CBRE previously worked--i.e.the CBRE prospect list,which is a long list . One could argue,the City could cancel the CBRE contract now, and the CBRE would still work their current leads for the next 6 months, on the City's behalf, anyway. The only down fall with that approach is, CBRE would likely not work any new leads during that interim period. Action: Motion to Recommend: The City Council approve the attached 6-month contract extension for broker services with CBRE. Attachments