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(1) Traditional Broker (current method) <br /> Broker creates professional listings, lists properties on websites, places real estates signs, sends email <br /> blasts, connects with networks/contacts, and provide market updates to city. A traditional real <br /> estate broker typically gets paid a commission between 5-7%on land sales. This marketing alternative is <br /> typically the most cost-effective, and requires the least amount of exposure to the city financially, in <br /> terms of upfront expenses. <br /> Staff believes CBRE is a great fit for this particular strategy. CBRE's 3-year contract is due in January of <br /> 2017. The background section of this case provides more information on CBRE. One option to consider <br /> is keeping CBRE, and enhancing their services by hiring a PR firm for targeted marketing campaigns (for <br /> example, to restaurants or retail), or hire a research firm to help us further refine or prospects. <br /> Examples:coldwellbanker.com, edinarealty.com, colliers.com/en-us/us,premiercommercialproperties.com <br /> (2) Value-Added Broker <br /> Organizations that provide traditional brokerage services, along with additional value-added <br /> services. For example, some firms provide professional engineering and land use services, along with <br /> broker services (i.e. Landform). Another example is a firm that provides broker services with a more <br /> robust marketing, public relations offering, and professional consulting (i.e. IAG,Jeff Lafavre). Typically, <br /> these firms cost more than a traditional broker--and often times include a combination of both <br /> higher commission payments (6-8%) and regular monthly professional service payments ($300- <br /> $15,000). <br /> These firms would be a little more "hands on"with staff and our elected officials. Staff would expect <br /> these firms to have a higher emphasis on supporting Ramsey's vision, values, and zoning. These firms <br /> would go above and beyond listing properties and connecting with known relationships--they would be <br /> more pro-active. They would also work closer with known developers/investors. These firms would act <br /> more of as an extension of staff. Although this type of broker would have a high motivation to close <br /> deals, it would not be their exclusive mission (as is for a traditional broker). The scope of work for a <br /> custom broker is variable, and highly customizable. <br /> If the city were to select this alternative, staff would recommend we send a RFQ to our broker list, and <br /> within the RFQ specifically require certain services be provided (i.e. services we want above and beyond <br /> the role of a traditional broker). For, example, we want the broker to produce (or contract out)targeted <br /> marketing materials for restaurants and retail--and we want them send to a minimum XXX entities per <br /> year, directly and personalized (not just via a mass email blast of a generic message), and they should <br /> follow up with at least one direct phone call to each. Staff would also ask for the scope/expectations <br /> for updates/and progress reports to be clearly defined. <br /> Examples:iagcommercial.com, landform.net <br /> Page 2 of 5 <br />