Agenda - Economic Development Authority - 07/13/2017

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Economic Dev. Mgr/Assistant City Administrator Brama stated that this parcel has never been officially listed with CBRE, but staff was directed by the Council to do so in 2016. However, a purchase agreement came forward at that same time, and the property has been tied up since 2016. As a result, it was never officially listed. Member Hardin stated that he would be opposed to paying a broker fee for a parcel that has never been listed with the broker. Member Williams arrived. Brian Pankratz, CBRE, stated that he had been working with developers to find a parcel, and attention was brought to this parcel through that process. Member Hardin stated that the City has a long relationship with Mr. Sharp and the purchase agreement was drafted with staff, and therefore he would be opposed to paying a broker fee. Chairperson Steffen asked how Mr. Sharp had discovered this parcel. Mr. Sharp stated that he was alerted to the parcel through conversations with Economic Dev. Mgr/Assistant City Administrator Brama. He stated that the land is near his other parcels and is a good location for him. He stated that he thought the land was fairly undisturbed prior to the soil testing. He stated that most of his buildings have been speculative, noting that his last one was in 2009. He believed that there is a demand for this smaller space. He explained that when bigger companies come, that tends to draw smaller companies as well and he enjoys working with the smaller companies. He stated that those businesses eventually grow and then he often builds a larger building for them. He confirmed that he builds the shell, and the interior is then built out to match the size and needs of the company. Member Riley asked for the input of staff on the brokerage commission. Economic Dev. Mgr/Assistant City Administrator Brama stated that the property was identified as available land and was directed to work with CBRE to market the land. He noted that almost immediately a purchase agreement was brought forward from CBRE with Platinum Properties. He stated that it has been a fluid situation that Mr. Sharp and Platinum Properties were working on together, and it evolved into just Mr. Sharp. He stated that perhaps the EDA's concern has been expressed, and he can have a discussion with CBRE, to find a resolution, prior to the Council review. Chairperson Steffen noted that in the previous case CBRE brought forth the developer while in this case they did not, although there may have been a tie. He stated that he likes the project and is excited to have another project with Mr. Sharp. Motion by Chairperson Steffen, seconded by Member Hardin, to recommend to City Council to approve the purchase agreement between the City of Ramsey and Sharp & Associates LLC for 9.33 acres of City owned land, with direction for further discussion regarding the CBRE commission. Economic Development Authority/June 8, 2017 Page 3 of 9