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4. EDA BUSINESS <br />4.01: Consider Purchase Agreement for 6710 Highway 10 NW; Case of PDKP Properties, <br />LLC (Sterling Trophy) <br />City Administrator Ulrich presented the staff report. <br />Chairperson Steffen asked and received confirmation that the only change to the purchase <br />agreement since the last review is that the approval be contingent upon the applicant receiving <br />financing. <br />Member Hardin asked the position of CBRE in this sale. <br />City Administrator Ulrich stated that this is a CBRE listed property. <br />Member Hardin noted that neither the purchase agreement or letter of intent were drafted by <br />CBRE and therefore asked if the City was the driver in this sale rather than CBRE representing <br />both the buyer and seller. <br />City Administrator Ulrich stated that staff can follow up on that but believed that the applicant <br />came directly to the City rather than to CBRE. He stated that because the property is a CBRE <br />listed property it would fall into the category in which CBRE would receive commission. <br />Member Hardin asked if CBRE has earned their commission in this case. <br />Community Development Director Gladhill stated that can be a discussion point in the next six- <br />month contract discussion for CBRE. He stated that the contract terms do specify that CBRE <br />receive commission for their listed properties. <br />Member Letourneau stated that perhaps staff could look into the contract further. He stated that <br />in his memory the deal range was set in order to recover the ancillary costs related to selling <br />properties. <br />City Administrator Ulrich stated that the deal range typically covers the market, which has been <br />updated in the past year. He stated that if it is the desire of the EDA, the deal range could be <br />reviewed again. <br />Member LeTourneau stated that he appreciates the concern with whether the real estate broker <br />has earned their way. He stated that there have been several parties that have shown interest in <br />the property in the past and therefore even though that did not result in a sale, the broker is doing <br />work for the City and showing properties. <br />Member Riley asked if right of re-entry will be a separate agreement or whether that is included <br />in the agreement. He believed that element should be a standard condition, as the City is selling <br />the land in the thought that it is being built upon. <br />Economic Development Authority/July 12, 2018 <br />Page 2 of 6 <br />