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Economic Development Authority (EDA) Meeting Date: 01/10/2019 Submitted For: Sean Sullivan, Community Development By: Wendy Schlueter, Community Development Title: Listing and Marketing of City Owned Land 4. 2. Purpose/Background: The purpose of this case is as follows: 1. Make minor modifications to the existing contract with CBRE for commercial real estate brokerage 2. Provide direction to continue listing certain sites with CBRE 3. Direct Staff to schedule a Joint Work Session to have a broader policy discussion on marketing City Parcels for sale The City has been engaged in a contract with CBRE since January 28, 2014 to list and market City owned properties in the COR and other areas. The City and CBRE have executed multiple amendments to the contract with the latest being a one year contract from July 31, 2018-July 30, 2019. Staff has found CBRE agent Brian Pankratz to be available, engaged, knowledgable and helpful when it comes to marketing city owned parcels. CBRE utilizes many proven marketing methods including, but not limited to, signage on site, MNCAR (internet) and connection to the broker community. With the current contract coming up for renewal in July 2019 (can be canceled with 30 day notice), Staff believes it is important to review the current contract, its terms and conditions, and to determine if a renewal is prudent or to explore other options. The original contract and pertinent amendments are attached to this case. Having a company like CBRE, and its good reputation within the broker community, market city properties to its broker community and clientshas its advantages. The maintenance and updating of marketing materials by CBRE including, signage and MNCAR listings is convenient for staff and access to current market data is helpful. Based on city records the City has closed on nine properties, with three more pending that CBRE has listed for the City since 2014. Currently, the City has 17 City owned properties listed with CBRE including three under contract. Eleven of these properties are in the COR and the rest are scattered across the community (West of Armstrong, Former Amoco, Water Tower #3, B & A Cylinder, Old Municipal Center Site, 6710 Highway 10 (Book Store). Currently, the B & A Cylinder site should be removed from the listing agreement due to its location and potential impacts of a future interchange on Ramsey Boulevard. The City markets the Bury and Carlson site, the Basalt industrial site and assists with others that are shovel ready certified. Recently, Anoka County has added a regional economic development presence to the County as presented to the EDA last year. The City of Ramsey is a part of this partnership and has the opportunity to list its properties on MNCAR at a nominal cost. This is a feature is also provided by CBRE as part of its listing contract. Anoka County does not provide signage on site for marketing and does not yet have the reputation like a CBRE in the broker communty at this time. Comparing CBRE to Anoka County is not fair, as CBRE is proven industry leader, but there are some cost advantages of utilizing the MNCAR service that Anoka County can provide that reach the same audience in similar ways. Notification: N/A for public hearing purposes but if the City wishes to end/amend its contract with CBRE 30 day written notice must be provided. Observations/Alternatives: