Agenda - Economic Development Authority - 03/14/2019 - Canceled

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Economic Development Authority (EDA) Meeting Date: 03/14/2019 Submitted For: Sean Sullivan, Community Development By: Sean Sullivan, Community Development 4. 1. Title: Review Strategy for Listing City -Owned Land For Sale Purpose/Background: The purpose of this case is to review the City's strategy for marketing City -Owned Land For Sale. The EDA met in January 2019 to discuss this topic and discussed at a Joint Work Session with the City Council on February 26, 2019. Based on the discussion at the Joint Work Session, this item was referred back to the EDA for further consideration and ultimately policy direction. 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, knowledgeable 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 market city properties to its broker community and clients has its advantages. CBRE has a good reputation within the broker community. 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 to four more pending that CBRE has listed for the City since 2014. Currently, the City has 17 City owned properties listed with CBRE including six to seven under contract. Eleven of these properties are in the COR and the rest are scattered across the community. The City markets the Bury and Carlson site, the Basalt industrial site and assists with others that are shovel ready certified. In late 2018, Anoka County has added a regional economic development presence to the County as presented to the EDA last year. The City of Ramsey is included in 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 free of cost. Anoka County does not provide signage on site for marketing and does not have the reputation or experience of a CBRE in the broker community at this time. It is difficult to fully compare CBRE to the new Anoka County Regional Economic Development Partnership. 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. The EDA must determine what course of action should be taken to best list City owned properties. Notification: Notification is not required. Observations/Alternatives: