Laserfiche WebLink
Member Kuzma stated that he feels that if staff were to take on this type of marketing efforts that <br />would place a huge burden on staff, as that would basically add a real estate division. He stated <br />that the City does not want to be developers and wants to sell the property. <br />Chairperson Steffen asked the reasoning that some industrial properties are City listed. <br />Economic Development Manager Sullivan provided background information. He stated that <br />there is a difference between industrial properties as compared to commercial/retail in The COR <br />in terms of how it's marketed. He explained that there is much more assistance and marketing <br />required for commercial and retail buyers. He noted that Mr. Pankratz has been telling the City's <br />story for many years and is good at it. <br />Mr. Pankratz provided additional background on the three industrial parcels. <br />Member Riley stated that staff has indicated their comfort level in representing the industrial <br />sites. <br />Chairperson Steffen stated that five years ago the City went through an RFP process and CBRE <br />was chosen. He asked at what point the City would want to revisit that to ensure that it is <br />obtaining the right services, pricing and value. He stated that he would hope that if that route is <br />chosen, CBRE would end up as the top option again. <br />Member Kuzma stated that he was a member of the City Council when the RFP process was <br />originally done for the City real estate listings. He stated that the City is on the cusp of being <br />able to recognize the great work that has been done by CBRE. He would like to keep that <br />relationship going and let CBRE continue to capitalize on the heavy lifting that has been done to <br />get the City to this point. <br />Economic Development Manager Sullivan stated that he does not feel there is enough time to <br />complete an RFP process between now and the time the contract expires on July 31, 2019 and <br />does not recommend going out for one now. He noted that if that route is chosen, perhaps it <br />could be done in one year. He stated that the five percent commission is a reasonable rate and <br />comparable to market rate. <br />Member Berg confirmed that five percent is actually pretty low. <br />Chairperson Steffen asked for the terms of expiration. <br />Mr. Pankratz stated that the current contract expires on July 31, 2019 and could be renewed for <br />six months or a shorter term if desired. He explained that a 30 day out clause could be added. <br />Chairperson Steffen suggested that a group meet with staff to develop criteria to determine what <br />could be marketed by staff and what could be marketed by CBRE. <br />Economic Development Authority/ April 11, 2019 <br />Page 9 of 12 <br />