Agenda - Economic Development Authority - 06/13/2019

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Economic Development Authority (EDA) 4. 2. Meeting Date: 06/13/2019 By: Sean Sullivan, Community Development Title: Review Real Estate Management Strategy for City Owned Land Purpose/Background: The purpose of this case is to review the City's strategy for real estate management for City Owned Parcels. The EDA met in January 2019 and also discussed at a Joint Work Session with the City Council on February 26, 2019. The EDA then met again on April 11, 2019 to discuss the matter further. On April 11, 2019, the EDA recommended that Staff work with CBRE to revise the current contract. Key points of discussion included, but were not limited to the following. 1. Removing parcels outside of the COR from the listing agreement 2. Adding language that would reduce, or eliminate commission for leads that were not generated by CBRE (Clear-cut City leads, etc.) A proposed contract with revised language is attached for review. Additional Background 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 such as: • Real Estate signs on site • Online listings such as MNCAR (internet) • Connection to the broker community With the current contract coming up for consideration 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 ten properties, with four more pending (Parcel 42 - RGH Ramsey LLC, Parcel 45 - PSD, LLC, Parcel 13a - Capstone off Puma and 52b AEON - Phase 2 that CBRE has listed since 2014. On May 3, 2019 the City closed on Parcel 6 (Muni Site) for a 15 lot SFR development by Meadow Creek Builders. Currently, the City has sixteen City owned parcels listed with CBRE including six under contract. Eleven of these properties are in the COR and the rest are scattered across the community. In late 2018, Anoka County has added a regional economic development presence to Anoka 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