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Member Riley agreed that the residents are looking for commercial and retail opportunities and CBRE has exposure in that area for The COR. He stated that there are situations in the past where CBRE has been paid commission for land sales that they were not involved in and believed that this hybrid option presented by staff would be a solution to that problem. He explained that if City staff obtains the lead, a reduced or no commission would be paid to CBRE. He agreed that the expertise of CBRE is needed. Member Burandt stated that he agrees that the value of taxpayer dollars needs to be realized. He stated that he would support either bringing the sales inhouse or ensuring that CBRE would not be paid for commissions that they did not earn. Chairperson Steffen stated that he has not heard from staff that they can handle all the listings inhouse. He stated that price is what you pay and value is what you get. He asked if the commission for CBRE is the right number and if the value obtained in return is equal. He explained that the City can put up a sign and list properties on MNCAR but is there value provided by CBRE beyond that. He asked the value and services that would be provided by CBRE moving forward. He also referenced a large case that was closed and asked the value that CBRE brought. Mr. Pankratz stated that the properties are listed on MNCAR and additional listing opportunities such as Costar-Loopnet and others. He noted that cross selling is also an element. He explained that someone may call on a property in Lakeville and CBRE may provide opportunities that fit those parameters in Ramsey for that client as well. He used the example of Lennar, which the EDA considered o Ramsey and market that site. Chairperson Steffen asked, and received confirmation that the commission earned is the same across all parcels. He stated that perhaps there would be an option to have a different commission dependent on valuation of the property. Mr. Pankratz stated that there are options to have different commission rates. Member Hardin stated that if the City took over marketing, there is nothing that would preclude CBRE from bringing in a client for property and therefore that option would not be lost. He explained that any broker could bring a client into Ramsey and receive commission. Economic Development Manager Sullivan stated that staff could complete the listing/marketing efforts, but that would take time to implement and would be an increased load on staff capacity. He noted that signs, maintenance, online listings and brochures would all be required. He was unsure how much time and staff capacity would be needed to implement 100% of the listing/marketing in house. He stated that his recommendation would bring some properties in house for listing/marketing, while still leaving other properties to CBRE. He believed that CBRE has done a great job and noted the City met with a retail developer with interest in a retail site the previous week. He stated that this developer was not a developer that staff had previously identified. Economic Development Authority/ April 11, 2019 Page 8 of 12