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