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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 />