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Member Hardin asked if there is any situation where the City would pay more than seven percent <br /> when there is a second broker involved. <br /> Mr. Pankratz stated that the agreement specifies five percent when only CBRE is involved or <br /> seven percent if two brokers are involved. He stated that if a second broker requested additional <br /> commission, that request would need to go before the City. <br /> Economic Development Manager Sullivan stated that he would not recommend paying <br /> additional revenue above the seven percent and therefore that additional request would need to <br /> be added to the purchase price. <br /> Member Hardin noted that a second broker could actually come within CBRE and in that <br /> situation the seven percent is being split by two CBRE brokers. He noted that under this contract <br /> a longtime developer within the City would need to contact CBRE to negotiate and asked if that <br /> is the intent of the City. <br /> Economic Development Manager Sullivan stated that would not be the intent. He explained that <br /> although the City is paying CBRE for those services, the City can still generate leads. <br /> Mr. Pankratz explained that the intent is to allow the City to utilize the market knowledge and <br /> resources of CBRE for all negotiations. <br /> Member Hardin stated that if that is not the intent perhaps the language should be changed. He <br /> stated that he met with staff following the last meeting to express his concerns but was frustrated <br /> that his concerns did not appear to be addressed. <br /> Economic Development Manager Sullivan stated that following the discussion with <br /> Commissioner Hardin he informed him that his concerns should be brought forward at this <br /> meeting in a public forum to support transparency in the process. That is why the changes were <br /> not incorporated into the proposed listing agreement. He noted that he appreciated that <br /> comments and suggestions that Commissioner Hardin had made. <br /> Chairperson Steffen stated that it appears this language would be standard in most CBRE <br /> contracts. <br /> Mr. Pankratz confirmed that this is standard contract language, with some items specific to <br /> Ramsey. He noted that CBRE is working with the City as a team in attempt to market and sell <br /> land and thought the relationship has ran smoothly. <br /> Economic Development Manager Sullivan referenced parcel 45, which has a sales price of <br /> $600,000. He stated that the City is completing a land swap on the properties, which will still <br /> result in a loss of$15,000 for the City. He noted that technically CBRE could take a commission <br /> on that transaction but is not requesting a commission. He stated that the willingness to add <br /> language to call out City generated leads is not something in a typical contract. <br /> Economic Development Authority/June 13, 2019 <br /> Page 5 of 7 <br />