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District No. 1, Establishing Tax Increment Financing District No. 17, and approving the Tax <br />Increment Financing Plan, subject to City Attorney Review. <br />Motion carried. Voting Yes: Chairperson Steffen, Members Hardin, Kuzma, Kanaventi, and <br />Riley. Voting No: None. Absent: Members Berg and Burandt. <br />Motion by Member Hardin, seconded by Member Kanaventi, to recommend to City Council to <br />adopt a resolution authorizing execution of a Tax Increment Financing (TIF) Agreement <br />awarding a business subsidy of $972,000 and requiring the creation of 15 new jobs with <br />minimum wages of $22 per hour, subject to City Attorney review. <br />Motion carried. Voting Yes: Chairperson Steffen, Members Hardin, Kanaventi, Kuzma, and <br />Riley. Voting No: None. Absent: Members Berg and Burandt. <br />4.02: Review Real Estate Management Strategy for City Owned Land <br />Economic Development Manager Sullivan presented the staff report. He stated the listing <br />agreement with CBRE under consideration includes only parcels within The COR. <br />Chairperson Steffen asked if any properties west of Armstrong would be included. <br />Economic Development Manager Sullivan noted that those parcels would not be included and <br />only parcels within The COR would be included in the CBRE agreement. Parcel 45 is west of <br />Armstrong but is currently under contract. <br />Chairperson Steffen asked if individual parcels could be removed if desired. <br />Economic Development Manager Sullivan confirmed that individual parcels could be removed if <br />desired with a 30-day notice. He noted that he is proposing a six-month contract and would give <br />the City time to evaluate how the new contract is working. He stated that under the current <br />proposal the commission rate would be reduced from five percent to three percent if the City <br />brings forward the lead. <br />Councilmember Kuzma noted that Ramsey is competing with other cities for land sales and <br />development and did not want to drive the commission down too low, as the broker or <br />developers would most likely go where they can earn commission. He noted that this is a <br />competitive market and the City should be mindful of the going rates for commission. <br />Economic Development Manager Sullivan stated that the commission rate would remain at five <br />percent for CBRE involved sales, while the reduced rate would only come into play for staff <br />generated leads. He noted that even on staff generated leads, CBRE has put effort into marketing <br />prior to that time. <br />Brian Pankratz, CBRE, provided input on how commission is split when two brokers are <br />involved. He noted that CBRE splits the commission rate 50/50. <br />Economic Development Authority/ June 13, 2019 <br />Page 4 of 7 <br />