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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 />