Consider Extension of CBRE Real Estate Listing Agreement for City Owned Land in COR 

The purpose of this case is to consider extending the listing agreement with CBRE for some of the City owned land held for resale. The City currently lists some of its own property utilizing Costar/Loopnet and MNCAR through the Anoka County access. City Staff has been satisfied with the work of Brian Pankratz with CBRE on the current listings and we communicate frequently.    The proposed listing agreement with CBRE would be from February 1, 2024 - January 31, 2025.  It should be noted that CBRE only lists some city-owned property in the COR and does not list properties outside of the COR. City-owned properties outside of the COR are listed on Loopnet and MNCAR.

There are currently two active purchase agreements on CBRE listed parcels. The purchase agreements are for Parcels 46b and 46c and include a 200 unit Apartment project by Norhart and a 110 unit detached town home development by Centra Homes.  In 2023, the City closed on the Hilton Home2 Suites and ALDI sites and both have pulled permits and are under construction.  CBRE has been listing and marketing Parcel 46d, Parcel 42a Parcel 47f, Parcel 48a, Parcel 48c and Parcel 50c.(See attached COR Parcel Map) Staff and CBRE are currently working with multiple users for Parcel 42a to complete the Aldi Development.  Development interest has slowed for Parcel 50c due to the pending construction of the interchange on Hwy 10 at Ramsey Boulevard but staff expects interest to increase once the project starts and it gets closer to completion.   Having a reputable company like CBRE helps broadcast our available sites to a large group of contacts/clients as noted in the 2024 City of Ramsey Land Review and 2024 Prospect List provided by CBRE. 

None required

The listing agreement is proposed to be extended 1 year to January 31, 2025. All other terms and conditions remain the same as July 10, 2019 Listing Agreement. The following changes (and current status) have been made to the properties on the attached listing agreement below: Per direction from Staff and the EDA last year, CBRE has installed new real estate signs as identified on the map.     Brian Pankratz, CBRE, will be in attendance to answer questions.

There is no immediate or initial up-front costs. CBRE is only paid at time of sale, and a commission is deducted from the gross sales price rather than an hourly rate. In addition, Staff previously negotiated a reduction of commission from 5% to 3% for City generated leads on CBRE listed property which continues in this Listing Agreement term.

Staff recommends approval of the Listing Agreement with CBRE from February 1, 2024 - January 31, 2025 as presented. 

Motion to recommend to City Council approval of the Listing Agreement with CBRE from February 1, 2024 - January 31, 2025 as presented.