Adopt Resolution #25-017 Approving 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, 2025 - January 31, 2026.  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 is currently one pending purchase agreement on CBRE listed parcels. The pending purchase agreement is for Parcels 46d with Capital Real Estate, Inc. (Chipotle).  In 2024, the City closed on the Take 5 Oil Change site (42a) and the project was completed in December of 2024.  Construction continues on the 98-unit Hilton Home 2 Suites Hotel and the 108-unit detached town home project by Centra on parcel 46a.   CBRE has been listing and marketing Parcels 50c, 46c, 46d, 48a, 47f, and 48c.(See attached COR Parcel Map) 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 this year and it gets closer to completion.   Staff has met with CBRE and also has re-evaluated land listing pricing increases as outlined below under Observations.  For the 2025 Listing Agreement with CBRE, staff has removed parcels 48a, (Large Mixed use/residential) 48e (Former Cor Trust site) and 47e (Storyteller / Mixed Use residential). We have added back Parcel 46c to the CBRE listing agreement, since Norhart has terminated its purchase agreement.  Staff believes that that a portion of parcel 46c likely will sell as retail, based on the other retail development occurring in close proximity.  Having a reputable company like CBRE helps broadcast our available sites to a large group of contacts/clients as noted in the 2025 City of Ramsey Land Review and 2025 Prospect List provided by CBRE.  Brian Pankratz from CBRE will be present to answer questions the EDA might have and to talk about market conditions.

None required

The listing agreement is proposed to be extended 1 year to January 31, 2026. All other terms and conditions remain the same as July 10, 2019 Listing Agreement. The following parcels (and current status) are included in the proposed attached listing agreement with CBRE below:

Proposed CBRE Listing Parcels
Alternatives:
1) Adopt Resolution #25-017 Approving CBRE Real Estate Listing Agreement for City Owned Land in COR  (as presented)
2) Adopt Resolution #25-017 Approving CBRE Real Estate Listing Agreement for City Owned Land in COR  (with changes)
3) Something Else
 

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.

Adopt Resolution #25-017 Approving CBRE Real Estate Listing Agreement for City Owned Land in COR (as presented)

The EDA met on January 9th, 2025 and unanimously recommended the terms in the attached Listing Agreement 

Motion to Adopt Resolution #25-017 Approving CBRE Real Estate Listing Agreement for City Owned Land in COR (as presented)