2.2.
CC Work Session
- Meeting Date:
- 11/12/2013
Information
Title:
Discuss RFP for Real Estate Broker Services
Purpose/Background:
Case Background
This case was originally discussed on September 10, 2013; at which time, Staff was directed to conduct a Request for Proposals (RFP) for real estate broker services on a select number of City owned properties. Attached to this case is the original RFP.
Staff solicited about 100 brokers to provide a response to the adopted RFP, the City received five total responses and Staff conducted three informal interviews. One response included interest in listing both commercial and residential real estate--the remaining four responses indicated interest in listing residential real estate only.
Overall, Staff was unsatisfied with the number, and quality, of RFP responses received. However, through the original RFP process, Staff has concluded that a better model is evident (for real estate broker services) than was prescribed in the original RFP. Consequently, staff is proposing the City Council terminate the original RFP process initiated on September 10; and, consider a new process for soliciting real estate broker services--Request for Qualifications (RFQ).
Purpose of Case
Terminate the RFP process initiated on September 10; and, consider a new process for soliciting real estate broker services--Request for Qualifications (RFQ).
New Proposed RFQ Process
Attached to this case is the newly proposed RFQ. Based on feedback from the broker community (three informal interviews) and staff research, staff is proposing the following changes be made to the original RFP process/document:
This case was originally discussed on September 10, 2013; at which time, Staff was directed to conduct a Request for Proposals (RFP) for real estate broker services on a select number of City owned properties. Attached to this case is the original RFP.
Staff solicited about 100 brokers to provide a response to the adopted RFP, the City received five total responses and Staff conducted three informal interviews. One response included interest in listing both commercial and residential real estate--the remaining four responses indicated interest in listing residential real estate only.
Overall, Staff was unsatisfied with the number, and quality, of RFP responses received. However, through the original RFP process, Staff has concluded that a better model is evident (for real estate broker services) than was prescribed in the original RFP. Consequently, staff is proposing the City Council terminate the original RFP process initiated on September 10; and, consider a new process for soliciting real estate broker services--Request for Qualifications (RFQ).
Purpose of Case
Terminate the RFP process initiated on September 10; and, consider a new process for soliciting real estate broker services--Request for Qualifications (RFQ).
New Proposed RFQ Process
Attached to this case is the newly proposed RFQ. Based on feedback from the broker community (three informal interviews) and staff research, staff is proposing the following changes be made to the original RFP process/document:
(1) Rather than identifying a list of specific parcels to be listed by a broker (up front), staff is proposing a more flexible approach--for the City to select a 'preferred' broker. Parcels for sale would be added and removed from the preferred broker as requested by the City (this is the reason for the change from RFP to RFQ).
(2) Rather than only listing two specific small parcels in The COR, Staff is proposing the discussion be opened up to allow a large majority of The COR to be listed. NOTE: specifics/details of which parcels will be listed in The COR will be discussed by the Council at a later date, based on input from the selected broker (and a Staff recommendation). At this point, Staff is advertising a large portion of The COR will be available for listing by the selected broker.
(3) Rather than leaving the scope/requirements of the RFQ document very open ended, Staff is proposing certain parameters are narrowed (i.e. preferred method of compensation, term, carry-over fees, role of broker, desired outcome, etc.).
(4) Unlike the first RFP, Staff is including a section that outlines services the City is not expecting (development management services, re-branding services, advanced market analysis reports*, engineering services, website management, strategic/master planning or creation of advanced marketing materials*). *Beyond normal real estate broker standards. These, and other development tasks, including any incentive analysis, would be the responsibility of City staff, primarily the Economic Development manager.
(5) Staff will be sending out the RFQ to over 100 brokers; and, will be following up with a phone call to a large pool of said brokers. Based on known merits of each real estate firm, Staff will determine which brokers are contacted via phone (i.e. perceived ability to market/sell Ramsey and The COR).
(2) Rather than only listing two specific small parcels in The COR, Staff is proposing the discussion be opened up to allow a large majority of The COR to be listed. NOTE: specifics/details of which parcels will be listed in The COR will be discussed by the Council at a later date, based on input from the selected broker (and a Staff recommendation). At this point, Staff is advertising a large portion of The COR will be available for listing by the selected broker.
(3) Rather than leaving the scope/requirements of the RFQ document very open ended, Staff is proposing certain parameters are narrowed (i.e. preferred method of compensation, term, carry-over fees, role of broker, desired outcome, etc.).
(4) Unlike the first RFP, Staff is including a section that outlines services the City is not expecting (development management services, re-branding services, advanced market analysis reports*, engineering services, website management, strategic/master planning or creation of advanced marketing materials*). *Beyond normal real estate broker standards. These, and other development tasks, including any incentive analysis, would be the responsibility of City staff, primarily the Economic Development manager.
(5) Staff will be sending out the RFQ to over 100 brokers; and, will be following up with a phone call to a large pool of said brokers. Based on known merits of each real estate firm, Staff will determine which brokers are contacted via phone (i.e. perceived ability to market/sell Ramsey and The COR).
Timeframe:
- Due to Thanksgiving, the proposed RFQ process is set to close Wednesday, November 27.
- Interviews will be conducted on December 3, 4, 5 (where schedules permit, if possible).
- An award will be made on December 10 (if possible).
- If the proposed timeline above is too aggressive, the process may draw out into January.
Funding Source:
Land sale proceeds.
Responsible Party(ies):
Development Team:
Kurt Ulrich, Tim Gladhill, Patrick Brama, Bruce Westby, ED Manager
Patrick Brama is the lead on the RFQ process moving forward.
Kurt Ulrich, Tim Gladhill, Patrick Brama, Bruce Westby, ED Manager
Patrick Brama is the lead on the RFQ process moving forward.
Outcome:
The primary purpose of the proposed contract for ‘Real Estate Broker Services’ is representation of the City of Ramsey from a professional real estate broker. The critical desired outcome of the proposed relationship is the sale of City owned land.
Attachments
Form Review
| Inbox | Reviewed By | Date |
|---|---|---|
| Brian Hagen | Tim Gladhill | 11/07/2013 10:48 AM |
| Kurt Ulrich | Kurt Ulrich | 11/07/2013 04:29 PM |
- Form Started By:
- Patrick Brama
- Started On:
- 11/06/2013 06:37 PM
- Final Approval Date:
- 11/07/2013