2.3.
CC Work Session
- Meeting Date:
- 01/21/2014
Information
Title:
Discuss Landform Professional Services Contract
Purpose/Background:
Purpose of Case:
Discuss Landform Professional Services Contract in relation to the proposed contract for Real Estate Services with CBRE.
More specifically, before the City considers entering into a new professional broker services agreement with CBRE on January 28, the City Council should clearly understand the circumstances existing with the Landform Professional Services Contract dated April 1, 2011.
Background:
The City of Ramsey owns a large inventory of land available for sale and development by the private market. Recently, the City Council reviewed a proposed contract with CBRE to provide professional real estate broker services to City of Ramsey. The desired outcome of the proposed contract with CBRE is the sale of municipal owned land no longer needed for current or future City functions.
The proposed contract with CBRE does call for payment of compensation in the form of a land sale commission. With the proposed CBRE agreement in mind, the City of Ramsey is also effected by a development services contract executed on April 1, 2011 with Landform Professional Services. The City is contractually bound to pay Landform Professional Services incentive compensation in the form of commission rate applied to "Development Capital Costs" through July 1, 2014. In summary, the City of Ramsey may be liable for two separate commissions for executed land sale agreements through July 1, 2014.
Before the City considers entering into a new professional broker services agreement with CBRE on January 28, the City Council should clearly understand the circumstances existing with the Landform Professional Services Contract.
Attached to this case is a memo from the City's Real Estate Attorney, Tom Bray, regarding this manner. Additionally, attached to this case are the Landform Professional Services contract, the proposed contract with CBRE and a 'Mock Scenarios" document. The "Mock Scenarios" document provides a frame of reference regarding potentially paying double commissions on various mock development projects.
Both the City and Real Estate Attorneys will be present during this discussion.
Discuss Landform Professional Services Contract in relation to the proposed contract for Real Estate Services with CBRE.
More specifically, before the City considers entering into a new professional broker services agreement with CBRE on January 28, the City Council should clearly understand the circumstances existing with the Landform Professional Services Contract dated April 1, 2011.
Background:
The City of Ramsey owns a large inventory of land available for sale and development by the private market. Recently, the City Council reviewed a proposed contract with CBRE to provide professional real estate broker services to City of Ramsey. The desired outcome of the proposed contract with CBRE is the sale of municipal owned land no longer needed for current or future City functions.
The proposed contract with CBRE does call for payment of compensation in the form of a land sale commission. With the proposed CBRE agreement in mind, the City of Ramsey is also effected by a development services contract executed on April 1, 2011 with Landform Professional Services. The City is contractually bound to pay Landform Professional Services incentive compensation in the form of commission rate applied to "Development Capital Costs" through July 1, 2014. In summary, the City of Ramsey may be liable for two separate commissions for executed land sale agreements through July 1, 2014.
Before the City considers entering into a new professional broker services agreement with CBRE on January 28, the City Council should clearly understand the circumstances existing with the Landform Professional Services Contract.
Attached to this case is a memo from the City's Real Estate Attorney, Tom Bray, regarding this manner. Additionally, attached to this case are the Landform Professional Services contract, the proposed contract with CBRE and a 'Mock Scenarios" document. The "Mock Scenarios" document provides a frame of reference regarding potentially paying double commissions on various mock development projects.
Both the City and Real Estate Attorneys will be present during this discussion.
Timeframe:
10-30 minute discussion.
Funding Source:
NA
Responsible Party(ies):
Administration
Outcome:
Before the City considers entering into a new professional broker services agreement with CBRE on January 28, the City Council should clearly understand the circumstances existing with the Landform Professional Services Contract.
Attachments
Form Review
| Inbox | Reviewed By | Date |
|---|---|---|
| Diana Lund | Diana Lund | 01/16/2014 09:03 AM |
| Kurt Ulrich | Jo Thieling | 01/16/2014 03:26 PM |
- Form Started By:
- Patrick Brama
- Started On:
- 01/15/2014 02:57 PM
- Final Approval Date:
- 01/16/2014