PURPOSE
The purpose of this case is to approve the attached 1-year contract extension with CBRE with a month-to-month termination clause. 


 

• This short-term CBRE contract will provide enough time for the City to decide what their next long-term contract will be/ with who.  This contract is flexible, in favor of the City, as a month-to-month cancelation provision is included. 
• This contract amendment requires CBRE to supply the City with their "protected" list now.  This will allow the city control/ ability to effectively monitor said list (rather than waiting until final cancelation).
• This contract amendment shows a "reduced" list of properties. Staff not only removed sold properties, but also removed properties CBRE is unlikely to either bring a prospect to the city (i.e. the prospect will come organically) or the commission payment would outweigh the benefit of selling.
• Staff would note, that a 6-month "carryover" clause exists within the original CBRE listing agreement.  This means, after cancelation, all deals CBRE has previously worked on, are eligible for commission payments for another 6-month period.  NOTE: this compares to the 18 month carryover clause that the City previously had with with Landform.
• Staff believes activity from CBRE (i.e. prospects being brought to the city) has increased over the past six months.  Staff believes this is for two reasons: (a) the larger real estate industry is doing really well, and (b) Ramsey is establishing strong momentum in the real estate industry--which helps attract additional interest (we've had lots of sales, big infrastructure investments, we have several projects are in the hopper, and we've seen significant residential growth).
• Staff is currently working with CBRE on a serious prospect looking at a 175-unit, high-quality, senior independent living, market rate, apartment complex in The COR.
• CBRE has indicated once the McDonald's land dispute is settled, they will be able to quickly attract prospects to said site(s).