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Of Report Number 09-212 <br />Agenda Section VI -6 <br />the. citykBRAJURM <br />Council Meeting Date September 8, 2009 <br />thatworks for you <br />REQUEST FOR COUNCIL CONSIDERATION <br />ITEM DESCRIPTION: Consideration of Listing Agreements with Minnesota Brokerage Group for Sale of 389 <br />and 609 Old Highway 8 NW <br />DEPARTMENT HEAD'S APPROVAL: Grant Fernelius, Director of Community Development <br />CITY MANAGER'S APPROVAL: <br />No comments to supplement this report 4;� Comments attached <br />Recommendation: <br />Authorize execution of Listing Agreements with Minnesota Brokerage Group for the Sale of 389 and 609 Old <br />Highway 8 NW. <br />Legislative History: <br />None <br />Financial Impact: <br />At this point, the financial impacts are minimal. The City's broker will only be paid a <br />commission upon successful sale of the property. The commission rates are listed on Exhibit A <br />of the agreements. The rate is higher if the buyer is represented by a broker, than if the buyer has <br />no representation. Typically, brokers are required to pay a commission to the buyer's agent. <br />Explanation: <br />At the July 20 work session, the City Council directed staff to work with a real estate broker to <br />list the vacant properties at 389 and 609 Old Highway 8. Staff has been working with Jeff <br />Patterson from the Minnesota Brokers Group (MBG) on listing agreements for both sites. As <br />you might recall, Mr. Patterson worked on the NWQ Market Study and was previously employed <br />by Colliers International in their Minneapolis office as Director of Corporate Solutions and <br />Consulting. Mr. Patterson holds a commercial real estate license and has many years of <br />experience in the industry. <br />As part of the listing process, MBG asked staff get an updated appraisal of the properties. That <br />was done in August and the list prices reflect the appraised values, with some additional <br />adjustment. Based on the state of the real estate market, MBE is requesting a 12 month listing <br />arrangement. In addition to the appraisals, staff was asked to have a Phase I environmental <br />report conducted on 609 Old Highway 8. This study was completed and provided to the City late <br />last week. A Phase I report was already done on 389 Old Highway 8 in 2003, when the City <br />bought the property. <br />L\C0UNC"FP0ATS\2009\Community Development\9-5-200%Minnewta Brokerage Group Listing Agreement (Final).doc <br />