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Report Number 12-218 Agenda Section VI-7 BRIGHTjON Council Meeting Date September 11, 2012 the city that works for you REQUEST FOR COUNCIL CONSIDERATION ITEM DESCRIPTION: CONSIDERATION OF LISTING CONTRACT WITH KELLER WILLIAMS CLASSIC REALTY FOR SALE OF 901 11TH AVENUE NW. DEPARTMENT HEAD'S APPROVAL &van/ CITY MANAGER'S APPROVAL: No comments to supplement this report Comments attached Recommendation: Authorize executions n Exclusive Right to Sell Listing Contract with Keller Williams Classic Realty for the Sale of 901 11th Avenue NW. Legislative History: April 12, 2011 City Council authorized purchase agreement for 901 11th Avenue NW June 13,2011 City Council approved demolition of existing home July 26, 2011 City Council awarded bid for City Project 11-1, 2011 Street Reconstruction May 8, 2012 City Council authorized the sale of this property and authorized the City Manager to hire a listing agent for this property to be put on the MLS. Financial Impact: At this point, the financial impacts are minimal. The City's broker will only be paid a commission upon successful sale of the property. The commission rate is 6 percent of the selling price of the property. Explanation: On April 12, 2011 the City Council authorized the purchase agreement for 901 11th Avenue NW as part of City Project 11-1, 2011 Street Rehabilitation. The house was later demolished and the improvements to 8th Street NW were completed last fall. Only minor punch list items remain on this project. All of the work on the property is compete — a new pond was built on the east half of the property, and a sidewalk was constructed on the south side of the property. We are now at a point where we can re-sell this property as a vacant city lot. City staff contacted a title company and asked for references of two or three top local real estate agents who have extensive knowledge of the area, and who the City is not professionally affiliated with. We interviewed two agents and selected Rick Bandimere from Keller Williams Classic Realty. Mr. Bandimere provided us with a comprehensive market analysis to assist us in determining the market value and pricing for this property. We are proposing to list this property for$60,000. Rick has suggested that the property does have unique challenges. It has streets on two sides requiring 30 foot setbacks, the lot is not level, and there is a drainage pond on the east half of the property. To help overcome this, Mr. Bandimere is going to work with a builder to develop a"to be built"type of home that a potential buyer could use to conceptualize what type of home could be built on the property. This will be a non-exclusive arrangement with a builder. A future buyer could buy the lot outright and use a builde they want to develop on the property. Grant M.'Wyffels, l .E. Director of Public Works Attachments: Exclusive Right to Sell Listing Contract Resume—Rick Bandimere