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I Iii t yN Of Report Number 13-222 Irl Agenda Section VI-2 the city that works for you Council Meeting Date September 24, 2013 REQUEST FOR COUNCIL CONSIDERATION ITEM DESCRIPTION: Consideration of extension to listing agreement with Welsh Companies, LLC d/b/a Colliers International,Minneapolis-St Paul. DEPARTMENT HEAD'S APPROVAL: Grant Fernelius, Community Development Director CITY MANAGER'S APPROVAL: No comments to supplement this report Comments attached Recommendation: Staff recommends at the City Council approve the attached resolution authorizing the mayor and city manager to execute an extension of the Listing Agreement with Welsh Companies, LLC d/b/a Colliers International, Minneapolis-St.Paul. Legislative History: June 28, 2011: City Council approved a Listing Agreement with Welsh Companies, LLC (now known as Colliers International, Minneapolis-St. Paul)to help market the commercial lands on the east side of Old Highway 8 NW. Financial Impact: See below. Explanation: In June of 2011, the City entered into a Listing Agreement with Welsh Companies, LLC (now known as Colliers International, Minneapolis-St. Paul) to help market the east side of Old Highway 8 NW — in tandem with Ryan Companies US, Inc. At the time, the City and Colliers agreed to enter into a 2 year agreement. As an aside, Ryan Companies was granted a longer term (through the end of 2014), in part because they do not have an exclusive arrangement and are investing resources without a guarantee of development. The commercial real estate market is still in a slow recovery and the City needs to have a commercial broker in its corner. Staff believes that Colliers has been a good partner on this project, even though we have not sold any land for development. Colliers has been actively working the market and tracking numerous prospects. In addition, the company has become very familiar with the site, its complex history and the City's long-term goals. It makes a great deal of sense to continue working with Colliers at least through the end of 2014 and then evaluate their performance. Both Colliers and Ryan presented a verbal update on the marketing efforts at the August EDC meeting. The information was generally well-received. Craig Lien from Colliers prepared the attached memo summarizing the current market and the company's interest in continuing to work with the City on the project. At some point in the 1Q of 2014, staff would like to arrange a similar presentation with the City Council and the Colliers and Ryan representatives. In the meantime, staff believes it is critical to keep I:\COUNCIL\REPORTS\2013\Community Development\9-24-2013\Extension of Welsh-Colliers Listing Agreement.doc(2).doc