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Item No 6A Meeting Date: June 8, 2020 Type of Business: EDA Administrator Review: ____ City of Mounds View Staff Report To: EDA President and Commissioners From: Brian Beeman, Assistant City Administrator Item Title/Subject: Brokerage Listing Agreement for EDA Owned Property Introduction: Remax has successfully listed both the Tires N More (1.04 acres) and Simon’s (.59 acres) properties. The EDA owns a (.41 acre) vacant lot adjacent to these two lots for a total of 2.04 acres. In the past, the EDA has given direction to staff that the EDA may consider selling the EDA owned lot if a developer also purchases both the Tires N More and Simon’s properties. Remax would like to market the entire site as a redevelopment project but that doesn’t exclude them from selling the two lots separately. The lot was originally purchased by the EDA October 15, 2000 for $125,000 which included a small house. The EDA rented out the home for a short time. Since that time, the City demolished the home and the lot has sat vacant for several years. Ramsey County has place the current estimated market value at $64,300 for the lot. Because the EDA owns the lot, there is currently no taxable income from the property and Public Works maintains the lot. Discussion: The EDA to review the listing agreement and additional attached materials from Remax and ask questions as necessary. Remax representatives will be on the Zoom meeting to further discuss their proposal. The EDA to consider if they would like to have a professional commercial real estate broker represent the EDA and market the property. The EDA owned property may be used as a business subsidy tool depending on the proposed development and the developer’s needs as well as other tools such as TIF etc. or a combination thereof. In the past, the EDA has chosen not to have a real estate brokerage firm represent them. However, in the last discussion regarding broker representation, the EDA chose to consider its options as- needed per project. Strategic Plan Strategy/Goal: Create and maintain a positive business climate where businesses want to locate and remain in Mounds View. Maximize utilization of development space and current redevelopment sites. Fill vacant space and support redevelopment & development. Continue and focus on public relations activities. Financial Impact: None, unless authorizing a commission fee to brokerage firm upon sale of property. Recommendation: Staff recommends that the EDA consider whether or not to enter into an agreement with Remax to market and sell the EDA owned property PID: 063023340061 located at 7861 Groveland Rd, Mounds View, MN 55112 by motion. If the EDA decides to enter in to an agreement, then the motion should also include the authorization of staff to cooperate with the City Attorney and all necessary parties to further review any documents, agreements, and resolutions needed for consideration at a future meeting.