HomeMy WebLinkAbout2015.05.04 CC PowerPoint Marketing City PropertyUpdate on Marketing
the City Owned
Property
City Council
Monday, May 4, 2015
City of
ugo
Background
•April 61hCity Council meeting
•Discussion on marketing the City owned
property
•Incentives based on development criteria
•The Council directed staff to proceed with the
development incentive and criteria and to
discuss with the St. Paul Port Authority on
marketing the property, including costs
St. Paul Port Authority (SPPA)
•Staff contacted the SPPA
•There are two ways the SPPA provides
economic development services:
1. Brokerage Service Agreement
• Commission based
•Real estate brokerage services
•Direct land sale — 5% to 7% commission
• If the property were sold for a dollar, the City
would need to agree on a fair market value
• EMV $1,317,100.00 (Wash Co)
• 5% commission would total $65,855.00
St. Paul Port Authority (SPPA), cont.
2. Economic Development Consulting
•Hourly fee based
•Wide variety of options depending on the
clients needs
• Range from creation of a concept plan to
outlining the constraints on the site
• Hourly rate based on dedicated staff
•average rate is $175/hr.
•The number of hours required would be
determined at the time of the agreement is
negotiated based on the desired consulting.
Conclusion/Recommendation
• At its April 14, 2015, meeting the EDA reviewed the
incentives and development criteria.
•They agreed that the development criteria should be
used when marketing the City owned property with
incentives.
• Staff updated the EDA on the discussions with the SPPA.
•The EDA made a recommendation to the City Council to
have staff continue with the marketing of the property
and update the EDA each month on the progress.
• The EDA also added that if the marketing and interest does
not go as expected, the EDA will consider using the SPPA for
brokerage and economic development consulting services.