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Request for Action <br /> Cir•ci <br /> Elk - <br /> River= <br /> To Item Number <br /> Economic Development Authority 7.1 <br /> Agenda Section Meeting Date Prepared by <br /> General Business December 20, 2021 Brent O'Neil, Economic Development Director <br /> Item Description Reviewed by <br /> Hiring Broker Services for EDA Property Cal Portner, City Administrator <br /> Reviewed by <br /> Action Requested <br /> Approve, by motion,the hiring of Hardin Companies as commercial broker to represent four Economic <br /> Development Authority (EDA) properties. <br /> Background/Discussion <br /> Three submissions were received in response to the Request for Proposals for Broker Services which was issued in <br /> October. President Tveite, Commissioner Christianson and I held a virtual meeting with each of the three proposers <br /> earlier in December. Upon consultation following those meetings,it is recommended the EDA enter into a one- <br /> year agreement with Ryan Hardin of Hardin Companies to represent the four properties. <br /> Hardin's proposed fee is a six percent commission on closed sales, and any buyer's broker commission would be <br /> reimbursed through the commission to Hardin. There are no upfront costs or retainage fees. The contract includes <br /> a commission minimum which would be calculated based on a land value of$1.50 per square foot. Other <br /> professional services the EDA may need or select, such as legal fees or a property survey, are not included in this <br /> scope of work. <br /> Hardin's fee was competitive and similar with one other proposer as being most advantageous to the EDA. <br /> Hardin's knowledge and familiarity of the local market in Elk River was a key point in making this recommendation. <br /> Financial Impact <br /> No direct impact on the operating budget. Costs associated with this agreement would be deducted from the <br /> proceeds of any EDA land sale. <br /> Mission/Policy/Goal <br /> Attract new business development to Elk River to build the City's economic vibrancy, job offerings and tax base. <br /> Attachments <br /> ■ Hardin Companies Proposal including Commercial Listing Contract <br /> The Elk River Vision P I I E R E I I Y <br /> A welcoming community avith revolutionary and spirited resourcefulness, exceptional [NAWR <br /> service, and community engagement that encourages and inspires prosperity. Updated.August 2020 <br />