1j. Approve Exclusive Listing Agreement, Public Works Building
CITY OF
CHANHASSEN
7700 Market Boulevard
PO Box 147
Chanhassen, MN 55317
Administration
Phone: 952,227,1100
Fax: 952,227,1110
Building Inspections
Phone: 952,227,1180
Fax: 952,227.1190
Engineering
Phone: 952,227,1160
Fax: 952,227,1170
Finance
Phone: 952,227,1140
Fax: 952.227,1110
Park & Recreation
Phone: 952,227,1120
Fax: 952,227,1110
Recreation Center
2310 Coulter Boulevard
Phone: 952,227,1400
Fax: 952,227,1404
Planning &
Natural Resources
Phone: 952,227,1130
Fax: 952,227.1110
Public Works
1591 Park Road
Phone: 952.227.1300
Fax: 952,227,1310
Senior Center
Phone: 952,227.1125
Fax: 952,227.1110
Web Site
www.ci.chanhassen.mn.us
~
MEMORANDUM
TO:
Todd Gerhardt, City Manager
FROM:
Laurie Hokkanen, Assistant City Manager
August 5, 2009 o/~.
DATE:
SUBJ:
Enter into Agreement for an Exclusive Commercial Listing,
Existing Public Works Building
PROPOSED MOTION
The City Council approves a month-to-month contract with Marathon Real Estate.
Approval of this item requires a majority vote.
BACKGROUND
Staff began marketing the Public Works building for sale in January 2009. The
building will be available for occupancy by February 2010. The asking price is
$2.19 million. Please see the attached brochure that staff developed for marketing
the building. Staff has received a number of inquiries on the building and given
5-6 tours; however, a buyer is not currently in place.
The sale of the Public Works Building will achieve several goals.
1. Return the parcel to the tax rolls. Total property taxes estimated at
$75,000 per year (including County, School District, etc.)
2. Relieve the City of maintenance and utility expenses.
3. Provide funding for Fire Station #3.
In June, staff solicited proposals from area commercial brokers. We received
proposals from:
1. Summerhill Commercial Real Estate
2. Northmarq
3. Welsh Co.
4. CB Richard Ellis
5. Marathon Real Estate
Staff evaluated the proposals and found all proposers to be well qualified in terms
of experience, local knowledge, and references. Therefore, staff evaluated the
financial aspects of the proposals. The most competitive bid was from Marathon
Real Estate. Marathon proposes the most favorable terms, with a 3%/4.75%
commission. A copy of the Marathon proposal is attached.
G:\Admin\LH\Staff Report, Selection of Commercial Broker for PW Building,doc
Chanhassen is a Community for Life - Providing for Today and Planning for Tomorrow
RECOMMENDA TION
Staff recommends entering into a month-to-month contract with Marathon Real
Estate.
ATTACHMENT
1. Contract with Marathon Real Estate
G:\Admin\LH\Staff Report, Selection of Commercial Broker for PW Building.doc
Listing Contract Page 1 of 4 pages (count any addenda)
EXCLUSIVE LISTING AGREEMENT
DEFINITIONS
This Contract involves the Property (together with improvements) located at: 1591 Park Road
Chanhassen, MN, Chanhassen Public Works Facility.
"I" and "Me" mean: City of Chanhassen (SELLER).
"You" means: Craig PetersonSALESPERSON) acting on behalf of: Marathon Real Estate
(REAL ESTATE BROKER).
TERMS
You may offer the Property for sale until the date of expiration for a price of not less than
$2,190,000. Price may be modified with agreement of seller.
EXPIRATION
This Contract is in effect until cancellation. Either You or I may cause this Contract to expire by
giving 30 days advance written notice to the other party of the earlier expiration date. Early
expiration shall not affect rights under a valid purchase agreement and shall not affect any
compensation to be earned as a result of any such purchase agreement transaction being
successfully closed.
SELLER DUTIES
I will give You all government notices, and any additional information You request, relevant to
the sale of the Property. I will cooperate with You in selling the Property. I will perform
obligations agreed to in the purchase agreement. I will provide and pay for any inspections and
reports required by any governmental authority. If you sell the Property, You may notify the
Multiple Listing Service and its members of the price and terms of the sale. I authorize You to
obtain information about any existing financing on the Property.
SALESPERSON I BROKER SERVICES AND DUTIES
You will offer the Property for sale. You will use your best efforts to advertise, market and show
the Property at the best price and terms. You will represent my best interests at all times and
place my interests above all others, especially your own. You will give Me your undivided
loyalty, and owe to Me ALL the duties that an agent owes his or her principal under the common
law of agency except as modified by the mandatory disclosure requirements of the Department
of Commerce Real Estate Broker Practice Regulation 2805.1400. Your duties and liabilities
under this Contract are greater than those set forth in Minnesota licensing statutes.
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Listing Contract Page 2 of 4 pages (count any addenda)
MARKETING
You will do the following (check all those applicable):
_X_ Place a picture advertisement in the local multiple listing services within 24 hours from
the signing of this Contract until its expiration.
Place _(# of) picture ads per month in
Conduct _(# of) real estate salespersons open houses per month.
Conduct _ (# of) public open houses per month.
Perform additional marketing items as shown on Page 3 of this Contract.
You may list other properties during the term of this Contract.
The City may continue to market the property utilizing the display sign currently in use. In the
event the property is sold without the services of the Broker all reasonable marketing costs
incurred will be reimbursed.
COMPENSA TION
A. I will pay You compensation (subject to the conditions of this Contract) upon the successful
closing of the sale of the Property a commission of 4.75% of the selling price if a Co-Broker is
used, 3% if no Co-Broker is used.
REFERRAL AND OTHER FEES
You warrant and represent to Me and covenant that no fees, except as disclosed in this Contract,
will be paid by You to, or received by You from, any broker, real estate salesperson, banker,
closing services company, title insurance company, or any other person or entity, or pursuant to
any controlled business arrangements
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Listing Contract Page 3 of 4 pages (count any addenda)
OVERRIDE CLAUSE AND PROTECTIVE LIST
I will pay your compensation after the expiration of this Contract without a sale if within 30
days:
1. I successfully close a sale of the Property to a person who physically toured the Property with
You; and
2. That person is properly on a protective list which You give Me within 72 hours after the
expiration of this Contract; and
3. That person is not on my exclusion list.
However, this Override Clause will not be effective, and I will not be obligated to pay You
compensation if I have executed another valid listing agreement pursuant to which I am
obligated to pay a fee or commission to another licensee for the sale, lease, or exchange of the
Property.
EXCLUSION LIST
I will not owe You any compensation if I sell the Property to any of the following:
2. Persons named here:
5. Anyone who responds to my marketing efforts.
CLOSING SERVICES
I understand that You or your broker may own or be affiliated with a real estate closing agent.
Identify any related or controlled real estate closing agents that might provide closing services on
this sale. I understand that I must indicate in, at the time of closing, writing whether it is
acceptable to have You arrange for closing services (initial one):
_ I wish to have You arrange for the closing.
_ I will arrange for the closing.
Identify all relationships with real estate closing agents:
I understand that I might not have to incur costs for closing services. I understand that I may hire
a lawyer to provide my closing services. You will provide me with three competitive estimates
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Listing Contract Page 4 of 4 pages (count any addenda)
(including an estimate from the Buyer's or Lender's closer, if any) for my costs of closing
services, if any.
ENFORCEMENT
If You bring an action to enforce this Contract, You will not file a notice of lis pendens or cause
any lien or other cloud to appear in the land records.
NONDISCRIMINA TION
In the marketing and sale of the property, neither You nor I will discriminate on the basis of race,
color, creed, religion, national origin, sex, sexual preference, marital status, status with regard to
public assistance, disability, whether physical or mental, family status, or any other legally
protected status.
DUAL AGENCY DISCLOSURE
I understand that I have the right to have you represent only me in this sale. I have no obligation
to agree to a dual agency representation where you would also represent the buyer. I understand
that Minnesota law does not require me to sign the Disclosure Statement or to make any
decisions at this time about dual agency. I also understand that, "Dual agency requires the
informed consent of all parties... n including me. Sell does not and will not agree to a dual agency
representation.
CITY OF CHANHASSEN
BROKER:
BY:
BY;
Thomas A. Furlong, Mayor
AND
AND
Todd Gerhardt, City Manager
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