City of Oak Creek

Common Council Report

 

Meeting Date: March 4, 2003

 

Item No.: 20

 

Recommendation: That the Council authorize the execution of a listing agreement between the City and Siegel-Gallagher, Inc. for the marketing and sale of the property at 7625 S. Howell Avenue.

 

Background: On January 17th the City sent out letters to area commercial real estate brokers soliciting proposals for the marketing and sale of the existing police station property at 7625 S. Howell Avenue. We have received seven responses to our request for brokerage services to assist in the sale of the soon to be vacated site. I have provided a summary of the proposals, including their respective commissions, market assessments and proposed length of contract. I have copies of the proposals available for review in my office.

Firm

Commission

Market Assessment

Length of Contract

Siegel-Gallagher, Inc.

5%

$950,000

6 months

MLG Commercial

6%

to be determined

Ogden & Company, Inc.

6%

$895,000

3 month minimum

Judson & Associates

6%

$725,000-$750,000

6 months

The Dickman Company, Inc.

6-7%

$351,000

6 months

Louis Gral Investment Real Estate

7%

$600,000-$750,000

6 months

The Barry Co.

6%

$1,075,000

Single party

 

Several of the firms exhibited a good understanding of the property and the City’s expectations. Based on the information provided Siegel-Gallagher, Inc., MLG Commercial and the James T. Barry Co. appear to offer the best opportunity for the City to effectively market and sell this property. Of those, Siegel-Gallagher proposed the lowest commission.

 

It should be noted that the prospective purchaser of the property identified in the single party listing approved by the City at their last meeting no longer has an interest in the property. However there is one additional party who is seriously looking at the property. The City would be looking for an exclusion in the listing contract for this specific prospect.

 

Fiscal Impact: None.

 

Prepared by:

Doug Seymour, AICP

Director of Community Development

 

Respectfully submitted,

Robert L. Kufrin

City Administrator

 

Fiscal Review by:

Beverly A. Buretta, CMC

City Clerk