Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Property Development topic
No spam. Unsubscribe anytime.
EDA extends broker listing, asks staff to negotiate Housing Authority carve-outs for Right Street parcels
Summary
Brainerd City's EDA voted Sept. 4 to extend an exclusive real-estate listing and directed staff to work with the broker and the Housing Authority to craft contract language that could exempt HA-initiated developers from exclusivity; the board set a new termination date of Dec. 31, 2025 and asked for a December report.
The Brainerd City Economic Development Authority on Sept. 4 voted to extend an exclusive real-estate listing and to direct staff to negotiate contract language that could allow the Housing Authority to bring developers forward on Right Street parcels without triggering broker exclusivity.
The decision came after a presentation from Jennifer Hascamp, the broker associated with the listing, who said the addendum would remove the annex building from the agreement and "extend it through I believe it's December of 2026" while acknowledging the contract had lapsed. EDA staff and members asked for clarification about how exclusivity would work if the Housing Authority (HA) brought a developer to the table.
The HA representative, Eric, told the board that his agency had submitted a letter expressing interest in the Right Street extension parcels and had met two developers to gauge interest. "We're just looking to get housing built," he said, adding the HA would not seek commission from transactions: "None. Zero. So, we're just looking to get housing built and so we're looking for land that can be transitioned into development at the least possible upfront cost." Eric said the HA would prefer that parcels the agency brings forward be excluded from the broker's exclusivity if the HA originates an acceptable offer.
Board members and staff discussed practical issues the broker raised, including how to define first contact, signage and how to credit prior marketing work. Jennifer warned the existing contract is written as an exclusive right to sell and said language changes would be required to implement an HA carve-out.
Member Johnson moved, seconded by Member Sandy, to extend the termination date of the agreement through Dec. 31, 2025 and "have James and Jennifer work together to see if we can't get that requested exemption for the HA." The motion passed by voice vote. James, the city staff lead, said any final contract amendment would be subject to city-council review and legal review before it takes effect.
The board asked staff to return to the EDA in December with proposed contract language and recommended terms. If talks fail, the EDA can revisit exclusivity and commission arrangements at that meeting.
