Staff recommends City Commission approval to offer a broker’s fee of 3.5%.
The City Commission authorized the sale of 75 acres with the purpose of selling the land to obtain funding for various capital projects. The property has been marketed as “for sale by owner” and the asking price is $55,000 per acre. However, to increase the level of activity surrounding the sale of the property, it has been recommended for the City to offer a commission to brokers if they secure a buyer. The commission fees vary from 3% to 4.5%; therefore, staff recommends a median approach of a 3.5% broker’s fee.
In addition, when implementing the “for sale by owner” approach, all marketing responsibilities are on the owner. Therefore, staff is recommending various marketing strategies to obtain buyers for the property as listed below:
1. Approve the provisions to provide a broker’s fee for the sale of the 75 acre property
2. Such alternative action as the Commission may deem appropriate
If the property were to sell for the appraised value, the broker’s fee would be $144,375.
Prepared by: ______________________
Attachments: Yes____ No ______
Advertised: ____Not Required ______
Attorney Review : Yes___ No ____
Reviewed by: Dept. Head ________
Finance Dept. _________JB_______
Deputy C.M. ___________________
City Manager ___________________
Account No. __________________
Project No. ___________________
WF No. ______________________
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF LEESBURG AUTHORIZING THE CITY MANAGER OR DESIGNEE TO MARKET THE CITY OWNED 75 ACRES AND PAY A BROKER'S FEE OF 3.5%.; AND PROVIDING AN EFFECTIVE DATE.
BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA:
THAT the City Commission hereby authorizes the City Manager and/or designee to market the City owned 75 acre property and offer a broker’s fee of 3.5%.
THAT this resolution shall become effective immediately.
PASSED AND ADOPTED by the City Commission of the City of Leesburg, Florida, at a regular meeting held the __13th___ day of __October___ 2008.