City leaders pleased with level of service ICI offers
By Kellen Olshefski
Correspondent
The City of Elkhorn Common Council voted unanimously in favor of renewing its contract with ICI Commercial to provide real estate broker services for the city’s business park at its meeting Monday night.
In a special meeting prior to the council meeting, the Finance and Judicial Committee voted in favor of recommending renewal of the contract. The committee had previously voted in favor of recommending to the full council the city retain ICI Commercial – and by extension, Stuart Rosenberg – but had asked City Administrator Sam Tapson to discuss the details of the contract with Rosenberg, specifically the part concerning Rosenberg’s $600 monthly stipend.
When the committee met Monday night, however, it seemed clear that the $600 stipend was no longer a concern.
Committee chairman and alderman Scott McClory said he was fully in favor of keeping ICI Commercial on board and continuing to pay the $600 monthly stipend. McClory said after meeting with Rosenberg at a previous meeting this year and being informed by Tapson of just how much occurs behind-the-scenes that Rosenberg can’t discuss with councilmembers because of negotiations, he’s satisfied with the service the city is being provided.
“$600 is a small stipend and a small price to pay, literally and philosophically, for the services that he provides,” McClory said.
Alderman Hoss Rehberg said when looking at the contract, he doesn’t feel like the $600 stipend is an issue, but the percentage that Rosenberg is willing to take as the realtor. Rehberg noted Rosenberg lessened the percentage to get the monthly stipend, and when the numbers are ran, the current contract with ICI Commercial is a better deal even with the stipend than the city would likely receive from other commercial real estate brokers currently in the market.
“We’re in a much better place, plus he’s actually giving us more bang for our buck with the marketing he’s doing,” Rehberg said.
Tapson said Monday night when it comes to this type of service, it’s not always about dollar signs, but more so about the quality of service.
“Are you getting what you want, what you need and what you think you’re paying for,” Tapson said. “I think in this case we are, and it’s worth hanging in there for.”
Tapson also noted the contract with the city’s previous broker was 4 percent higher on its commission, and with a recent sale, the city netted around $30,000, even with the Rosenberg’s $600 stipend.
Alderman Tom Myrin, who was first elected to the City Council prior to the city’s switch to ICI Commercial, said when he first came on board, it was a “pretty sad state of affairs.”
“Stu’s brought a much higher level of professionalism,” Myrin said.
A motion to recommending renewing the contract with ICI Commercial was made by Myrin, seconded by Rehberg. Myrin then asked to amend his motion to include that Rosenberg come in quarterly to provide the city with a report of what he’s been working on in recent months, however, the amendment was initially opposed by Rehberg.
Rehberg said he wasn’t opposed to receiving an update from Rosenberg, however, having Rosenberg physically come to the council each quarter might be a stretch. He said in addition to confidentiality in negotiations over commercial real estate, including some information the council would not be privy to, he also understands people lead busy lives and it might be difficult for Rosenberg to appear in person on a quarterly basis.
Tapson said when speaking with Rosenberg recently, it’s likely Rosenberg could provide “gross numbers,” for example the number of contacts made, “how many bites,” while omitting naming a specific company that Rosenberg is working with. He said the report could include information on some projects, but the projects would remain unnamed to protect confidentiality.
“I’ll amend my motion to reflect that it’s just a quarterly report,” Rehberg said. “I just don’t want to make (Rosenberg) come here.”
McClory agreed, noting Rosenberg shouldn’t have to drive to the city to read a report that can easily be passed out to the council through Tapson during the City Administrator’s Report at full council meetings.
Approved unanimously by the committee, a motion to approve renewing the contract with the ICI Commercial was also passed unanimously by the full council on Monday.
