Marysville tries again with B Street property

A five-acre property on B Street in Marysville has inspired big promises and seen some big letdowns since the city purchased it in 2006.

But city officials believe the property has enough untapped market potential to warrant a big new investment.

On Tuesday, the City Council unanimously approved an agreement with a $100-per-hour consultant to develop and execute a marketing plan. The pact runs through Nov. 30.

The consultant would also take a 6 percent commission on any deal it manages to land on behalf of the city.

Cushman & Wakefield, which bills itself as a 13,000-person global real estate services firm, was selected over three other contenders.

"We are doubling down," Councilman Ricky Samayoa said Wednesday of the city's decision. "This is the last big piece (of real estate) we can develop here, and this has to be successful."

In August, the council opted to refinance the city's purchase of what had been several contiguous retail parcels on the east side of B between 12th and 14th streets.

Bonds totaling $3.5 million helped the city acquire the land in 2006.

A prospective deal with the Albertson's grocery chain fell through the following year. In 2008, the city signed an exclusive deal with Main & Main Properties, developer of three strip malls in Marysville, to market the property.

Main & Main developer Mark Norton named Tesco/Fresh-n-Easy and/or Rite Aid (or other drug stores) as potential retail occupants, but a deal never materialized.

In 2011, the council was faced with deciding whether to make the city's first $409,895 payment on the property, or to take the refinancing deal — at a cost of an additional $1.2 million.

Samayoa and Councilwoman Christina Billeci formed an ad hoc committee in August to help select a marketing firm for the site.

"We've tried just waiting, and it doesn't work," Billeci said of the city's previous marketing strategy. "We have to look at this as an investment, and not be penny-wise and pound-foolish."

Samayoa said that expecting Marysville to be able to compete in the current economy for limited investment dollars — without help from a savvy outsider — would be foolish.

"We need a fresh set of eyes," he said. "I expect creativity and hustle (from an outside marketing firm) and going after things that we never even thought about."

Skepticism from residents, however, was to be expected, he said.

"I'm concerned and not quite understanding how this process is going to work," said Beverly Hayes at Tuesday's council meeting. "If you get a real estate agent to help sell your home, you don't pay them a fee while they're looking for clients."

"I am concerned about paying $100 an hour to do a market analysis," said Marysville resident Kelly Richcreek, an unsuccessful council candidate in 2010.

John Troughton, senior director at Cushman & Wakefield, said Tuesday the B Street property is in a prime location.

"Highway 70 and 20 — that's a fairly rare piece of property," he said, extolling the convenience and access for visitors who might be attracted to nearby hunting and fishing locations, or to Indian casinos.

Troughton's development track record was delivered to the city in the form of a thick packet of articles from national news magazines and Bay Area publications, as well as a list of key speaking engagements at real estate conferences across the country.

His speaking engagements, he said Tuesday, help spread the word about properties he represents.

"Some people may think this isn't very valuable, but it is," he said.

City Manager Steve Casey said he sent requests for proposals to 70 marketing firms in several states before interviewing three and settling on Troughton's company.