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HRA BUSINESS: Case #1: Update on Veterans Affairs (VA) Community Based Outpatient Clinic (CBOC) Solicitation of Offers (SOF) Response Deputy City Administrator Nelson stated that the Solicitation of Offers went out last week and a meeting with J.E. Dunn, Flaherty & Collins, and LSA occurred on Monday. She stated that LSA is currently doing a design for the parking ramp expansion and we need to talk about how these projects would work together. Mr. Lazan talked about aone-story facility versus a two story; another option is tucking the clinic under the parking ramp. He noted a letter of understanding from J.E. Dunn should be available for the December 8 meeting. Commissioner Elvig suggested an option could be taking a portion of the building and tucking it outward for the mechanicals. The rooftop could become a green roof for apartment buildings, etc. Mr. Lazan presented drawings and noted that the sketches are based on the group discussions. Initially there were no apartments in the mix -then there was talk about a wrap around. The spec office was not really accepted/liked - so -that was replaced with a residential piece. There would be a lot of retail on the ground floor with, apartments above. Discussion ensued about a stick structure - VA clinic on the bottom -apartments above. It was suggested that the VA would prefer a freestanding building. Commissioner Elvig stated that J.E. Dunn said their people have written a lot of proposals and they have said that Ramsey wrote an outstanding proposal. It was discussed to keep options alive -single story, two story, option of parking ramp, option of parking lot, and to let the VA know we are here and willing to work with them. Parking options were discussed and marketing costs were talked about. Discussion ensued relating to the diagrams and all the different options presented by Mr. Lazan. Possible advantages and disadvantages of each were discussed. Motion by Commissioner Ramsey and seconded by Commissioner Elvig for HRA Authority to move ahead with the Attorney drafting an exclusive negotiating agreement with general terms enough so it's not too binding and we can terminate if we have to. It would be a six-month agreement -subject to all terms -and focusing on property specific. This is all subject to Chairperson Dehen reviewing the Letter of Intent. Further discussion: Chairperson Dehen expressed caution in reviewing everything closely so as to eliminate any mistakes. He added he would like legal opinion on this agreement as well. Housing and Redevelopment Authority /December 1, 2009 Page 2 of 3