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Deals. Development Manager Lazan stated there is no black and white on this project. Flaherty & Collins will spend over $100,000 just producing a set of plans — everyone is incurring costs. They would have to be under construction before June 30. Motion carried. Voting Yes: Commissioners Elvig, Ramsey, Jeffrey, Look, McGlone and Wise. Voting No • Chairperson Dehen. Case #2: Consider Sale of land — Outlot A, RTC 7th Addition Executive Director Nelson stated that staff received a Letter of Interest for the purchase of land — Outlot A, RTC 7 Addition for a senior housing project. We did approve a purchase agreement for Toties Development for Suite Living, which is 80 to 90 units. Toties is moving forward and they could be for sale maybe in the spring. It's important to review where we are at with other senior housing projects. We know there is a market to support 70 to 90 units. We have received a Letter of Interest from Edgewood, based in North Dakota, for the 3.49 acres north of The Draw Park. She pointed out the parcel they are looking at This goes head to head with Suite Living. We had a conference call and they said they said they would go head to head with Suite Living Terms of the Letter of Interest is $5 a square foot — capped at $250,000. She did not know what the development fee would be. One other group we have talked with is First Phoenix. We recommend going back to First Phoenix and letting them know we have received a Letter of Interest from another company — she wondered if the HRA would like to give them a chance. Commissioner Ramsey stated he is not interested in extending any other offers. The market study says what it will support. We already have a good deal - why interject competition. That's over a third of what we could get — if they are really interested, they will be hanging around. Chairperson Dehen stated he agrees with Commissioner Ramsey It does not seem prudent to negotiate with them but would it be prudent to just tell them no, we are just not interested in that price. Maybe let them figure what the market can support. If they pay the same price, why do we worry about how many come in. Development Manager Lazan stated that, today we know the market can only support 70 to 90. We got that information from a housing study from Anoka County. Others have done that study and ended up basically with that same number. He stated he will make an assumption only one can make it. Our job is to build value and he wanted nothing but wins. This is a very quality offer and a very quality project. He stated staff went back to Edgewood and told them but what if they say they will step up their bid and do it the same as the other. Commissioner McGlone stated we are developers of this project — we have the responsibility to our shareholders. We have the responsibility to make the right decisions and we do not want to cripple ourselves. He stated he has no appetite for them to undercut the market. We have a responsibility to get the best deal and to set proper bars for the price of the land. We have to pay back the public. Housing and Redevelopment Authority / October 5, 2010 Page 4 of 11