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Motion carried. Voting Yes: Chairperson Jeffrey, Commissioners Ramsey, Wise, Backous, <br />Elvig, McGlone, and Tossey. Voting No: None. Absent: None. <br />APPROVAL OF AGENDA <br />Commissioner Elvig requested Item 4 be discussed prior to Item 3. <br />Motion by Commissioner Backous, seconded by Commissioner Wise, to approve the agenda as <br />amended. <br />Motion carried. Voting Yes: Chairperson Jeffrey, Commissioners Backous, Wise, Elvig, <br />McGlone, Ramsey, and Tossey. Voting No: None. Absent: None. <br />HRA BUSINESS <br />Case #1: Consider EDA Recommendation Regarding Retail Space in Flaherty and <br />Collins Apartment Project <br />Deputy City Administrator Nelson reviewed the staff report. <br />Commissioner McGlone pointed out the $144,000 as mentioned in the report which the City is <br />liable for is not complete. This does not include CAM fees. He noted it is his position that the <br />HRA and the EDA are overlapping in this project. He stated he voted against the subsidy for the <br />project that is proposed across the street and had pled to let Flaherty be released from this <br />obligation. The subsidy earmarked for the other restaurant puts the City in jeopardy of having to <br />spend $200,000 in backstopping a lease. He said there are other corners that the City can <br />develop as it sees fit. <br />Commissioner Backous said he understood the terminology stated the amount the City would be <br />liable for is "up to" $144,000. He added that he understood this was for a retail development and <br />not necessarily a restaurant. <br />Development Manager Lazan explained that $144,000 is the straight monthly obligation. He <br />agreed that the CAM fees need to be added. <br />Commissioner Wise indicated he originally thought it could be beneficial to let Flaherty out of <br />the contract. He now decided apartments there would not work, and he felt it was a good <br />location for retail. He noted the City would most likely find a lessee and could create some kind <br />of subsidized lease if necessary. <br />Development Manager Lazan explained the original offer to Flaherty. He noted the worst -case <br />scenario is if the City cannot lease the building, the City would pay for all three years. <br />Commissioner Elvig pointed out this body has already discussed this item and voted on it. <br />Development/Marketing Manager Backman had requested it come back to the Council for final <br />approval since there are new Commissioners on the EDA. He didn't think there would be <br />Housing and Redevelopment Authority / March 15, 2011 <br />Page 2 of 9 <br />