03/16/10 Special Meeting - Laserfiche WebLink

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Mr. Lazan stated he would modify the termination clause to add termination with 30 -day notice for no cause. Commissioner Jeffrey asked if Mr. Lazan has billed $15,000 per month. Mr. Lazan responded he has come close to billing $15,000 per month. Commissioner Jeffrey noted $300,000 was three full -time people who could work on this and approving $300,000 concerned him because he was not sure the City would get $300,000 worth. Commissioner Elvig stated he was concerned about the hot sheet and he wanted some way to agree as to what went on the hot sheet. He wanted to ensure what was being put on the hot sheet was a quality and quantifiable meeting. He indicated he had a concern about conflicts of interest. He had concerns about termination of the contract. Mr. Lazan stated his intent would be to present proposed development to the HRA and to get the HRA's opinions. He noted he was not a broker and he would not load up developments. He indicated he lived here and he wanted the developments to work. He stated with conflict of interest there was a give and take. He noted he wanted to leverage his relationships and people trusted him, but at the same time, he understood the conflict concern. Mr. Lazan left the room for HRA discussion. City Administrator Ulrich summarized the budgeting for the proposed contract. Commissioner Elvig stated he wanted further information with respect to a marketing budget, a legal budget, etc. He stated he wanted Mr. Lazan to draft a business plan and structure. Commissioner Wise noted the City could not hire a professional developer for $100,000 per year. He expressed concern about the fees Mr. Lazan would receive on a large chunk of land. Chairperson Dehen did not believe Mr. Lazan was qualified to be a development manager and he did not feel comfortable with him and the conflicts he has seen. He believed the contract was over reaching. He expressed concern that Mr. Goodrich had not been consulted on the contract and had not reviewed it prior to today. He believed the contract was heavily one -sided and there was no downside. Commissioner Ramsey noted Mr. Lazan had not been pre - selected and other companies had been interviewed and the HRA had chosen Mr. Lazan He noted the HRA was advancing Landform. Chairperson Dehen agreed the HRA was advancing Landform, but there was no guarantee. Commissioner Ramsey stated the HRA was wasting their time on this contract when the HRA needed to decide if they were even going to do anything right now. Housing and Redevelopment Authority / March 16, 2010 Page5of8