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Commissioner Tossey he would like to see the issue of fees and commissions come back to the HRA in a year so they can be adjusted to lower administrative fees and higher commissions. He would like to see that start as of March 31, 2012. Acting Chair Ramsey stated he understands the reservation of a two year contract. He pointed out he does not want to stop the momentum now, and would rather not spend numerous hours on a contract in a year. He said if there is no movement in the project, then it is the City's choice to release Landform. Motion by Commissioner McGlone, seconded by Acting Chair Ramsey, to approve the Development Management Contract with Landform Professional Services for The COR at Ramsey subject to the City Attorney's final approval. Further discussion: Commissioner Backous stated the 30 -day termination clause with a $60,000 payment is a big issue for him. Commissioner McGlone noted it is not that big of a deal on a $288 million project. Commissioner Elvig stated he would like to have a full Commission for the vote, noting that Chairperson Jeffrey is absent. He said he does not want to stop momentum either, though his concern is the two year contract. He would like it to be a one year contract. Commissioner Elvig asked that the incentive payment be capped and suggested no draws on either year, and no administrative fees on the second year. Development Manager Lazan clarified the $15,000 administrative fee is just to clean up property and title issues. That is the predominant task today and could be part of it going into the next year. This asset has to be managed and the administrative fee is meant to do that. Development Manager Lazan noted the administrative work will continue to be needed to keep components such as signage, design and the master planning going. He added the City can go for an RFP at any point. He said he has met with numerous companies of varying sizes, and has not yet found interest in working with the project. Motion by Commissioner Tossey, seconded by Acting Chair Ramsey, to amend the motion to include language in Landform's contract stating the HRA would review the fees and commissions after the first year of the contract. Further discussion: Development Manager Lazan stated he would agree to an amendment to reevaluate the mix of fixed fees versus compensation. At the HRA's option, it can adjust that mix. There would need to be a compensatory adjustment on the incentive pay. Commissioner McGlone pointed out if there is renegotiation in the middle of a contract, essentially a new contract is being negotiated. He suggested renegotiating 30 days into the contract. Acting Chair Ramsey stated he can see issues with either situation because if there are potential deals in the next year, Landform may want to negotiate a higher fee. Motion to amend failed. Voting Yes: Commissioner Tossey. Voting No: Acting Chair Ramsey, Commissioners Backous, Elvig, McGlone, and Wise. Absent Chairperson Jeffrey. Motion by Commissioner Elvig, seconded by Commissioner Wise, to amend the motion to offer a one year contract to Landform, with the option for the HRA to extend another year. Housing and Redevelopment Authority / March 22, 2011 Page 3 of 5