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APPROVAL OF MINUTES <br /> No minutes submitted for approval. <br /> HRA BUSINESS <br /> Case #1: Consider Extension to Purchase Agreement — Suite Living <br /> HRA Executive Director Nelson reported that staff received a request from Toti Development <br /> (Suite Living) to extend the Purchase Agreement. The original closing date was March 31, <br /> however, that did not happen. There is language in the agreement to extend that date to <br /> September and there will be some extra earnest monies to be paid. Toti has deposited $50,000 of <br /> hard earnest money and asked that the date be extended from March 31 to August 15, which is <br /> about 45 days. They will pay a monthly extension fee of $5,000 until they close. Ms. Nelson <br /> noted that the proposed extension and the existing agreement are attached to the case. <br /> Development Manager Lazan stated that this is a very normal request for extension and added <br /> that he is no more concerned about Toti's financing. He reported that he met with them in <br /> person a couple months ago and their financing group wanted to assure us that financing and <br /> final plans will be in order. He talked about the deals Toti is going through right now — and that <br /> he is comfortable they are moving forward. He added this is a tough market to develop financing <br /> in. They have switched their construction package — they would like to stick build so they are <br /> redoing plans to accomplish that. They have moved their latest possible closing date to 45 days <br /> from now. They would like to get in the ground by early summer. He inquired if there were any <br /> questions on the financing strategy. He added Toti is asking for forgiveness of the third $25,000 <br /> fee but reaffirm that the $50,000 earnest money is hard money. <br /> Chairperson Jeffrey stated there is an additional $5,000 monthly extension fee and added that <br /> that almost satisfies that $25,000 if they extend for the whole time. <br /> Commissioner Elvig expressed concern that they contract and how can they say that is not <br /> understood. He asked for an update in 30 days to which Mr. Lazan replied that will happen. <br /> Commissioner Ramsey stated he is in favor. <br /> Chairperson Jeffrey inquired if by the 12 will we verify these funds are hard — or when will we <br /> affirm this is cash. <br /> Commissioner Elvig asked the rationale for not paying the other $25,000. <br /> Mr. Lazan responded that Toti has incurred additional costs to build this new prototype and to <br /> redo the drawing. <br /> Commissioner Elvig inquired if this is a benefit to the City. <br /> Mr. Lazan replied that it is — this is a three - story, flat -roof urban-type building. <br /> Housing and Redevelopment Authority / April 5, 2011 <br /> Page 2 of 6 <br />