01/17/11 Work Session - Laserfiche WebLink

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Commissioner Strommen asked whether the covenant will define the convenience store use, explaining she does not want the City to get strapped later on because of the restrictive covenant. Development Manager Lazan explained the HRA will discuss, in the future, if it should be restricted from gas or from convenience of a certain size. The consensus of the HRA was to support furthering the Kwik Trip offer and negotiations for clean purchase on Sunwood /Ramsey parcel and right of first refusal for the Sunwood /Armstrong parcel. Case #3: Consider Offer to Purchase Land — Sunwood Retail Area Commissioner Wise recused himself from this discussion at 10:06 p.m. because he may be relocating his business to this area. Development Manager Lazan explained the Sunwood Retail area was created when Sunwood Drive was realigned. Osborne Capital is interested in purchasing the five -acre Sunwood Retail area along with the 3 -4 land deals the HRA has been negotiating. If approved, Osborne Capital would be responsible for closing those transactions and the City would only have one transaction (with Osborne Capital). Another benefit is that it would create momentum, moving forward, and engage the West 30 as well. Development Manager Lazan stated he would loosely describe the offer as being less than the average of the current offers but the City would realize savings by passing along three to four closing costs. The price range with Osborne Capital is $7- $9 /sq. ft.' and the range with the single users is $9- $11 /sq. ft. Because of the savings from closing costs, he felt the Osborne Capital offer was probably a "wash." Chairperson McGlone stated support to sell the land sooner rather than later and get the HRA out of the development business. Commissioner Strommen asked about the West 30. Development Manager Lazan explained it is a complicated draft, they continue to have discussions, and need time to draft the documents. He stated staff may be able to get this under agreement concurrent with West 30. It was noted a phasing program will be needed on the 30 acres, triggered by success on the interchange. Commissioner Strommen stated this may be a way to do a trial on a smaller scale. She explained why she was not overwhelmed by Mr. Osborne's presentation but felt this consideration may have merit if the dollars are a "wash." Commissioner Elvig stated he did not think the dollars were a "wash" and he was concerned the HRA is about to step away from something when it has spent money on marketing and the development team for 24 months of effort. Commissioner Elvig asked about the past discussion of a Walgreen's at $16 /sq. ft. He indicated he liked the timing but felt the HRA had made an investment, has capable staff, and there is a need to be diligent to get the comps and cash. Housing and Redevelopment Authority / January 17, 2012 Page 7 of 9