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Armstrong. Ms. Nelson continued that the evaluation method used to assess the two northerly parcels was based on their value as raw land, which was the highest value as determined by the appraiser. She noted that the parcels do have structures on them and one is an operating business, but the value of the land as a development opportunity exceeds that of the structures of business. However, the appraiser determined that the highest value for Mr. Wise's property is in the current structure and business. This makes the negotiations on this parcel a broader discussion than the other two parcels. She pointed out that a third component of Mr. Wise's property would be the cost of relocation, fixtures, etc. The valuation of the building and land were determined by the appraisal and there is likely little room to negotiate that amount State Statute governs the amount a City can pay for acquisition relative to an appraisal, and the values considered are in a range acceptable not only to the seller, but similar to those contemplated for the sale of land to Mr. Wise for his proposed project in The COR. She noted that it is likely that the valuation agreed to for the acquisition of his parcel will be the same as that used for the sale of property in the COR. Development Manager Lazan reported that we are opting to do this under the assumption that the HRA is leading this. Commissioner Elvig inquired why the HRA as opposed to the Council. Mr. Lazan stated that someone needs to take the lead. The HRA is the most motivated to get it done. City Administrator Ulrich added that with the redevelopment component of this — future development — this is a classic HRA role. Commissioner Elvig asked if we are looking for grants for this project. HRA Executive Director Nelson responded that for the broader part of the project, we are not pursuing a grant. Commissioner Elvig argued that when it comes to roadways, it would typically be a function of the City Council. If you are saying it is for redevelopment, then we should look at redevelopment grants. He added he is just trying to understand why we are going about it this way. If you are saying it is for redevelopment, he noted he does not see that as part of the case. Ms. Nelson stated it is a little premature to pursue redevelopment grant money on the west side, as there is a lot to be done there. This is the first step — acquisition of these parcels for the road — then the remnant land. Mr. Lazan stated that there is a mix of roadway and potential development and someone has to take the lead. The second thought is we have approached these three together — it's a good time for a buyer. We did get preliminary numbers back from the appraiser and we have approached these property owners. We looked at these three but tonight we want to discuss the parcel owned by Mr. Wise - approaching that one is a little more complex. Housing and Redevelopment Authority / February 6, 2012 Page 2 of 11