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City Attorney Goodrich reported that staff talked about whether this should be the HRA or the <br />City Council. This same discussion will take place at a City Council meeting as well. The <br />northern parcel is owned by a woman in Iowa. The owner has expressed a concern about the <br />City taking the property but he (Goodrich) feels she will be a reasonable seller. The second <br />parcel is owned by what he believes is a reasonable seller too. One piece of his acquisition will <br />be relocation. The third parcel is the current Wiser Choice Liquors. Mr. Wise is a willing seller <br />and we have some potential with him purchasing another parcel in The COR. Mr. Wise is on the <br />Council and is very much a participant in this project so the perception of a conflict of interest is <br />a big issue and we need to talk about that. The big thing to remember is we have gotten an <br />independent appraisal. Their job is not to represent a client. The amounts they come up with are <br />the amounts we will be offering. He noted there is always some give and take. He stated he, <br />along with Heidi Nelson and Darren Lazan, would be presenting that to Jeff Wise. Mr. Goodrich <br />noted because of Mr. Wise's position on the City Council, there could very well be a perception <br />of conflict of interest and that needs to be taken very seriously. He asked for conversation now <br />with the HRA relating to any concerns about that. <br />Development Manager Lazan stated that what Mr. Wise's parcel sells for and what he buys a <br />new parcel for will likely be "dirt for dirt" — a kind of equalizing. <br />Mr. Goodrich continued that there will be two other professionals involved in this, such as Dan <br />Wilson for the relocation portion of it. We will need to get a fixture appraiser too. He noted that <br />since 2006, when we did the eminent domain, the legislature has changed. He stated the new <br />legislature relates to minimum compensation when a property owner is forced to relocate. This <br />law basically requires that, notwithstanding the land/building appraisal amount, the damages <br />paid must compensate the owner with an amount sufficient for the owner to purchase a <br />comparable property in the community. This is a complex statute requirement and there is little <br />guidance. He stated this compensation complicates our issue with this project. <br />Commissioner Tossey stated he did not think we should be talking about this on a Monday night. <br />Mr. Goodrich has laid out some very compelling points on conflict of interest and he wanted the <br />public to see that. <br />Mr. Goodrich assured Commissioner Tossey the public would. <br />Commissioner Tossey continued that he is worried about this not being the normal Tuesday <br />meeting night and that this meeting/discussion is not on camera. He cautioned we need to be <br />very delicate with this. <br />Attorney Goodrich stated that we have some hesitation about whose acquiring land — the HRA or <br />the City Council. Maybe the HRA for the redevelopment and the City for the right -of -way. <br />Therefore, this discussion will take place at both HRA and City Council. <br />Chairperson McGlone repeated that when it comes to the regular meeting, the discussion will be <br />on camera. <br />Housing and Redevelopment Authority / February 6, 2012 <br />Page 3 of 11 <br />