02/06/12 Work Session - Laserfiche WebLink

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Chairperson McGlone stated that everyone has the choice of getting their own appraisal, which we have to pay up to $5000 for, and if they do not do it, they waive that right. Mr. Goodrich added that three appraisals are the same person. If we do a review appraisal for Wise and it shows a defect, we will pick that up on the other two as well. Commissioner Strommen stated that it will all be done by the same appraiser so we will get a benefit of having someone review the methodology. It's a check and balance — and assurance of the appraisal method. City Administrator Ulrich agreed that review of the appraisal is a good check, especially if there is the possibility of the perception for a conflict of interest. The cost for the review is about $500 to $700, which is a fraction of the cost of the appraisal — so it is worth the investment. Discussion ensued relating to having a review of appraisals that are done on The COR property. Commissioner Backous stated that we need to protect ourselves. Mr. Lazan responded that we can order the appraisals on a case by case basis. A comment was made that it could be said that we are adjusting the amounts so the purchase from Wise and the purchase made by Wise are equal. HRA Executive Director Nelson stated that the appraisal on Mr. Wise's property is setting the value. Mr. Lazan stated that it is a per foot equation. Commissioner Backous stated that "x" number of dollars per square foot is a subjective number and he has a concern with that. Mr. Ulrich suggested that Mr. Wise's bank will require the appraisal. If we are trading this land, we need an objective review of this land's worth. Commissioner Elvig stated that we are setting the bar for what the value is. He felt that the comps will be much higher on this side. Chairperson McGlone stated that we struggle with what the land is worth. If we got a deal for "x" number of dollars and we can live with that — then who cares. Commissioner Backous expressed agreement. He stated he is strictly worried about the perception of conflict of interest and how we protect ourselves. He suggested simplifying the process. Commissioner Tossey stated that he thought this was the whole point of selling to Osborne; we would not have to deal with this at all. He added he is increasingly more uncomfortable with this proceeding. Housing and Redevelopment Authority / February 6, 2012 Page 7of11