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$140,000 for the ten -year bond or $100,000 for the three -year bond. Ms. Kvilvang explained it is only the cost of issuance that is capped at $91,000 and the bigger difference is capitalized interest, which is covered by the developer. Commissioner Elvig asked if there is a term between three and ten years that can be considered. Ms. Kvilvang indicated staff can look at a five -year term, which would shrink the amount of capitalized interest; however, the market is comfortable with a ten -year term. Commissioner Ramsey stated it sounds like there is a better market appetite for a ten -year bond and asked whether the motion needs to identify the term of the bond. Ms. Kvilvang recommended the HRA provide direction in how to structure the deal (at ten years or less), which will then be considered by the City Council. Friendly amendment accepted by Commissioner Ramsey and Commissioner Wise to direct staff to pursue a ten -year bond. Further discussion: Commissioner Wise asked about the length of term for the Right of Reverter. Development Manager Lazan answered it is 6 -8 months. Commissioner Wise asked whether there could be negotiations with Flaherty & Collins up to that point to ease the HRA's minds. Development Manager Lazan indicated that revision negotiations would have to occur this week because closing is this week and the documents would be executed Development Manager Lazan indicated that between now and Friday is enough time for those negotiations. Commissioner Tossey stated he is torn on this decision because he believed strongly in contracts and this body had agreed to the contract even though he voted against He indicated he intends to vote against this motion. Motion as amended carried. Voting Yes. Chairperson McGlone, Commissioners Ramsey, Wise, and Elvig. Voting No: Commissioners Backous, Strommen, and Tossey. Case #1: Consider Contract for Alternative Urban Areawide Review Update for The COR Senior Planner Gladhill reviewed the staff report. Commissioner Elvig asked whether there were concerns with Landform (a commissioned sales group) being the HRA's paid consultant and also doing work for the Alternative Urban Areawide Review (AUAR) update that is to be a separate nonbiased document. City Attorney Goodrich stated the City has a relationship with Landform, an engineering group, and its professional requirements would not allow it to make a biased recommendation. Commissioner Ramsey reminded all that when the contract with Landform was negotiated, it was part of the agreement that this type of work would be given to Landform as concession for a lesser contract than originally contemplated. Motion by Commissioner Ramsey, seconded by Commissioner Wise, to approve the required sections only of the Work Plan for the AUAR Update for The COR. Housing and Redevelopment Authority / February 28, 2012 Page 5 of 7