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Commissioner Ramsey stated he sees no real change in the documentation, noting the HRA went into this with its "eyes open," some supporting it and some not supporting it. He indicated the document may not be perfect but sets out what the HRA wants to do and achieves many things. Commissioner Ramsey stated if this agreement is not supported tonight, the HRA would be in serious trouble. Commissioner Wise agreed the deal was struck and he does not see a lot of differences. He indicated he may have been a dissenting vote on the ramp if this deal wasn't almost done. Commissioner Tossey asked when the purchase agreement with F&C was signed. HRA Executive Director Nelson stated the development/purchase agreement was approved December 2010 with the subsidy piece and the rest was approved on September 27, 2011. Public Works Olson stated the parking ramp contract was awarded in August. Commissioner Elvig stated he is frustrated because he believes a deal is not over until it is over. He indicated the HRA now has the bank's position but not F&C's position so he felt the HRA was still in a negotiating position if it wants to be. He asked how the HRA can perfect the equity puts. Commissioner Ramsey stated in a perfect world that would have been perfected prior to this agreement. However, the HRA has already entered into a purchase agreement and spent a quarter of a million dollars on staff consulting time. He expressed concern that if the HRA tried to renegotiate at this point, they may walk away. Commissioner Ramsey noted the documentation says they will pay a penalty if not paid on time and receive an incentive if they prepay. He asked why the HRA would want to change the agreement. Commissioner Elvig stated he would like to ask for a little more to be in a more comfortable position. Commissioner Ramsey restated the HRA is already under contract with the purchase agreement. HRA Executive Director Nelson explained that with approvals tonight, F&C would close on financing the first week in March and close with the HRA on March 23, 2012. There would be $750,000 in land proceeds. She reviewed the timeline for this project moving forward. Commissioner Strommen asked for staff's input on whether there is opportunity, at this point in time, to better the City's position and put those options in place. HRA Executive Director Nelson stated staff has pushed PNC as far as can be pushed and if further modifications are made, PNC will tell the HRA to go away. She noted the HRA talked about using a "carrot" instead of a "stick" and decided to incent. HRA Executive Director Nelson pointed out that the Subordination Agreement does not change their agreement to provide equity raises and there is incentive. She indicated if directed by the HRA to ask for other agreements, staff will do so but she has grave concerns about doing so. Housing and Redevelopment Authority / February 28, 2012 Page 5 of 8