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The development team modified the pro -forma with the revised construction numbers to evaluate the impact on the proceeds. Assuming ALL of the additional costs are carried by this development, which is arguable as to appropriate allocation. The result of the additional construction cost drives the break-even price per lot to approximately $42,000. While this is above the current offer, we believe the market will rise as these lots are developed, and accordingly so will the average price realized. The development team believes the project remains a positive improvement to The COR for the following reasons: • The project will bring in approximately $200,000 in development fees that would otherwise not be realized - including $42,000 in park dedication fees needed to develop North Commons Park. • The project will bring additional tax base to the community. • The project will contribute funds to the cost of a second lift on existing streets • Progress and improvements in the North Commons area will improve salability and home values. • The project will make certain infrastructure improvements necessary, but without funding solutions currently. Notably, North Pines Aggregate, apparent high bidder, has stated some concerns regarding the process. The City Attorney is reviewing the bid process and will report at the meeting in regard to whether the apparent low bid is legally acceptable. Recommendation: Subject to approval by the Attorney, the development team records the HRA approve the bid received from Dave Perkins Contracting and Sauter and Sons Excavating for the combined amount of $461,762.00. The development team recommends the HRA approve the revised pro -forma attached and proceed with the development of North Commons as planned. Funding Source: Landfill Trust Fund - as loan on sale proceeds - $400,000 Stormwater Management Fund - for area storm water improvements - $50,000 Staff is also reviewing whether County HRA funds are eligible to use on this project. Council Action: Award contract for the construction of North Commons to Dave Perkins Construction and Sauter and Sons as outlined on the project bid tabulation. Approve the revised project pro -forma and direct the development team to proceed with the project based on costs outlined within the pro -forma. Attachments Revised Pro -Forma Bid Tabulation Site Plan Form Review Inbox Reviewed By Date Kurt Ulrich Kurt Ulrich 08/09/2012 03:27 PM