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Development Manager Lazan advised that a lot of documents have been drafted over the past two months that will be recorded so more legal bills will be received. Finance Director Lund continued presentation of the HRA expenditures, noting $20,000 had been budgeted for the International Council of Shopping Centers (ICSC). Development Manager Lazan stated he thinks that $15,000 is a decent placeholder for ICSC. Commissioner Backous noted this account is just travel so there will also be marketing and printing costs under the marketing budget. Finance Director Lund stated it had been budgeted at $20,000 and recommended it be changed to $7,000. Development Manager Lazan indicated the total for ICSC was $14,000 including printing. Commissioner Ramsey reviewed the reduction in the 2013 professional services budget. Finance Director Lund explained it depends on what happens with the Development Manager contract and if it will be paid based on what is sold. Commissioner Ramsey asked who will do all the work Landform is currently doing if only $86,500 is budgeted. Commissioner Backous supported the Development Manager contract being commission based like a real estate agent. He stated he knows the Development Manager has done a lot of work, covered by the administration fee, but everything is supposed to be cleaned up by now. HRA Executive Director Ulrich stated there is also an alternative to fund with land proceeds received, which will be additional revenues beyond the levy. He indicated the City can renegotiate the contract to support services with land proceeds, noting the fund balances can be a back up. Development Manager Lazan pointed out that zero revenue is recognized in the budget. He stated he would like to prepare a proposed budget and work plan from a business prospective. He asked the HRA what it wants to accomplish and explained there is ability to reduce the levy and operate on land sale proceeds, with the fund balance as a backup. Development Manager Lazan indicated this is a business and $1 million net proceeds are coming in with expenses in the other direction. He stated the HRA needs to look at what it wants to accomplish. He agreed that a fair amount of work over the past couple of years was clean up but it is not yet done and there is still site planning and mapping needs. Development Manager Lazan stated this involves the administration of a multi -million dollar business and it takes effort. The decision tonight is whether to use the maximum preliminary levy with the understanding it can be lowered. Commissioner Backous stated if it is being suggested to budget revenues and the Development Manager's commission from revenues, he would favor that. He stated he is not in favor of Housing and Redevelopment Authority / September 4, 2012 Page 2 of 9