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Amendment motion carried. Voting Yes: Chairperson McGlone, Commissioners Wise, <br />Ramsey, Backous, Elvig, Strommen, and Tossey. Voting No: None. <br />Motion as amended carried. Voting Yes: Chairperson McGlone, Commissioners Backous, <br />Elvig, Ramsey, Strommen, Tossey and Wise. Voting No: None. <br />5.02: Approve Amendment Number 1 to Purchase Agreement — KONA Properties, LLC <br />Development Manager Lazan reviewed the staff report. <br />The HRA discussed the formation of a Special Services District (SSD), some stating opposition <br />because they viewed it as an additional tax and government intervention. The suggestion was <br />offered that businesses can establish their own private covenants or association to cover <br />maintenance costs without the need to involve the government. <br />Development Manager Lazan clarified the issue before the HRA is whether the purchase <br />agreement should be revised to include SSD language to keep that option open. It is not a <br />decision whether to exercise that option. He noted a SSD is structured to be equivalent of <br />Common Area Maintenance (CAM) to cover a business' share of the maintenance. In addition, <br />KONA Properties, LLC understands the SSD concept and is accepting of the original language. <br />HRA Executive Director Ulrich stated this addresses property owners with a higher level of <br />maintenance than the City would traditionally provide and creates a mechanism to cover the cost <br />to provide that higher level of maintenance. <br />Chairperson McGlone clarified the object is to assure purchase agreements contain language to <br />preserve this option in case City is found over burdened with cost. <br />Motion by Commissioner Elvig, seconded by Commissioner Ramsey, to approve Amendment <br />Number 1 to Purchase Agreement for Lot 5, Block 1, COR TWO. <br />Further discussion: Commissioners Backous and Tossey indicated they would support the <br />motion since its purpose was to preserve the right with the understanding that discussion on the <br />creation of a SSD would occur at a future meeting. <br />Motion carried. Voting Yes: Chairperson McGlone, Commissioners Elvig, Ramsey, Backous, <br />Strommen, Tossey. Voting No: None. Abstain: Commissioner Wise. <br />5.03: Consider Approval of Assignment of the Contract — KONA Properties & West Real <br />Estate <br />Development Manager Lazan reviewed the staff report. <br />Motion by Commissioner Wise, seconded by Commissioner Ramsey, to approve assignment of <br />the contract — KONA Properties and West Real Estate. <br />Housing and Redevelopment Authority / September 11, 2012 <br />Page 3 of 5 <br />