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staff determined for this transaction to move forward, it would have to once again become an HRA purchase. He indicated the Minnesota Attorney General has issued an opinion on this same subject. Bond Counsel Bray presented his analysis of State Statutes and the Attorney General's opinion. He stated his conclusion that Minnesota Statute 46909 clearly allows HRA Commissioner Wise to have an interest in an entity that is entering into a contract with the HRA Board as long as the conflict is disclosed, made known to the HRA Board, and Commissioner Wise takes no action in the process. Bond Counsel Bray advised it is not uncommon in Minnesota for members of the City Council to also, in whole or in part, constitute the HRA Board and there is nothing to prevent the HRA from entering into a contract. Commissioner Strommen expressed her concern staff had discovered this issue mid - September yet the Council /HRA was not aware until it received this meeting packet. She stated her rationale for not supporting the purchase even though the HRA and City Council are separate legal entities and guided by different statutes. For her, it is a matter of public trust and perception that moving forward appeared to be an effort to get around the laws and processes that govern the City Council. Commissioner Strommen noted this was a delicate issue to begin with and she had defended the process established but now believes it has unraveled. She stated she still supports the project and noted Councilmember /Commissioner Wise will no longer be a member of this body after a few months and the project can be delayed to avoid this issue. Commissioner Backous stated for all reasons City Attorney Goodrich laid out, he still thinks this project is the right thing to do. He agreed the HRA created a transparent process, ordered additional appraisals, and he had defended that process to residents of Ramsey. He stated he had concern that Councilmember /Commissioner Wise be treated fairly and not given undue advantage or disadvantage for being member of the Council/HRA. In that effort, the matter was treated as an arms - length transaction. Commissioner Backous stated his agreement with Commissioner Strommen that the law is the law and if approved, it will appear that the HRA is breaking the spirit of the law. He stated he appreciates the opinions of the City Attorney and Attorney General, but the membership of the HRA is the same as the City Council and to now consider transferring money to the HRA to purchase this land, to him, does not "smell right." Commissioner Backous stated he is glad this transaction did not remain with the HRA because then this conflict would not have been discovered. He agreed the City Council and HRA should have been informed of this conflict when it was discovered and it now pains him to say he cannot support this transaction while Mr. Wise is a sitting Council Member. Development Manager Lazan presented the chronology of the property acquisition and staff determination it was more appropriate for the road project to be with the City Council than the HRA. He reviewed the time and expense to negotiate three rights -of -way purchases and encouraged the HRA to consider the project as a whole and not based on a single transaction. City Attorney Goodrich stated there is a need to acquire some right -of -way from Wiser Choice Liquor for the 146 cul -de -sac. Otherwise, the road alignment will have to be pushed into the southerly portion. Housing and Redevelopment Authority / October 9, 2012 Page3of6