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Commissioner Strommen stated she understand the work put into this project and the concern that incentive compensation is to be incentive to close the project. She stated if there was not also an administrative fee in the contract, she may be more sympathetic but that is the difference for her. In addition, it gives her some "heartburn" because the work for. Sophia Ramsey LLC should have come to the HRA up front and that Landform would expect compensation. Commissioner Strommen stated she still has "heartburn" about having to pay full compensation on a sale (Lot 3) to a member of this body. She stated she realizes that deal is not on the table but had previously asked the HRA to discuss that unique circumstances. Commissioner Strommen stated for these reasons she is not comfortable with the Lot 3 advance or the $10,000 Sophia Ramsey LLC request. Development Manager Lazan stated he agrees with the comment about the Lot 3 deal because it has taken twice as long and twice as many steps so he would welcome discussion. He noted that the City purchasing Mr. Wise's property on one side in no way obligates Mr. Wise to locate on this side. It is a new deal with a purchase agreement. Development Manager Lazan stated he could argue it was more work than other deals. With regard to the Sophia Ramsey LLC issue, he stated if he had acted in his own selfish interest, he would not have -spent that time but Sophia Ramsey LLC is an important partner in this project so he had acted accordingly to resolve those issues. Development Manager Lazan stated it is difficult to ask for compensation until the HRA sees the results and he understands this is a request and reflects on their relationship and efforts going forward. Commissioner Tossey agreed with Commissioner Strommen that it would have been good to come forward before the work was done. He stated Sophia Ramsey LLC is an important partner, that work was done, and Landform should be compensated. But with the Lot 3 advance, it is assured Wiser Choice Liquor will be taken down for the Armstrong overpass and that purchase had only been postponed until after January 1, 2013, so Landform will get paid. City Attorney Goodrich advised that five HRA members would be voting so three was the majority required to pass a motion. Motion by Commissioner Ramsey, seconded by Commissioner Tossey, to approve the development management compensation related to Sophia Ramsey LLC for hard improvements (1/3 share = $2,000 x 2 %) in the amount of $4,000, and to request additional documentation on the general coordination costs for the additional $6,000. Motion carried. Voting Yes: Chairperson McGlone, Commissioners Ramsey, Tossey, and Backous. Voting No: Commissioner Strommen Abstain: Commissioner Wise. Absent: Commissioner Elvig. The consensus of the HRA was to not take action on the Lot 3 development fee advance in the amount of $25,000. 6. DEVELOPMENT TEAM REPORT Housing and Redevelopment Authority / October 23, 2012 Page 6 of 7