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Chairperson McGlone stated builders buy lots and the HRA can't sell this land until lots have been created to sell. Commissioner Wise asked if this property will not be developed by private developers. HRA Executive Director Ulrich stated that is correct, public intervention is needed for this property to develop. Commissioner Strommen asked staff to provide the proforma as part of the case report so it can be reviewed prior to the meeting. She asked if there is urgency to this action. Development Manager Lazan stated if not approved, public improvements would not be completed that this project would fund. In the short-term, the HRA has received a good bid for this project and if rejected it would have to be rebid at a future date. He noted the direction of the HRA months ago was that the bid prices were too high and to rebid the project over a longer term to get better prices. Commissioner Strommen asked whether the proforma is anticipating that with one buyer it would still not be at a break even. Development Manager Lazan pointed out that even with the lowest lot price scenario, the City would still receive $130,300 as well as infrastructure improvements and funding for the park. Commissioner Wise stated staff has indicated this property will not develop without public intervention and while he knows many don't like the government to be involved in development, sometimes that is the only way things happen, such as with the stadium. Commissioner Elvig reviewed that this project had started from Commissioner Tossey's indication that residents in this area wanted the park developed because they had been promised a park. In that effort, the City looked at how it could afford to develop the park and decided to offset those costs by putting lots up there. He stated he would like the HRA to have more land sale commitments and suggested staff ask the bidder how long he would hold the numbers. Commissioner Elvig raised the option of having a set percentage of the lots sold, such as 50 %, at which time the HRA could release the project. Commissioner Tossey agreed that residents in that area want a park and he had met with Parks and Assistant Public Works Superintendent Riverblood multiple times. He asked if it makes sense to spend $500,000 to make $35,000. Commissioner Tossey indicated he is not saying to not do the project, but to wait until more lots are sold. He suggested marketing the four lots that are ready to sell, noting some of the lots will require a lot of fill to develop. Commissioner Ramsey stated he is not opposed to moving forward and found it is a valid point that the land has not been marketed. He agreed this land will never develop via the private sector and another question is when the storm sewer will have to be fixed, this winter or next spring, because those costs have to be incurred anyway. Commissioner Ramsey stated he would like to Housing and Redevelopment Authority / November 13, 2012 Page 3 of 10