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Commissioner Backous stated he would have supported approval if someone paid a check to cover the HRA's cost and investment. Commissioner Tossey stated the original builder wanted most of the lots but had altered some of the options to include preferred and non - preferred lots. Development Manager Lazan stated the original builder had submitted a $25,000 check under an agreement for all 17 lots. When the HRA gave direction to allow other builders in, he went back to the original builder who indicated he still wanted to move forward with one lot. Chairperson McGlone stated that past conversation changed at the same point as it is tonight about paying money to make money. Commissioner Tossey stated he thought lots were to be marketed during the interim from the August 13, 2012, meeting. Development Manager Lazan advised that in today' s marketplace when buyers are rare, it is difficult to get presales on raw land. In addition, other developed lots are available in the general area and competing with the HRA's lots. Chairperson McGlone stated with the sale of typical lots, the builder may put down a deposit on the lots and then pay for the lots as he takes them down. He did not think that 50% of these lots would presell when the lots are not yet developed. Chairperson McGlone asked the HRA if it wanted to move forward with this project and solve the park, sewer, and drainage problems that already exist. He referenced the proforma, noting the bottom line profit is $130,300, or could be $215,300 or $330,000 depending on the lot cost. Commissioner Strommen stated she thinks it is worth trying to presell lots and appreciates Commissioner Elvig's proposal if consensus can be reached that it is worth trying. She noted, however, that the City Attorney had indicated if the HRA hits that number of presales, it is obligated to move forward. Development Manager. Lazan stated the purchase agreement with the first builder was for exclusive development rights and to partner with the HRA to promote the project. The first builder would have had rights to all 17 lots if taken at a certain burn rate and the HRA had to produce all the lots for him to close on the first lot. Development Manager Lazan stated the first builder was never obligated to close and if that had occurred, then the option would run out and the HRA would market the lots to others. He indicated that $25,000 had been deposited and the contract was forwarded for HRA approval but the HRA thought it could achieve a better price and complete sales faster if it was opened to other builders. Chairperson McGlone stated the HRA also did not like the bid on the grading. Commissioner Ramsey stated he remembers that discussion at a previous Work Session meeting and that the HRA thought it could complete it faster with more builders. He indicated he likes Housing and Redevelopment Authority / November 13, 2012 Page 6 of 10