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Commissioner Elvig's idea. He suggested this consideration be brought back in two weeks so staff can market the lots in the meantime and negotiate with the contractor to extend the bid. Chairperson McGlone stated someone has to expend the dollars and it is the HRA, not the builder. Commissioner Ramsey noted even if this project only makes $130,300, it is probably a wise investment given the low percentage paid on investments today. Development Manager Lazan stated the proposal from the original bidder occurred in the May /June timeframe. He reviewed the extensive and time - consuming work he had undertaken over the past two years with free engineering and park design, neighborhood meetings, and funding solutions. Development Manager Lazan stated he does not think marketing over the next several weeks will yield a high level of presales. HRA Executive Director Ulrich asked the HRA if there is any interest in pursuing Anoka County HRA money to fund this project to preserve the City's reserve balances, noting this is a housing project and should qualify. Chairperson McGlone stated he would have no objection to that option as long as it didn't hold up the project. Commissioner Elvig stated he thinks the HRA can get letters of intent on the lots. He indicated he had thought the first proposal was too low and the HRA did not get good bids because it was too short of a time frame. Commissioner Elvig stated he would support moving forward to accept the bid contingent on 30% presale /letters of intent with earnest money of $5,000 per lot and a minimum price per lot of $40,000 to $45,000 between now and project start date in the spring. Development Manager Lazan advised the transaction would have to be purchase agreements because Bond Counsel Tom Bray had indicated he would not allow the HRA to enter into letters of intent because they are "buyer's documents." City Attorney Goodrich suggested the motion not accept the bid but, instead, direct staff to negotiate with the bidder for an extension for award at a later date. Motion by Chairperson McGlone, seconded by Commissioner Wise, to award the contract for construction of North Commons to County Line Excavating in the amount of $417,373.22; to approve the proposed project pro -forma for North Commons; and, direct the Development Team to proceed with the project and market the finished lots. Further discussion: Development Manager Lazan indicated the bid is structured to allow project start during the winter if weather allows with completion in the spring. He noted staff had spent one month and considerable expense to prepare the bid for this project. Commissioner Backous stated the bidders also spent time and expense to submit a bid, which should be respected. Housing and Redevelopment Authority / November 13, 2012 Page 7 of 10