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hear the consensus of those who will be on the Council after January 1st and whether they think it makes sense to move forward or should be delayed for several weeks to provide time to market the lots and get an indication of the commitment. Commissioner Wise pointed out there had been similar concerns with the Sunwood Drive realignment project that was approved with money spent and no land proceeds. But, at that time, the City had pending purchase agreements on two of the properties that would have put funds back into the system. Commissioner Backous stated he finds the concerns expressed to be valid and agreed it is hard to market lots that do not yet exist. In addition, he did not know how strong a commitment to purchase a lot would be. Commissioner Backous stated he thinks something needs to be done and he liked the suggestion of Commissioner Elvig for a contingency motion to release the project when a certain percentage of lots have been sold. Chairperson McGlone stated that sounds good but you cannot sell lots when lines do not exist on a map. Commissioner Backous stated it would at least show some amount of commitment by the HRA. Development Manager Lazan stated he was unsure whether the open bid law allows the HRA to ask the bidder to extend the bid date. He reviewed that the HRA previously had a commitment to buy all of the lots over a given period of time but the HRA wanted it opened to other builders so it agreed to sell only one lot to that buyer. Development Manager Lazan stated he has recently talked to three brokers who are interested and wanted to know when the lots would be delivered. Commissioner Strommen asked about the option of presales before moving forward with the project. She noted funding is proposed from an internal loan on the short term that would be paid back with future sale proceeds. Commissioner Strommen asked about the current level of obligations and loans from the Landfill Trust Fund or other internal funds and questioned the intended time horizon on the proforma. Development Manager Lazan stated the proposal outlined previously for the 15 lots was a three - to five-year timeline and that remains the projection with three to five lots being sold per year. He indicated HRA Executive Director Ulrich and Finance Director Lund had recommended use of the Landfill Trust Fund. Finance Director Lund addressed the acquisition cost, and said the HRA should be aware that it will be booked as a loss on the record because no land sale proceeds are coming in. Development Manager Lazan clarified the proforma contemplates $206,000 would be received in development fees in addition to $40,000 to repay park construction costs. Housing and Redevelopment Authority / November 13, 2012 Page 4 of 10