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Commissioner Strommen stated she had indicated at the meting last week that she is not against the project but new information came to light at the eleventh hour. After careful consideration of the conflict of interest issue and creating process to deal with them, this information came forward at the eleventh hour and in her opinion undermined that public trust. Commissioner Strommen stated it is a timing issue and not the project. Commissioner Backous stated he echoes what has been stated and believes the previous project 6-0 votes speak for themselves. It is clearly a timing issue. Mr. Wise pointed out this project started with the HRA and he does not expect anyone to change their minds but he needs to save his business and personal livelihood. Commissioner Backous stated what is disturbing the most is how difficult it is for some to discern right from wrong, which is basic to him. He stated he cannot vote in support while Mr. Wise is a sitting Councilmember/Commissioner. Commissioner Ramsey stated he did vote on it, supports it, know the difference between right from wrong, and the law said the HRA can do it. He noted this was an HRA project and presented as an HRA project. Commissioner Tossey stated he was not in attendance at the last meeting but has been a champion of the project since Day 1. In addition, the Wiser Choice Liquor property is crucial and will eventually accommodate Highway 10 and Armstrong Boulevard. Commissioner Tossey stated he does have an issue with saying "right and wrong" because the HRA/Council had voted in support all year so why is it being questioned now whether it is a "right and wrong" issue. Commissioner Tossey stated if the Council is not to do it, then it shouldn't do it. He questioned whether the lawyers are incompetent and should be fired or if they are competent but the HRA knows better on the dais. Commissioner Backous stated he did not have an ethical issue voting for this project before the information came out that it was against Statute, though he understands the burden is on the Councilmember, not the Council. However, when the information came out, it was hard to defend being party to that vote. He noted the membership of the Council and HRA are the same so personally, when the information came out about the State Statute, that changed it for him. Commissioner Backous stated the HRA had been very careful to assure transparency from beginning to end in the process and all agreed to not treat Mr. Wise any better or worse than anyone else because of his position. The City did an independent appraisal and took the extra step to have it reviewed. He stated he did not want anyone to think he is against or had suddenly turned cold on the project. It was the simple fact that the State Statute was discovered too late and if things change in January, then he will support it. It is a timing issue. Commissioner Ramsey asked Mr. Bray to present his analysis for Commissioner Tossey. Commissioner Tossey stated it does not matter if he hears it now but would ask if the Statute exists then why is the HRA finding out only a week before the vote. Housing and Redevelopment Authority / October 16, 2012 Page 2 of 11