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City Attorney Goodrich answered there are appraisals and reappraisals on these properties so it can be determined how close the purchase price is to the appraisals. He stated staff could also invite the appraiser to talk with the HRA, if desired. Chairperson Backous stated he does not think that is necessary because the City used a professional licensed appraiser and also had a second appraisal to give the HRA and public additional comfort and it confirmed the first appraisal. Chairperson Backous stated he is comfortable with the process and prefers a willing buyer /willing seller process. He stated the HRA has looked at this item for months but he understands the need for the new HRA Commissioners to be comfortable with this issue prior to voting. Commissioner Riley stated if this is a good idea, why now and not later. If purchased now, he would ask why at that price because to outside citizens, it seems to be shockingly high. Commissioner Riley stated he has additional questions on the appraisal and comparable sales since one was a pending sale of a gas station at the corner of Ramsey Boulevard and Sunwood Drive, which never closed. Development Manager Lazan advised staff had considerable discussion on the lack of comps in what they were seeing in purchase agreements so the appraiser relied on HRA purchase agreements to date. The appraiser also went through the three purchase agreements on the Sunwood and Armstrong side. Development Manager Lazan noted one thing to consider is that the appraiser has to evaluate as if the property has full access and it will never change. The property has to be appraised as it is today, not based on future access. He noted the Wiser Choice Liquor site is the first property off Highway 10 with full access from two public streets, which drove the value higher. On the willing buyer /willing seller issue and process of condemnation, he estimated it would take two years to iron out the condemnation process on the 4 -5 properties involved with the road project. He also noted that with a quick take process, the City would not know the end purchase price until the court process is concluded. City Attorney Goodrich stated he will put Commissioner Riley in touch with the appraiser to get answers to his questions. Development Manager Lazan stated this item will be on the January 22, 2013, agenda and he would like to present the offer terms to HRA in Closed Session. City Attorney Goodrich advised that under Minnesota Statutes, the meeting can move into closed session to discuss confidential or non - public appraisal data, and sale and acquisition negotiations. He indicated closed session discussion will relate to property sale of Lot 3, Block 1, COR TWO for future development and property acquisition of 14590 Armstrong Boulevard NW, (Wiser Choice Liquor Store) from M &W Holding Company, LLC for right -of -way purposes and future development. The closed session will be tape recorded and that tape will be maintained for a period of eight years. Motion by Commissioner Tossey, seconded by Commissioner Strommen, to move to Closed Session to discuss acquisition negotiations. Housing and Redevelopment Authority / January 8, 2013 Page 5 of 7