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bituminous and the potential it will be damaged during building construction. He recommended <br />improving only the east side of the parking lot at this point. <br />Commissioner Strommen noted the case report says the funding source is future land sales. She <br />asked what is the interim funding source. <br />Development Manager Lazan stated he talked today with HRA Executive Director Ulrich and it <br />was determined there are options with the HRA fund balance. <br />Commissioner Strommen noted in the mean time, the HRA has bills to pay and needs to know <br />the source of interim funding. <br />HRA Executive Director Ulrich stated the HRA has a balance of $300,000 that could be used for <br />cash flow until the SuperAmerica land sale can pay it back. <br />Commissioner Strommen asked what are the intended net proceeds from the SuperAmerica sale. <br />Development Manager Lazan reviewed the soft costs and advised the proceeds from Lot 5 for <br />SuperAmerica are slightly over what was anticipated from the sale of Lot 3 to Mr. Wise. <br />HRA Executive Director Ulrich stated the HRA will not want to proceed without a signed <br />purchase agreement with SuperAmerica to assure those land proceeds will come in. <br />Commissioner Strommen noted they are interwoven but the downside the HRA faces is when <br />one of the anticipated sales does not go forward so the HRA needs to understand all things are <br />contingent. She noted that without having the cash flow information, it is difficult to vote on <br />these serious issues and she wished the information was in writing before being asked to make <br />this decision. <br />Commissioner Elvig asked about the process and if staff is seeking the HRA's approval to bring <br />back to potential land buyers that the HRA will build infrastructure ahead of the development. <br />Development Manager Lazan stated the HRA needs to understand its role to move this forward <br />to create certainty on the other side. He stated he will work with SuperAmerica on its closing <br />and components they will undertake. He will also let McDonalds know it can plan on <br />commitments in the Purchase Agreement, which will be brought before the HRA next week. <br />Commissioner Elvig asked if staff should draft a resolution indicating the HRA is willing to <br />move forward on this project in order to give SuperAmerica that assurance. <br />Development Manager Lazan advised that SuperAmerica is under contract so it only needs word <br />that the HRA is moving forward. McDonalds will be under contract next week. He asked the <br />HRA to approve the development scenario to move forward. <br />Commissioner Tossey stated this is contingent on SuperAmerica closing and if it does not close <br />he would not support paving Lot 3 for $800,000. <br />Housing and Redevelopment Authority / October 16, 2012 <br />Page 7 of 11 <br />