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HRA Executive Director Ulrich stated staff needs to clarify soft costs, such as engineering that the HRA would have to absorb, prior to closing. He recommended the HRA act on development fees separately instead of approving through a preliminary budget action. Development Manager Lazan stated he has soft costs associated with modifying the legal documents, easements, and plans but the hard costs will be held subject to closing with SuperAmerica. Motion by Commissioner Elvig, seconded by Commissioner Tossey, to approve the COR TWO plat and initial improvements development scenario as outlined in the case report, and direct the Development Team to proceed with the effort to assume the responsibilities related to the development and construction of the initial improvements, subject to a spending cap of $40,000 and hard costs contingent on planned closing with either Lot 3, Lot 4, or Lot 5. Further discussion: Commissioner Ramsey noted the HRA has voted seven times to support another project but not approved this one and it is now costing the HRA over $200,000 to fix due to "public perception." Commissioner Elvig stated the HRA has the opportunity to earn back that amount at the same time. Development Manager Lazan recommended the utility stubs be included in the Sunwood Drive project, which would result in cost savings. Interim Engineer Nelson stated the contractor is installing utilities in this location so the City could expand the scope. Following a brief discussion of this option, City Attorney Goodrich advised it is a City project and would not require a bidding process if under $100,000. Commissioner Strommen asked the HRA to act on the motion on the floor since the issue of utility stubs is a Council decision. Motion carried. Voting Yes: Chairperson McGlone, Commissioners Elvig, Tossey, Backous, Ramsey, and Strommen. Voting No: None. Abstain: Commissioner Wise. 5.02: Approve Development Agreement — COR TWO Development Manager Lazan reviewed the staff report. Commissioner Strommen asked if this is also contingent on closing of other properties. Development Manager Lazan explained it is not because the plat has to be recorded to dedicate the rights -of -way for Armstrong Boulevard and completion of the grant preparation. He stated if a closing is delayed, the projects could be deferred. Development Services Manager Gladhill advised the time deadline is one year upon approval to complete the improvements and the HRA can also consider an extension, if needed. Commissioner Strommen asked if the Council also needs to approve the development agreement. Development Services Manager Gladhill noted the Council had approved it subject to review as to legal form. Housing and Redevelopment Authority / October 16, 2012 Page 8 of 11