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Development Services Manager Gladhill stated the Planning Commission, at its upcoming Work <br />Session, will consider another senior housing proposal that is slightly different in what they <br />offer. <br /> <br />Commissioner Strommen stated she would be willing to consider extending an option but only <br />with earnest money being submitted. She stated she understands the concern about not wanting <br />to have two projects (Blaine and Ramsey) under construction, but the City needs to be paid to <br />hold the property. She noted a third proposal is aware of the first two but believes they have a <br />different niche in the market. <br /> <br />Mr. Fischer stated it is typical to have a 60-90 day due diligence period and if they want longer, <br />they would have to put down hard (nonrefundable) money. <br /> <br />Commissioner Strommen noted Edgewood Development has already been through a due <br />diligence time period and completed a study. <br /> <br />Mr. Fischer stated they did a study but also need to conduct due diligence to go through <br />construction materials with the City and that has not yet been completed. He explained they did <br />a layout of a building on the site but has not taken it beyond that. <br /> <br />Commissioner Strommen asked what the HRA has done with other entities. <br /> <br />Development Services Manager Lazan noted this discussion can be taken to Closed Session, if <br />desired. He explained Edgewood Development exercised the option on December 15, 2012, and <br />then the due diligence period started. Due diligence will last to February 15, 2012, and the <br />purchase was expected to close in March. He stated Edgewood Development is technically in <br />default but not yet terminated so the HRA can terminate the agreement or ask Edgewood <br />Development to perform. Edgewood Development has indicated they want to perform and is <br />now making this extension request. Development Services Manager Lazan felt an option to <br />extend should have consideration and if supported by the HRA, Tom Bray (Briggs & Morgan) <br />can draft such a proposal. He advised that, in the past, the HRA has not extended without <br />consideration. <br /> <br />Commissioner Elvig stated he supports the extension and asked how the HRA can help them. <br /> <br />Chairperson Backous noted the HRA is being asked to change an agreement on which Edgewood <br />Development has not yet performed by submitting earnest money so they are technically in <br />default. Chairperson Backous stated he thinks this is a great project and he would like it to work <br />but Edgewood Development has to perform first. <br /> <br />Commissioner Riley stated he would also like to see a commitment, which he has not yet seen. <br /> <br />Development Services Manager Lazan stated Edgewood Development would like consideration <br />for an extension and perform on first agreement by making an earnest money deposit. <br /> <br />Commissioner Riley stated he is willing to be flexible after Edgewood Development performs. <br />Housing and Redevelopment Authority / February 5, 2013 <br />Page 4 of 7 <br /> <br />