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attempt to negotiate a mutually acceptable resolution or would be willing to jointly enaaae a mediator or arbitrator to assist in resolving the issue. Commissioner Riley stated the HRA is discussing topic but not the dollar amount. He asked what had been paid to Landform, how much is still owed, and how much in incentive fees has been paid. Finance Director Lund indicated since 2009, Landform has been paid a total of $1.454 million for all contracts and $374,240 of incentive fees. Landform is yet to be paid incentive fees in the amount of $80,000 for Flaherty & Collins; $51,441 for McDonalds; and, $53,725 (Armstrong) and $57,913 (Ramsey) for the two SuperAmerica sites. HRA Attorney Bray pointed out there is also a 15-month carry over where incentive fee would apply. Chairperson Backous stated those incentive fees would be based on capitalized cost of projects on HRA land so it is almost impossible to define. Commissioner Riley asked whether the HRA has paid $1.454 million, incentives of $375,000, plus unknown amounts. HRA Executive Director Ulrich stated the $1.454 million is all-inclusive with incentives, engineering contracts, platting, stormwater management, soil analysis, and engineering contracts with Landform. Commissioner Tossey stated one option was to determine what the brokerage fee would have been at 7%. He asked if an option is to withhold 7% from the incentive fee. HRA Attorney Bray stated that option is a way to back out what contribution is attributed to brokerage activities. Commissioner Kuzma stated as part of negotiation, maybe the 15-month term could be cut back in lieu of other payments. Chairperson Backous asked the HRA to focus on the options presented by staff. Motion by Commissioner Strommen, seconded by Commissioner LeTourneau, to direct staff to follow Option 2, Determine if Landform would be willing to meet and attempt to negotiate a mutually acceptable resolution or would be willing to jointly engage a mediator or arbitrator to assist in resolving the issue. Further discussion: Chairperson Backous confirmed that the HRA is operating in good faith and current on all payments and Landform has provided services with the exception of intellectual property. Commissioner Strommen suggested that members of the HRA be part of the negotiating group. Chairperson Backous stated that negotiating these matters is most times delegated to the HRA Executive Director and/or City Attorney. Commissioner Strommen noted Housing and Redevelopment Authority / April 9, 2013 Page 6 of 9