03/19/13 Work Session - Laserfiche WebLink

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Deputy Executive Director Gladhill explained the determination of who will build the infrastructure has not yet been made but a plat could be recorded and moved forward. Commissioner Elvig noted at the end of the year, there had been pushback from the Development Manager saying if the liquor store is not sold, they are doing only a portion of the infrastructure. He indicated he had assumed the City was doing all of the infrastructure for the three plats but now it sounds as if SuperAmerica will, do some of the infrastructure HRA Executive Director Ulrich clarified that the HRA had always planned to pay for all of the infrastructure improvements but be reimbursed when each piece pays for its own portion of the costs. Deputy Executive Director Gladhill indicated the HRA had approved the soft costs but not yet gone out for bid or approved a contract for construction. It was noted the design work went to Landform. HRA Executive Director Ulrich explained the proposal with Jeff Wise was to put in the infrastructure and the HRA would then be reimbursed by McDonalds and SuperAmerica. However, with the City footing the costs, it is more of a risk in case the property is not sold. HRA Executive Director Ulrich continued review of projects in process, noting the Connexus cost was $31,000 but it had been estimated by Connexus at $22,000. He advised that Connexus has indicated it would go with that as the cost and contribute a portion. HRA Executive Director indicated the HRA wants Landform and WSB to each pay one -third of the cost, $3,722, and while WSB has said they would pay that amount, Landform has refused to pay. Commissioner Elvig raised the option of the HRA paying Landform's share, as the landowner has the right to do on their behalf and if Landform desires, it can exercise its lien rights. HRA Executive Director Ulrich stated based on past discussion with the HRA, the City has paid $12,500 of the bill and is in good stead with Connexus. Now it is a matter of the balance and whether to pay and try to collect from the consultants (WSB and Landform). Finance Director Lund advised that the $3,722 amount was deducted from the amount indicated the City still owes to Landform. HRA Executive Director Ulrich presented next steps that will be addressed by the HRA at its meeting in April. Chairperson Backous suggested waiting to make any decisions until the Economic Development Manager is hired. HRA Executive Director Ulrich recommended holding discussions about land sales strategy in The COR. Housing and Redevelopment Authority / March 19, 2013 Page 2 of 5