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5. HRA BUSINESS 5.01: Consider Proposed Use for the NE Quadrant of Sunwood Drive and Center Street (Portions may be closed to the public) HRA Executive Director Nelson noted that Wayne Skaff and Bill Dorn are present from the Northgate Church. She noted that staff has had some on -going discussions with them and they are using an architectural firm. Discussions have reached the point to come back to the HRA to talk about a land sale price. Wayne Skaff thanked the HRA for the opportunity of the discussion. He gave a brief update of the project and handed out some material to the HRA, noting that it is the same material they handed out to their congregation last Sunday. He stated that they are in the middle of their $3 million fundraising drive for the building. They have $600,000 pledged from 23 families. There were 785 people in church last Sunday plus 140 children and 90 youth — so over 900 people in the PACT Charter School building last Sunday. He talked about the new administration at PACT and that he is not sure the church would be able to have a long term lease with them. He commented that they are looking forward to their outdoor worship, they are looking forward to being a part of Happy Days and the community. He stated that they describe their new building as a "guest house" and reviewed the renderings of the structure. There will be stadium seating to accommodate 700 people and there will be video -wall technology. He stated that they are looking at a 20,000 square foot first floor with the ability to go to a second floor. He stated that the overview of what we have talked about is now on paper. He talked some about the church building being a performing arts center and added that the City can be assured Northgate will not close its doors to the public. He talked about the projected cost of $350,000 for 55,000 square feet. We feel $350,000 is a fair price keeping in mind what we are bringing to Ramsey without requesting any City funding. We are ready to negotiate a purchase agreement and move forward. We would like to begin construction this year. We need to find a new house for Northgate. He added that he pledged to Heidi Nelson and Darren Lazan that he would not pursue any other land in the City or anywhere else but he would need an answer in the near future. He would like to know what will be happening by next April. It's important we do move forward. We want to make it a win -win for everyone and something the City will be proud of. Commissioner Ramsey stated he is sure they have these pieces covered but he wondered how it would work with non - profits owning this and then charging for events going on in the building. Mr. Skaff replied we have looked into that and as long as they are charging to cover costs like utilities, etc. that's fine — they just cannot have it to be a money - making issue. We are committed to covering our costs but not to make money on a venue — it is a not for profit. Chairperson McGlone stated he got some phone calls about this being a tax -free entity. He did not feel five people should make the decision for 23,668 but maybe more Councilmembers have gotten calls. He stated he likes this whole idea. He likes something that the burden did not fall on all our residents to pay for. The deal structure and where we meet on numbers is where he may have more questions. Housing and Redevelopment Authority /Special Meeting - April 3, 2012 Page 2 of 6