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Motion by Commissioner Riley, seconded by Commissioner LeTourneau, to approve the following minutes: Regular Meeting Minutes dated May 14, 2013 Motion carried. Voting Yes: Chairperson Backous, Commissioners Riley, LeTourneau, Kuzma, and Strommen Voting No: None. Abstain: Commissioner Tossey. 5. HRA BUSINESS 5.01: COR III North Commons Executive Director Ulrich reviewed the staff report and staff's analysis for developing COR III North Commons. He presented four options: 1) Walk away from the project; 2) Develop four lots on the west side of the Park; 3a) Complete the full 17 -lot development project including salvaging all excess topsoil from the 13 lot development site and hauling it to the Lake Ramsey site for future use; and, 3b) Complete the full 17 -lot development project and use all excess topsoil in the rear yard areas of the North Commons residential lot sites. Executive Director Ulrich noted there is not a significant difference in stopping the project and moving forward with one of the full development proposals. The ultimate benefit to the City in taxes would be about $12,538 per year that will begin to generate two years from the start of house construction. Another benefit to the City would be the completion of the final layer of asphalt for the roads in that subdivision. He indicated other options would be for the City to wait until lot prices increase but there is uncertainty of revenue under that option plus the cost of delay makes that option unattractive. Also, Option 1 (walk away) does not include any amount for the sale of the raw land, which may cover any costs of stopping the development but would have the risk of whether the City could sell the land. Commissioner LeTourneau asked if a developer would not favor Option 3a, as it would be too expensive. Executive Director Ulrich explained with Option 3a, the City would move ahead with the full development and incur those costs up front. He noted under that option, it is probable the City will only be able to get $35,000 per lot because people will only pay what the market will bear. Executive Director Ulrich stated the revenue projections were based on $35,000 for each of the triangle lots and $40,000 for each of the four park lots. Commissioner LeTourneau stated he is not interested in the HRA abandoning the property and asked if the . $92,000 projected negative revenue would be added back into the total COR costs and impact the per square foot costs. Executive Director Ulrich stated there is a premium for using top soil on Lake Ramsey so that could be a cost paid by the entire COR and not just this development. Finance Director Lund stated $6.50 /square foot would now be $6.58 /square foot and $7.19 /square foot would now be $7.27 /square foot. Housing and Redevelopment Authority / May 28, 2013 Page 2 of 5