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Commissioner Strommen asked what is involved with drafting special legislation prior to the analysis. HRA Executive Director Ulrich stated there will be different alternatives that could be brought forward with special legislation that need to be analyzed. He stated support to have Ehlers involved with analysis of the alternatives. Commissioner Strommen stated she does not support paying Ehlers to draft special legislation in case the HRA decides to go a different direction. Commissioner Tossey stated his belief that Ehlers left the HRA thinking The Residence at The COR was "hunky- dory" and he would not support paying Ehlers for anything, as TIF #14 District is a mess. He stated Ehlers gave testimony saying everything would be fine but that is not the case so he would not support paying Ehlers any more dollars. Chairperson Backous asked if the HRA was getting value for the dollars spent with Ehlers. HRA Executive Director Ulrich answered in the affirmative, noting Ehlers has extensive experience with TIF and can analyze accuracy of the numbers for the HRA's consideration. He stated it is true there are issues with this District and it was not anticipated when this District was created that property values would continue to fall. HRA Executive Director Ulrich explained the HRA needs to understand the problems and take action so if not Ehlers, another consultant could be used. Commissioner Strommen agreed the HRA needs help figuring out what to do with this District and Ehlers has knowledge of this District. She stated after the last meeting, she was pessimistic about moving forward based on advice from Ehlers, and now this situation has occurred when people should have known property values would fall. Commissioner Strommen stated the HRA has to hear what needs to be heard, not what they want to hear, because the HRA needs to understand the challenges being faced, seriousness, and how much of the problem will be solved. Commissioner Tossey noted staff predicted that property values would continue to fall and he does not support paying Ehlers more money when it led the HRA "down the wrong road" by saying this District cannot fail. He supported using another financial consultant. Commissioner LeTourneau stated he also struggles with the issue of trust and asked what a solution would be. He stated he would support getting a bid for another view from another resource that the HRA could trust. Finance Director Lund stated on the value, you have to lock in on a year to establish a baseline to create a TIF comparison. She stated the Flaherty and Collins bond is coming up quickly so the TIF agreement has to be locked in. Chairperson Backous stated he agrees with the concern of Commissioner Tossey. Housing and Redevelopment Authority / October 8, 2013 Page 3 of 5