Laserfiche WebLink
3. APPROVAL OF AGENDA <br />Motion by Commissioner Johns, seconded by Commissioner Kuzma, to approve the agenda as <br />amended to add Case 5.02: Discuss North Commons Letter of Intent (Portions closed to the <br />public). <br />Motion carried. Voting Yes: Pro Tem Chairperson Riley, Commissioners Johns, Kuzma, <br />Strommen, and Tossey. Voting No: None. Absent: Chairperson Backous and Commissioner <br />LeTourneau. <br />4. APPROVAL OF MINUTES <br />Motion by Commissioner Tossey, seconded by Commissioner Johns, to approve the following <br />minutes: <br />HRA Regular Meeting Minutes dated March 11, 2014 <br />Motion carried. Voting Yes: Pro Tem Chairperson Riley, Commissioners Tossey, Johns, <br />Kuzma, and Strommen. Voting No: None. Absent: Chairperson Backous and Commissioner <br />LeTourneau. <br />5. HRA BUSINESS <br />5.01: Discuss Development Management Incentive Compensation — McDonalds <br />City Administrator Ulrich presented the staff report and described past HRA consideration of the <br />McDonald's development management compensation. It was noted that the HRA approved the <br />proposed development management compensation in 2012; however, since that time a number of <br />substantial changes were made to the project including: actual development costs for the site are <br />now known; the McDonald's building was reduced in size; the final allocation of costs to <br />McDonald's is known; and, the number of projects moving forward as part of this development <br />went from three (SuperAmerica, Wiser Choice, and McDonald's) to solely McDonalds. As a <br />result of the fundamental and substantial changes to the project, the Landform contract allows for <br />reconsideration of the incentive fee compensation. <br />City Administrator Ulrich stated the HRA, at its meeting of March 11, 2014, reviewed the <br />proposed incentive compensation for the McDonald's project, did not approve payment, and <br />directed staff to consult further with the HRA Attorney and attempt to reach a compromise with <br />Landform. <br />City Administrator Ulrich stated the HRA Attorney has advised it is within the City's discretion <br />to modify this fee, since there appears to be significant differences from when this project was <br />first approved in 2012. Landform objects to any reduction in the incentive compensation and <br />since the meeting of March 11, 2014, Landform (via legal counsel) has indicated they will not <br />negotiate the final payment and would proceed with a lawsuit if not paid the full amount of <br />$51,441. <br />Housing and Redevelopment Authority / March 25, 2014 <br />Page 2 of 5 <br />