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HRA Meeting Minutes – Monday, July 28, 2014 Page 3 1 At the request of Chair Maschka regarding this proposers timeframe, and in light of the 2 additional proposal received earlier tonight, Ms. Kelsey advised that a public hearing and 3 approval by the body of a negotiated Development Agreement was scheduled for the 4 September 2014 HRA meeting to facilitate a fall construction start. Ms. Kelsey noted that this 5 was this applicant’s first opportunity to build a home, and the home’s cash financing would be 6 put in place by his parents, without need for external financing approvals. 7 8 Discussion included this offer at $84,000 compared to tonight’s proposal for $98,000; lender 9 commitments per proposal; numerous inquiries received by staff and only two applications 10 presented; the need for a future process that is clear and consistent; experience of contractors 11 for each proposal; value of each home and type of family that home would attract (e.g. young 12 family versus retirement home); need for the Crandall family to sell their current home as a 13 contingency on their offer to purchase this lot and construct a new home; and their preliminary 14 design work to-date for a new home; and the Caldworks Construction proposal financed 15 entirely by their parents for cash, and not including a Letter of Intent regarding financing due 16 to their current travel schedule. 17 18 Ms. Kelsey suggested several options for the HRA to consider related to this property: 19 1)Defer a decision until their August 2014 meeting, allowing the original applicant to come 20 forward with additional information if this is the preferred product of the HRA; or 21 2)Choose one of the two applicants at this time; or 22 3)Defer action and request a Letter of Intent for financing from BOTH applicants as part of 23 their due diligence and application process. 24 Ms. Kelsey noted that the Caldworks application did not include that 25 26 Based on her experience in the lending field, Member Elkins noted that applicants would not 27 be required to sign any papers with a mortgage company, but simply seek confirmation that 28 they would provide a construction loan, which was typically contingent upon the sale of the 29 existing home as applicable. 30 31 At the request of Member Quam, Ms. Kelsey advised that the limitation of one year for 32 construction was included as a stipulation in language of the Development Agreement; 33 34 By consensus, Members agreed that delaying one month to ensure financing is in place and 35 paperwork was submitted in its entirety for either or both projects should not significantly 36 impact their construction timeframe, but if so, construction would need to be delayed until the 37 spring of 2015 to have necessary paperwork and assurances in place. Members noted that this 38 would provide an opportunity for the first applicant to raise their offer if they chose to do so 39 and were seriously interested in the property. 40 41 Ms. Kelsey noted that a number of inquiries on the property were received by staff. 42 43 Chair Maschka clarified for proposers and staff the expectations of the HRA that Letters of 44 Intent from financiers, and firm dates and numbers made available by both parties; noting that 45 the information needed to be received by staff no later than the Monday prior to the August 19, 46 2014 HRA meeting to ensure materials are in proper order and available for the meeting 47 agenda. 48 49 At the request of Member Quam, Ms. Kelsey reiterated the public hearing and Development 50 Agreement for HRA consideration and action scheduled at the September HRA meeting. 51 52 b.Authorize agreement for Sales force web-based database 53 As detailed in the staff report, Ms. Kelsey summarized the request authorizing a participation 54 agreement with SalesForce.com with the Greater MSP as outlined at an annual cost for use of 55 the web-based application of $400 per year.