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Regular City Council Meeting Monday, February 23, 2015 Page 21 Ayes:3(Wall,Elkins,Lee) Nays:3(Majerus,Etten,Maschka) Motion failed. Motion:Member Maschka moved, seconded by Member Majerus to direct staff to ter- minate any further relationship with GMHC and authorize staff to start the process to solicit other potential builders/developers for proposals of medium-density, owner- occupied housing that recognizes the existing development concept(Staff Option#3). Ayes:3(Majerus,Maschka,Etten) Nays:3(Wall,Elkins,Lee) Motion failed. Motion:Member Majerus moved,seconded by Member Etten moved to TABLE action on this item to a date not specific;and directed staff to poll members to schedule a spe- cial HRA meeting to further consider this item only. Ayes:6 Nays:0 Motion carried. City Manager Trudgeon advised that, based upon that lack of clear direction by the HRA and after consultation with the City Manager, he was recommending that the City Council withdraw from the project, with rationale for that recom- mendation detailed in the Request for Council Action dated February 23, 2015. Mr. Trudgeon advised that this action would serve to formally alert the GMHC and HRA of the City Council rescinding their support of the current project, and remove the City's former fire station property from the picture. Mr. Trudgeon expressed his opinion that the City had been more than fair in the lengthy timeframe for getting this development proposal to move forward, and with expi- ration of the Preliminary Development Agreement some time ago, it was time to make this difficult decision. Another concern expressed by City Manager Trudgeon was that, if the first phase of the project, which appears to be financially viable, was to proceed, but the oth- er two phases did not come to fruition, it could lead to the City and HRA being left with less than desirable properties for further development. Mr. Trudgeon noted that it was obvious that the first phase was needed to help finance future phases, which at this time remained only a hope with no guarantee. City Manager Trudgeon opined that the ongoing "wait and see" saga, and poten- tial of multi-year construction was disruptive to neighbors; and if a new developer was sought, it would still probably required a phased approach as originally planned by GMHC,but would hopefully be less disruptive. City Manager Trudgeon advised that, by the City Council taking this recommend- ed action, it would then open up the way for the City Council and HRA to hold a joint meeting to discuss next steps. Mr. Trudgeon noted, no matter whether or not