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Attachment B City Manager Trudgeon advised that, based upon that lack of clear direction by the HRA, he was recommending that the City Council withdraw from the project, with rationale for that recommendation 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 Citys 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 expiration 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 other 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 potential 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 recommended 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 the property was put back on the market or what type of project resulted, it was important that the neighborhood be kept aware of future discussions and subsequent actions. Mr. Trudgeon recommended that the City Council act as he proposed, and move forward to make that decision. Carolyn Olson, President of Greater Metropolitan Housing Corporation (GMHC) At the invitation of Mayor Roe, Ms. Olson advised that the prices for Phase II and III were something GMHC felt it could achieve; and once the townhomes were under construction and pre-marketing was underway, they anticipated once five were sold, the bank would be willing to move onto the next phase. Ms. Olson opined that the appraisal comparables were good and they could build to meet that market. Ms. Olson advised that the entire development team was available tonight for any questions or to provide additional information at the City Councils request, including the RE/MAX realtors chosen to market the project in all of its phases.