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-2 - Motion by Secretary/Treasurer Marks and seconded by Vice Chair Enrooth to authorize • the H.R.A. members' signing of the Village Townhomes deed for conveying the remain- ingland in the Old Highway.8 Redevelopment Project to Brighton Development Corpora- tion for Execution June 18, 1986. Motion carried unanimously. In his memorandum, Mr. Childs had reminded the H.R.A. members that at their November 12, 1985 meeting they had reduced the originally agreed to price of $164,800 for the townhome project to $157,332 which included a credit of $4,092 for soil corrections and a discount of $3,376 for an early buy down of the two remaining phases November 15, 1986. In regard to the latter, the Executive Director had questioned whether' because this closing date had not been met, the rationale under which the H.R.A. had been willing to give a discount for an early closing should not now dictate that the developers be required to reimburse the City for the $5,365 in interest earnings lost because the closing was seven months late. Linda Donaldson of Brighton Development indicated she was present to request the H.R.A. allow the developers to return to their original agreement minus the soil cor- rection credit the developer had been given because "Brighton had•!done nothing to cause those problems which would probably have gone unnoticed if VA and FHA financing had not been involved". The developer said her company had certainly intended to meet the earlier closing date and she assured the H.R.A. members that the project and marketing had not been affected by "the project's lenders not getting their paperwork completed on time". She perceived the City would certainly be proud of the six units which are already is up and Ms. Donaldson said are almost sold out to "good quality people". Mr. Soth commented that the original agreement with the Brighton Development firm had made no provisions for either a soil condition credit or an early closing discount. Mir. Childs indicated he did not perceive the developers had caused the delay as might not be as true for other H.R.A. projects the City is involved in. He also mentioned that the project value had gone higher with all the extra features the purchasers had ordered which would bring in higher taxes and result in the incre- ment being paid off sooner. Mayor Sundland and Secretary/Treasurer Marks agreed that was a valid reason for not charging for the lost interest and both said they perceived the soil credit should be treated separately because "neither the City nor the developers could be held responsible for that problem". Councilmember Makowske questioned whether the H.R.A. would have granted the soil correction credit so fast if they hadn't expected the developers to purchase the land earlier which would have enabled the City to invest that money earlier and to earn more interest for the City. She therefore suggested, that as a compromise, the $5,365 Mr. Childs had estimated the City lost because of the late closings be split in half, making the purchase price to Brighton Development $163,390. Councilmember Enrooth had suggested the developers should be charged close to • $163,000 indicating his philosophy was that "parties who agree to perform a certain way for an incentive should not come back later, asking to return to their original deal when they can't deliver on their part of the bargain". There was a brief consultation of the November 12th meeting minutes before the following action was taken: