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Community Redevelopment Agency August 13, 2010 Page 2 procedures for selecting an auditor. A general discussion ensued regarding the City and the Community Redevelopment Agency using the same auditing firm. Mr. Newton stated that there is a significant cost savings in using one auditing firm. The Board requested staff provide information regarding the firms' CRA auditing experience. Fifth Item of Business: Lake Concord Property - Proposal to allocate funding to complete a geotechnical report for this property Mr. Don Martin, Community Development Director, reviewed staff memo dated June 11, 2010 (a copy is on file in the Community Development Department). He said as part of the due diligence a geotechnical engineering evaluation of the site is needed. Mr. Martin explained that the City has received proposals that included the following alternatives: 1. Alternative 1 -consists of 5 site plan specific points and would be more specific to the development of the restaurant. Cost - $3,500 2. Alternative 2 -consists of a universal geotechnical study that would be applicable to the entire property. Cost - $13,800. A general discussion ensued regarding the costs associated with the preparation of the site to make it pad ready. Mr. Martin explained that Chef Keogh estimated the restaurant would generate $2.8 million in annual sales and based on that revenue projection there is only so much money that can be invested in the restaurant. Mr. Martin said that Chef Keogh has capital cost of $2.5 million. Mr. Martin explained that the City's consultant, PMG, is conducting a financial analysis of the project. After a brief discussion regarding the viability of the project and the lease options, Mr. Ritchie made a motion to approve $3500 for the geotechnical engineering evaluation from Ardaman & Associates based on the presentations he has observed. Mr. McGregor seconded the motion. The motion passed unanimously by voice vote. Sixth Item of Business: Proposal to extend time period and Facade Grant Funding for the Grassy Lake Building Project -Millennium Investment Holding Corporation. Ms. Pamela Lynch, Economic Development Coordinator, reviewed the staff memo dated August 13, 2010 (a copy is on file in the Community Development Department). She explained that several years ago the property was annexed into the city with the stipulation that the City would install sewer service to the property. Ms. Lynch said the applicant is unable to move forward with the redevelopment of the site until the utilities are in place. She said the applicant would like to request an extension to the CRA incentive grant funding for the Grassy Lake Building Project. Mr. Walter Judge, President of Millennium Investment Holding, came forward. Mr. Judge stated that the City approached him to annex his property into the city limits and as a benefit to annexing into the City, the City would provide a