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5. OLD BUSINESS (Cont'd The Chair requested Legal Counsel's recommendation, and Mr. Kevin J. Butler, Commission Legal Counsel, advised, "We have reviewed the bid as received. There are two technical problems with the bid that preclude us from accepting the bid at this point. I would ask that the Commissioners take action by motion, indicating that the bid is not acceptable at this point, and authorizing Mr. Brownell and myself to proceed with the next phase, which would be negotiation with the bidder to determine whether we can clarify those two points. Then, of course, we would be getting back to you since this is a new situation. We would be getting back to you on those negotiations, first of all to keep you apprised at such time as we reach a conclusion with the developer. We would inform you of the conclusion and our recommendation for your ac- tion." President Nimtz asked if this is HUD procedure, and Mr. Butler advised that it is. "We have checked this through with our real estate consultants and with the HUD Office, in Indianapolis, and they have concurred in this procedure." The Chair called on Mr. Taylor, spokesman for the St. Joseph River Bend Development Corporation, who submitted the bid for Disposition Parcel No. 6 -1, if he had any I comments. Mr. Taylor said, "My concern is, of course, this particular ac- tion seems to be practically limiting. 'If there is any possi- bility of our people that have entered into agreements, to bid on Section 8 housing, as we had hoped that we could have dis- cussed these technical difficulties as has been indicated and possibly resolved them in time, so that we could, at least indi- cate to these people to go ahead and enter their bids. It seems to me that the terminology being used here- -and I have discussed with Mr. Kevin Butler and with Mr. Brownell these technical difficulties- -and I don't agree with either one of them, but I guess that is kind of immaterial." President Nimtz responded, "Well, Mr. Taylor, you know as a former Director of this Department, we hire Legal Counsel to advise us, and if we don't take his advice, we better not hire him. As I understand the situation, this does not foreclose you; this is merely that we do not accept this bid at this time and that under the HUD regulation, you now enter into discussions with each other to see if these matters can be resolved. Is that right, Kevin ?" Mr. Butler advised, "Right. Lloyd, it is my understanding that applications with respect to Section 8 have to be submitted by July 7 or 8, and then there will be a 30 -day review process," and Mr. Taylor said that is right. Mr. Butler's thinking is that definitely we will have a conclusion, he would hope, by the next Commission meeting, and couldn't see why we shouldn't. - 5 -