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South Bond Redevelopment Commission <br />Regular Meeting April 25, 1980 <br />7. PROGRESS REPORTS <br />c. IMr. Kagel continues... <br />If they wanted two buildings, for <br />instance, but yet there is another <br />political entity that would like to <br />have the other building, what happens <br />in that case? <br />W. Ellison: Mr. Kagel, any open <br />process presumes that there might be <br />more than one party which might make <br />an offer on the same building. <br />All we are saying is an offer cannot <br />be lower than the economic rental <br />value. If we get more than one <br />offer then the Commission would make <br />a judgement. <br />Ms. Derbeck: Is this only for political <br />people that the offer can't be less <br />than the fair market rental? <br />Mr. Ellison: The Commission, if it <br />wanted to, could lease to retailers <br />at economic rental value. However, the <br />previous indication from the Commission <br />was that our objective was to try to <br />reduce our burdens for operating vacant <br />property. It was to reduce public <br />risk and also to try to generate <br />traffic. "As a result of that, we <br />then executed some leases for $1.00 <br />to retailers. The reason we are <br />talking about economic rents now <br />Ms. Derbeck is simply related to the <br />process of talking to HUD pursuant to <br />the Brademas. letter, regarding leasing <br />of space. <br />Ms. Derbeck: What if nobody is <br />interested in a fair market price, would <br />you rent at the normal asking price? <br />Mr. Ellison: To a political entity, <br />absolutely not. <br />Ms. Derbeck: To a merchant, yes? <br />W. Kagel: You are really wanting someone <br />in those building for safety's sake? <br />-36- <br />