EVERYONE I WILL CALL THE BLOOMINGTON CITY COUNCIL PORTION OF CITY COUNCIL PORT AUTHORITY CONCURRENT MEETING TO ORDER AND I WILL CALL THE PORT AUTHORITY ORDER. THANK YOU TO EVERYBODY FOR BEING TONIGHT BOTH COUNCIL AND PORT REMINDED EVERYBODY AS YOU SPEAK YOU'VE GOT TO PUSH THE LITTLE GREEN BUTTON AND YOU GOT TO PUSH THE BUTTON SO THE LITTLE GREEN LIGHT COMES ON SO WE CAN HEAR YOU AND THEY CAN HEAR US ON LINE AS WELL. WE HAVE A COUPLE OF MEMBERS WHO ARE REMOTE SO OFFICIALLY WE'RE GOING TO HAVE TO CALL ROLE FOR BOTH PARTIES HERE JUST TO MAKE SURE THAT WE HAVE AN OFFICIAL MARKING OF WHO IS PRESENT. SO I'M GOING TO TURN IT OVER TO THE ROLE. THANK YOU MAYOR. I'LL WILL DO CITY FIRST MAYOR BUSSEY PRESENT COUNCILMEMBER LOWMAN COUNCILMEMBER PRESENT COUNCILMEMBER NELSON PRESIDENT COUNCILMEMBER RIVAS COUNCILMEMBER CARTER PRESENT THANK YOU PORT COMMISSION PRESIDENT BOB ERICKSON PRESENT MAYOR BUSSEY PRESENT COUNCIL MEMBER NELSON HERE COMMISSIONER HUNT PRESENT COMMISSIONER HERE AND COMMISSIONER KELLER HERE THANK YOU. VERY GOOD THANK YOU. I APPRECIATE THAT. ON OUR AGENDA TONIGHT WE HAVE ONE ITEM FOR A CONCURRENT MEETING. THIS IS NEW BUSINESS IS AN UPDATE ON THE AWAY WATER PARK PROJECT BUT LET THE RECORD INDICATE COUNCILMEMBER LOWMAN IS IN THE HOUSE NOW I WANTED TO POINT OUT THAT THIS IS THIS IS A GOOD OLD FASHIONED STUDY SESSION. THIS IS AN INFORMATIONAL SESSION FOR BOTH THE REPORT AND FOR THE CITY COUNCIL AN OPPORTUNITY GATHER INFORMATION, ASK QUESTIONS, GET SOME CLARIFICATIONS. THERE WILL BE NO VOTES TAKEN TONIGHT. THIS IS NOT A PUBLIC HEARING TONIGHT. THIS IS AN OPPORTUNITY FOR US TO LEARN MORE AND TO ASK QUESTIONS OF STAFF AND THAT'S WHAT WE'RE HERE TO DO TONIGHT AND LOOKING FORWARD TO IT BECAUSE THIS IS THE NEXT STEP ON A JOURNEY THAT WE'VE BEEN ON FOR A WHILE. COMMISSIONER LUNCH. YES KIM. COMMISSIONER EVANS. YES. FROZEN. HELLO, MR. BUSSEY. COMMISSIONER KELLER AND COMMISSIONER LYONS, CAN YOU HEAR ME OKAY? YEAH, JUST JUST WOULD LIKE GETTING UP. I'D LIKE TO INFORM YOU WE HAVE AN HOUR AND A OF TIME OR WE'RE REALLY JUST PUBLIC VENUE. VERY GOOD. GOOD. WE WILL DO ALL WE CAN TO GET THROUGH THERE THROUGH THROUGH ALL THE QUESTIONS. ROB, THANK YOU . ALL RIGHT. ANY ADDITIONAL QUESTIONS COMMENTS AS WE GET STARTED HERE PORT COUNCIL HEARING ON THIS BASIC GOOD EVENING AND WELCOME GOOD EVENING. GOOD EVENING, MR. MAYOR PRESIDENT ERICKSON, COUNCIL MEMBERS AND. MY NAME IS HOLLY MESSICK. I AM THE PORT AUTHORITY ADMINISTRATOR FOR THE PORT OF THE CITY OF BLOOMINGTON AND I WOULD LIKE TO REITERATE THIS IS AN INFORMATIONAL ONLY ITEM THIS EVENING WE ARE TO UPDATE YOU ON PLANS FOR A WATER PARK BEING PROPOSED AT THE MALL OF AMERICA. WE'D LIKE TO ANSWER ANY QUESTIONS YOU MAY HAVE THE PROJECT AND THEN LOOK FOR YOU FOR DIRECTION TO PROCEED WITH ANALYZING THIS PROJECT AND RETURNING TO YOU WITH THE TERM SHEET, COULD YOU PLEASE BRING UP THESE SLIDES ? THE OTHER PRESENTATION PLEASE . ALL RIGHT. THANK YOU VERY MUCH. SO TAKING YOU THROUGH OUR AGENDA THIS EVENING WILL BE GOING THROUGH AN INTRODUCTION THE PROJECT. WE'LL BE GROUNDING YOU IN THE 2013 SOUTH LOOP PRINCIPLES FOR THE AREA AS WELL AS THE 16 MALL OF AMERICA CONTRACT OBJECTIVES. WE'LL BE TALKING ABOUT AN OVERVIEW OF WATER PARK DESIGN AND SUSTAINABILITY AND THAT SECTION OF OUR PRESENTATION BE PRESENTED TO YOU BY REPRESENTATIVES OF 555. WE WILL ALSO BE GOING THROUGH THE PROPOSED PUBLIC FINANCIAL ASSISTANCE FOR THIS PROJECT TALKING IN HIGH LEVEL ABOUT THE BENEFITS AND RISK AND THEN OPENING THE FLOOR TO QUESTIONS . AND JUST TO BE CLEAR I'M SORRY FOR INTERRUPTING BUT JUST TO BE CLEAR YOU'D ASK US TO HOLD OUR QUESTIONS UNTIL THE END OF THAT DISCUSSION OR DO YOU US TO ASK QUESTIONS AS WE GO ALONG HERE WHAT WOULD BE BEST FOR YOU? PLEASE HOLD YOUR QUESTIONS UNTIL END AND WE WILL BRING EVERYONE THAT PRESENTED BACK UP TO THE PODIUM SO THAT WE CAN ANSWER THEM TOGETHER. SOUNDS GOOD. THANK YOU. ALL RIGHT. SO A WATER PARK. THIS HAS ACTUALLY BEEN PART OF THE MALL'S PLAN SINCE ITS INCEPTION THE 1980S. THERE ARE WATER PARKS AT THEIR OTHER LARGE MALL PROPERTIES IN EDMONTON AND IN NEW JERSEY AND CONVERSATION STARTED IN EARNEST ABOUT THIS WATER PARK IN 2018 HERE IN THE CITY OF BLOOMINGTON. IT HAS COME BEFORE CITY COUNCIL, PORT AUTHORITY COMMISSION BEFORE. TODAY WE HAVE A SLIGHTLY UPDATED VERSION THE PROJECT TO SHARE WITH YOU. ADDITIONALLY WE HAVE FUNDING AVAILABLE US THAT IS ONLY AVAILABLE FOR A LIMITED WINDOW. IT WILL TO US IN DECEMBER OF 2025. THAT IS SPENDING PLANNED TIFF THE TIFF WAS ALREADY COLLECTED FOR THE CITY BUT WAS ONLY ABLE TO BE USED FOR TIFF ELIGIBLE PROJECTS SUCH AS PUBLIC INFRASTRUCTURE AND IMPROVEMENTS. UNDER SPENDING PLAN TIFF WE ARE ABLE TO USE IT FOR A WIDER RANGE OF PURPOSES INCLUDING INVESTING IN THIS WATER PARK. THE MALL OF AMERICA IS A HUGE REGIONAL DRAW AS WELL AS A LOCAL ECONOMIC DRIVER. IT HAS SUPPORTED RESTAURANTS, GAS STATIONS, ANY NUMBER OF PAIRED HERE IN BLOOMINGTON AND IT ALSO SERVES AS AN OVERFLOW FOR CONVENTIONS AND EVENTS THAT HAPPEN THROUGHOUT THE CITY THROUGHOUT, THE REGION, THROUGHOUT THE GREATER TWIN CITIES AREA. THE MALL OF AMERICA HAS EXPRESSED TO US AS WE'VE SEEN WITH MANY OTHER MALLS THAT RETAIL ENOUGH ANYMORE TO KEEP THEM ALL SUCCESSFUL. ORIGINALLY THEY WERE LOOKING AT A 90 TO 10% RETAIL TO ENTERTAINMENT MIX. NOW THEY'RE LOOKING EVOLVE TO MORE OF A 5050 MIX TO KEEP THEM ALL HEALTHY AND KEEP VISITORS COMING BACK. AND SO THIS WATER IS PART OF THAT TRANSITION. ADDITIONALLY, THIS PROJECT WILL DRIVE REVENUE TO THE CITY IN TERMS OF TAXES LIQUOR AND LODGING TAX AS WELL AS REVENUE FOR SOME OF OUR ADJACENT SO THAT ADDITIONAL TAX REVENUE HAS BEEN ESTIMATED AS FOLLOWS AND I WANT TO LET YOU KNOW THAT ARE CONTINUING TO REFINE THESE NUMBERS WITH OUTSIDE CONSULTANTS BUT THIS IS A GENERAL ESTIMATE ON THE PROJECT AS IT IS BEING PROPOSED TODAY AND THIS IS ADDITIONAL FUNDING ON TOP OF WHAT IS ALREADY RECEIVED BY THE CITY. THIS COULD RECEIVE ANOTHER 900,000 A YEAR IN ADMISSIONS TAX. THAT'S AT YEAR ONE ANOTHER 40,000 A YEAR IN LIQUOR, BEER AND WINE TAX, AN ADDITIONAL 2.5 MILLION A YEAR AND PROPERTY TAX AND THE CITY PORTIONS IS 429,000 AND AN ADDITIONAL APPROXIMATELY 350,000 A YEAR IN LODGING TAX. THAT ONE IS HARDER TO PINPOINT AS WE CAN'T ALWAYS SAY DEFINITIVELY WHICH HOTEL STAYS ARE TIED TO THE WATER PARK SO WE'D BE LOOKING AT POTENTIAL AN ESTIMATED ADDITIONAL TAX REVENUE TO THE CITY OF 1.7 MILLION ANNUALLY. SO THE PROJECT AS PROPOSED IS ASKING FOR 160 MILLION IN ACTIVE PUBLIC ASSISTANCE. 85 MILLION OF THAT WOULD BE SPENDING PLANNED IF THAT'S INVESTED INTO THE WATER PARK ITSELF. AND 75 MILLION WOULD BE INTO PUBLIC IMPROVEMENTS INCLUDING A NEW PARKING RAMP AND ASSOCIATED INFRASTRUCTURE. WE WANT TO REMIND YOU THAT THIS IS FENCED MONEY. IT CAN ONLY BE USED ON PROJECTS RELATED TO THE MALL OF AMERICA. ADDITIONALLY, THIS DEAL HAS AN OPPORTUNITY FOR THE CITY AND PORT TO CAPTURE A PROJECT FUND OF CASH FLOW AFTER DEBT SERVICE WHICH WOULD BE SPLIT INTO TWO FUNDS. SO WE'D BE LOOKING AT 40% GOING INTO A TIFF ADMINISTRATIVE FUND THAT IS MANAGED BY THE PORT AUTHORITY AND COULD BE USED FOR REGULAR TIFF EXPENSES TIFF ADMINISTRATIVE EXPENSES IN THE SOUTH LOOP AREA AS WELL AS POTENTIALLY FOR AFFORDABLE HOUSING CITYWIDE 60% WOULD GO TO A MALL OF AMERICA DEVELOPMENT FUND THAT COULD BE REINVESTED IN THE AREA. THIS FUNDING HAS SOME MORE FLEXIBILITY MUCH LIKE OUR SPENDING TIFF DOES AND COULD BE INVESTED INTO A VARIETY OF PRIVATE PROJECTS TO SUPPORT THE MALL'S FUTURE GROWTH. WE WOULD AGREEING ON THOSE PROJECTS TOGETHER THE MALL PORT AND CITY AND SO WE LOOK AT THIS AS A BENEFIT TO THE CITY WAS NOT IN PREVIOUS DEALS. THIS DEAL ALSO WILL REQUIRE FUTURE EQUITY. AT THE TIME OF THIS PROPOSAL. WE ARE NOT. THE MALL WILL NOT BE ABLE TO BRING PRIVATE EQUITY INTO THE DEAL. WE DO BELIEVE THAT'S IMPORTANT TO THE HEALTH OF THIS DEAL AND TO PROVING OUT THIS DEAL. AND SO WE ARE CREATING A MECHANISM AT WHICH IN WHICH THEY CAN DO THAT AT A FUTURE. ASSISTANT PORT AUTHORITY ADMINISTRATOR JASON SCHMITT WILL GO INTO THE DETAILS OF THAT ALONG IN HIS PRESENTATION. AND FINALLY WE ARE STILL ANALYZING ALL NUMBERS ON THIS DEAL INCLUDING INTEREST RATES WHICH ARE VARIABLE RIGHT NOW. ATTENDANCE TICKET PRICES ETC. . SO AS WE PRESENT THIS INFORMATION KNOW THAT WE ARE STILL VERY IN AN ANALYSIS PHASE GROUNDING YOU IN THE 2013 PRINCIPLES FOR SOUTH LOOP. WE ARE ASKING YOU TO PRUDENTLY INVEST PUBLIC FUNDS TO HELP TRANSFORM SOUTH LOOP TO MEET THE CITY'S VISION AHEAD OF MARKET TIMELINES TO TRANSITION SOUTH LOOP'S BUILT CHARACTER FROM SUBURBAN TO URBAN BY PROMOTING HIGH DENSITY USE DEVELOPMENT WITH HETEROGENEOUS BUILDING FORMS TO INCREASE AND BROADEN THE CITY'S TAX BASE KEEPING TAXES STABLE BY SPREADING CITY SERVICE COSTS OVER A VARIETY OF PROPERTY TYPES. CREATING A NEW NEIGHBORHOOD WHICH PROVIDES ADDITIONAL LIVING AND RECREATIONAL FOR RESIDENTS. PROMOTING A POSITIVE DEVELOPMENT SO PRIVATE INDUSTRY CAN ADD JOBS AND EMPLOYMENT OPTIONS TO THE CITY INCREASING EXPOSURE AND AWARENESS OF THE SOUTH LOOP TO DEVELOPMENT ACTIVITY HERE INCREASE SUSTAINABILITY USING INFRASTRUCTURE MORE EFFICIENTLY AND SHARING RESOURCES AND INVESTING IN PLACEMAKING TO FOSTER THE CREATIVE SECTOR AND ESTABLISH LOOP AS A DISTINCTIVE DESTINATION BEYOND MALL OF AMERICA. AND WE ARE GOING TO PREPARE FOR CHANGES TO DEVELOPMENT FORM AND FUNCTION DUE TO TECHNOLOGY. ADDITIONALLY WE WANTED TO REMIND YOU OF THE 2016 MALL OF AMERICA MASTER CONTRACT OBJECTIVES WHICH INCLUDE TO MAKE PRUDENT PUBLIC INVESTMENTS THAT ARE BASED ON A FORMULA OR RATIO NOT AHEAD OF PRIVATE INVESTMENT USED ONLY TO THE EXTENT THAT PUBLIC RESOURCES ARE AVAILABLE AND BASED ON CONSERVATIVE FINANCIAL PROJECTIONS MODELING THERE ARE ONLY FOUR DEFINED PUBLIC IMPROVEMENTS AND WE HAVE AN ASTERISKS ON THIS POINT BECAUSE SPENDING PLAN 12 IS ABLE TO BE USED FOR MORE THAN PUBLIC IMPROVEMENTS. WE WANT TO SUPPORT THE LONG VIABILITY OF THE MALL OF AMERICA, PROTECT THE CITY'S DISCRETION, THE USE OF PUBLIC FUNDS, ENSURE THAT THE MALL OF AMERICA ACKNOWLEDGES ITS FINANCIAL RELATIONSHIP TO THE CITY BY PROMPTLY AND OPENLY COMMUNICATING ALL IMPORTANT FINANCIAL AND OPERATIONAL CHANGES AND AND MONITOR THE MALL OF AMERICA'S INVESTMENT AND MAINTENANCE OF PUBLIC IMPROVEMENTS AND IN TURN THEM ALL OF AMERICA FEATURES. AND SO NOW I WILL BE TURNING IT OVER TO OUR COLLEAGUES OUR REPRESENTATIVES HERE FROM 555. BUT BEFORE I DO THAT I DID WANT TO MENTION THAT SHANE CUDDLING IS IN THE ROOM WITH US TODAY HE IS OUR FROM ELAS WHO IS SERVING AS A MUNICIPAL ADVISOR ON THIS PROJECT AS WELL. OKAY. NOW WE HAVE KURT HAGAN WHO IS THE SENIOR VICE PRESIDENT OF DEVELOPMENT FOR THE MALL OF AMERICA AND 555. THANK YOU. THANK MISS MUSIC, MR. HAGAN. GOOD EVENING. WELCOME. THANK YOU, MAYOR OR PRESIDENT? COUNCIL MEMBERS PORT COMMISSIONERS. IT'S GOOD TO BE BACK. IT'S BEEN ALMOST TWO YEARS I THINK IT HAS BEEN TWO YEARS ACTUALLY MAYBE OVER MARCH. MARCH EIGHTH OF 2022. AND I WAS JUST THINKING SITTING DOWN THERE THAT HOLLY'S KIND OF LUCKY I DON'T KNOW HOW LONG SIX MONTHS, EIGHT MONTHS THAT YOU'VE BEEN WITH THE CITY BLOOMINGTON. YOU'VE MISSED A LOT OF WHAT'S BEEN GOING ON FOR IT'S OVER YEAR FIVE YEARS ON THIS PROJECT A LONG YEAR. CAN I ASK YOU JUST TO MAKE SURE THAT YOU'RE IN THE MICROPHONE SO OUR FOLKS WHO ARE ONLINE CAN HEAR YOU. THANK YOU. I'M EXCITED TO BE BACK. I'M REALLY EXCITED TO TO REALLY PRESENT TONIGHT WHAT WE'VE BEEN WORKING ON FOR THE LAST FOUR OR FIVE MONTHS WITH OUR DESIGN TEAM, WITH OUR CONSTRUCTION TEAM AND REINVENT THIS PROJECT. HOW CAN WE MOVE IT FORWARD IN THE IN THE FINANCING CLIMATE THAT WE'RE IN TODAY? AND IT'S A VERY CHALLENGING ONE AS I KNOW ALL OF YOU HAVE SEEN. BUT BEFORE I DO THAT I WANT TO THANK HOLLY AND JASON IN PARTICULAR FOR BEARING WITH ME FOR THE LAST I DON'T KNOW FOUR OR FIVE, SIX MONTHS WE'VE WE'VE BEEN MEETING WEEKLY OR TALKING ALMOST WEEKLY TRYING TO FIND A PATH FORWARD IN THIS CHALLENGING TIME AND, GETTING CREATIVE. AND I THINK WE HAVE I THINK WE'VE COME UP WITH A SUBJECT TO THE APPROVAL OF THESE BODIES THAT WOULD ENABLE THIS PROJECT TO MOVE FORWARD. AND I'M REALLY EXCITED ABOUT THAT AND THANKS TO SHANE I KNOW NO LONGER WITH THE CITY BUT HAS BEEN PART OF THIS ALSO I WANT TO THANK THE CITY LEADERSHIP THE MAYOR, THE PORT PRESIDENT, THE CITY MANAGER. WHERE DID JAMIE GO? I LOST HIM FOR YOUR PATIENCE IN IN WHAT WE'VE THROUGH FOR THE LAST COUPLE OF YEARS SINCE COVID AND IN BRING WITH IT ON PROJECT FOR YOUR CONTINUED SUPPORT FOR THIS PROJECT AND I'D BE REMISS AND NOT THANKING THE STATE OF MINNESOTA THE GOVERNOR AND THE LEGISLATIVE LEADERS THAT REALLY PROVIDED THIS SPENDING PLAN TIFF TO TOOL THAT IS AN INCREDIBLY POWERFUL TOOL MEANT TO HELP BUSINESSES LIKE ALL OF RECOVER FROM THE IMPACTS OF COVID AND IT'S IT'S A TOOL THAT CAN BE VERY, VERY POWERFUL AS YOU HAVE HAVE SEEN AND AS WE'VE TALKED ABOUT. BUT YOU'LL YOU'LL LEARN ABOUT TONIGHT. SO WHAT'S CHANGED? WHY ARE WE WHY ARE WE HERE TONIGHT? WHAT'S CHANGED SINCE MARCH 8TH OF OF 2022 AND WHERE WE ARE AND THIS SLIDE SAYS IT ALL I PULLED THIS UP TODAY FEDERAL FUNDS RATE DOWN HERE. THIS WAS OUR MEETING DATE IN MARCH 8TH OF 2022 ACTUALLY THE FIRST INCREASE IN FEDERAL FUNDS RATE WAS MARCH 17TH OF 2022 ONE WEEK AFTER WE APPROVED THE PREVIOUS THAT DEAL WAS STRUCTURED AROUND THE FINANCE REQUIREMENT AND INTEREST RATE ENVIRONMENT THAT HAD BEEN GOING ON FOR SEVERAL YEARS. WE HAD BEEN LOOKING AT THIS PROJECT THE TERM SHEET APPROVED MARCH 8TH THINGS STARTED TAKING OFF BUT A PERCENTAGE POINT RATE WASN'T A BIG DEAL AT THE TIME WE. REENGAGED OUR DESIGN TEAM. THIS IS WHEN WE SHIFTED FROM THE NONPROFIT TO THE PRIVATE MODEL AND WE WENT BACK TO WORK AND TO THE COURSE OF NINE MONTHS AS WE WERE COMPLETING DESIGN GETTING A GMP SET OF DOCUMENTS DONE PRICED GETTING A FINANCING PACKAGE PULLED TOGETHER TO TAKE TO THE MARKET IN JANUARY OF 2023 THAT IS THAT YEAR. ALL RIGHT. SO WE DID GO TO THE MARKET IN JANUARY OF 2023. THIS IS AN ENVIRONMENT WE WERE IN . IT'S IMPORTANT TO NOTE THAT IT'S MORE THAN JUST INTEREST RATE CHANGES THAT HAPPENED AND I WON'T GO INTO WHY YOU ALL KNOW WHAT HAPPENED IN THE PENT UP DEMAND THE SUPPLY CHAIN ISSUES AND WHAT KIND OF DROVE THIS FASTEST RATE HIKE IN THE HISTORY OF THE FEDS. BUT THE IMPACTS THAT PARTICULARLY IN THE EQUITY MARKETS WERE PROFOUND, RIGHT. THEY TOTALLY RESTRUCTURED THE CREDIT MARKETS IN THE EQUITY MARKETS WHEN CAN GET PAID TO SIT ON THE SIDELINES AND NOT HAVE TO INVEST AND WAIT THIS OUT IT DOES OR IT CAN BUY EXISTING COMMERCIAL ASSETS THAT ARE DISTRESSED OR CAN'T BE REFINANCED FOR LESS THAN THE COST TO REBUILD THOSE ASSETS AND NOT HAVE TO TAKE THE DEVELOPMENT RISK THAT NEW PROJECTS HAVE SO THAT THAT THAT REALLY I WON'T SAY FROZE THE EQUITY MARKETS BUT IT SUBSTANTIALLY SHUT THEM DOWN AND PARTICULARLY FOR AN ASSET CLASS LIKE WE'RE IN FOR THE WATER PARKS FIRST OFF THERE'S VERY FEW EQUITY FUNDS THAT INVEST IN WATER PARKS. THERE'S A LOT OF HOTELS AND OFFICES RETAIL EVEN BUT WATER PARK IS A VERY SMALL NICHE MARKET SO THERE'S A VERY LIMITED GROUP OF INVESTORS IN WATER PARK MARKET TO BEGIN WITH ONCE YOU SHUT THOSE DOWN WITH THE EQUITY CHANGES THAT HAPPENED IN THE EQUITY MARKET, CHANGE HAS HAPPENED. IT REALLY UP AND THERE WAS NO WAY TO MOVE FORWARD WITH THIS PROJECT SO BEGINNING PROBABLY ABOUT YOU KNOW LAST SUMMER WE CAME TO REALIZE THAT LOOK THIS IS NOT GOING TO AROUND IN TIME TO MAKE USE OF THE SPENDING PLAN TIFF TOOL EVEN IF IT CAME DOWN AS FAST AS IT WENT UP BY THE TIME IT CAME DOWN AND THE MARKETS REACTED ACCORDINGLY, THERE WOULDN'T BE ENOUGH TIME TO FINISH THE DESIGN GET THIS PROJECT FINANCED UNDER CONSTRUCTION AND USE OF THIS TOOL BY THE END OF 2025 WHEN IT HAS TO BE SPENT AS AS HOLLY WAS TALKING ABOUT. SO WE WERE LEFT WITH KIND OF TWO OPTIONS LAST SUMMER WE COULD EITHER GO SEEK ANOTHER PUBLIC FUNDING TOOL TO FILL THE GAP THAT'S NOW BEEN CREATED AND TO SOLVE THE EQUITY PIECE THAT THAT THAT NOW EXISTED OR WE COULD RELOOK AT THIS PROJECT AND, TRY TO REIMAGINE THIS PROJECT AND AND KIND OF REVERSE ENGINEER TO WHAT COULD BE FINANCED RIGHT IF WE USED ALL OF THE SPENDING PLANS IF THAT WAS AVAILABLE TO THE CITY, TO THE PROJECT WHAT'S THE MAXIMUM AMOUNT OF CAPITAL THAT WE COULD RAISE ? WHAT'S THE BIGGEST WATER PARK WE COULD BUILD GIVEN THAT THE CREDIT MARKETS THAT WE'RE IN IN NEAR TERM? SO WE LOOKED AT THAT AND WE CHALLENGED OUR DESIGN TEAM, OUR CONSTRUCTION TEAM. WE GOT TOGETHER AND SAID OKAY, LOOK, YOU KNOW, HERE'S THE DEAL RIGHT? RYAN CONSTRUCTION OUR BUILDER REALLY WANTS TO BUILD A PROJECT OR ARCHITECTURAL FIRM DLR WAS HERE TONIGHT. YOU'LL MEET DAVID AGAIN REALLY WANTS TO A PROJECT. WE'VE GOT TO FIGURE THIS OUT RIGHT. WE WE KIND OF BACKED INTO WE THOUGHT THE MAXIMUM BUDGET COULD BE ABOUT $250 MILLION SO YOU MIGHT REMEMBER BACK IN IN 2022 OUR BUDGET WAS $310 MILLION IN 2020 $2. RIGHT. SO NOW THAT 310 IS PROBABLY CLOSER TO THREE 6370. OUR MAX WE THINK IS PROBABLY 50. SO GIVEN THAT THAT THAT KIND OF CAP OF WHERE AND I'M GIVING YOU KIND OF HIGH LEVEL TERMS ARE A LOT OF LEVERS RIGHT IF YOU CUT DOWN THE SIZE OF THE PROJECT IT CUTS REVENUES AND ALL THESE THINGS KIND OF INTERACT. BUT WE STUDIED ALL OF THAT AND IT CAME UP WITH WHAT WE THOUGHT $250 MILLION WAS PROBABLY THE MAXIMUM WE COULD FINANCE STILL GENERATE ENOUGH REVENUES TO SUPPORT IN THIS INTEREST ENVIRONMENT WHEN THIS HAS TO BE PROJECT FINANCED SO WE WE REALLY TASKED THE DESIGN TEAM AND THE CONSTRUCTION TEAM WITH KIND OF THREE GOALS. ONE, WE NEED TO SIGNIFICANTLY REDUCE THE PROJECT COST BY AT LEAST 25% $100 MILLION TWO YOU NEED TO DO IT WITHOUT LOSING THE ENTERTAINMENT IN THE WORLD CLASS OF THE WORLD CLASS DESTINATION THAT WE ENVISIONED RIGHT WE'RE NOT LOOKING FOR AN INDOOR WATERPARK THAT YOU WOULD SEE IN THE WISCONSIN DELLS OR AT SOME HOTEL RESORT IF WE CAN'T DO THIS IN IN A WORLD CLASS MANNER, WE'RE GOING TO WAIT TO FIND A NEW WAY TO DO THIS SO MAINTAIN THAT ENTERTAINMENT VALUE AND THAT WORLD ATTRACTION. THREE WELL WE CHALLENGED TO REALLY LOOK AT THIS IN IN A MORE SUSTAINABLE WAY RIGHT? HOW CAN WE FURTHER REDUCE OUR CARBON FOOTPRINT BEYOND KNOWING THAT THE OF THE FOOTPRINT NEEDS TO GET SMALLER AND YOU'LL SEE AS WE COME UP THE IS REALLY 30% SMALLER THAN IT WAS BEFORE SO THOUGH SO THAT NATURALLY IS GOING TO REDUCE THE CARBON FOOTPRINT THE ENERGY USAGE BECAUSE BUILDING IS SMALLER BUT WE NEED TO REDUCE I HEARD YOU ALL I MET MOST OF YOU TO TALK ABOUT THIS PROJECT AND AND IT WAS LOUD AND CLEAR THAT SUSTAINABILITY IS IS A PRIORITY TO THE CITY BLOOMINGTON SO WE CHALLENGED OUR TEAM AND SAID YOU KNOW REFOCUS IS DOUBLE DOWN ON SUSTAINABILITY WHAT CAN WE DO WHAT CAN WE INTRODUCE TO THE NEW PROJECT TO REALLY ENHANCE OUR SUSTAINABILITY EFFORTS? SO WE DID THAT AND TONIGHT I GET TO SHOW YOU KIND OF WHAT WE'VE COME UP WITH . THIS IS THE FORMER DESIGN, RIGHT? SO HERE'S THIS IS WHERE WE WERE STARTING AT NOW PROBABLY A 350 $360 MILLION PROJECT THAT WE NEEDED TO REDUCE DRUM DRUM ROLL. DAVID, THIS IS NEW. THIS IS A NEW PROJECT AND THE NEW WOW FACTOR IF YOU WILL IF YOU READ THE STAFF REPORT IS REALLY THIS RETRACTABLE ROOF WHICH DOES A COUPLE OF THINGS FOR US. ONE AS DAVID WILL TALK ABOUT IN A LITTLE BIT AND THE SUSTAINABILITY COMPONENTS OF HAVING AN OPEN ROOF ARE HUGE RIGHT? THE AMOUNT OF COOLING PARTICULARLY NEEDED IN THE SUMMERTIME IF YOU CAN OPEN UP THIS ROOF IS SIGNIFICANTLY REDUCED. THE OTHER BIG CHANGE IS REALLY ONLY TWO SIGNIFICANT CHANGES THAT WERE MADE FROM THE OLD DESIGN TO THE NEW DESIGN. ONE IS THIS RETRACTABLE ROOF AND A CLEAR TRANSPARENT ROOF BEING OVER THE ENTIRE PROJECT VERSUS OVER WAS JUST OVER THE WATER THE WAVE POOL IN ABOUT A THIRD OF THE PROJECT BEFORE BUT THE OTHER AND YOU'LL SEE IT IN IMAGE IS WHAT WE CALL ALL THE FIBERGLASS ALL THE RIDES AND SLIDES ARE NOW ON THE OUTSIDE OF BUILDING ENVELOPE VERSUS PREVIOUSLY THEY WERE ON THE INSIDE OF THE BUILDING TYPICALLY THEY ARE ON THE OUTSIDE AS YOU SEE THE GREAT WALL IF GO TO WISCONSIN DELLS THAT'S TRADITIONALLY WHERE THE FIBERGLASS IS IT'S NOT AN ISSUE IN THE WINTERTIME YOU THINK OKAY IT'S 22 DEGREES BELOW ZERO OUTSIDE HOW DOES THAT WORK? WHAT YOU'VE GOT 82 DEGREE WATER FLOWING THROUGH THERE ALL DAY LONG. IT KEEPS TUBES WARM AND PLUS YOU'RE ONLY GOING THROUGH THAT TUBE FOR ABOUT 2.8 SECONDS. RIGHT TO GET DOWN TO THE BOTTOM. BUT THE HEATING IN THE CORE, THE COOLING OF IT IS NOT AN ISSUE. IT'S WHAT'S REALLY WE WANTED IT ON THE INSIDE FOR REASONS PREVIOUSLY ONE I THINK THE PLANNING COMMISSION A DESIRE TO SEE THAT ON THE INSIDE NOT ON THE OUTSIDE OF THE BUILDING BUT TWO IT REALLY IT HAS AN ATTRACTION VALUE IF YOU'RE INSIDE AND YOU SEE ALL OF THE SLIDES AND RIDES THERE'S AN EXCITEMENT VALUE TO IT THAT WE WANTED TO KEEP INSIDE SO WE LOOKED AT OKAY WELL IF WE CAN PUSH THAT OUTSIDE OF THE ENVELOPE THAT ALLOWS US TO THEREBY SHRINK UP THE THE BUILDING ENVELOPE QUITE A BIT RIGHT WHILE KEEPING THE SAME RIDES AND SLIDES. I MEAN YOU CAN ENVISION IF IF THE BUILDING FOOTPRINT NOW HAD TO ENCAPSULATE THOSE RAISES SLIDE OR THE SLIDE TOWERS THAT ARE ON THE OUTSIDE HOW MUCH BIGGER THAT WOULD BE SO BY WE DIDN'T TECHNICALLY WE DIDN'T MOVE THE SLIDES OR SLIDES OUTSIDE WE ACTUALLY MOVED THE BUILDING ENVELOPE INSIDE YOU STILL GET ON THE RIDES THE SLIDES AND ACTUALLY THE RIDES ARE SLIDES ON THE INSIDE AS YOU WOULD GREAT WALL FOR THE ANY OTHER PLACES BUT BUT THE FIBERGLASS IS ON THE OUTSIDE BUT BY HAVING THE OPEN ROOF AND OPEN GLASS WALLS YOU STILL HAVE THAT EXCITEMENT VALUE OF SEEING ALL OF THOSE RIDES AND SLIDES FROM INSIDE THE PROJECT. THIS IS A NEW FLOORPLAN AND WHAT NOTE IF YOU REMEMBER IN YOUR FLOOR PLAN ALMOST THIS ENTIRE AREA WAS THE WAVE POOL WAY BY TAKING OUT OR REDUCING THE SIZE OF THAT WAY POOL BUT NOW IT'S OVER HERE IT'S 7000 SQUARE FEET FOR VERSUS WHAT WAS I THINK ABOUT 52,000 SQUARE FEET BEFORE IT WAS A LAKE IT WAS A BIGGER POOL. IT WOULD HAVE BEEN THE BIGGEST WAVE POOL IN NORTH AMERICA. BUT NOW BY GOING TO A MORE MODEST SIZED WAVE POOL IT REALLY FREED UP A LOT OF FLOOR SPACE. RIGHT. ESSENTIALLY FREEING UP ABOUT 40,000 SQUARE FEET OF FLOOR SPACE THAT WE CAN NOW KEEP THE RIDES OF SLIDES THAT WE HAD BEFORE. NOT ONLY DO WE KEEP THE RIDES OF SLIDES THAT WE HAD BEFORE, WE'VE ACTUALLY ADDED I'M SORRY ADDED TO THE RIDES AND SLIDES THAT WE HAD BEFORE MOSTLY ADDITIONAL CHILDREN'S PLAY AREAS WHICH IS IS ONE OF THE MOST DESIRED AREAS ATTRACTIONS IN OUR OTHER WATER PARKS IS REALLY PLACES FOR THE KIDS AND SO WE'VE ENHANCED THE CHILDREN'S PLAY AREAS THAT IT ADDED TO THE CHILDREN'S PLAY AREAS THAT ARE WHERE THE FORMER WAVE POOL WAS AND I'LL SHOW YOU A COUPLE THREE RENDERINGS THAT REALLY SHOW HOW WE'VE MAINTAINED ALL OF THE THEMING AND STORYLINE THAT WE HAD BEFORE STILL THERE. WE'VE NOT SACRIFICED ANY OF THAT OR CUT BACK ON ANY OF THAT BUT A DAYTIME RENDERING WE'VE ACTUALLY YOU'LL SEE IN A COMING UP SLIDE WOULD ACTUALLY INCREASE THE SEATING NOT BY MUCH BUT THERE'S FIVE SEATS MORE IN THIS WATER PARK THAN THERE WAS IN THE IN THE PREVIOUS WATER PARK NIGHTTIME AND AS IN THE OLD PLAN WE WILL INVEST IN THEATRICAL. SO THERE'S A VERY EXCITING ATMOSPHERE GOING ON AT NIGHT AND THIS IS WHAT TOOK PLACE FROM IMAGES OR HAD DAVID POST IMAGES FROM OPEN AIR THE GROUP THAT WE'RE DEALING WITH THERE OUT OF TORONTO WE ACTUALLY DONE HUNDREDS OF THESE OPEN AIR STRUCTURES NOT IN WATER PARKS. IN FACT THERE'S ONLY ABOUT 20 OF THEM THAT ARE IN WATER PARKS. MOST OF THEM IN MUNICIPAL POOLS BUT SMALLER SCALE THIS BE THE LARGEST STRUCTURE THEY'VE EVER DONE BY LOT BUT THEY'RE EXCITED ABOUT DOING THAT. BUT THIS WILL GIVE YOU A KIND OF THE FEEL OF WHAT THAT LOOKS LIKE INSIDE THE PROJECT. THIS IS A COMPARISON OF THE ORIGINAL PLAN AND THE REVISED PLAN. SO WHEN I'M SORRY YOU WILL SOMETHING YOU'VE SEEN ON ON SOME THE STAFF REPORTS 144,000 SQUARE FEET 222,000 SQUARE FEET. WHAT ARE THE DIFFERENCES? THE 222 IS THE GROSS SQUARE FOOTAGE THAT'S THE OVERALL BUILDING SIZE THAT INCLUDES BACK A HOUSE, MECHANICAL ROOMS, THINGS LIKE THAT. 144 IS A PUBLIC AREA WE CALL IN THE INDUSTRY THEY CALL IT THE POOL HALL. THAT'S WHERE WHERE YOU CAN GO AS A GUEST ALL OF THE AREA. SO THIS IS ABOUT 144,000 SQUARE FEET. SO TO PUT IT IN COMPARISON TO YOU'RE ALL FAMILIAR WITH GREAT WOLF GREAT WOLF IS ABOUT I THINK IT'S SEVEN OR 25,000 SQUARE FEET. GROSS RIGHT. THIS IS STILL ABOUT THREE TIMES THE SIZE OF THE GREAT WOLF LODGE. THE WATER CONSUMPTION WE HAVEN'T DONE OBVIOUSLY WE HAVEN'T ENGAGED THE ENGINEERS TO REDESIGN THIS WHOLE WATER PARK. BUT IN TALKING TO THE AQUATICS ENGINEER, THE BIGGEST WATER CONSUMER OF THE FORMER WATER PARK WAS THE WAVE POOL. ALL RIGHT. YOU'VE GOT A OF WATER THAT'S THAT BIG AND HEATED. THERE'S A LOT OF EVAPORATION AND ALL OF THE GAS COMING IN OUT YOU LOSE A LOT OF WATER. SO BY REDUCING THE SIZE OF THE WAVE POOL LITERALLY 87%, WE'RE GOING TO REDUCE OUR WATER CONSUMPTION ESTIMATES BY OUR ARE ENGINEER IS PROBABLY SOMEWHERE BETWEEN 25 AND 35% LESS WATER CONSUMPTION FOR THE ENTIRE PROJECT THE ELECTRICAL CONSUMPTION IS REALLY THE BIGGER SAVINGS BECAUSE NOT ONLY ARE WE REDUCING THE ENVELOPE BY 30% WHICH NATURALLY AGAIN REDUCES THE AMOUNT OF AREA THAT YOU NEED TO COOL OR HEAT BUT NOW BY INTRODUCING THE OPEN AIR STRUCTURE AND THE RETRACTABLE ROOF THAT THAT AGAIN COULDN'T OPEN AIR UP TO 27% ENERGY SAVINGS. SO YOU COMBINE THAT WITH THE SMALLER FOOTPRINT WE'RE PROBABLY GOING TO BE IN THE 50% ENERGY SAVINGS RANGE MAXIMUM GAS CAPACITY. SO THE CAPACITY AND I WON'T EXPLAIN THIS ONE WE WENT FROM 4000 ON A MAXIMUM CAPACITY FIRE MARSHAL MAXIMUM CAPACITY TO 3000. THAT DOESN'T MEAN OUR ANNUAL ATTENDANCE WILL GO DOWN BY 25%. THERE'S ONLY WE'RE ONLY 14 DAYS THAT WE WERE PROJECTED TO EXCEED THOUSAND PEOPLE IN THE FORMER PLAN. WE HAVEN'T DONE THE CALCULATIONS OF THE NEW ONE BUT IT'S PROBABLY GOING TO BE 30 DAYS THAT WE WOULD ACTUALLY EXCEED 90% OF THE DAYS YOU WON'T EXCEED THE PEAK CAPACITY THE CAPACITY RESTRICTION WON'T MATTER THE DAYS THAT IT DOES WHAT WE'LL DO AND WE'VE DONE IN OUR OTHER PROJECT DREAMWORKS IS WE GO TO A DUAL SESSION SO ON A SATURDAY WE HAVE TWO SESSIONS YOU CAN COME FROM 10 TO 2 IN THE MORNING OR YOU CAN COME FROM 3 TO 7 IN THE AFTERNOON. NOW IF WE TURN IT OVER TWICE INSTEAD OF 3000 PEOPLE COMING THROUGH THAT DAVID PEAK DAY WE CAN GET 6000 PEOPLE COMING THROUGH THOSE DAYS. SO THERE'S WAYS TO KIND OF MODERATE AND REGULATE THE ANNUAL ATTENDANCE AND I JUST WANT TO MAKE SURE YOU UNDERSTAND THAT IT DOESN'T MEAN THE ATTENDANCE WILL BE DOWN BY 25% JUST BECAUSE THE CAPACITY IS WAVE POOL. WE TALKED ABOUT THE POOLS AND RIVERS, THE WATER SLIDES REALLY HAVE GONE UP KNOW WE KEPT ALL THE OLD WATER SLIDES. MOST OF THESE ARE NEW KIDDY SLIDES AND SMALLER SLIDES IN THE NEW KIDS AREAS THE TOTAL SEATING IS UP JUST LIKE FIVE SEATS. WE'VE ADDED MORE CABANAS THE ENTERTAINMENT UNITS PER HOUR IS THE INDUSTRY METRIC AND THE WATER PARK INDUSTRY THEY MEASURE ON A PEAK DAY IF YOU HOW MANY RIDES CAN YOU GO ON IN ONE HOUR RIGHT THAT IT MONITORS HOW LONG YOU HAVE TO WAIT IN LINE RIGHT SO IF YOU HAVE HALF AS MANY RIDES AND SLIDES YOU'RE ENTERTAINMENT UNITS PER HOUR WILL GO DOWN BECAUSE YOU'RE GOING TO BE WAITING IN LINE FOR 20 OR 30 MINUTES IF YOU HAVE MORE THINGS TO DO YOU WANT TO BE THE GOAL IS TO BE ABOVE THREE PREVIOUSLY WE'RE AT 3.4 NOW I THINK WE'RE ABOUT THE SAME FOR 3.3. SO WE'VE MAINTAINED OUR WE CALL IT USE SUSTAINABLE DESIGN APPROACH. DAVID DAVID LEHRER IS PRINCIPLE IN CHARGE OF THIS PROJECT FOR DEAL ARCHITECTS WHO WE'VE WORKED WITH FOR A VERY LONG TIME I KNOW MOST OF YOU ARE FAMILIAR WITH I'VE ASKED HIM TO COME AND REALLY TALK MORE ABOUT OUR FOCUS AND EFFORTS AND HOW THEY'RE GOING TO BE MOVING ON THE SUSTAINABLE DESIGN. SO DAVID GOOD EVENING MR. LARRY WELCOME. THANK YOU VERY MUCH. THAT BUTTON TO THE RIGHT MEANS GREAT MAYOR COUNCIL MEMBERS, PORT AUTHORITY MEMBERS, CITY STAFF THANK YOU FOR INVITING ME HERE TODAY. SO THIS PAUSE IN THE PROJECT REALLY OPENED UP OPPORTUNITY EASE AND SOME CHALLENGES FOR US. AS KURT HAD MENTIONED TRYING TO MEET A BUDGET AND TRYING TO HAVE A WOW FACTOR WHERE SOME OF THOSE ARE CHALLENGES AHEAD OF US BUT IT ALSO ALLOWED US TO RETHINK AND REIMAGINE THIS WHOLE PROJECT AND WE WANTED TO BE MORE EFFICIENT. WE WANTED TO BE MORE SUSTAINABLE AND WE WANTED TO CREATE THIS WORLD CLASS AMENITY THAT WAS REALLY PART FOR THE LONG TERM FOR THE MALL OF AMERICA. WE LOOKED AT THE SIZE OF THE WATER PARK. WE WE LOOKED AT ITS WOW FACTOR AND ITS ABILITY TO ADOPT THE SUSTAINABLE DESIGN INPUT THAT WE'VE HAD FROM THE BLOOMINGTON CITY OF BLOOMINGTON SUSTAINABILITY COMMISSION AND REALLY TOOK IT TO HEART AND WE CREATED A CONCEPT HERE THAT WE THINK IS REALLY MEETS THE MARK ON SOME OF THOSE THINGS AND WE HAVE SOME WORK AHEAD OF US TO VALIDATE AND WORK THIS THROUGH. SO WITH THAT I WANT TO KIND OF HIGHLIGHT JUST A COUPLE OF THINGS THE SUSTAINABILITY APPROACH TO DATE AS KURT HAD MENTIONED WE USED A SMALLER, MORE EFFICIENT FOOTPRINT AND WE REDUCE DOWN THE SIZE OF THE BOX. WE ALSO REDUCED DOWN THE SIZE OF THE VOLUME THAT NEEDED TO BE HEATED AND COOLED AND THAT'S REALLY AN IMPORTANT PART BECAUSE. THOSE ARE THE MAJOR FUNCTIONS OF THE MECHANICAL EQUIPMENT PROVIDING HEATING AND COOLING FOR EVERYTHING ELSE. SO A THIRD LESS OF THAT VOLUME IN FACT IT'S A LITTLE LESS THAN A THIRD OR LESS OF THE VOLUME OVERALL BY BY PUSHING THE TUBES TO THE OUTSIDE OF THE BUILDING OR AS KURT SAID BRINGING THE BUILDING SKIN IN IT REALLY PROVIDED WE NO LONGER NEEDED TO HAVE AS MUCH MECHANICAL UNITS OVERALL EVERY DAY OF THE YEAR FOR THE ENTIRE DURATION OF THE WATER PARK ITSELF. NEXT THE RETRACTABLE ITSELF WAS A BIG WOW FACTOR HAS A BIG IMPACT AND YOU CAN HAVE THE OPENNESS TO THE OPEN AIR BUT IT'S ALSO CRITICAL TO RELEASE THE EXCESS HEAT THAT'S BUILT UP BECAUSE OF THE TRANSPARENT THE ROOF, THE SOLAR GAIN AND EVERYTHING ELSE. AND THE TRADEOFF WAS IN REDUCING THE SIZE OF THE WAVE POOL WE'RE REALLY GAINING A REALLY OPEN AIR EXPERIENCE WITH THE ROOF. SO OUR VERY PRELIMINARY ESTIMATES INDICATE A COMBINATION OF THE FOOTPRINT REDUCTION AND THE RETRACTABLE ROOF WOULD REDUCE THE ENERGY CONSUMPTION NOT BY A LITTLE BUT BY BETWEEN 40 TO 50% FROM THE FORMER WATER PARK ITSELF, WHICH IS A SIGNIFICANT IN THE OVERALL ENERGY CONSUMPTION FOR THE PROJECT AND OUR STEPS AHEAD ARE TO VALIDATE THIS NUMBER THROUGH OUR ENGINEERING DETAILED CALCULATIONS. SO WE'RE IN THE VERY PRELIMINARY PART OF THIS MEANING THAT WE KNOW WE'RE GOING TO VALIDATE THIS IN MORE DETAIL AS WE GO FORWARD. NEXT WE USED A COMBINATION OF A COUPLE OTHER STRATEGIES THIS NEW PLAN HAS OPERABLE WINDOWS AROUND THE ENTIRE OF THE NEW WATER PARK. THAT'S IMPORTANT FOR A COUPLE OF REASONS IT HAS IT RELEASES AGAIN THE DEMAND FOR MECHANICAL SYSTEMS AND IT ALSO HAS NATURAL VENTILATION COMING THROUGH. SO GUESTS HAVE THIS EXPERIENCE OF AN OUTDOOR ENVIRONMENT INSIDE THE WATER PARK AND WE CAN CONTROL IT. THE OPERABLE WINDOWS ARE ALSO SYNCHRONIZED TO THE ROOF SO AS WE NEED TO FROM A RELEASE SEEING HEAT OR ENCOURAGING MORE VENTILATION WE CAN USE THE AND THE WINDOWS IN A SYNCHRONIZED FASHION TO IMPROVE THE FRESH AIR THE COMFORT FOR THE GUESTS IN THE WATER PARK AND THE OTHER ASPECT OF THE OVERALL ROOF DESIGN IS THAT BY HAVING A CLEAR TRANSPARENT ROOF WE CAN REDUCE DOWN THE RELIANCE ON ARTIFICIAL LIGHTING BY AS MUCH AS 30% SO HAVING AS MUCH DAYLIGHT AS POSSIBLE THE WHOLE WATER PARK WE DON'T HAVE THE RELIANCE ON THE ARTIFICIAL THROUGHOUT THE PROJECT AND MAYBE JUST A COUPLE OTHER POINTS. ONE IS ON THE PREFABRICATION ASPECTS OF THIS WATER PARK PIECE. AS KURT MENTIONED, IT'S A TRIED AND TRUE SYSTEM THAT'S PREFABRICATED AND MADE OFFSITE THE ROOF TRUSSES, THE STRUCTURE ITSELF THE COLUMNS ARE PREFAB PREFABRICATED TECHNOLOGIES THAT REDUCES THE WASTE. IT INCREASES THE ACTUALLY THE DURABILITY OF THE FINISHES IT'S USING RECYCLED ALUMINUM PRODUCTS SO IT'S USING THAT KIND OF MATERIAL ALL THE WAY THROUGH AND THEN WE ALSO WITH THE TRADE OFF OF A LESS OF A IMPACT WITH THE LARGER WAVE POOL WE LESS WATER THAT WE'RE TREATING AND MANAGING ALL THE WAY THROUGH SO IN A SENSE THERE'S LESS HEATING OF THE WATER. IT MEANS THERE'S LESS CONSUMPTION OVERALL. SO AT THIS PRELIMINARY STAGE IN THE PROJECT WE ESTIMATE THAT BETWEEN 25 AND 35% REDUCTION AND IN WATER WILL OCCUR WITH THIS NEW PLAN. WE PLAN TO MEET WITH THE SUSTAINABILITY COMMISSION ON APRIL 9TH. WE WANT TO PRESENT CONCEPT START THE DIALOG AGAIN, REALLY SOLICIT THE INPUT BECAUSE IT WAS SO VALUABLE LAST TIME IN ORDER TO GET TO THIS KIND OF POINT THIS KIND OF THINKING RIGHT FROM THE BEGINNING WE REALLY REALLY APPRECIATE THAT KIND OF INPUT ALL THE WAY THROUGH ITS JUST ALL THE WAY THROUGH FOR A BUILDING THAT IS TRULY UNIQUE THERE'S NOT ANOTHER BENCHMARK FROM A SUSTAINABLE POINT OF VIEW PROJECT LIKE WE ALSO ARE PLANNING TO MEET WITH LEADERS BOTH NATIONAL AND LOCAL LEADERS OF THE U.S. GREEN BUILDING COUNCIL ON APRIL 12TH. SO WE'RE MOVING AHEAD WITH STARTING THESE KINDS OF DIALOGS AND KIND OF PLANNING THAT OUT. BUT WHAT WE REALLY DO IS WE REALLY APPRECIATE YOUR INPUT HERE. WE'RE AT THE EARLY STAGES OF THIS. THESE ARE THE AREAS THAT WE SAW THERE WERE REALLY IMPORTANT THINGS TO FOCUS ON AND THAT'S WHY CAME HERE TONIGHT TO PRESENT THIS CONCEPT AS MUCH AS WE COULD SO THAT TO YOU KURT. THANK YOU, DAVID SO IN SUMMARY I'LL JUST YOU KNOW, SUMMARIZING BENEFITS OF THE NEW DESIGN WE'VE REDUCED THE OVERALL SQUARE FOOTAGE OF THE PROJECT TO ACHIEVE OUR COST REDUCTION REQUIREMENTS BUT WE BELIEVE WE'VE ACTUALLY INCREASED THE ATTRACTION VALUE FOR THE WATER PARK GUESTS BY AND SIGNIFICANTLY REDUCING OUR ENERGY CONSUMPTION AND CARBON FOOTPRINT THE BENEFITS OF THE PROJECT TO ALL OF AMERICA YOU GUYS ALL KNOW THERE ARE OBVIOUSLY IMPACTS THE PANDEMIC HAVE ONLY AMPLIFIED THE IMPORTANCE OF ADDING ADDITIONAL ATTRACTIONS TO MALL OF AMERICA TO SUSTAIN AIR TRAFFIC AND TOURISM WHICH IS OUR LIFEBLOOD . THIS IS THE NEXT STEP IN THE EVOLUTION TRANSFORMATION OF A PROJECT TO KEEP MALL OF AMERICA SUSTAINABLE FOR DECADES TO COME AND. AS THESE BODIES KNOWN AND STAFF REPORT POINTED OUT, THE TO THE BLOOMINGTON HOSPITALITY COMMUNITY AND TO THE CITY BLOOMINGTON AND TO THE REGION BETWEEN THE HOSPITAL BLOOMINGTON HOSPITALITY COMMUNITY AND THE MALL OF AMERICA WE GENERATE ABOUT 20 TO 24% OF THE TAXES THAT GO INTO THE CITY'S GENERAL FUND. SO IT'S IMPORTANT TO THE CITY TO KEEP MORE OF AMERICA IN TOURISM AND TRAFFIC COMING TO BLOOMINGTON TO, OUR HOTELS, TO OUR RESTAURANTS AND TO THE MALL TO SUSTAIN THAT TAX BASE FOR THE BENEFIT OF THE BLOOMINGTON RESIDENTS. SO WITH THAT I THANK YOU FOR YOUR CONSIDERATION AND I ASK FOR YOUR SUPPORT IN MOVING THIS PROJECT FORWARD WILL STAND FOR QUESTIONS ACTUALLY I THINK WE'LL GET INTO THE QUESTIONS AS WE AFTER WE WRAP UP THE PRESENTATIONS CORRECT SO THANK YOU GENTLEMEN. DON'T GO FAR I'M SURE THERE I KNOW THERE ARE QUESTIONS AND NOW JASON SCHMIDT FROM OUR PORT AUTHORITY GOOD EVENING MAYOR COUNCIL PRESIDENT AND COMMISSIONERS I JUST WANT TO QUICKLY HIGHLIGHT ONCE AGAIN THE PROJECT PROPOSED PROJECT THAT WE'RE LOOKING AT HERE IS A ABOUT A 144,000 SQUARE FOOT POOL HALL ONCE. AGAIN IT'S INCLUDING A WAVE POOL IN A LAZY RIVER OVER 30 WATER FEATURES AND SLIDES AND THE TOTAL PROJECT COST WITH RESERVES, FINANCIAL RESERVES AND EVERYTHING IS RIGHT AROUND HUNDRED AND $73 MILLION. AND SO AS PORT AUTHORITY ADMINISTRATOR MESA STATED THAN HER PRESENTATION, THE PROPOSAL IS TO INVEST MALL OF AMERICA TIFF INTO THIS WATER PARK PROJECT. BUT BEFORE I GET INTO THAT OVERALL PROPOSAL I JUST WANT TO KIND OF HIT ON SOME KEY AREAS AS TO HOW TIFF WORKS KIND OF GIVE A QUICK UNDERSTANDING THE MALL OF AMERICA TIFF DISTRICT AS IT STANDS TODAY AND NOT A LITTLE MORE INFORMATION WITH REGARDS TO THE SPENDING PLAN TIFF THAT SPECIAL LEGISLATION THAT WAS APPROVED IN 2021. SO HOW TIFF WORKS SO BASED ON LEGISLATION WHAT IT IS ONCE A TIFF DISTRICT IS ESTABLISHED AND CREATED IT IS A PORTION OF THE PROPERTY TAXES OF THOSE TIFF PROPERTIES THAT THEY PAY IN PROPERTY TAXES IS COLLECTED AND MOVED IN AND WHAT WE CALL TAX INCREMENT THAT TAX INCREMENT WILL COME TO THE CITY AND IT GETS PLACED INTO TWO ACCOUNTS WE SET UP TWO ACCOUNTS ONE IS A PROJECT FUND ACCOUNT THAT MONEY IS SET ASIDE SPECIFICALLY FOR THE DEVELOPMENTS AS THEY MOVE FORWARD AND BASED ON THE APPROVED DEVELOPMENT AGREEMENTS THAT THE CITY COUNCIL PORT AUTHORITY OR EVEN THE HRA APPROVES, THAT IS HOW THAT MONEY IS THEN ALLOCATED AND DEFINED WITHIN THOSE PROJECTS. WE ALSO HAVE A SECOND FUND WHICH IS CALLED OUR ADMINISTRATION RESERVE FUND THAT IS A SMALL SET OF THE INCOME THAT COMES USUALLY BETWEEN 10 TO 20% OF THE INCREMENT THAT IS USED TO HELP PAY FOR CITY STAFF SERVICES AS FAR AS ADMINISTERING ADMINISTRATING THESE ACCOUNTS AS WELL AS IT IS AT THE PORT AUTHORITY, THE CITY COUNCIL OR THE RAISED DISCRETION TO USE THOSE FUNDS ON OTHER PROJECTS WITHIN A DEFINED AREA THAT MEET TIFF ELIGIBLE REQUIREMENTS. AS I STATED THE USE OF THESE FUNDS CAN EITHER BE FOR PUBLIC IMPROVEMENTS SUCH AS PARKING, UTILITIES, ROADS OR A PREVIEW OR STATUTE OF LIMITATION AS WELL DOES ALLOW IT TO BE USED FOR AFFORDABLE HOUSING AND SOMETIMES THAT AFFORDABLE CAN BE USED CITYWIDE OR WITHIN A SPECIFIC GEOGRAPHICAL AREA. IT ALL DEPENDS ON THE CREATION AND TIMING OF THAT TIFF DISTRICT AND LASTLY STAFF AND WORKING WITH OUR CONSULTANTS WE DO A PROFORMA ANALYSIS AND MAKE SURE THAT BASICALLY WE DO A NEEDS ANALYSIS TO MAKE SURE THAT THE PROJECT WARRANTED AND NEEDED FOR THIS PUBLIC ASSISTANCE. SO THE MALL OF AMERICA'S TIFF DISTRICT SO THIS IS THE MALL OF AMERICA'S FUNDING SOURCE THAT HAS BEEN CREATED THIS DISTRICT WAS CREATED THE 1980S WHEN THE ORIGINAL MALL OF AMERICA WAS CREATED AND IT HAS BEEN AMENDED OVER THE YEARS PREVIOUS PROJECTS THAT HAVE UTILIZED THIS MALL OF AMERICA TIFF FUNDING HAVE INCLUDED RADISSON BLU, THE J.W. MARRIOTT, THE OFFICE COMPLEX. ADDITIONALLY, IT WAS ALSO USED FOR THE MALL OF AMERICA TRANSIT RENOVATION AND NOW WHAT WE'RE DOING IS WE'RE LOOKING AT LOOKING AT THE NEXT PHASE OF THE MALL OF AMERICA IN THIS PROJECT THE 2016 MASTER REDEVELOPMENT CONTRACT REQUIRES THAT ALL SO ALL PARTIES MEANING 555 AS WELL AS THE CITY COUNCIL THE PORT AUTHORITY HAVE TO AGREE ON THE TIFF USE ONCE FULL PUBLIC FUNDING THAT NEEDS ANALYSIS HAS BEEN HAS BEEN DONE INTERNALLY AND IT CONTAINS OTHER PUBLIC PROVISIONS THE MALL OF AMERICA TIFF DISTRICT THE INCREMENT THAT COMES IN WE CAPTURE 90% OF THAT GOES INTO THE PROJECT DEVELOPMENT FUND THAT IS SPECIFICALLY MALL OF AMERICA DEVELOPMENT PROJECTS AND AS MS. MAY MESSICK STATED EARLIER, THIS IS FENCED MONEY. IT CAN ONLY BE USED WITHIN THE MALL OF AMERICA AREA FOR MALL OF AMERICA DEVELOPMENT THE OTHER 10% THAT'S WHAT GETS CAPTURED INTO THE MALL OF AMERICA TIFF DISTRICT'S ADMINISTRATIVE FINE. THAT 10% IS AT THE DISCRETION OF THE PORT AUTHORITY WHICH CAN BE USED ANYWHERE WITHIN THE SOUTH LOOP AREA FOR TIFF PROJECTS OR IT CAN ALSO BE USED FOR AFFORDABLE HOUSING PROJECTS CITYWIDE AND SO MALL OF AMERICA SPENDING PLAINTIFFS SO AS I JUST PREVIOUSLY STATED ,NORMALLY TIFF CAN ONLY BE USED FOR TIFF ELIGIBLE EXPENSES AS I AS THAT IS TYPICAL PUBLIC IMPROVEMENTS OR CREATING AFFORDABLE HOUSING HOWEVER THE 2021 LEGISLATION THAT CAME OUT RIGHT AFTER THE COVID PANDEMIC IT ALLOWED FLEXIBILITY FOR TIFF TO BE TIFF DOLLARS TO BE MOVED INTO A SPENDING PLAN ACCOUNT SPENDING PLAN TIFF ONCE IT'S MOVED INTO THAT ACCOUNT PROVIDES THE ABILITY TO DIRECTLY FUND PRIVATE PROJECTS THAT CAN GO IN AS EQUITY OR OTHER SIMILAR INVESTMENTS. AND THAT DETERMINATION JUST HAS TO BE MADE TO MAKE SURE THAT THE CONSTRUCTION IS FEASIBLE AND IT'S ALSO CREATING AND RETAINING JOBS AS MS. BASIC STATED EARLIER SPENDING PLAN TIFF DOES AN EXPIRATION DATE SO THAT DOES EXPIRE ON DECEMBER 31ST OF 2025. WHAT EXPIRES IS THAT FLEXIBLE CITY SO ANY FUNDING DOLLARS THAT ARE STILL WITHIN THE SPENDING ACCOUNT AFTER DECEMBER 31ST OF 2025 JUST GETS MOVED OVER BACK INTO THE REGULAR TIFF ACCOUNT AND HAS TO FOLLOW THE THE REGULAR TIFF ELIGIBLE EXPENSES EXPENSES . AND SO I WANTED TO GIVE A QUICK HIGHLIGHT AS FAR AS WHAT THE FUND BALANCES OF THE ACCOUNTS OF THE MALL OF AMERICA TIFF DISTRICT AND SO BACK IN 2000 2020 TO DECEMBER OF 2022 THAT IS WHEN THE CITY COUNCIL AND PORT AUTHORITY PASSED THE SPENDING PLAN FOR THE MALL OF AMERICA TIFF DISTRICT AT THAT TIME THE BOARDS DESIGNATED THE MOVEMENT OF THE FUNDS OF ABOUT $95.2 MILLION OVER INTO THAT ACCOUNT AS OF TODAY AS OF THE END OF 2023 THE FUND BALANCE OF THAT SPENDING PLAN TIFF WAS $9 MILLION AT THE END OF 2023 THERE WAS ABOUT $14 MILLION IN THE REGULAR MALL OF AMERICA TIFF CAPITAL PROJECTS FUND AND WE ARE ESTIMATING ON AVERAGE FOR NEXT TEN YEARS THAT THIS ACCOUNT IS GOING TO HAVE ABOUT AN ADDITIONAL ABOUT ON AVERAGE $10 MILLION OF NEW INCREMENT INTO THAT DISTRICT. THIS DISTRICT IS SLATED TO END OR TO NO LONGER RECEIVE INCREMENT IN 2034 . SO I QUICKLY WE JUST DON'T WANT TO GO OVER KIND OF THE APPROXIMATE COST ESTIMATES OF THE PROJECT. SO AS I PREVIOUSLY STATED THIS PROJECT IS RIGHT AROUND $373 MILLION OF WHICH 205 EXCUSE ME $250 MILLION IS FOR THE WATER PARK PROJECT FOR THE SHELL AND SLIDES AND EVERYTHING WITHIN IT. IT'S ABOUT $75 MILLION FOR THE RAMP AND PUBLIC INFRASTRUCTURE AND THE REMAINING ADDITIONAL COSTS ARE AROUND OUT TO ABOUT 48 MILLION AND THAT ACCOUNTS FOR THE LAND AS WELL THE FINANCING COSTS AND RESERVES THAT ARE NEEDED FOR THE PROJECT PROJECT. SO AS STATED EARLIER THE PUBLIC ASSISTANCE PROPOSED FOR THIS PROJECT IS TO INVEST ABOUT $160 MILLION OF THAT MALL OF AMERICA A TIFF DOLLARS THAT'S SEPARATED INTO TWO ACCOUNTS. SO 85 MILLION WOULD COME FROM THAT MALL OF AMERICA TIFF PLAN ACCOUNT. THE OTHER 75 MILLION OF REGULAR TIFF WOULD GO INTO THE MALL OF AMERICA TIFF RAMP SO THAT WOULD BE SLATED FROM THAT 14 MILLION THAT WAS THAT IS WITHIN THAT ACCOUNT AS WELL AS THE FUTURE INCREMENT TO PAY DOWN ANY FUTURE BOND WE WOULD POTENTIALLY TAKE OUT FOR THAT PARKING RAMP AND. THEN THE REMAINING AMOUNT THE 213 MILLION WOULD NEED TO COME FROM A PRIVATE LENDER WITH WHICH 555 WOULD NEED TO SECURE THAT PRIVATE FINANCING. AND SO WITH OVER 40% OF THE TOTAL PROJECT COST COMING FROM TIFF AND ALSO WITHOUT ANY PRIVATE EQUITY INTO THIS DEAL STAFF ANALYZE THIS AND TRY TO UNDERSTAND OKAY WE NEED TO LOOK AT HOW DO WE CAPTURE CASH FLOW TO HOPEFULLY THEN REPLENISH THESE ACCOUNTS. SO WHAT THE PROPOSAL IS BEFORE YOU TODAY FOR CONSIDERATION AND DISCUSSION IS FOR STAFF OR FOR US CAPTURE 100% OF PROFITS FROM THE WATER PARK AFTER THE REQUIRED DEBT SERVICE HAS BEEN PAID. SO THE WATER PARK WILL MAKE WILL HAVE A REVENUE COMING IN ONCE PAY ALL OF THEIR EXPENSES AS WELL AS THEIR DEBT SERVICE THAT IS OWED TO THEIR PRIVATE LENDER THAT IS THE PROFIT THAT PROFITS IS THE PORTION THAT WOULD BE COLLECTED. WHAT THE PROPOSAL IS IS THAT THIS WOULD BE DISPERSED INTO TWO ACCOUNTS BASED ON A OF 60% INTO A MALL OF AMERICA DEVELOPMENT FUND. THIS FUND WOULD BE USED AT THE DISCRETION APPROVAL OF THE CITY COUNCIL, THE PORT AUTHORITY AS WELL AS FIVE AND IT WOULD SERVE AS GAP FINANCING ON THESE FUTURE MALL OF AMERICA DEVELOPMENT PROJECTS WITHIN THE AREA. THE REMAINING 40% OF THAT CASH FLOW THAT WOULD BE CAPTURED WOULD THEN FLOW INTO THE MALL . THE PORT AUTHORITY'S MALL OF AMERICA TIFF ADMINISTRATIVE FUND USES FROM THAT FUND. AS I STATED EARLIER, BE SOLELY AT THE DISCRETION OF THE PORT AUTHORITY AND COULD BE USED FOR TIFF ELIGIBLE PROJECTS WITHIN THE SELF LOOP AREA AS WELL AS IT COULD BE USED FOR AFFORDABLE HOUSING PROJECTS CITYWIDE. WHAT WE ARE PROPOSING IS THAT A MINIMUM OF $100 MILLION WOULD NEED TO BE CAPTURED BETWEEN TWO ACCOUNTS BEFORE THIS CASH FLOW COULD BE TERMINATED. AND SO CASH CAPTURE OF THIS CASH FLOW WOULD NOT STOP UNTIL 555 AND THE WATER PARK ENTITY WOULD BE ABLE TO BRING PRIVATE EQUITY TO THE DEAL. AND I SHOULD STATE WELL THE MINIMUM AMOUNT IS WHAT IS THE MINIMUM IS 100 MILLION THERE COULD ALWAYS BE MORE MONEY COMING INTO THAT ACCOUNT IF THE PRIVATE EQUITY DOESN'T COMES AT A LATER TIME . SO THE PROPOSAL WITH FUTURE FUTURE PRIVATE EQUITY SO ONCE AGAIN JUST TO STATE THAT THE TERMINATION OF THAT CASH FLOW WATERPARK CASH FLOW CAPTURE DOES NOT OCCUR UNTIL AT LEAST 30% OF EQUITY IS PROVIDED AT A FUTURE DATE AND A MINIMUM OF $100 MILLION IS CAPTURED INTO THOSE ACCOUNTS. AND SO BOTH OF THOSE WOULD NEED TO HAPPEN IF EQUITY BECOMES FIRST AND THERE ISN'T $100 BILLION IN THOSE TWO ACCOUNTS WE WOULD CONTINUE TO CAPTURE THE CASH FLOW UNTIL $100 MILLION IS MET IN THOSE TWO ACCOUNTS. IF OVER $100 MILLION IS COLLECTED IN THOSE TWO ACCOUNTS AND THEN EQUITY BROUGHT THEN THE CASH FLOW WOULD TERMINATE AT THAT TIME. SO JUST ONCE AGAIN JUST A KIND OF A SUMMARY BULLETED SUMMARY. SO WHAT THE PROPOSAL IS IS WE WOULD LOOK TO INVEST $160 MILLION OF THE MALL OF AMERICA TIFF INTO THIS PROJECT 85 MILLION WOULD GO DIRECTLY INTO THE WATER PARK. 75 MILLION WOULD GO TO COVER THE PUBLIC IMPROVEMENTS AND THIS IS FENCED MONEY THAT CAN ONLY BE USED AND IT IS DESIGNATED FOR WITHIN THIS AREA WE WOULD LOOK TO CAPTURE WATER PARK CASH FLOWS THAT CAPTURE IS AFTER DEBT SERVICE AND THAT MONEY WOULD FLOW INTO THOSE TWO FUNDS. THE MALL OF AMERICA DEVELOPMENT FUND AND THE PORT AUTHORITY TIFF ADMINISTRATIVE FUND AND IN ORDER FOR THAT CASH COW CASH FLOW CAPTURE TO TERMINATE THE WATER PARK ENTITY WOULD NEED TO BRING PRIVATE EQUITY TO THE DEAL. AND WITH THAT I'LL TURN IT OVER TO PORT AUTHORITY ADMINISTRATOR MACY. THANK YOU JASON. GOOD EVENING AGAIN MAYOR. PRESIDENT COUNCIL MEMBERS AND COMMISSIONERS. SO IN SOME WE WANTED TO WALK YOU THROUGH THE BENEFITS OF THIS WATER PARK. WE'VE TALKED ABOUT A LOT OF DETAILS BUT GROUNDING IT AGAIN THIS IS A RECREATIONAL AMENITY TO THE CITY AND TO THE ENTIRE REGION WE ANTICIPATE THAT IT WILL BE USED THE ENTIRE REGION AS WELL AS BRING VISITORS FROM OUTSIDE THE REGION IT ADDS RESILIENT RESILIENCY TO THE SOUTH LOOP AND THE MALL OF AMERICA BY BRINGING NEW VISITS AND CONTINUING TO KEEP THE PROPERTY FRESH AND RELEVANT. AND THIS IS IMPORTANT BECAUSE AT THIS TIME MALL OF AMERICA IS OVER 8% OF THE CITY'S PROPERTY TAX BASE AND HOTELS ARE 5.75% OF THE CITY'S PROPERTY TAX BASE. AND BY HAVING THESE ENTITIES PAYING INTO THE PROPERTY TAX BASE, WE CAN DEFRAY THE COST OF TAXES FOR OUR RESIDENTS. WE DO ANTICIPATE NEW ADMISSIONS AND LODGING TAXES COMING THIS PROPERTY AND NEW PROPERTY TAXES AS THE VALUE INCREASES TO THE GENERAL FUND AND WE ANTICIPATE ADDITIONAL TO BE INSPIRED BY THIS ONE INCLUDING A HOTEL DOWN THE LINE SO PROPERTY TAXES WILL COME FROM THAT AS WELL WE ARE TO THE MALL OF AMERICA AND THEY ARE OPEN TO DISCOUNTED TICKET PRICES FOR RESIDENTS AS WELL AS ADDITIONAL PERKS WHICH WE CAN DISCUSS AND THEN PROJECTED WATERPARK REVENUE CAPTURES AN ADDITIONAL POTENTIAL FUNDING STREAM THAT WE CAN USE FOR NEW PROJECTS IN THE SOUTH LOOP AREA RELATED TO THE MALL OF AMERICA. THAT TIFF DOESN'T REGULARLY ISN'T REGULARLY ABLE TO SUPPORT AS WELL AS FOR THAT ADMINISTRATIVE FUND THAT WE MENTIONED WHICH COULD ALSO BE USED FOR AFFORDABLE HOUSING PROJECTS CITYWIDE. THIS PROJECT DOES ALSO COME WITH RISKS AND. WE WANT TO BE REALISTIC WITH THAT AND I'M SURE THAT WILL BE PART OF OUR CONVERSATION. THERE IS A RISK THAT THE PROJECT WILL NOT PERFORM AS EXPECTED AND NOT BE ABLE TO PAY ITS DEBT. IF THAT IS THE CASE THAT RISK IS BORNE BY THE DEVELOPER AND ITS FINANCING ENTITIES IT IS NOT BORNE BY BLOOMINGTON TAXPAYERS. IT IS STILL VERY LIKELY TO REMAIN A PARK DUE TO THE VALUE OF THE ASSET ONCE CONSTRUCTED. SO WE EXPECT THAT PERHAPS ANOTHER ENTITY WOULD COME AND PURCHASE IT BUT. WE WOULD ALSO LOSE THAT CASH FLOW THAT WE HAD DISCUSSED AND IT COULD NOT BE CAPTURED FOR FUTURE PROJECTS IF A DIFFERENT OWNER TOOK OVER. WE DO NOT KNOW THE TIMING OF THE FUTURE EQUITY AS KURT EXPRESSED THE MARKETS HAVE BEEN DIFFICULT TO PREDICT AND SO WE ARE NOT SURE WHEN THE FUTURE EQUITY WOULD COME INTO THIS PROJECT. BUT PORT AUTHORITY AND OUR ADVISORS DO BELIEVE THIS IS AN IMPORTANT ASPECT OF THE DEAL. WE UNDERSTAND WHY THE MALL OF AMERICA IS NOT TO BRING IT AT THIS TIME AND SO WE HAVE SPENT SIGNIFICANT EFFORT TRYING TO COME TO A COMPROMISE WHERE WE EXPECT THEM TO BRING IT LATER. THERE'S ALSO A RISK TO THE CITY'S REPUTATION. THIS IS A VERY UNUSUAL DEAL THAT WE HAVE CONSTRUCTED. WE ARE AGAIN ATTEMPTING TO BE CREATIVE WITH THIS AND ACCOMMODATE IT THE CURRENT TIMING RESTRICTIONS ON OUR SPENDING PLAN TO FUND ITS FLEXIBILITY WHILE STILL ENSURING THAT WE BEING RESPONSIBLE WITH OUR PUBLIC FUNDS AND LOOKING FOR EQUITY TO COME TO THE PROJECT AT SOME POINT AND THEN OF COURSE THERE ARE RISKS OF NOT THE PROJECT THAT IS ALWAYS AN OPTION. THERE IS A RISK OF THE MALL OF AMERICA'S PERFORMANCE DECLINING FOLLOWING THERE ATTENDANCE TOOK A DIP FROM 40 MILLION ANNUALLY TO 32 MILLION. WE DO SEE THAT THAT IS STARTING TO BACK BUT WE WANT TO MAKE SURE THAT WE'RE CONTINUING TO SUPPORT THEIR HEALTH AND CONTINUE TO ATTRACT NEW VISITORS. WE WILL NOT AS I MENTIONED THROUGHOUT THE PRESENTATION, LOSE THE TIFF THAT IS CURRENTLY THIS ACCOUNT. IT WILL JUST NO LONGER BE AVAILABLE AS SPENDING PLAN TIFF SO IT COULD BE USED ON FUTURE PROJECTS SUCH AS PARKING AND OTHER INFRASTRUCTURE BUT THAT WOULD NEED TO BE SUPPORTIVE OF OTHER PRIVATE PROJECTS AND SO OTHER PRIVATE FUNDING WOULD NEED TO BE BROUGHT TO THE TABLE BEFORE THAT COULD HAPPEN. SO WE DO HAVE POTENTIAL NEXT STEPS AS HAS BEEN EXPRESSED. THIS IS AN INFORMATIONAL MEETING ONLY WE WANTED TO START CONVERSATION WITH YOU AGAIN, INTRODUCE YOU TO THE NEW VERSION OF THE PROJECT. MAKE SURE WE HEARD AND ANSWERED YOUR QUESTIONS IN SO FAR IS POSSIBLE TONIGHT WE DO WANT TO REITERATE WE ARE STILL ANALYZING SOME PARTS OF THE DEAL BUT WE ARE CONTENT. WE WANTED TO START THIS CONVERSATION TONIGHT ON APRIL 9TH AS WAS MENTIONED THERE WILL BE A SPECIAL MEETING WITH THE COMMISSION. WE UNDERSTAND THAT IS A PRIORITY FOR THE CITY AND SO OUR REPRESENTATIVES FROM 555 AND FROM DLR WILL BE PRESENTING TO THE SUSTAINABILITY COMMISSION THAT THEY ALSO MENTIONED THAT THE U.S. GREEN BUILDING COUNCIL WILL BE IN TOWN AND HAS EXPRESSED INTEREST IN MEETING WITH MALL AMERICA AS WELL AS SOME CITY REPRESENTATIVES TO TALK ABOUT WHAT LEED CERTIFICATION COULD LOOK LIKE FOR THIS PROJECT. WE ARE THIS TIME HOPING TO COME BEFORE YOU ON APRIL 15TH AND 16TH FOR A VOTE ON TERMS FOR THIS PROJECT IF YOU DIRECT US TO MOVE FORWARD THIS EVENING WITH NEGOTIATING TERMS WITH MALL OF AMERICA AND THEN OVER THE COURSE OF THE SPRING AND SUMMER THIS YEAR FINANCING AND DESIGN WOULD BE FINALIZED. IT A NEW PROJECT AND SO IT WILL NEED TO GO THROUGH ENTITLEMENT PROCESSES AGAIN. IT IS DIFFERENT THAN THE PROJECT BEFORE BUT WE HAVE BEEN BRIEFING OUR COLLEAGUES ACROSS THE CITY ABOUT WHAT THIS WOULD TAKE AND THEN WE WOULD LOOK AT SPRING 2025 FOR CONSTRUCTION TO COMMENCE AND LATE 2027 IS WHEN WE WOULD ANTICIPATE COMPLETION OPENING OF THIS PROJECT. AND SO AT THIS TIME I WOULD LIKE TO INVITE ALL OF OUR PRESENTERS BACK TO THE PODIUM AND WE WOULD LIKE TO STAND FOR QUESTIONS AND DISCUSSION. WELL THANK YOU AND THANK YOU ALL FOR THE PRESENTATIONS. MR. PRESIDENT, I HAVEN'T CLEARED THIS WITH YOU BUT I'M GOING TO PROPOSE IT AS WE ASK HARD QUESTIONS THAT PERHAPS WE FOLLOW THE STRUCTURE OF THE PRESENTATION AS WELL. SO RATHER THAN PING PONG AROUND AND EVERYONE TRYING TO GET ALL OF THEIR QUESTIONS DUMPED AT ONCE THAT WE GO, WE BREAK IT DOWN, WE TALK ABOUT QUESTIONS WE START WITH QUESTIONS ON THE BACKGROUND AND THE FRAMEWORK SO ON AND PERHAPS ADDING IN THE RISKS THAT THAT YOU JUST TALKED ABOUT. MOVE ON TO THE PROPOSAL ITSELF THE DESIGN, THE PARK AND SO ON . TALK ABOUT THE SUSTAINABILITY ISSUES AND THEN GO THROUGH FINANCING IF THAT MAKES TO EVERYBODY. I THINK IT MIGHT ADD SOME STRUCTURE TO THE QUESTION AND ANSWER PERIOD AS OPPOSED TO KIND OF PING PONG AROUND AND THEN WE CAN GETNTO GENERAL OPINIONS, QUESTIONS AND OPINING. AS WE WRAP UP, DOES THAT MAKE SENSE MR. PRESIDENT MR. MAYOR. THERE'S ONE CAVEAT TO THAT AND THAT IS THAT BOTH COMMISSIONER ALONSO, MR. KELLER HAVE OUR TIME OFF IN ABOUT PROBABLY HALF AN HOUR. SO I WANT TO MAKE SURE THAT HAVE A CHANCE TO GET THEIR QUESTIONS AND HOPEFULLY WE CAN DO THAT WITHIN THIS CONTEXT IF WE MOVE FORWARD WITH WHAT YOU'RE PROPOSING, I THAT'S FINE AS LONG AS WE ARE COGNIZANT OF LOOKING AT THE CLOCK, MAKE SURE THEY GET THEIR QUESTIONS IN . I THINK WE COULD PROBABLY DO THAT. WE'LL HAVE SEE HOW WE GO HERE. COMMISSIONERS ARE REMOTE COMMISSIONERS IF YOU'RE FINE WITH THAT IF WE ARE IF WE IF WE LOOK LIKE WE'RE RUNNING SHORT ON TIME OR IF YOU'RE GETTING A BOOTED OUT OF WHATEVER PUBLIC PLACE YOU'RE IN , WE'LL DOUBLE BACK TO YOU AND YOU CAN ANSWER ANY QUESTIONS YOU MIGHT HAVE. IS THAT WILL THAT WORK? PROBABLY. BUT I DO HAVE ONE RIGHT AWAY THAT YOU MIGHT DECIDE IS OR IS NOT SUBJECT TO YOUR PLAN AND THAT'S JUST THAT'S QUESTIONABLE OVERALL THING WHEN YOU SAY THE TERMS ARE GOING TO BE PRESENTED, THE ACTUAL TERMS OF A TERM SHEET ARE GOING TO BE REPRESENTATIVES. THE PLAN THAT IS THE PLAN AT THIS TIME IN APRIL IN APRIL I'M SORRY. YES, SIR. REPEAT THAT IN APRIL THE TERM SHEET WILL BE PRESENTED IN APRIL ACCORDING TO HOW WE SO WE'RE HAVING A GENERAL INFORMATION MEETING TODAY BUT WE'RE GOING TO BE VOTING ON AN ACTUAL TERM SEAT IN TWO WEEKS . COMMISSIONER KELLER THAT IS OUR INTENTION AT THIS TIME. WE'VE ALSO BUILT IN ADDITIONAL CONCURRENT MEETING TIME ON APRIL 22ND SHOULD WE NEED IT WE WILL BE OPEN TO HOW FAR THIS DISCUSSION GETS. BUT AGAIN OUR GOAL IS TO BE BOTH RESPONSIBLE WITH INFORMATION BUT ALSO KEEP A QUICKER PACE GIVEN THE CONSTRAINTS ON THE FUNDING SOURCE THAT WE HAVE AVAILABLE TO US . ALL RIGHT. AND MAYOR PRESIDENT AND COMMISSIONER, I DID WANT TO REITERATE WE HAVE BEEN DISCUSSING THIS DEAL FOR AT LEAST THIS VERSION OF THE DEAL FOR AT LEAST FOUR MONTHS PRIOR TO THIS MEETING. YEAH. WHO'S WE BUT YOUR BOSS? PRESIDENT ERICKSON. COMMISSIONER KELLER. THAT IS THE PORT AUTHORITY TEAM AS WELL AS CITY LEADERSHIP AND OUR MUNICIPAL ADVISOR FROM JANE REDDING AND THE MALL OF AMERICA. SO THIS IS GOING TO BE PRESENTED AS A ENTERCOM. MR.. I'VE SORT OF A QUESTION THERE WHY DON'T WE MAKE SURE EVERYBODY GETS A CHANCE TO GET THROUGH THEIR QUESTIONS SO ALL WE RESTRAIN MYSELF BE GREATLY APPRECIATE IT. THANK YOU COUNCIL COMMISSION DO WE HAVE ANY QUESTIONS AGAIN THE FRAMEWORK LET'S JUST FOLLOW WITH THE BACKGROUND THE FRAMEWORK, THE DEAL, THE RISKS ASSOCIATED ANY SPECIFIC QUESTIONS TO THAT? WELL, LET ME JUST THESE COMMENTS REALLY ARE PROBABLY WITH RESPECT TO THE RISK AND AND BUT WELL FIRST OF ALL, I SHOULD JUST SAY THANK YOU TO HOLLI AND HER STAFF BECAUSE I KNOW THIS HAS BEEN A MARATHON SESSION AND EVERYTHING HAS BEEN DONE BUT WHEN WE WHEN WE LOOK AT IT WE TALKED ABOUT THE FENCE AND I LIKE YOU I'VE BEEN TALKING ABOUT FENCE MONEY FOR A LONG TIME. I THINK IT HELPS TO EXPLAIN WHAT THAT IS. SO IF WE TAKE A LOOK AT THE RISK TO THE TAXPAYERS, THE CITY BONDS AND THIS MONEY IS IN HANDS. IT HAS TO BE USED FOR THESE PURPOSES. THIS LEGISLATIVE WAY DESIGNATED SO THE MONEY IS LEGISLATIVELY IN ORDER FOR THESE PURPOSES IF WE DO ANY PARKING RAMPS IT'S MY UNDERSTANDING OF THE PARKING RAMPS BE REVENUE BONDS ONLY SO THAT AGAIN THE TAXPAYERS WOULD NOT HAVE PARTICULAR RISK ON THIS. SO I THINK AS WE LOOK AT THIS IT'S JUST IMPORTANT TO OVER AND OVER AGAIN STRESS TO THE TAXPAYERS OF BLOOMINGTON THAT WHATEVER WITH THIS PROJECT IT'S NOT GOING TO AFFECT THEM PERSONALLY IN TERMS THEIR TAXES THEY HAVE TO PAY WITH THAT I'LL JUST WE CAN MOVE ON VERY GOOD QUESTIONS. UH, COUNCILMEMBER QUESTIONS. YEAH JUST TWO QUICK ONES HERE TO FOLLOW UP ON THAT THIS DOES NOT CREATE A NEW TURF CORRECT SO SURE BUT MAYOR PRESIDENT COMMISSIONERS COUNCIL NELSON NO IT DOES NOT THIS IS UTILIZING THE EXISTING TIF DISTRICT THAT IS CURRENTLY AT THE MALL OF AMERICA AND AS STATED IN THE PRESENTATION THE INCREMENT WITHIN THAT DISTRICT GOES UNTIL 2034. OKAY. THANK YOU. SO JUST A PRESIDENT ERICKSON'S COMMENTS THAT THIS DOESN'T CHANGE ANYTHING AS IT STANDS FOR MYSELF OR ANY OTHER TAXPAYING RESIDENT OF THE AND CAN YOU JUST REMIND US THE SOURCE OF THE MONEY INTO THE TIP AND THE ESP TURF WHERE DOES THAT MONEY DERIVE FROM. SURE MAYOR PRESIDENT ERICKSON COMMISSIONERS COUNCIL MEMBER THAT IS DERIVED FROM A PORTION THE PROPERTY TAXES WITH WHICH MALL OF AMERICA PROPERTIES PAY SO IT'S AN ESTABLISHED DISTRICT SO IT'S PRETTY MUCH MALL OF AMERICA TO THE NORTH THE NORTHERN LOT WELL AS IKEA AND SO A PORTION OF THEIR PROPERTY TAX BILL THAT THEY PAY IS COLLECTED AND THEN THAT GETS FUNNELED INTO THE TIP ACCOUNT BUT ADJACENT I THINK IT'S IMPORTANT ON THAT TOO THAT SEVERAL OF THE MALL HAVE ALREADY EXPIRED. IN FACT THE MALL PROPERTY IS ON THE TAX ROLL NOW AND THEY'RE PAYING TAXES. WHAT WE HAVE COMING IN IS SOMETHING CALLED FTE TIFF WHICH IS A SPECIAL AND SO THAT IS SOMETHING THAT'S ACTUALLY AN EXTRA BENEFIT TO RESIDENTS OF BLOOMINGTON COUNCILMEMBER YOU KNOW I WAS ACTUALLY GOING TO ASK THAT SAME HOW THIS RELATES FTE OR FISCAL DISPARITIES TIFF BECAUSE MY AM I CORRECT I UNDERSTAND THAT CITY IS RECEIVING ITS REVENUE FROM THE PROPERTY. THIS IS AN ADDITIONAL TAX THAT FRANKLY IS ALL COMMERCIAL PROPERTIES BUT THAT THE STATE LEGISLATURE HAS DESIGNATED IT THAT THE MALL FISCAL DISPARITIES HAVE SHOULD BE USED TO PAY FOR FUTURE IMPROVEMENTS AT THE MALL SO SO THIS DOESN'T THIS ISN'T THIS ISN'T SOMETHING THAT IMPACTING OTHER PEOPLE'S PROPERTY TAXES IS THAT ACCURATE OR. MAYOR PRESIDENT ERICKSON COMMISSIONERS AND COUNCILMEMBER NELSON THAT IS CORRECT. IN 2013 THERE WAS A LEGISLATION THAT THAT ADDRESSED THAT SITUATION ALL OF THEM ALL OF AMERICA PROPERTIES TAX THAT GOES TO THE CITY THE, COUNTY AND THE SCHOOL DISTRICT THAT THEY PAY GOES TO THOSE ENTITIES THE FISCAL DISPARITIES PORTION AND THAT WAS ESTABLISHED IN THE 1970S WITH REGARDS TO COMMERCIAL AND INDUSTRIAL VALUATIONS AND PROPERTIES WITHIN THE METROPOLITAN THAT FISCAL DISPARITIES PORTION OF THE TAX BILLS COLLECTED AND THAT GOES TO THE STATE AND GETS DISPERSED AMONG THE VARIOUS MUNICIPALITIES WITHIN METROPOLITAN AREA THE FISCAL DISPARITIES PORTION OF THE TAX BILL THAT THE MALL OF AMERICA PAYS ON THE PROPERTY TAXES IS THAT PORTION THAT IS COLLECTED AND IS CONSIDERED TAX INCREMENT AND PUT INTO THE INCREMENT. THE MALL OF AMERICA'S TIFF INCREMENT ACCOUNT . CARTER THANK YOU MAYOR AND I A QUESTION AND IT HAS BEEN ASKED AND ANSWERED IN THE PAST BUT I THINK IT'S JUST WORTH BRINGING UP BECAUSE WE IT'S BEEN A WHILE SINCE WE'VE TALKED ABOUT THE WATER PARK PROJECT AND A QUESTION THAT I GET IS YOU KNOW WHY WOULD WE BE INVOLVED IN HELPING TO FINANCE THIS TYPE OF PROJECT? SO IS IT COMMON FOR PROJECTS LIKE THIS TO GET GOVERNMENT SUPPORT SO ECONOMIC DEVELOPMENT TOOLS RESOURCES TO HELP MAKE THEM HAPPEN LIKE IS THIS A UNIQUE THING OR DO WATER PARKS ACROSS THE COUNTRY THAT HAVE BEEN BUILT HAVE THEY USED THESE TYPES OF ECONOMIC DEVELOPMENT TOOLS? MAYOR PRESIDENT ERICKSON COMMISSIONERS COUNCIL MEMBER COUNCILMEMBER CARTER PRIOR TO ACTUALLY COMING INTO THIS MEETING I ACTUALLY JUST READ AN ARTICLE SIMILAR TO THAT THAT STATES THAT ON AVERAGE WATERPARK DEALS ACROSS THE COUNTRY HAVE RECEIVED ABOUT A THIRD OF THEIR PROJECT COST FROM PUBLIC ASSISTANCE THAT PUBLIC ASSISTANCE COMING FROM EITHER FUTURE PROPERTY THAT THIS AND THAT THAT DEVELOPMENT WOULD PAY OR IT'S ADDITIONAL NEW LODGING TAX THAT IS CREATED WITHIN THOSE MUNICIPALITIES OR THE STATE GOVERNMENTS. AND SO IT IS NOT UNIQUE THAT OUR PUBLIC FINANCING GOES INTO THESE WATER PARK PROJECTS. I THINK THE BIG THING AND THE BIG TAKEAWAY FROM THAT ARTICLE THAT I READ IS THE ADDITIONAL TOURISM THAT THESE AMENITIES BRING TO THE AREA AND IT'S THAT SPINOFF EFFECT. MS. MESSICK STATED EARLIER THAT THE MALL OF AMERICA HAS FROM ADDITIONAL LODGING FROM THE GAS GOING TO THE RESTAURANTS THE CITY OF BLOOMINGTON, THE REGION JUST SPEAKING IN CANDIDLY OF FAMILY MEMBERS I KNOW THAT LIVE OUT OF STATE THEY HERE FOR SOCCER TOURNAMENTS AND BASKETBALL TOURNAMENTS THEY STAY BLOOMINGTON BECAUSE THEY'RE ONLY AT THEIR EVENT FOR A SMALL SHORT TIME BUT THEY WANT TO BE CLOSE TO WHERE THE ENTERTAINMENT IS AND SO THEY WITHIN THE AREA SO THEY CAN GO TO THE MALL OF AMERICA, THEY CAN GO SKIING AND SO THAT'S THE AMENITY IN THE DRAW. THANK YOU, COMMISSIONER. ONCE THANK YOU. I THINK YOU JUST MUTED YOURSELF, ROB. SORRY ABOUT THAT. JUST A COUPLE OF QUESTIONS. A COUPLE OF MORE STRUCTURAL ON THE PROJECT. ONE OF THEM IS ONE OF THE THINGS I READ THE LEAMINGTON BRIEFS NEWSLETTER RELIGIOUSLY AFTER FIRST READ THE MAIN BUSINESS MESSAGE TO THE CITIZENS AND AT LEAST ONCE A YEAR THERE'S ALWAYS A LARGE LARGE ARTICLE SECTIONS WRITE UPS ON WELLINGTON'S WATER SYSTEM EXTOLLING HOW GOOD IT IS. WE ALL KNOW THAT WE SEE ROUGH FIGURES ON HOW MUCH WATER USE IT'S GOING TO HAVE BUT I WANT TO KNOW WHAT ABOUT THE BULK NOT ONLY THE QUANTITY OF WATER USED THE MILLIONS OF GALLONS I ALSO WANT TO KNOW ABOUT WILL IT HAVE ANY EFFECT ON THE QUALITY OF THE WATER SYSTEM? AND I ALSO TO KNOW ABOUT WHAT ARE THE EFFECTS ON THE WATER DISCHARGE TO THE CITY TO THE METROPOLITAN COUNCIL INTERCEPTOR LINES. I KNOW THAT'S GOT TO BE DONE PERIODICALLY. WE'RE DEALING WITH CHEMICALS IN WATER SO THAT'S SOMETHING I'VE JUST THIS HAS BEEN AROUND SINCE 2019 AND I DON'T RECALL EVER SEEING ANYTHING ON ITS EFFECT LONG TERM EFFECTS ON THE WATER SYSTEM. SO I'D LIKE SOME SOME YOU KNOW ,INFORMATION ON THAT BE THIS IS 4 TO 5 REPRESENTATIVES IN THIS PERIOD OF DORMANCY AND REIMAGINATION WAS ANY REIMAGINED OTHER THAN A WATER BASED AMUSEMENT ATTRACTION. IT'S THE MODEL THAT'S BEEN USED IN EDMONTON MODEL AND JERSEY. I DON'T KNOW THAT I SEE MUCH INNOVATION HERE. IT'S JUST A DIFFERENT TWIST ON IT HERE AND THERE AND I'M WONDERING WHETHER ANYTHING ELSE REIMAGINED OR THE EXPANDED COSTS ALREADY IN TRYING TO CREATE THIS ARE TO THE POINT THAT THAT JUST COULDN'T BE DONE. WELL, I HAVE ANOTHER ONE QUESTION I HAVE IS MY RECOLLECTION IS THAT THE PROJECTIONS FOR USAGE OF , THE FACILITY WE'RE GOING TO BE 65% TOURISM ALL STATE AND REGIONAL MINNESOTA 35% METRO AREA. IS THAT STILL PLACE THOSE KIND OF PROJECTIONS. AND I'VE GOT MORE BUT I'LL JUST THAT'S ENOUGH TO FIGHT OFF ONE AND WE'VE ABOUT 20 MINUTES YET. ALL RIGHT. LET'S START WITH THE WATER QUESTION, MR. LARRY, DO YOU HAVE AN ANSWER TO THAT? I'M SURE. FOLLOW ALL PROTOCOL. BUT MAYOR, PLEASE, YOU'RE GOOD PRESS. YOU'RE GOOD AND OTHER COMMISSIONERS HERE REGARDING THE WATER QUALITY AND THE CONCERNS ABOUT MAINTAINING THE INTEGRITY OF THE CITY OF BLOOMINGTON'S WATER QUALITY WHICH IS RANKED AT THE TOP MANY DIFFERENT CONDITIONS. IT'S OUR INTENT MAINTAIN THAT TO DO THAT. THE PRELIMINARY ENGINEERING ON THE PREVIOUS VERSIONS OF THE WATER PARK CONFORMED WITH ALL THE KINDS OF WASTEWATER CONDITIONS AND SANITARY TREATMENT OF THE WATER COMING OFF OF THE WATER PARK. WE'LL HAVE LESS OF THAT IN NEW VERSION SO WE'LL STILL BE COMPLYING WITH ALL THE KINDS OF REQUIREMENTS THAT ARE NEEDED FROM A CLEAN SANITATION EFFLUENT THAT'S COMING OUT OF THE WATER PARK. AND WITH THIS PLAN WE CAN BE A LITTLE BIT MORE PRECISE WITH THE KIND OF MEASUREMENTS OF WHAT IT IS PRIMARILY BECAUSE THE SIZE OF THE WAVE POOL HAS GOTTEN SMALLER AND THE RIDE THE HYDRAULICS FOR THE ALL THE OTHER RIDES ARE RATHER PRECISE IN HOW THEIR CALCULATIONS ARE DONE. SO WE'RE USING INNOVATIVE AND NEW WAYS TO FILTER THE WATER. WE'RE USING WAYS TO MAINTAIN AS MUCH OF THE WATER AS POSSIBLE AND WE HAVE CONDITIONS WITH A SMALLER WAVE POOL HAVE LESS WASTE WITH THE WATER SO. THOSE ARE THOSE ARE WE'RE WORKING ON AND WE CAN PROVIDE MORE DETAILS AS WE INTO THE ENGINEERING OF THE PROJECT FROM THIS TIME FORWARD. THANK YOU, MR. BLAIR. MR.. AGAIN, THE TWO QUESTIONS TOWARDS YOU CONSIDERED ANYTHING ELSE OTHER THAN A WATER PARK AND THE PROJECTIONS REGARDING ATTENDANCE GREATER MINNESOTA METRO AREA TOURISTS AND SO ON ARE MAYOR BOARD PRESIDENT COUNCIL MEMBERS AND PORT COMMISSIONERS. YES. DID ACTUALLY LAST SUMMER WHEN IT BECAME APPARENT THAT WE MOVE FORWARD WITH THE WATER PARK AS ENVISIONED. WE LOOKED AT SEVERAL OTHER USES AND WE DID THAT WITH STAFF THE BLOOMINGTON CONVENTION AND VISITORS BUREAU. REALLY THE GOAL WAS WITH THIS TOOL WITH THE 85 MILLION OR $89 MILLION TOOL. THE GOAL IS ALWAYS HOW DO WE DRIVE MOST TRAFFIC THE MOST TRAFFIC PER DOLLAR RATE IN AND TO COUNCILMEMBER CARTER'S QUESTION. WATER PARKS ARE TYPICALLY ONE THIRD PUBLICLY FUNDED. WE LOOKED AT A SPORTS COMPLEX TYPICALLY HUNDRED PERCENT PUBLICLY FUNDED AND DRIVES ABOUT ONE FOURTH OF THE AMOUNT OF TRAFFIC AS THE WATER PARK MULTIPURPOSE EVENTS CENTER TYPICALLY 100% PUBLICLY FUNDED NOT ONLY PUBLICLY FUNDED BUT THEN SUPPORTED FROM AN OPERATING STANDPOINT THEY DON'T THEY DON'T SUPPORT THEMSELVES AND THEY GENERATE ONE THIRD TO ONE FOURTH OF THE TRAFFIC. WHY IS THAT? BECAUSE WATER PARK DRIVES A LOT OF REVENUE RIGHT? 40, $50 YOU MIGHT PAY FOR IT BUT YOU DON'T DO THAT WHEN YOU COME TO SPORTS COMPLEX OR A MULTIPURPOSE FACILITY AND YOU'RE PAYING $20 FOR AN HOUR OF COURT TIME. RIGHT. SO STRUCTURALLY THEY JUST CAN'T DRIVE THE KIND OF REVENUE THAT A WATER PARK GENERATES. WATER PARK TAKES SIGNIFICANTLY LESS PUBLIC INVESTMENT AND DRIVE SIGNIFICANTLY MORE TRAFFIC AND TOURISM. REGARDING HOW MUCH OF THAT TRAFFIC AND TOURISM IS COMING FROM IN-STATE VERSUS OUTSTATE . I DON'T HAVE THE NUMBERS WITH ME. I DON'T ANTICIPATE THAT IT'LL CHANGE WHAT IT WAS IN THE PREVIOUS REPORT THAT WE HAVE THAT STAFF HAS FROM THEIR CONSULTANT. I WANT TO SAY IT WAS ROUGHLY ONE THIRD IS COMING FROM WHAT WE CALL OUTSTATE AS OUR TRAFFIC OF ALL OF AMERICA GENERALLY IS ABOUT 6040 SPLIT BETWEEN IN-STATE AT OUTSTATE I THINK THE WATER PARK WILL BE SIMILAR TO THAT SO IT'LL DRIVE A SIGNIFICANT NUMBER OF AMOUNT OF TRAFFIC TO BLOOMINGTON THAT STAY IN OUR HOTELS AND THE SHOP IN IN OUR MALL. MR. MAYOR AND EVERYONE THINK ONE OF THE IMPORTANT THINGS FOR ROBERT'S QUESTION WHY HERE? WHY ARE WE GOING WITH THE WATER PARK OR WHY ARE YOU RECOMMENDING THAT IS THAT THE WATER PARK HAS BEEN IN USE IN WESTERN FOR WHAT 30, 35 YEARS AND SUCCESSFUL AND AT THE AMERICAN DREAM SINCE IT'S BEEN OFFERING ITS MY UNDERSTANDING THAT THE WATER PARK HAS BEEN ONE OF THE THINGS THAT'S REALLY BEEN THE BEST PERFORMING ASSET THAT YOU HAVE SO I THINK THAT SOMETIMES WHEN WE LOOK AT HOW TO INVEST THE FUNDS WE HAVE TO LOOK VERY CAREFULLY AT WHAT DO WE KNOW THE MOST ABOUT AND I KNOW THAT IN TERMS OF SOME DISCUSSIONS THAT I'VE HAD YOU KURT AND OTHERS THAT SOME OF THESE OTHER THINGS HAVE BEEN CONSIDERED BUT THERE WASN'T REALLY A GOOD TRACK RECORD I THINK YOU KNOW WE ABOUT MAYBE NOT BEING EXCITING BUT WE ALSO HAVE TO LOOK AT SOMETHING BEING SPECULATIVE. SO ONE OF THE MOST IMPORTANT THINGS I THINK IN THIS WHOLE PROCESS AND I KNOW HAS SPENT A LOT OF TIME ANALYZING OR HASN'T ACCESS TO YOUR INSIDE INFORMATION WITH OR THE RESPECT THE FINANCES OF BOTH WEST EDMONTON AND ALSO THE AMERICAN DREAM IN NEW JERSEY. AND SO THAT'S REALLY A CRITICAL PART OF WHAT WE'RE LOOKING AT HERE. HOW DOES IT MAKE THE BEST SENSE TO INVEST THE PROCEEDS OF THE FUNDS THAT WE HAVE AVAILABLE TO GO FORWARD? AND THAT'S WHERE THE WATERPARK IS CONTINUING TO COME UP ON TOP, CORRECT. REMEMBER TO YOUR POINT OF TRYING TO GUIDE THE CONVERSATION THROUGH AND I LIKE THAT IDEA IS FAILING MISERABLY AND YOU ARE GOING TO TRY IT SEE IF I CAN HELP THERE IS IT IS IT MAKES SENSE TO MAYBE BRING UP A SLIDE THAT MAYBE HELP TO GUIDE THOSE CONVERSATION AT ALL IS THERE SLIDE THAT WE COULD BRING UP HELP US KIND OF MOVE THROUGH IT? I THINK THERE ARE STAFF HAS SOMETHING THAT WE COULD COULD COLLECT SO MY NOTES ARE ALL OVER THE PLACE I THINK IF YOU JUST ASKED THE QUESTION WE COULD CERTAINLY PROBABLY TRY TO MAKE THE POINT THINK BUT OKAY JUST YOU KNOW JUST TO YOUR POINT I LIKE THAT IDEA OF JUST OF WORKING OUR WAY THROUGH THE PRESENTATION. I JUST DIDN'T TAKE MY NOTES DOWN THAT WAY SO THAT'S PART OF MY PART OF MY PROBLEM AND I'M HAPPY TO WAIT BECAUSE I DO WANT TO MAKE SURE THAT THESE FOLKS THAT ARE HERE, THEY'RE ABLE TO PICK UP THE QUESTIONS FOR THE WEEK. SO IF. THANK YOU COUNCILMEMBER FOR TRYING TO GET IT BACK ON TRACK HERE A LITTLE BIT TO TRY AND PUT SOME STRUCTURE AROUND THIS THE OTHER QUESTIONS REGARDING THE BACKGROUND THE FRAMEWORK THE RISKS IN GENERAL THAT IF NOT WE CAN MOVE ON TO PROPOSAL THE PARK ITSELF, THE DESIGN AND SO ON. COUNCILMEMBER NELSON YEAH, THANK YOU MAYOR. ONE OTHER QUESTION ABOUT THE RISKS. THERE'S OTHER PROPERTY IN THE AREA THAT YOU KNOW HOPEFULLY WE GET DEVELOPED AND IF WE USE THIS MUCH TURF ON THIS PROJECT WHAT IMPACT IF ANY IT HAVE ON FUTURE DEVELOPMENT AT THE YOU KNOW THE ADJOINING THINGS OF THAT NATURE? JASON MAYOR PRESIDENT ERICKSON COMMISSIONERS AND COUNCIL MEMBER AS OF RIGHT NOW THERE WILL BE AND THERE'S GOING BE MINIMAL TIFF WITHIN THAT ACCOUNT. HOWEVER WE CONTINUE TO COLLECT WITHIN THE REGULAR TIFF DISTRICT LIKE I STATED ROUGHLY AROUND 10 MILLION ANNUALLY POTENTIALLY THAT COULD INCREASE IF THE WATER PARK PROJECT FORWARD AS WELL AS AN ADJACENT HOTEL WE WOULD THEN BE COLLECTING ADDITIONAL FROM THEIR FISCAL DISPARITIES TAX BILL AND THOSE TWO AND SO WITH THAT WE WOULD THEN ALSO BE COLLECTING IF THIS PROPOSAL MOVES FORWARD IT WOULD BE THE WATER PART CASH FLOW SO THAT ANNUAL WATERPARK CASH FLOW WOULD GO INTO THAT MALL OF AMERICA DEVELOPMENT FUND WHICH CAN BE THEN USED FOR PROJECTS WITHIN THE ALL THE MALL OF AMERICA AREA INCLUDING THE ADJOINING LANDS AND PROJECTS TO THE NORTH OF OF THE WATER PARK. AND THEN WITH REGARDS TO THE TIFF THE NOT THE SPEECH OF OF THE REGULAR TIFF IN THERE'S A NOTE THAT INCLUDES DOES THAT INCLUDE WATER INFRASTRUCTURE AND GIVEN THE WATER USAGE THERE DO WE ANTICIPATE THAT THERE WILL BE ANY OTHER COST NEED TO BE BORNE BY THE CITY FOR INFRASTRUCTURE? YOU KNOW AN ADDITIONAL WELL TOWER THE UNDERGROUND YOU KNOW THE PIPES AND EVERYTHING OR WILL THIS TIFF ANY UTILITY COSTS THAT THEY NEED TO DO THERE? MAYOR PRESIDENT NIXON COMMISSIONERS AND COUNCIL MEMBER COUNCILMEMBER NELSON SO AS FAR AS THE 75 MILLION FOR THE PUBLIC INFRASTRUCTURE THAT INCLUDES THE CONSTRUCTION OF THE PARKING RAMP AS WELL AS THE STREETS, THE SIDEWALKS, THE UTILITIES, THAT AREA AS WELL AS SOME STORMWATER MANAGEMENT THAT NEEDS TO OCCUR ON SITE THERE WILL BE SOME UNDERGROUND GROUND STORAGE STORMWATER MANAGEMENT WITHIN THE AREA OUTSIDE OF THAT ANY ADDITIONAL DEMAND OR PRESSURE PUT ON OUR EXISTING INFRASTRUCTURE WITHIN THE SOUTH LOOP AREA THAT IS ALL DETERMINED BY OUR AIR. IT'S OUR OUR AREA WIDE ENVIRONMENTAL IMPACT STATEMENT FOR THE SOUTH LOOP DISTRICT WE ANALYZE THAT EVERY YEARS. IT WAS RECENTLY APPROVED I BELIEVE IT WAS TWO YEARS AGO AND THAT ANALYSIS LOOKS AT OF THIS PROJECT AS WELL AS DEVELOPMENT OF THE PROPERTY THEY'RE EXPANDING ON THEIR PHASE TWO. SO ALL OF THAT PUTS PRESSURE ON THE PUBLIC UTILITIES AND INFRASTRUCTURE WITHIN THAT AREA AND WE HAVE A CAPITAL IMPROVEMENTS PLAN AS TO WHEN THE PIPES AND AND INFRASTRUCTURE PUBLIC INFRASTRUCTURE WITHIN THE AREA NEEDS TO TO INCREASE TO MEET THE THE GROWING DEMAND OF DEVELOPMENT THIS AREA AND WE DO HAVE THE SOUTH LOOP DEVELOPMENT FUND TAPPED FOR THAT FUTURE EXPANSION FOR MAJORITY OF THOSE PROJECTS. MR. PRESIDENT YES AND YES, COMMISSIONER KELLER AND LUNDS I MEAN IF THE IF WE DON'T HAVE AN OPTION TO PUT IT ANOTHER COUPLE OF QUARTERS INTO THE METER, I GUESS WE'LL TURN IT OVER TO YOU TOO AND SEE IF YOU HAVE ANY SPECIFIC THAT WE COULD GET TO BEFORE YOUR TIME. SO I HAVE ONE ON THIS RISK TOPIC. SO THE TERMS WE'RE TALKING ABOUT INCLUDE A PERHAPS DEBT EQUITY DEAL DOWN THE ROAD. I UNDERSTAND THAT'S WHAT CONTROL DOES THE CITY HAVE OVER WHAT THE TERMS OF THAT KIND OF DEAL MIGHT BE IN AN GENERAL TERMS WHAT YOU DO WITH OR THE VETO OVER SUCH DEALS THAT DOESN'T BECOME AN ATTRACTIVE THING FOR THE CITY . ARE THERE TERMS SKETCHED OUT IN ADVANCE THAT ARE WITHIN WHICH WE ASSUME WE'RE GOING TO AGREE TO THAT KIND OF A DEAL WHAT WHAT HOW DO WE LOOKING BACK IN TIME NO IT'S IT'S BEEN DISCUSSED QUITE A BIT HERE KNOWING ALL THE STUFF THAT'S HAPPENED IN THE LAST FIVE YEARS, HOW DO WE ACCOMMODATE THE RISK OF CHANGE OF CIRCUMSTANCES AND POSSIBILITY OF DIFFERING OPINIONS BETWEEN THE CITY AND MORE ABOUT HOW THOSE CHANGES WOULD BE ACCOMMODATED? DEAL WITH THE LENDING PARTNER SHOULD BE CLEAR. LOOK SUPPORT COUNCIL TO HELP US WITH THIS QUESTION. OKAY GOOD EVENING. WELCOME. THANK YOU . I BELIEVE THE THE UM THE THE PORT HAS UM WANTS THAT EQUITY LATER BECAUSE THAT'S WHEN THEY CAN GET IT RIGHT BECAUSE THERE ISN'T A LOT OF EQUITY CURRENTLY. UM, WE COULD CERTAINLY SKETCH OUT SOMETHING FOR A DEVELOPMENT CONTRACT UM, BUT NO DOUBT YOU KNOW IF IT'S 20 YEARS FROM NOW WHEN THE EQUITY COMES IN OR 15 YEARS FROM NOW UH, WHAT WE SKETCH OUT TODAY ISN'T GOING TO BE WHAT WE NEED IN THE FUTURE SO WE COULD CERTAINLY ADD SOMETHING TO THE CONTRACT THAT TALKS ABOUT THE PARAMETERS. UM, BUT DEPENDING ON HOW LONG THEIR PRIVATE THEIR PRIVATE BANK DEAL IS, UM, I MEAN THAT COULD BE 20 YEARS, IT COULD BE THREE YEARS. UM, SO THERE'S A LOT OF VARIABLE SO WE CAN ADD THINGS INTO THE CONTRACT ABOUT THIS BUT YOU KNOW WE'RE NOT ABLE TO COME UP WITH AN INTEREST RATE WE'RE NOT GOING TO BE ABLE TO COME UP WITH UM WHERE THE EQUITY IS COMING FROM. UM, BUT WE CAN ADD INTO THE CONTRACT THAT IT HAS BE PROVIDED. YEAH I UNDERSTAND THAT THAT THE WORK YOU'RE TELLING EXPECTED THAT BUT THE QUESTION IS MORE WHAT VETO POWER WE HAVE RATHER THAN WHAT FORECASTING POWER WE HAVE. I THINK WHEN WE'RE LOOKING AT THIS WE'RE LOOKING AT A TERM SHEET ON APRIL 15TH, APRIL 16TH I MEAN IT WOULD COME OUT OBVIOUSLY BEFORE THAT AND THEN THAT'S GOING TO HAVE TO BE REDUCED TO A DEFINITIVE AGREEMENT THAT WILL BE COMING BACK AT SOME IN TIME LATER. I THINK THAT AND PROBABLY FAIRLY CLOSELY BECAUSE YOU WANT TO GET MOVING ON CONSTRUCTION AND THINGS BUT I THINK COMMISSIONER KELLER THAT THAT IS ONE OF THE ISSUES THAT IS GOING TO HAVE TO BE WORKED INTO THE TERM SHEETS AND LOOKING AT THE VARIOUS CONDITIONS THOSE THINGS UM STAFF IN WORKING ON THIS HAS HAS ENDEAVORED TO TAKE AN MAINTAIN THE PRINCIPLE THAT WE'VE BEEN OPERATING ON FOR A LONG OF TIME THAT THAT WE GET MAXIMUM OF INFORMATION AND THAT WE ALSO HAVE THE ABILITY TO TAKE AND APPROVE THIS DOCUMENTS IN SOME WAY, SHAPE OR FORM BEFORE THEY GO OUT. SO I WOULD SAY THAT'S ONE OF THE THINGS HARLEY THAT MAYBE NEEDS TO GO ON LIST IN TERMS OF LOOKING THERE MIGHT EVEN BE SOME CONVERSATIONS FOR THE TERMS SHEET ALTHOUGH THAT'S A PRETTY CLOSE TIMEFRAME BUT IT'S SOMETHING THAT CERTAINLY WOULD HAVE TO BE IN THE DEFINITIVE AGREEMENT THAT WE'LL HAVE TO FOLLOW AND ARE WE GOING TO SEE ANY MORE DETAILS OF THAT BEFORE THAT'S PRESENTED TO US? ARE WE GOING TO HAVE ANY ON THAT BECAUSE WE'RE REALLY NOT HAVING ANY INPUT ON THIS TERM SHEET. IT'S JUST PRESENTED TO US IN TEN DAYS WITHOUT ANY MEANINGFUL PARTICIPATION PARTICIPATION. WELL COMMISSIONER I FOR MY TIME ON THE PORT AUTHORITY I THINK A LOT OF THIS IS STAFF DRIVEN AND THE WORK THE RESULT OF WHAT THE STAFF DOES COMES BACK TO THE PORT AUTHORITY FOR FOR REVIEW AND COMMENT AND I DON'T RECALL A TIME WHEN WE'VE HAD PORT AUTHORITY MEMBERS SITTING IN ON THE NEGOTIATIONS ON A ON A TERM SHEET BUT KNOW TO LOOK AT IT AS A WHOLE AND TO BE ABLE TO OFFER COMMENTS, OPINIONS AND FEEDBACK ON WHAT THEY SEE IN FRONT OF THEM I THAT IS HOW I REMEMBER IT. I SAID IN MY TIME ON THE PORT THAT'S HOW I REMEMBER IT TAKING PLACE. YES I UNDERSTAND THAT BUT LOOKING AT THE SCHEDULE AND HOW THIS IS BEING PRESENTED TO US I HAVE SOME OTHER CONCERNS ON LAYOUT IN THE PERSONAL MATTER LATER OR WHATEVER COMMENTS AND QUESTIONS WE TODAY. I DON'T SEE HOW THEY'RE GOING TO HAVE A MEANINGFUL IMPACT ON THIS MORE LIMITED SCOPE OF PARTICIPATION THAN WE'LL BE PRESENTED HERE. WELL, I THINK THE BASIC PARAMETERS ARE DEFINED HERE I MEAN WE GET INTO A SITUATION WE'RE NOT AT ALL. I'VE GOT A SLIDE PRESENTATION THAT SAYS GOODY BLOOMINGTON RESIDENTS GET TO SAVE TEN BUCKS OFF AN AFTERNOON A WATERPARK THE PARAMETERS THIS IS A REMOTELY ANYTHING LIKE A TERM SHEET THIS IS A SLIDE PRESENTATION SO DISAGREE WITH YOU VERY VERY AGGRESSIVELY AS YOU CAN. I DO NOT FEEL LIKE WE HAVE WE MOST OF US HAVE ON THE PORT AUTHORITY BEEN GIVEN A MEANINGFUL OPPORTUNITY TO PROVIDE COMMENTS AND TO THE EXTENT THAT I KNOW, I HAVE I'VE ASKED FOR INPUT AND GOTTEN THEM SO I DON'T BELIEVE THIS PROCESS IS AS THROW AS IT IS SEEMS TO HAVE BEEN AND IT FEELS WHOLLY INADEQUATE TO ME . COMMISSIONER ALONSO, PLEASE QUESTION COMMISSIONER LYONS AND ONCE AGAIN ROB, I THINK YOU'RE MUTED. I'M SORRY THIS IS ALL IN THE CONTEXT IS PROBABLY GOING TO BE THE SINGLE LARGEST EXPENDITURE OF FUNDS INVESTMENT WHAT EVER YOU WANT TO CALL IT BUT IT WASN'T IMPORTANT IT'S BASICALLY TAKING UP ALL OF THE FUNDS IN THE JUST IN THE SPENDING PLAN LEAVING VIRTUALLY NOTHING FOR OTHER DEVELOPMENTS AND I JUST THINK I'VE SPOKEN TO A CHAIRMAN ERIC SCHOTT ABOUT THE MOST MANNER SHAPE I AM HIGHLY IN FAVOR OF A CLOSED SESSION MEETING OF THE PORT AUTHORITY WHERE WE CAN TALK TO EACH OTHER FACE TO FACE AND GO OVER MANY THINGS THAT ARE IN PLAY HERE. AND I'M HOPING THAT THE COMMISSIONER CHAIRMAN ERICKSON WILL CALL A SPECIAL MEETING SO THAT THE TIME IS VERY SHORT TO DO THIS YET TO MEET THAT DEADLINE AND I DON'T KNOW THAT DELAYING IT A BIT WOULD BE ALL THAT MUCH HAVE MUCH EFFECT ON IT SO AND I'M GOING TO TACK ON TO THAT AGAIN WHICH I PARTICULARLY BEFORE I SORT THE NOTES TODAY BUT BUILDING THIS HORIZONTAL SPRAWLING DEVELOPMENT IS GOING TO HELP MOVE THE SOUTH LOOP FROM SUBURBAN TO URBAN THIS IS AN EX-URBAN USE IT'S A SUBURBAN USE. I DON'T SEE IT AS AN URBAN USE SO I THINK YOU HAVE TO THINK ABOUT THAT BURNING UP THE ACREAGE OF WHAT'S AVAILABLE THERE FOR A BIG HORIZONTAL USE AND ALL THAT IT SAID THAT RIGHT NOW. WELL COMMISSIONER LANCE I'VE ALREADY COMMUNICATED TO HOLLY THAT, YOU KNOW, IF IT'S POSSIBLE TO DO THAT WE'RE EXPLORING WHETHER THIS COMES WITHIN THE PURVIEW THOSE THINGS WE CERTAINLY WILL TRY TO SCHEDULE A CLOSED SESSION. MAYOR BUSSEY PRESIDENT ERICKSON, COUNCIL MEMBERS AND COMMISSIONERS I DID WANT TO RESPOND TO COMMISSIONER KELLER'S COMMENTS AND SAY WE DO NOT MEAN AND COMMISSIONER LYONS WE DO NOT MEAN IN ANY WAY TO DIMINISH THE MAGNITUDE THIS PROJECT OR THE IMPORT OF THESE DISCUSSIONS WE HAVE BEEN WORKING TO NEGOTIATE POTENTIAL TERMS THAT WILL BE ACHIEVABLE WITHIN THE CITY AND WITHIN THE PARAMETERS THAT WE'RE WORKING IN . WE DO HAVE THE OPPORTUNITY TO BRING THOSE BEFORE YOU ON THE NEXT AND YOU AS OUR REPRESENTATIVES DO ALWAYS HAVE THE OPPORTUNITY TO ASK FOR FURTHER DISCUSSION OR TO VOTE THEM DOWN. SO TODAY WAS REALLY MEANT TO BRING TO YOU AND TO THE PUBLIC AN OF THIS PROJECT AND TO TAKE IN SOME OF THOSE QUESTIONS AS . WELL AND SO WE ARE WE ARE OPEN TO CONVERSATION BUT AS MAYOR BUSSEY HAS NOTED GENERALLY THIS STAFF HAVE MADE A RECOMMENDATION AT THIS POINT IN A PROJECT SO IF THERE IS A DESIRE FOR DEPARTURE OF THAT, WE ARE HAPPY TO HAVE THAT CONVERSATION. TO BE CLEAR I WOULD SUGGEST A DEPARTURE FROM THAT PROTOCOL IN GENERAL I'M SUGGESTING TO YOU THAT YOU'RE NOT JUST GOING TO COME BACK WITH US IN TWO WEEKS WITH QUESTIONS AND PRESENT US WITH AN ACTUAL TERM SHEET. THERE SHOULD BE SOME BREAKPOINT BETWEEN, A SLIDE PRESENTATION AND THE PRESENTATION OF THE TERM SHEET FOR US TO REALLY NOT JUST GET QUESTIONS BUT TO LAY DOWN OUR OUR OWN PERSPECTIVES ABOUT THIS THAT MAY OR MAY BE ACCOMMODATED BY THE WHOLE SO DON'T GET ME WRONG I'M NOT FAVOR TRYING TO GET 30 PEOPLE INVOLVED IN A CONFERENCE ROOM IN A NEGOTIATION. I JUST THINK WE SKIPPED A STEP HERE. SO NOW I SENT IT OUT THE FRONT DOOR. ALL RIGHT. THANK YOU FOR YOUR TIME GRACIOUS. GOOD EVENING. AND I GET ALMOST TURNED BACK INTO THE TV SHOW BUT THANK YOU, COMMISSIONER LAND SAFETY COMMISSIONER KELLER, THANKS FOR MAKING EFFORT TO TUNE IN AND MAYOR BUSSEY AND PRESIDENT ERICKSON COUNCIL MEMBERS AND COMMISSIONERS IF MAY I WAS SPEAKING TO COUNSEL EARLIER ABOUT THE VIABILITY OF A CLOSED MEETING AND WE DO NOT HAVE A DEFINITIVE ANSWER ON YET SO WE WILL GET THAT ANSWER TO FOLLOWING THIS MEETING THANK YOU. ALL RIGHT, COUNSEL PORT ANYBODY STILL IN THE ROOM HERE ? ADDITIONAL QUESTIONS ON IF WE'RE I THINK THROUGH THE BACKGROUND, THE FRAMEWORK, THE RISK AND SO ON. HOW ABOUT THE THE ANYBODY DOES ANYBODY HAVE ANY ADDITIONAL QUESTIONS ON THOSE ELEMENTS? COUNCIL MEMBER LOWMAN YEAH, NO. NOW THAT WE'VE GOT THAT I DO HAVE A QUESTION ON THE BACKGROUND PIECE. UM, I IS A PART OF THIS BACKGROUND PIECE I TALKED ABOUT AND I UNDERSTAND THE MALL'S SITUATION GIVEN, THE ECONOMIC DOWNTURN, UH, GIVEN THAT GIVEN THEIR BUT WHAT I WANTED TO HAVE JUST JUST FOR MYSELF AND ALSO FOR THE PUBLIC IN TERMS OF OF EQUITY AND HOW THAT FITS IN PAST DEALS WITHIN THE CITY AND ACROSS THE COUNTRY WHAT THAT LOOKS LIKE FROM A HISTORICAL PERSPECTIVE IN TERMS OF HOW EQUITY HAS BEEN A PORTION OF DEVELOPMENT DEALS WRIT LARGE. SURE. MAYOR PRESIDENT ERICKSON COMMISSIONERS COUNCIL MEMBER COUNCILMEMBER LOWMAN TOOK A TYPICAL COMMERCIAL WITHIN THIS MAGNITUDE USUALLY HAVE PRIVATE EQUITY GOING INTO THE DEAL ROUGHLY 30 TO 50% OF THE TOTAL PROJECT COSTS AND SO FOR THIS WE WOULD ANTICIPATE THAT AMOUNT BEING WHAT AND THEN WITH THE PREVIOUS DEAL THAT HAD BACK 2019 JUST REMIND ME AGAIN BECAUSE SOME FOLKS THAT WEREN'T WEREN'T AS A PART OF THIS BODY OR FOLKS NOT PAYING ATTENTION IT WAS THE MALL BRINGING EQUITY TO IT TO THAT PARTICULAR DEAL. HELP ME TO JUST REMIND ME OF THAT HISTORY OF THAT MAYOR PRESIDENT ERICKSON COMMISSIONERS MEMBER COUNCILMEMBER LOWMAN WITH REGARDS TO THE DEAL THAT'S BEFORE YOU SO WHAT IS BEING PROPOSED TONIGHT IS THAT NO PRIVATE EQUITY IS COMING AT THE BEGINNING IT IS BEING DEFERRED REQUIRED TO BE COMING LATER AT A FUTURE DATE. IN EXCHANGE FOR THAT A MAJORITY OF THE EQUITY GOING INTO THE PROJECT IS COMING FROM THE PUBLIC FINANCING PORTION WHICH IS THE MALL OF AMERICA TIFF IN RELATION BECAUSE OF THIS DEAL. THAT IS WHY WE ARE RECOMMENDING THAT 100% OF THAT CASH FLOW BE CAPTURED AND PUT INTO THOSE TWO ACCOUNTS TO BE USED FOR FUTURE DEVELOPMENT AROUND THE MALL OF AMERICA AS WELL AS TO BE CAPTURED FOR THE DISCUSSION OF THE PORT AUTHORITY TO USE WITHIN THE SOUTH LOOP AREA FOR TIFF FUNDS AS WELL AS AFFORDABLE HOUSING CITYWIDE. WITH REGARDS TO THE PREVIOUS DEAL IN 2022 WHEN THAT WAS APPROVED IN MARCH IF I RECALL CORRECTLY THE PUBLIC FINANCING THAT WAS GOING INTO THAT PROJECT WAS ONCE AGAIN $75 MILLION FOR THE PUBLIC INFRASTRUCTURE. 30 MILLION WAS GOING IN AS ESPE TIFF AS EQUITY IN THE DEAL. THERE WAS ALSO AN ADDITIONAL 5 MILLION GOING INTO THE PROJECT FOR 16 ADDITIONAL SUSTAINABILITY MEASURES SO ROUGHLY $110 MILLION WAS PROJECTED TO COME FM TIFF IN THAT PROJECT SUBSEQUENTLY THE DEVELOPER WAS REQUIRED TO GO OUT AND SEEK PRIVATE FINANCING THAT DEAL I BELIEVE THEY WERE SEEKING SOMEWHERE WITHIN THE RANGE OF 50 TO $60 MILLION FOR THAT PROJECT AS MR. HAGAN STATED YOU KNOW THAT IS RIGHT AROUND THE TIME WHEN INTEREST RATES IN THE FEDS INCREASED EVERYTHING AND THE EQUITY MARKETS KIND OF TIGHTENED UP SO IN THERE SO AGAIN MY MATH IS PROBABLY NOT RIGHT. SO THEN WHAT WE WOULD EXPECT WITH THIS WHICH WE'RE NOT WE'RE DEFERRING WOULD BE ROUGHLY WHAT AMOUNT WILL IT BE 70 MILLION. 50 MILLION WHAT WOULD THAT BE WITH THIS NEW NUMBER 111 MILLION? WHAT WOULD THAT THAT 30 50% BE? OBVIOUSLY NOT 50% IS BUT OH, SO WE'RE NOT GOING TO THAT EQUITY STAKE THAT WE TYPICALLY HAVE HAD AND THERE ARE NO EXAMPLES OF WHERE THIS HAS EVER BEEN DONE THE PAST RIGHT HISTORICALLY WHERE WAS THAT WHERE A PRIVATE DEVELOPMENT FOR THIS CITY HAS NOT PUT ANY MONEY INTO IT RIGHT. JUST WANT TO BE SURE THAT I'M JUST CLEAR ABOUT WHAT WE'RE DOING THIS EVENING. CORRECT. MAYOR PRESIDENT ERICKSON COMMISSIONER COUNCILMEMBER COUNCILMEMBER LOWMAN, AS FAR AS I'M AWARE THERE THERE HAS NOT BEEN A DEAL OR A FINANCIAL DEAL WITHIN THE CITY OF BLOOMINGTON WITH WHICH NO PRIVATE EQUITY CAME INTO THE PROJECT AND THAT IT WAS STRICTLY A PUBLIC FUNDING IS SERVING AS THAT AS THAT EQUITY PIECE SO MS. MESSICK STATED EARLIER YOU KNOW IT IS A UNIQUE PROPOSAL THAT HAS BEFORE YOU IT IS ONE THAT WE STAFF ARE TRYING TO COME UP WITH WAYS WITH WHICH WE ARE STILL LOOKING TO CAPTURE THAT CASH FLOW TO PUT THAT MONEY BACK INTO THE ACCOUNT AS WELL TO ALLOW ADDITIONAL FUNDING SOURCES TO COME IN FOR OTHER PROJECTS AT THE DISCRETION OF THE PORT AUTHORITY AND THE CITY COUNCIL AND TO THE MAYOR I'LL HOLD MY OTHER QUESTIONS WITH REGARD TO THAT THAT BALANCE THAT THE FUNDING THE 6040 AND THEN ALSO THE RISKS THAT ARE ASSOCIATED WITH THAT WE GET LATER ON IN THE PIECE. COMMISSIONER, COULD YOU PLEASE TURN YOUR MICROPHONE ON PLEASE SPEAK INTO IT. MR. MAYOR. MR. PRESIDENT, UM, COUPLE OF COMMENTS THE THE FIRST ONE AND THAT THE FUNDING ACCESS FUNDING CAN GO BACK INTO THE CHEST FOR INFRASTRUCTURE IN FUTURE DEVELOPMENT. HELP ME UNDERSTAND WHY THE AFFORDABLE HOUSING COMPONENT IS IN THERE VERSUS BEING ABLE TO USE IT AND IT CAN'T BE USED OTHER PARTS OF THE CITY FOR INFRASTRUCTURE OR ONLY AFFORDABLE HOUSING. MAYOR BUSSEY PRESIDENT ERICKSON, COUNCILMEMBER AND COMMISSIONERS THAT IS PART OF THE WAY THE TIFF RULES WRITTEN. BUT I ACTUALLY LOOK AT PORT COUNCIL TO DEFINE THAT FURTHER FOR US. COMMISSIONER HUNT, MAYOR BETSY AND PRESIDENT ERICKSON THE TIFF RULES ALLOW YOU TO TAKE A CERTAIN AMOUNT OF MONEY FROM A REDEVELOPMENT DISTRICT AND USE IT FOR AFFORDABLE HOUSING AND . AFFORDABLE HOUSING ISN'T IF YOU'VE GOT A TIFF DISTRICT AND THERE IS A REDEVELOPMENT DEAL THERE BUT THERE'S EXTRA TURF LAYING AROUND YOU CAN GRAB THAT TURF AND AND USE IT ANYWHERE THE CITY FOR ANY PURPOSE INFRASTRUCTURE HOUSING HOUSING AFFORDABLE HOUSING OKAY OKAY. THE SECOND COMMENT AGAIN ABSENT OF HEARING THE THE EQUITY INJECTION, I PERSONALLY HAVE A VERY DIFFICULT JUST GIVEN THE BACKGROUND OF LENDING AND SO FORTH OF DOING A PROJECT WHERE THERE'S NO MONEY, NO SKIN IN THE GAME OPIUM WAS AN OLD TERM. I DON'T KNOW IF ANYBODY USES THAT BUT OTHER PEOPLE'S MONEY AND AGAIN I HAVE THE GREATEST RESPECT FOR THEM ALL AND ALL THAT DEVELOPMENT AND YOU KNOW, I'M HUGE VISITOR THERE BUT THE A PROJECT OF THIS MAGNITUDE AND THE BIGGEST ONE THAT THE PORT IS FUNDED UM BUT WITHOUT ANY EQUITY AND SKIN IN THE GAME DEFERRED AND WITHOUT KNOWING WHAT THAT IS AND THE TIMELINE AND SO FORTH I HAVE A DIFFICULT WITH THAT SO COUNCILMEMBER RIVAS HEY GOOD EVENING TO ALL. I JUST HAVE A QUESTION I I CAN DUG INTO THIS THE LAST FEW DAYS AND THEN OUR PREVIOUS MEETING UM AND I HAVE A PRETTY GOOD UNDERSTANDING OF WHAT'S GOING ON. THE ONLY ONE THING THAT I HAVE A QUESTION ON ON THE SIMPLE TIFF REVENUE BONDS RIGHT HELP ME TO UNDERSTAND IS ALL THOSE BUCKS WILL BE TAKEN CARE OF BY THE UH $75 MILLION FROM THE TIFF THAT WILL BE CREATED AFTER THE PARK IS BUILT AND THAT THAT'S COMES IN RIGHT? IS THAT WHAT IT IS IF CAN HELP ME UNDERSTAND THIS IN A WAY THAT THE PEOPLE LISTENING OR THE PUBLIC CAN UNDERSTAND IT I MEAN I'VE DONE A LOT OF READING AND I KNOW HOW WORKS NOW BUT I HAVE A HARD TIME TRYING TO EXPLAIN IT TO THE PUBLIC. SO IF YOU CAN HELP ME OUT WITH THAT THAT WILL BE GREAT. JUST A CLARIFICATION ON HOW IT WORKS. THANK YOU, MAYOR BUSSEY PRESIDENT ERICKSON, COUNCILMEMBERS AND COMMISSIONERS AND COUNCILMEMBER. WE ARE GOING TO FOR THAT QUESTION TO COUNCIL AND THE QUESTION IS SPECIFICALLY RELATED TO TIFF REVENUE BONDS . SO IF WE WERE TO ISSUE TIFF REVENUE BONDS IT WOULD BE A REVENUE DEAL. SO IT WOULD BE SAY IT'S A $10 MILLION BOND ISSUE. UM, AND THE REVENUE THE TIFF REVENUE WOULD PAY FOR THE UM THE INTEREST AND THE PRINCIPAL OF THAT TIFF REVENUE BY NOW A REVENUE BOND IS A LITTLE BIT MORE OR LESS SECURE, RIGHT BECAUSE IT DEPENDS REVENUE COMING FROM A PROJECT GOING TO BE BUILT UM WHICH MAY OR MAY NOT COME TO FRUITION YOU KNOW MAYBE SOMETHING HAPPENS TO THE BUILDING MAYBE NEVER GETS FINISHED OR SOMETHING LIKE THAT THEN YOU DON'T HAVE ENOUGH REVENUES TO PAY YOUR DEBT SO IT'S A IT'S A IT'LL GIVE YOU A HIGHER INTEREST RATE BECAUSE OF THAT CONCERN THAT MAYBE WON'T BE FULLY REALIZED. UM, WE DON'T KNOW THAT THE CITY OF BLOOMINGTON USUALLY DOES NOT ISSUE REVENUE BONDS. THEY ALMOST ALWAYS USE GENERAL OBLIGATION BONDS FOR THEIR OWN PURPOSES. UM THE, LAST TIME THAT WE DID A WATER PARK ISSUE UH, THE OF AMERICA WENT TO ANOTHER CITY TO HAVE THOSE BONDS DONE. UNFORTUNATELY IT FELL APART BECAUSE OF THE ISSUES THAT WERE HAPPENING IN THE IN THE UM IN THE WORLD AT THAT TIME THERE WAS LOT OF CHAOS IF I COULD FOLLOW UP AND JUST JUST TO FOLLOW UP ON IT WHAT THAT MEANS THOUGH IS THAT THE CITY THE RESIDENTS, THE CITY'S RESIDENTS WILL NOT BE RESPONSIBLE RESPONSIBLE FOR THOSE BONDS THOUGH THAT WILL BE ONLY PAID BY THE FORECASTED REVENUE. IT'S NOT A REAL FOR PASSAGE I MEAN A REAL REVENUE BUT IS FORECAST STATED THE POSSIBILITY THAT IT WOULD HAPPEN OR NOT THERE AND THAT IS THE RISK BUT IT DOESN'T PUT THE NECESSARILY THE RESIDENTS IN JEOPARDY THEY ARE RESPONSIBLE FOR THAT. SO CORRECT ME IF IF THE CITY WERE TO DO A REVENUE BOND AND THEY WERE BACKED BY TAX INCREMENT AND THEN TAX INCREMENT DIDN'T COME TO FRUITION. ABSOLUTELY. THE CITIZENS OF BLOOMINGTON WOULD NOT HAVE ANY RAMIFICATIONS FOR MY RECOLLECTION WHEN WE HAD THE INITIAL PROJECT WAY BACK IN 1980 182 THE CITY ISSUED $40 MILLION OF GENERAL BONDS THAT WERE TAXABLE COULD COME BACK TO THE CITY ONCE. THOSE WERE RETIRED. TO MY KNOWLEDGE THERE HAS NEVER BEEN ANOTHER GENERAL OBLIGATION BOND ISSUED. EVERYTHING THAT WE DONE WITH THE PORT AUTHORITY IN THE LAST 30, 35 YEARS OR WHATEVER HAS ALWAYS BEEN DONE ON REVENUE BOND BASE A SUMMER OR WHAT WE CALL PAYGO WHERE IT'S THE REVENUE COMES IN . BUT IN ALL THOSE CASES WHAT IS IS THE PEOPLE THAT PURCHASE THE BONDS LOOK AT THE PROJECT AND THEY'RE SECURE ENOUGH IN IT BECAUSE THE TRACK RECORD HAS BEEN VERY GOOD. THE CITY HAS IS HAS THE TRIPLE-A CREDIT RATING THAT THAT HAS HELPED PERHAPS HELPS ISSUING REVENUE BONDS BUT IT DOESN'T DIRECTLY AFFECT THAT. BUT AT ANY RATE SOMEBODY WILL TAKE MAYBE A HALF A PERCENT HIGHER INTEREST RATE BECAUSE THEY KNOW IT'S NOT A GENERAL OBLIGATION. AND SO THAT'S THE TRADEOFF YOU GET INTO YOU HAVE TO PAY A SLIGHTLY HIGHER RATE IS AS YOU WERE SAYING AND IN RETURN THE BONDHOLDER SAYS I'M GETTING A HIGHER RATE AND I WILL TAKE THE RISK THAT IF THIS DOESN'T GO AS IT GOES THAT YOU KNOW, I MAY NOT GET ALL MY MONEY BECAUSE. COUNCILMEMBER NELSON YEAH. THANK YOU, MAYOR. AND I JUST WANT TO THANK COUNCILMEMBER RIVAS FOR HIS CLARIFYING THAT FOR PEOPLE THAT IT WOULD NOT BE THE RESPONSIBILITY OF PEOPLE HERE . AND JUST A QUICK CLARIFICATION OF THAT. THIS TIFF IS ALREADY GENERATING $10 MILLION A YEAR SO NOT SPECULATIVE THAT THERE WILL BE BASED JUST ON THIS WATER PARK BUT IT'S ALREADY GENERATING SUBSTANTIAL CASH FLOW. IS THAT ACCURATE? MAYOR PRESIDENT ERICKSON AND COUNCILMEMBER COUNCILMEMBER NELSON THAT IS CORRECT. KNOW OUR PROJECTIONS THOUGH WE HAVE TO PROJECT WHAT THE VALUATION IS GOING TO BE ON THOSE FUTURE PROPERTIES, WHAT THAT TAX RATE IS GOING TO BE. SO IT IS A PROJECTION BUT WE DO HAVE HIGHEST HISTORICAL FIGURES TO SHOW HOW MUCH HAS COME IN . OKAY. THANK AND THEN MY MY OTHER QUESTION WAS REGARDING THE LAND THERE IS PART OF ANY OF THIS MONEY IS IS THAT LAND THAT IT'S GOING BE ON IS THAT BEING PURCHASED OR BOUGHT OUT FROM WHATEVER FIVE ENTITY OWNS IT NOW AND OR IS THERE A GROUND LEASE BUILT INTO THE OPERATING EXPENSES? MAYOR PRESIDENT ERICKSON COMMISSIONERS COUNCILMEMBER THAT IS STILL IN NEGOTIATIONS WITH 555 IT IS EITHER OR A GROUND LEASE OR A PURCHASE IF IT IS A PURCHASE PRICE IT WOULD BE AT THE CITY'S VALUE OF THE PROPERTY AND SO THAT'S STILL IN CONVERSATIONS WITH REGARDS TO THE TERMS. OKAY. THANK YOU. THE QUESTIONS AS IT RELATES TO THE PROPOSAL TO THE PARK DESIGN ITSELF THE RETRACTABLE ROOF. COUNCILMEMBER ONE THOSE QUESTIONS THERE. SO I'LL GO THROUGH THIS. SO THEN SO WITH RESPECT WHAT I DIDN'T HEAR FROM THE MALL IS YOU KNOW, CERTAINLY WE HAVE DECLARED A CLIMATE EMERGENCY. CERTAINLY APPRECIATE THE CHANGES THAT ARE MADE. YOU KNOW, WITH REGARD TO THE THE WATER AND THAT TYPE OF PLACE SPACE THE LEAD CERTIFICATION I KNOW THERE WAS A CONVERSATION ABOUT THAT AND I WANTED TO KNOW A LITTLE BIT MORE ABOUT ABOUT THAT IN TERMS OF YOU KNOW THAT'S STILL A PURSUIT THAT'S OUT THERE AND THEN WITH RESPECT TO THE WINDOWS THAT ARE OUT THERE THERE SOME ADDITIONAL I GUESS SOME OF THE STUFF I CAN SAY FOR THE SUSTAINABILITY COMMISSION BUT I WANT TO JUST KIND OF KICK THIS OFFSHORE, HAVE IT FOR THE NINTH SOLAR. THERE'S SUCH A THING AS SOLAR AND SO I'M WONDERING IF THAT'S SOMETHING THAT CAN BE INTO THE PROCESS BECAUSE DURING THE LAST PROPOSAL THERE WERE SOLAR PANELS THAT WERE GOING TO BE A PART OF THAT AND I DIDN'T SEE THOSE INCLUDED HERE. AND SO I'M ASSUMING THOSE HAVE BEEN ELIMINATED AND THEN WITH GOING TO A GLASS TYPE SET UP THERE, I KNOW THAT WHEN THE THE VIKING STAY WAS PUT TOGETHER WE HAD ISSUES WITH BIRDS AND I KNOW THAT IS SOMETHING WITHIN THE CITY HERE WE HAVE A LOT OF BIRDS THAT COME THROUGH GOT A SANCTUARY FO BIRDS AND I'M VERY CONCERNED ABOUT WHAT THE IMPACT WOULD BE WITH WITH RESPECT TO THAT. SO THOSE ARE JUST A FEW OF THE QUESTIONS THAT I HAVE WITH REGARD TO THE THE BUILDING ITSELF AND OF COURSE THE UH MR. LAYER ANY ANY COMMENTS RELATED TO THOSE QUESTIONS? THANK YOU FOR THE QUESTIONS. I'LL TRY TO REMEMBER ALL THE PIECES MAYBE START FROM THE BIRDS SIDE AND WHEN WE BACK WERE CONCERNED ABOUT THE EFFECTS ON THE ENVIRONMENT OVERALL IN THE IN THE BIRD LIFE AND ALL THE OTHER COMPONENTS THAT INTO THAT PART OF THE CITY WE KNOW THAT THE METROPOLITAN AIRPORTS COMMISSION ARE REALLY CONCERNED ABOUT KEEPING BIRDS OUT OF THAT AREA OF THE CITY. SO THERE'S A LITTLE BIT OF STUDY THAT'S BEEN DONE QUITE FRANKLY THAT THE BUILDING DESIGN NOW HAS LESS WALLS OF VERTICAL SURFACES AND THAT'S REALLY WHERE U.S. BANK STADIUM RUNS INTO THEIR ISSUES WITH BIRDS. SO AS MUCH AS WE CAN WE STUDY THAT THERE IS SOME MITIGATION EFFORTS FOR DEALING WITH THOSE KINDS OF COLLISIONS WITH BIRDS ON THE VERTICAL SURFACES. SO DO OUR BEST TO MITIGATE THOSE ALL THE WAY THROUGH. THE SECOND PART WAS ABOUT MAINLY THE THE SOLAR GLASS AND GLAZING THAT MIGHT COME IN AND . WE HAVEN'T ELIMINATED THAT. WE HAVEN'T STUDIED IT IN DETAIL. WE'RE JUST DOING SOME SUN SHADING CONDITIONS RIGHT NOW. I TNK IT WOULD BE MAYBE NOT THE BEST KIND OF INVESTMENT ON AREAS OF THE BUILDING THAT MIGHT NOT GET MUCH SOLAR SOLAR OR SOLAR ATTRACTION. SO STUDY THOSE THINGS AND TRY TO OPTIMIZE THAT AS BEST WE CAN. CERTAINLY THE THE GLASS ROOF, THE CLEAR IT'S A POLYCARBONATE ROOF THE CLEAR ROOF REALLY ISN'T THE RIGHT KIND OF SPOT FOR PUTTING IN THE SOLAR. IT'S GOT SOME MOVABLE SURFACES IN IT AND OTHER KINDS OF CONDITIONS THAT WOULD COMPLICATE THAT. ON THE ROOF PART ITSELF COMPARED TO WHERE WE WERE BEFORE AND I THINK WE'RE TRYING TO EXTRACT AS MUCH FROM SOLAR WATER HEATING IN THE PLAN FROM OUR SOLAR PANELS ON THE ROOF THAN THEY WERE FROM NECESSARILY THE ELECTRICAL CONSUMPTION. SO ALL THOSE THINGS ARE YET TO BE STUDIED AND KIND OF WORKED THROUGH. AND YOUR FIRST QUESTION IN THOSE ARE ON THE LEED AND ALL THE OTHER QUESTIONS I'LL I'LL CATCH YOU BEFORE YOU LEAVE HERE. IT'S JUST CERTIFICATION WILL WE'LL KNOW MORE ON APRIL 12 WHEN WE MET MEET WITH U.S. GREEN BUILDING COUNCIL. KIND OF THE CONDITIONS THERE FOR PROJECT REMAINS AS A REGISTERED PROJECT THAT DOESN'T MEAN THAT WE HAVE KIND OF GO THROUGH ALL THE PROCESSES BUT IN THE PAST ONE OF THE THINGS THAT BECAME REALLY DIFFICULT AND IT'S PART OF THE GREEN BUILDING CERTIFICATION PROCESS IS THAT THERE AREN'T ANY BENCHMARKS OF A BUILDING OF THIS SIZE OR CALIBER. SO WE HAVE TO DO SOME UNUSUAL THINGS TO MEASURE AND KIND OF DETERMINE WHETHER IT MEETS THE SORT OF STANDARDS ARE FOR OR LEED CERTIFICATION. THEY DON'T WANT TO DIMINISH THE INTEGRITY OF THEIR CERTIFICATION PROCESS NOR DO WE AND IN THE PROMOTION OF THE PROJECT BUT ALSO WE WANT TO USE THINGS THAT ARE OF KNOWN QUANTITIES SO WE'LL KNOW A LITTLE BIT MORE ON APRIL 12TH AND WE'LL BRING THAT FORWARD. WE WON'T KNOW THAT INFORMATION PRIOR TO THE SUSTAINABLE CITY COMMISSION ON THE NINTH BUT WE'RE GOING TO CONTINUE TO PURSUE THOSE KINDS OF ACTIVITIES ALL THE WAY THROUGH. THANK YOU. WE SEEM TO HAVE MORPHED A BIT INTO SUSTAINABILITY BUT WE CAN GO BACK AND FORTH BETWEEN THE DESIGN AND THE SUSTAINABILITY. COUNCILMEMBER NELSON YEAH, THINK MY QUESTIONS MAY STRADDLE THAT. THE FIRST ONE IS VERY UN DESIGN NOT TOTALLY FAMILIAR WITH THIS TYPE OF BUILDINGS SO CAN YOU GIVE U A SENSE OF WHAT REPAIR MAINTENANCE REPLACEMENT LONGEVITY A BUILDING STRUCTURE OF THIS TYPE LOOKS LIKE IN COMPARISON TO DIFFERENT TYPE OF CONSTRUCTION IN PARTICULAR ? YEAH. NOW THERE'S THERE'S JUST THE ENTIRE STRUCTURE. SO THE QUESTION ABOUT DURABILITY LONGEVITY REPAIR AND MAINTENANCE THE PLAN THAT OPEN AIR HAS THAT WE'VE BEEN EVALUATING AND KIND OF FINE TUNING USES AN ALUMINUM STRUCTURE. OUR PAST PLAN HAD A STEEL STRUCTURE. WE KNOW THAT THE ALUMINUM HAS FAR LESS RESISTANCE TO RUSTING OR THOSE KIND OF CORROSIVE ELEMENTS. WE ALSO HAVE CONSULTANTS THAT DEAL WITH ALL THE OTHER KIND OF AREAS THAT MIGHT DETERIORATE OR OVER TIME OR THOSE KINDS OF CONDITIONS. WE REALLY WANT TO MINIMIZE BUT IT LIKE A LOT OF THINGS IT TAKES ONGOING MAINTENANCE SO THERE'S A ROBUST MAINTENANCE AND OPERATIONS PLAN TO KIND OF DEAL THE PROJECT OVERALL. WHAT WE'VE SEEN IS PROJECTS THAT HAVE GOOD MAINTENANCE PLANS TEND TO HAVE KIND OF A VIBRANCY FOR A LONG TERM IN THEM. OTHERS THAT MAYBE CUT BACK ON THAT OPERATIONS OR THOSE KIND OF COST THINGS. YOU CAN KIND OF SEE THE WEAR AND TEAR AROUND THE CONDITIONS I THINK IN THIS NEW PLAN WE ARE USING MORE DURABLE AND MORE STABLE MATERIALS FOR THAT FOR THAT PIECE ELSE AND ALL OF THAT. WE WILL GO THROUGH A PROGRAM WITH OUR FIRM GLOBAL WHICH IS A INSURANCE UNDERWRITER FOR THE PROPERTY AND. THERE'S CERTAIN STANDARDS AND BENCHMARKS THAT WE USE ALL THE WAY THROUGH. SO ALL THROUGH THAT SAME KIND OF PROCESS TO INSURE THE FRONT END WE'RE MAKING RIGHT DECISIONS TO MINIMIZE THOSE KIND OF CONDITIONS OVER THE LONG HAUL. YOU KNOW, I THINK CURT COULD PROBABLY TELL US ABOUT WEST EDMONTON THAT THAT WATERPARK HAS BEEN IN OPERATION 30 YEARS AND SO THAT'S PROBABLY OUR BEST EXAMPLE OF LONGEVITY THERE. PORT PRESIDENT COUNCIL MEMBERS AND PORT COMMISSIONERS YES, THAT'S BEEN IN OPERATION NOW FOR 40 YEARS AND THE STRUCTURE THAT THAT THE OPEN AIR STRUCTURE THAT DAVID IS REFERRING TO IS ALUMINUM MUCH BETTER THAN THE STEEL STRUCTURE THAT WE HAVE AT EITHER OF OTHER TWO PROJECTS. THE STEEL STRUCTURE DOES CORRODE IT GETS NICKED UP RUST SITS IN A VERY CORROSIVE ENVIRONMENT. ONE OF THE CONSULTANTS WE'RE WORKING WITH IS ALSO AN OF NUMEROUS WATER PARKS IN THE COUNTRY RECOMMENDED THIS STRUCTURE AND THIS COMPANY SAID IT'S THE BEST STRUCTURE HE'S EVER WORKED WITH IS KNOW NO ISSUES WITH IT WHATSOEVER EITHER FROM THE SKYLIGHT STANDPOINT THE OPERATING STANDPOINT BUT ALSO FROM THE RUSTING STANDPOINT. SO IT COMES HIGHLY RECOMMENDED TO US TO YOUR POINT THERE IS VERY ROBUST REPAIR AND MAINTENANCE BUDGET AS AS STAFF HAS HAS REVIEWED WELL AS CAPITAL IMPROVEMENT BUDGET THAT'S A PERCENTAGE OF THE ANNUAL REVENUE THAT GO IN FOR FUTURE REPLACEMENT OF THAT BUT WE WE ANTICIPATE THE STRUCTURAL LASTS LONGER THAN THE ONE WE HAVE IN WEST EDMONTON AND THAT'S 40 YEARS AND STILL OPERATING IN IT. CAN I JUMP IN FOR A MOMENT JUST TO FOLLOW UP ON THE QUESTION IF COULD GET OTHER EXAMPLES OF THIS TYPE OF STRUCTURE WITH THE RETRACTABLE ROOF, ALUMINUM AND SO ON IN THIS CLIMATE? YES. SO YEAH THE COMPANY THAT DOES IS ACTUALLY OUT OF TORONTO SO THEY'RE HEADQUARTERED IN TORONTO IF YOU LOOK AT THEIR WEBSITE YOU'LL SEE PROJECT EXAMPLES THAT THEY HAVE ALL OVER THE WORLD SO CALLED CLIMATES, WARM CLIMATES YOU NAME IT. VAST EXPERIENCE WITH IT'S NOT ALL IN WATER PARKS I THINK THEY HAVE 22 THAT YOU'LL SEE ON THEIR WEB PAGE OF A WATER PARK STRUCTURES BUT IT'S SOLARIUMS IT'S YOU KNOW CONCERT HALLS IT'S RESIDENTIAL PEOPLE ANYBODY WANTS A RETRACTABLE ROOF OVER WHAT SPORTS COMPLEXES SO YOU'LL SEE THEM ALL OVER THE WORLD. SO YES, THERE'S THERE'S THERE'S A VAST OF EXPERIENCE IN COLDER CLIMATES, EVEN COLDER THAN OURS. VERY GOOD. THANK YOU. I'M SORRY. GO. BUT THANKS FOR INDULGING ME. NO REASON TO APOLOGIZE. SECOND QUESTION WAS JUST PROBABLY MY OWN LACK OF UNDERSTANDING BUT I WOULD THINK WHEN YOU OPEN THE ROOF YOU LOSE ALL THE MOISTURE AND HUMIDITY AND I WOULD THINK THAT MAYBE YOU TRY TO RECAPTURE THAT, REUSE THAT SOMEHOW AS OPPOSED TO LETTING IT JUST GO. I MEAN I'M JUST THINKING OF LIKE MY OWN AIR CONDITIONER AT HOME. IT TAKES THE OUT AND IT JUST GOES DOWN THE DRAIN. BUT I WOULD THINK WITH THE AMOUNT OF WATER HAVE YOU COULD RECAPTURE THAT OR DEHUMIDIFICATION OR SOMETHING LIKE THAT AND TRY TO GET THAT HUMIDITY REUSE NOT LOSE IT BECAUSE I MEAN THAT'S ONE OF THE BIG ISSUES THAT WE'VE TALKED ABOUT IS YOU KNOW OVER THE THE POOLS WITH PEOPLE COMING IN AND OUT EVAPORATION YOU LOSE A LOT OF WATER AND YOU JUST LOSE MORE BY OPENING THE ROOF. MAYOR OR PRESIDENT COUNCIL AND PORT AND COMMISSIONER AND COUNCIL CERTAINLY COVERED IT. YEAH. SO SO ONE OF THE BEAUTIES OF THE OPEN AIR RATE YOU CHOOSE WHEN YOU WANT TO OPEN THIS RETRACTABLE ROOF TYPICALLY THAT'S THE HOT SUMMER HUMID DAYS RIGHT WHEN WE WOULD BE NORMALLY CONDITIONING THIS ENVIRONMENT BECAUSE OF THE HEAT THAT WE GENERATE ONLY FROM THE EQUIPMENT AND WATER BUT FROM THE PEOPLE YOU'RE CREATING A LOT OF HEAT SO BY ALLOWING THAT HEAT TO ESCAPE AND THAT HUMIDITY TO ESCAPE SO THAT YOU'RE TRYING A DEHUMIDIFIER ACTUALLY YOU'RE CREATING SO MUCH HUMIDITY THAT YOU'RE TRYING TO DO SO BY OPENING THE ROOF AND LETTING THAT ESCAPE YOU DO NOT HAVE TO CONDITION THAT AIR. SO IN TERMS OF RECAPTURE YOU KNOW, THERE'S THERE'S THERE'S YOU'RE NOT TRYING TO RECAPTURE THE HEAT. YOU'RE TRYING TO YOU KNOW, GET RID OF EXHAUST IT IN TERMS OF RECAPTURING THE MOISTURE. I HAVEN'T HEARD OF THAT AS AN OPTION. CERTAINLY SOMETHING WE ASK AND I THOUGHT I APOLOGIZE BUT I THOUGHT I HAD SEEN THAT YOU DO SOME OF THAT BUT IT'S MORE NOT HUMIDITY BUT IT'S THE STUFF RUNS UP. I REMEMBER IN NEW JERSEY IT INTO A DRAIN AND YOU CAN REUSE THAT AND THAT'S PROBABLY MORE FROM THE PEOPLE OUT OF THE POOL THAN ANYTHING ELSE. YES. YEAH. YOU GET A WATER COMING OFF THE KIDS AS THEY EXIT THE POOL AND AND RIOTS AND SLIDES SHOW IS THERE I THINK IF I HEAR YOUR QUESTION COUNCILMEMBER NELSON IT IS A WAY TO CAPTURE THAT AND RECYCLE THAT BACK INTO THE PROJECT. I DON'T KNOW THAT THAT THAT WE'VE TALKED ABOUT THAT DAVID. I DON'T I DON'T RECALL IT'S A IT'S IT'S A REALLY GOOD QUESTION ABOUT HOW TO CAPTURE THE CONDENSATION ISSUES AND OTHER KIND OF CONDITIONS AND TYPICALLY WE DON'T WANT TO HAVE CONDENSATION ON BUILDING ELEMENTS BECAUSE THAT PROMOTES RUST OR OR OTHER KINDS OF CONDITIONS. SO WE'RE TRYING TO FIGHT THAT ALL THE TIME. THERE ARE A LOT OF MECHANICAL SYSTEMS THAT CAN TAKE IN THE AIR AND THEN TRY TO DEHUMIDIFIER THAT AND MAYBE CAPTURE SOME OF THAT WATER. BUT ARE ARE EXAMINATION OF THIS ROOF STRUCTURES THAT IT IT DOESN'T HAVE TO FULLY CAN OPEN PARTIALLY WE CAN FINE TUNE IT TO THE CLIMATIC CONDITIONS BOTH INSIDE THE WATER PARK AND THEN OUTSIDE. WELL AND THERE MAY BE TIMES WHICH AS THE HEAT BUILDS UP AS WE'VE LOOKED AT THE ENGINEERING OF THE PREVIOUS WATER PARK WE KNEW THAT THE HEAT WOULD RISE TO THE TOP AND THAT'S THAT'S THE PERFECT PLACE TO TRY TO EXHAUST OUT THAT EXTRA HEAT. EVEN IN OUR OWN HOMES WE HAVE VENTILATIONS IN THE ATTIC SOME OTHER KINDS OF CONDITIONS AND TRY TO DEAL WITH MITIGATE THE SOLAR GAIN THAT HAPPENS DURING THIS KIND OF TIME OF YEAR. SO THOSE ARE THOSE ARE THE STRATEGIES THAT WE'RE USING TO TRY TO KEEP THE THERMAL IN A GOOD PLACE, REDUCE CONDENSATION AND AND AND FINE TUNE THAT KIND OF OPENING OF THE ROOF. COMMISSIONER HAHN, I LIKE TO COMMENT ABOUT IF YOU COULD TURN IN MY COMMENT POLICE COMMISSIONER THANK YOU FOR THE COMMENT ABOUT EXTRACTION. I KNOW THERE ARE CERTAIN PLACES DEPENDING ON WHAT THE FLUID IS COMING OUT IS CAN BE CONVERTED METHANE AND OR TO GAS AND SO FORTH BUT THE THE THE ABILITY TO DO OPENING JUST PARTIAL IN THAT AND IN I THINK OF HUMID AIR GOING OUT ALL GREAT BUT YOU GOT IN MINNESOTA SO MANY DAYS WHERE IT'S JUST AS NASTY AS IN CERTAIN DAYS IS THAT HAS THAT AIR ENTITY GIVING YOU ANY SUGGESTIONS ON YOU KNOW ON A LIKE THIS OR THESE ARE THE FACTORS WHEN YOU MAJOR CHOOSE NOT TO REOPEN OR YOU MAYBE ONLY OPEN X NUMBER OF DEGREES OR SOMETHING LIKE THAT OR IS IT YOU GUYS FIGURE IT OUT ON YOUR OWN THEY HAVE SOME KIND OF GUIDING PRINCIPLES ARE AIRPORT PRESIDENT COUNCIL MEMBERS COMMISSIONERS THERE'S AN APP FOR THAT YEAH OKAY I ASSUME THAT'S PART OF THEIR PLAN ABSOLUTELY. BUILT INTO THE SOFTWARE SYSTEM. OKAY. MONITOR THE HUMIDITY AND THE HEAT AND THE WIND, THE CLOUDINESS ALL OF THAT GETS BUILT INTO A VERY SOPHISTICATED PROGRAM AND WILL ADVISE YOU OR YOU CAN LET IT GO AUTOMATIC WILL AUTOMATICALLY ADJUST THE WINDOWS SKYLIGHTS OR YOU CAN OVERRIDE IT OR IT'LL MAKE SUGGESTIONS YOU TELL YOU YOU KNOW IT IT'LL SUGGEST TO YOU OR IT'LL TAKE CONTROL RIGHT. AND THAT'S THAT'S UP TO OUR OPERATIONS TEAM TO TO MONITOR . THANK YOU. BUT YES THE WONDERFUL APPS RIGHT? YEAH. COUNCILMEMBER THANK. MAYOR SO MY QUESTION IS KIND OF AROUND THE SIDE OF IT GIVEN THAT IT'S A PRIVATE NOW IS THERE GOING TO BE ANY ONGOING OBLIGATION FOR THE OR THE RESIDENTS TO TO BEAR THE CONTINUED MAINTENANCE AND UPKEEP OF THE BUILDING ONCE IT'S BEEN COMPLETED? UM MAYOR FORD PRESIDENT COUNCIL MEMBERS COMMISSIONERS COUNCILMEMBER NO, ABSOLUTELY NOT. THERE NO INVESTMENT OF BLOOMINGTON TAX DOLLARS PERIOD ON THE FRONT END OR THE BACK END AND AND BEFORE WE DONE I DON'T WANT TO GET OUT OF ORDER I KNOW WE'RE REALLY SEQUENCING BUT I WOULD LIKE TO COME BACK TO THAT EQUITY ISSUE. IT'S A IT'S A HOT BUTTON TO MINE AND I'D LIKE TO ADDRESS IF I MAY AT THE END THANK YOU . THERE'S NO QUESTIONS WHEN WE MOVE ON TO THE FINANCING. I THINK THAT'S WHERE A LOT OF THE MOST QUESTIONS ARE COMING UP I THINK AND SO WHY DON'T WE START WITH COUNCILMEMBER LOMAN? WE CAN GO TO THE COUNCILMEMBER NELSON HERE AND UH AND THEN MAKE SURE THAT MR. HAGAN HAS A CHANCE TO RESPOND. WELL, COUNCILMEMBER LOWMAN THANK YOU, MAYOR. AND SO ONE OF THE QUESTIONS I HAVE ABOUT THIS FINANCING PIECE AND MAYBE I'LL START THIS AND I CERTAINLY DO WANT TO HEAR WHAT THE MALL HAS TO SAY WITH RESPECT TO AND I KNOW THE CITY WILL WORK WITHIN THE CONFINES OF WHAT WE HAD AND. SO AND I JUST THINK AS AS TAXPAYERS PAY ATTENTION AND WATCH TONIGHT THEY WANT TO UNDERSTAND HOW WE KIND OF GOT TO WHERE WE'RE AT IN TERMS OF WHAT WE'RE SEEING TODAY. AND THAT'S WHAT I'M TRYING TO JUST UNDERSTAND TOO WELL. SO YOU KNOW IN LIEU OF EQUITY THE STAFF AND I'LL LOOK TO SEE IF THERE'S A WAY TO HAVE WITH RESPECT BECAUSE THAT'S TYPICAL TYPICALLY IN THE BANKING INDUSTRY YOU KNOW IF YOU DON'T HAVE EQUITY TO BRING FORWARD YOU KNOW IS IS IT POSSIBLE FOR US TO DO COLLATERAL OR SOME OTHER TYPE OF FORM OF OF IN ORDER TO MAKE SURE WE HAVE AN INSURANCE WITH OUR PARTICULAR INVESTMENT BEAR PRESIDENT ERICKSON COMMISSIONERS COUNCIL COUNCILMEMBER COUNCILMEMBER LOWMAN LOOKED AT MANY ITERATIONS AS FAR AS WITH REGARDS DO WE DO A DEFERRED WE'RE LOOKING AT A DEFERRED EQUITY DO WE REQUIRE A LIMITED EQUITY? AND THEN WE LOOKED AT THIS NO EQUITY AND A LOT OF IT COMES DOWN TO IF WE START TO GET INVOLVED INTO TO THE DEAL THAT THAT BECOMES PART OF OUR PROJECT AND THEN WE BECOME INVESTED IN THE WATER PARK AND THEN THE CITY TAXPAYERS WILL HAVE THE LIABILITY IF DEBT SERVICE IS ABLE TO BE COVERED . IT PUTS KIND OF THE THE CITY OR PORT AUTHORITY'S CREDIT RATING AT RISK AT THAT POINT. SO WITH THIS DEAL WOULD THEY LIKE YOU STATED AND WE PRESENTED WE'RE KIND OF WORKING BASED ON THE PARAMETERS THAT WE HAD WITH THIS PENDING PLAINTIFF THAT FLEXIBLY AND TRYING TO GO UP IT IS UNIQUE AND IT IS AS STATED UNPRECEDENTED AND IS THE MODEL WITH WHICH YOU KNOW WE ARE PRESENTING BEFORE YOU TO IS THIS SOMETHING THAT THESE BOARD THAT YOU BOARDS ARE COMFORTABLE AND WE WANT TO HEAR THESE QUESTIONS AND IF THERE'S ANY ADDITIONAL INFORMATION AS WELL THAT YOU NEED TO GET COMFORTABLE WITH, DEFINITELY LET US KNOW SO THAT WE CAN CONTINUE TO DO OUR NOW OUR ANALYSIS AS STATED WE CONTINUE TO RUN NUMBERS AND ANALYZE THIS TO MAKE SURE THAT IT MAKES SENSE AND IT'S FINANCIAL IT'S PUTTING THE CITY AND PORT AUTHORITY'S INVESTMENT AT A GOOD RISK AND I APPRECIATE THE FACT THAT YOU ARE IN ANSWERING MY MY QUESTION, YOU KNOW, STATING THAT THIS WAS WHAT STAFF BELIEVE WAS ONE OF THE LEAST RISKY FOR FOR THE GENERAL CITY PORT AND THIS WAS THE BEST WAY FORWARD YOU THOSE OTHER PIECES I KNOW OFTENTIMES RESIDENTS WHEN WE'RE HEARING THIS THEY THEY DON'T GET THAT OPPORTUNITY TO GO THROUGH THAT PART THAT YOU DO SO WITH THAT WITH RESPECT WITH THE OF THE MONIES THAT COME IN THERE WITH THIS PARTICULAR PROPOSAL IS THE 60 40% SPLIT 40% COMING OUT OF TIFF. AND YOU KNOW, BY MY MATH HERE AND AGAIN I'M YOU KNOW I'M NO ACCOUNTANT OR A FINANCE PERSON MY WIFE IS MY NUMBER NUMBERS HERE SOMETHING THAT $160 MILLION BUT THEN WITH THE THE THAT THIS DEFERMENT WITH RESPECT TO BY NOT HAVING A EQUITY PLACED IN THE PROPOSAL WITH THAT 6040 SPLIT THE MINIMUM IS $100 MILLION WHY NOT 160 MILLION THE TOTAL INVESTMENT YOU KNOW THAT WE'RE PLACING IN THIS PARTICULAR THING HELP ME UNDERSTAND WHY THE 60 MILLION ARE MILLION OF GAP? SURE. MAYOR ERICKSON COMMISSIONERS COUNCIL MEMBER COUNCILMEMBER LOWMAN, BEFORE I ANSWER THAT I ALSO JUST WANT TO STATE WE DID ANALYZE THE LEAST RISKIEST THE PROPOSAL WOULD BE FOR YOU AS MS. MESA STATED THERE IS STILL RISK. SO I JUST WANT TO HIGHLIGHT THAT AS WELL THAT YOU KNOW THAT THERE ISN'T THERE STILL RISK IN THE DEAL THAT WE'RE PROPOSING BASED ON OUR ANALYSIS IT'S POTENTIALLY THE LEAST RISK TO TO THE BUILDING TO. WITH REGARDS TO YOUR QUESTION, WITH THE 6040 SPLIT IN THE MINIMUM OF $100 MILLION, WHAT WE LOOKED AT WAS WHAT ARE OUR PATHS TO RECAPTURE TERMS? SO ALL OF OUR PUBLIC FINANCING PROJECTS HAVE A RECAPTURE PROVISION WITHIN IT AS FAR AS THE PROJECT SUCCEEDS AND IT DOES BETTER THAN MARKET CONDITIONS OR MARKET RATE OF RETURNS THERE IS A RECAPTURE OUR RECAPTURE TERMS WITHIN MAJORITY OF OUR OTHER DEALS IS UP TO 50% OF THE PUBLIC INVESTMENT THE DEAL. WHEN WE WERE ANALYZING THIS PROJECT WE FELT THAT THE CAPTIVE WAS OUTSIDE OF THAT RECAPTURE AND SO WE WANTED TO TO CAPTURE HUNDRED PERCENT OF THAT. SO THAT'S HOW WE GOT TO THE 85 MILLION THEN WE'RE WE'RE TRYING TO THEN CAPTURE THE PUBLIC IMPROVEMENTS WHICH IS A $75 MILLION INVESTMENT THAT PUBLIC IMPROVEMENT THE PARKING RAMP IS IS GOING TO BE SERVING MULTIPLE FUTURE DEVELOPMENTS NOT JUST THE WATER PARK IT WOULD BE SERVING BUT MOST LIKELY THE FUTURE HOTEL AS WELL AS OTHER DEVELOPMENTS JUST TO THE NORTH. AND SO WHAT WE DID IS WE THEN PROPORTIONED AMOUNT OF USE THAT THE WATER PARK IS OF THAT PARKING TO COME UP WITH THE ADDITIONAL 15 MILLION TO GET TO THE MINIMUM AMOUNT OF 100 MILLION TO BE CAPTURED. THAT'S JUST THE MINIMUM IF EQUITY COMES LATER AND BASED ON THE THE TAKE OUT AND THE AMOUNT OF EQUITY THAT IS BUILT INTO THE WATER PARK PROJECT AT THAT TAKE OUT MORE EQUITY CAN CAN BE COMING BACK TO THE PROJECT DISPERSED BETWEEN THOSE TWO ACCOUNTS AND WE NEED A RUPTURE BUT IS THERE A MAXIMUM ON THAT AMOUNT? MAYOR PRESIDENT ERICKSON, COMMISSIONERS AND COUNCILMEMBER COUNCILMEMBER LOWMAN AS OF RIGHT NOW WE ARE IN NEGOTIATIONS WITH REGARDS TO A MAXIMUM FOR THE PORT AUTHORITY OF THE ADMINISTRATIVE FUND TO PUT A ON THAT. HOWEVER ON THE TOTAL AMOUNT THERE IS NO MAXIMUM SO IT COULD CONTINUE TO GO INTO THE MALL OF AMERICA DEVELOPMENT FUND UNTIL EQUITY COMES AT A LATER DATE. OKAY. SO THEY COULD GO OVER THE 40% OF THE INITIAL INVESTMENT, CORRECT. JUST ONE LAST THING THERE. I WANT TO BE RESPECTFUL OF PEOPLE'S TIME SO TO MAKE A QUICK COMMENT ON THAT THAT WE CAN ADDRESS LATER ON WE'LL GET TO THE TERM SHEET. GIVEN THE RISK THAT'S ASSOCIATED WITH THIS, I WOULD EXPECT THE ANALYSIS THAT WAS GIVEN TO GET US CLOSER TO 160 MILLION BECAUSE OF THE RISKS ASSOCIATED WITH THIS THAT WE WOULD TRY TO RECAPTURE ALL THAT AND 60 MILLION REGARDLESS OF PUBLIC INTEREST OF THE RISK ASSOCIATED WITH THIS DEAL. SO THAT'S JUST ONE COUNCILMEMBERS OPINION. AND THEN IF YOU COULD JUST BRIEFLY TALK ABOUT WHY THE 6040 SPLIT THE 60 YOU KNOW WITH THE MALL PIECE IN 40 I WOULD HAVE THOUGHT THAT THAT WOULD HAVE BEEN THE OTHER WAY AROUND WHERE WE WOULD BE AT 40% GOING TO THE YOU KNOW TO THE MALL KIND OF PIECE AND 60% COMING TO YOU KNOW WHAT WHAT WHAT WE WOULD BE ABLE TO WORK WITH THE CITY, YOU KNOW, GIVEN OUR STUFF FOR AFFORDABLE HOUSING. ABSOLUTELY MAYOR BUSSEY PRESIDENT ERICKSON, COUNCILMEMBERS AND COMMISSIONERS THAT WASN'T NEGOTIATED SPLIT CERTAINLY IT WOULD BE WE WOULD LOVE TO SEE MORE FOR THE CITY ALWAYS BUT THE DECISION THAT WE CAME TO HAD TO DO WITH THE FACT THAT THERE IS MORE AVAILABLE IN THE FUND THAT WILL BE THE MALL OF AMERICA PROJECT FUND. IT WILL ALMOST GIVE US A NEXT ROUND OF SPENDING PLAN TIFF WE CAN USE TO INVEST IN PROJECTS OTHERWISE THE TYPICAL DOESN'T HAVE A LOT OF FLEXIBILITY TO IT AND SO WE WANTED TO REALLY MAXIMA EYES WHAT WE COULD DO WITH THE RECAPTURE FROM THIS PROJECT. THE MALL OF AMERICA HAS COMMITTED TO KEEPING THAT MONEY HERE IN BLOOMINGTON AND SO REALLY FEEL LIKE WITH THIS VERSION OF THE RECAPTURE WE CAN MAXIMIZE FUTURE WHETHER I DON'T WANT TO NAME PROJECTS OR SPECULATE AS THE MARKET DETERMINES WE WILL CONTINUE TO SUPPORT THE MALL, CONTINUE SUPPORT TOURISM INFRASTRUCTURE THE 40% BECAUSE IT DOES HAVE THOSE LIMITATIONS. I MEAN WE STILL ANTICIPATE MILLION COMING IN THAT COULD SUPPORT PROJECTS AND SO WE WANTED TO A BALANCE BETWEEN THE FLEXIBILITY THAT WE HAD THE LIMITATIONS THE FUTURE ECONOMIC DEVELOPMENT POTENTIAL WITHIN SITE AND ALSO SPENDING OFF OTHER BENEFITS FOR THE REST OF THE CITY. HAD OUR TAKE BEEN A LITTLE MORE FLEXIBLE WE MIGHT HAVE PUSHED FOR MORE FOR THE REST OF THE CITY. BUT WE THINK THIS IS AN APPROPRIATE BALANCE AND WANT TO CONTINUE TO SUPPORT IN THIS AREA BECAUSE THAT'S THE TOOL THAT WE HAVE. PREMIER NELSON COUNCILMEMBER AND AND COUNCILMEMBER RIVAS COUNCILMEMBER THE MAYOR MY MY QUESTION IS RELATED TO THE IF SOMETHING DOES HAPPEN WHERE WE STOP AND WE HAVE A NEW OWNER WE CAN'T RECAPTURE I GUESS WHAT'S THE MECHANISM TO BUILD UP THAT FUND AGAIN GIVEN THAT WE NO LONGER HAVE WE WOULD HAVE THE ABILITY TO RECAPTURE IF A NEW OWNER DID TAKE PLACE . I'M SURE THEY ARE. PRESIDENT ERICKSON COMMISSIONERS COUNCILMEMBER MILLER THAT IS THE OPPORTUNITY COST AND THE RISKS THAT WE TAKE. SO AS I STATED PREVIOUSLY MAJORITY SO $85 MILLION OF THE SPENDING PLAINTIFF WOULD GO RIGHT INTO THE WATER PARK PROJECT AND THEN WE WOULD USE FUTURE TIVE INCREMENT FOR THE FACILITY. SO WE DO KNOW THAT THERE'S GOING TO BE SLOWLY MORE INCREMENT COMING INTO THE REGULAR MALL TO ACCOUNT FOR FUTURE PROJECTS PLUS ANY WATER PARK CAPTURE. SO IF THAT WATER PARK CAPTURE DOES STOP THAT DOES LIMIT THE AMOUNT OF FUTURE INCREMENT WITHIN THE AREA. SO THAT IS ONE OF THE MAJOR RISKS THAT WE DID OUTLINE WITH THIS DEAL. I THINK IT'S IMPORTANT TO REALIZE THAT IF MALL OWNERSHIP WERE TO CHANGE IT WOULD BE SUBJECT TO THE CONTRACTS THAT WE HAVE PLACE. SO ALL OF THESE AGREEMENTS AND THINGS WOULD HAVE TO BE SOMETHING THAT IF SOMEBODY ELSE CAME IN WOULD HAVE TO BE SUBSUMED BY THEM SO THEY DON'T AWAY. IT JUST WOULD BE A DIFFERENT PERSON THAT MIGHT BE CONTROLLING IT AND AS SOME OF YOU REMEMBER MAY REMEMBER THE WERE NOT THE ORIGINAL MANAGING PARTNER ON THE MALL IT WAS MELVIN SILENT. SO AT ANY RATE THOSE THINGS HAPPEN AND YOU HAVE IT BUT EVERYTHING IS DONE ACCORDING TO THE CONTRACTS. SO THREE SHOULD NOT BE MUCH OF ANY CHANGE WITH RESPECT TO ANY OF THESE PROVISIONS WE'RE TALKING COUNCILMEMBER RIVAS, COUNCILMEMBER CARTER, COUNCILMEMBER RIVAS AND THAT I JUST HAVE ONE QUESTION TO YOU OR PERHAPS WE I WANT TO ADDRESS THE 40% OR 40 MILLION POTENTIALLY COMING INTO THE COFFERS. I WOULD LIKE TO SEE SOME OF THAT MONEY BEING USED NOT JUST FOR FOR HOUSING IF YOU WOULD COME UP WITH SOME IDEAS TO PUT IT INTO USE. SO ON INFRASTRUCTURE AROUND THE AREA WOULD BE A GOOD THING FOR EVERYBODY IN THE CITY TO DO. SEE I MEAN I DON'T UNDERSTAND THAT TIFFS ARE CREATED IN THE WAYS THAT THEY ARE. HOWEVER IN THIS PARTICULAR TIME. I KNOW THAT SOMETHING CAN BE DONE TO ADJUST IT TO PROVIDE SOMETHING FOR THE REST OF THE CITY TO WORK ON INFRASTRUCTURE NOT ONLY FOR AFFORDABLE I MEAN I WOULD LIKE TO SEE THAT MYSELF BEING PUT INTO EFFECT DOING ANYTHING THAT WE COME UP WITH OUT OF THIS. THANK YOU, MAYOR BUSSEY. PRESIDENT COUNCIL MEMBERS, COMMISSIONERS AND MEMBER RIVAS. YES. I MEAN IDEALLY WE WOULD LIKE TO BE ABLE TO SEE THAT MONEY BEING USED FOR MULTIPLE OPPORTUNITIES CITYWIDE. UNFORTUNATELY RIGHT NOW IF IT WERE TO BE USED FOR INFRASTRUCTURE THAT WOULD BE LIMITED TO SOUTH LOOP I WOULD TURN IT TO PORT COUNCIL JUST TO ELABORATE LITTLE BIT ON THAT OR IF THERE MIGHT BE OPPORTUNITIES IN THE FUTURE. RIGHT NOW THE SOUTH LOOP AREA IS THE MALL OF AMERICA TYPE DISTRICT. UM THAT WHEN WE'RE USING REGULAR TIF FROM THE MALL OF AMERICA TIF DISTRICT WE HAVE TO USE IT WITHIN SOUTH LOOP OR WE CAN USE SOME OF IT FOR HOUSING AFFORDABLE HOUSING ACROSS THE CITY. WE CAN ALSO USE THE THE MALL OF AMERICA UM TIFF DOLLARS REGULAR HAVE DOLLARS INFRASTRUCTURE BUT THAT HAS TO BE WITHIN THE SOUTH LOOP AREA SO POTENTIALLY IF IF THIS ALL WORKS OUT AND WE HAVE THE AND THERE IS UM THESE TWO POTS OF MONEY THAT TO FRUITION UM YOU KNOW WE CAN POTENTIALLY ASK THE LEGISLATURE TO LET US USE THAT TEF ACROSS THE CITY SO I THINK WHAT THE BOTTOM IT WOULD TAKE LEGISLATIVE ACTION TO REDUCE THAT WHEN IT COMES TO THIS DAY AND OF YEAH WELL THANK YOU I'M JUST LOOKING AFTER THE CONSTITUENTS I MEAN THAT'S BASICALLY ONE OF THE MAIN QUESTIONS THAT THEY HAVE ARE WE GOING TO BENEFIT OUT OF THIS? UH, BUT I DO UNDERSTAND IT COMES FROM THE STATE AND THAT'S HENCE THE QUESTION I WANT EVERYBODY THAT IS LISTENING TO BE ABLE HEAR THAT OR IF WE CAN PRESENT TO THEM IN A IN IN A MORE FRIENDLY WAY THAT THEY CAN UNDERSTAND IT BECAUSE THE MISCONCEPTION IS THAT ALL THIS MONEY THE CITIES IN REALITY IF YOU CAN ONLY BE USED IN THE SOUTH LOOP IN THE LAST OF THAT AREA PERIOD THE CITY JUST KIND OF MANAGES THAT BUT IT REALLY DOESN'T BELONG TO THE CITY IN ALL BUT THAT I WANT PEOPLE TO UNDERSTAND THAT THAT THERE IS A POSSIBILITY A POSSIBILITY THAT IN THE FUTURE WE MIGHT BE ABLE TO ENJOY SOME OF THAT REVENUE THROUGHOUT THE CITY. JOHN, THANK YOU. THANK YOU. COUNCILMEMBER COUNCILMEMBER CARTER. THANK YOU. MAYOR. I HAVE A QUICK QUESTION AROUND THE UM THE RECAPTURE. SO IT'S OF 100% OF THE PROFITS FROM THE WATER PARK OPERATIONS WOULD BE PUT INTO THESE TWO FUNDS AFTER THE DEBT SERVICE IS PAID AND I'M JUST WONDERING IF WE HAVE A SENSE OF HOW LONG IT WOULD TAKE TO SEE THAT DEBT SERVICE PAID IN THESE FUNDS TO BE REPLENISHED OR TO HAVE MONEY PUT INTO THEM AND YOU SEE PRESIDENT ERICKSON COUNCIL MEMBERS AND COMMISSIONERS SO THE DEBT SERVICE WILL BE A CONTINUATION. IT'LL BE THE TERM OF THE LOAN BUT WE WOULD BE LOOKING TO POTENTIALLY RECAPTURE AS SOON AS THE FIRST YEAR OF OPERATION IN SO I SENSE SO THIS IS RELATED TO THE IS SO IN THE LANGUAGE IN THE PACKAGE THERE'S 100% OF PROFITS FROM THE WATER PARK OPERATIONS AFTER THE REQUIRED DEBT SERVICE HAS BEEN PAID TO THE PRIVATE LENDER WILL BE CAPTURED AND DISPERSED INTO THESE TWO ACCOUNTS. COMMISSIONER CARTER I'M SORRY THAT WAS PROBABLY A CONFUSING WAY TO WRITE IT. SO THE THE THE DEBT SERVICE WILL CONTINUE WOULD BE A LONGER TERM LOAN AND SO IT MEANS AFTER THAT DEBT SERVICE IS PAID THE PROFIT AFTER THAT IN ANY GIVEN YEAR. RIGHT. SO HOW WE HOW LONG WE HAVE A SENSE OF HOW IT WOULD TAKE FOR THAT DEBT TO BE PAID OFF BUT WE SEE ADDITIONAL PROFITS GOING INTO THESE THAT WOULD DEPEND ON THE LIFE OF THE LOAN THE MALL OF AMERICA. OKAY. SO WE DON'T HAVE A SENSE OF THAT AT THIS POINT. UM, WOULD YOU LIKE TO SPEAK TO THAT? SURE. IT'S A COUNCILMEMBER FOR PRESIDENT COUNCIL MEMBERS AND COMMISSIONERS WE NEED TO COME UP WITH AN ACRONYM AS A SHORT AND COUNCILMEMBER CARTER. IT REALLY IT DEPENDS ON THAT THE NET OPERATING INCOME THAT PROJECT GENERATES SO I THINK WHAT HOLLEY TRYING TO GET AT IS IF THE DEBT SERVICE IS A NUMBER MILLION DOLLARS A YEAR AND THE PROJECT HAS A NET OPERATING INCOME OF $25 MILLION, EUR 5 MILLION A YEAR GETS CAPTURED WHEN WE ANTICIPATE THE BULK OF THAT RECAPTURE IS NOT OVER 30 YEARS, IT'S PROBABLY FIRST REFINANCING OF THE PROJECT WHICH IS PROBABLY THREE YEARS AFTER THE PROJECT OPENS. THAT'S WHEN THE PROJECT WILL BE REFINANCED PROJECT REVALUED THE DEVELOPMENT RISK IS GONE THINGS GO WELL AS WE ANTICIPATE THERE WILL BE EQUITY THAT IS EARNED BY THE PROJECT RIGHT THEN. THAT EQUITY THAT'S EARNED BY THE PROJECT GETS DISPERSED IT'S COUNTERCLAIM FORMULA THAT WE'VE BEEN TALKING ABOUT BUT I THINK I THINK THAT'S WHERE YOU WILL SEE THE PAYBACK OF THAT THAT RECAPTURE REGARDING RECAPTURE AND WHAT'S THE APPROPRIATE AMOUNT OF RECAPTURE. I THINK WHAT'S EASY TO THAT I THINK THE DEFAULT THOUGHT PROCESS FOR COUNCIL AND COMMISSIONERS IS IS THAT THESE ARE BLOOMINGTON TAX DOLLARS SHOULD BE REGULATED THROUGH A BLOOMINGTON TAX INCREMENT FORMULA AS WE HAVE IN OUR DEVELOPMENT AGREEMENT THESE ARE NOT AND I HEAR WORDS LIKE UNPRECEDENTED UNPRECEDENTED. NOT EVERYTHING ABOUT THIS IS UNPRECEDENTED. RIGHT REGIONAL DOWN COMMUNITY TO HAVE $85 MILLION OF REGIONAL DOLLARS TO INVEST IN A LOCAL COMMUNITY IS UNPRECEDENTED. SHUTTING THEM ALL DOWN FOR 100 DAYS FOR THE SAKE OF PUBLIC HEALTH IS UNPRECEDENTED THE STATE PROVIDING A COVID RELIEF TOOL TO HELP THOSE PROJECTS THAT WERE IMPACTED BY FOR THE SAKE OF PUBLIC HEALTH AS THEY HAVE HERE UNPRECEDENTED? THIS IS OUR WAY. WE DID NOT A CHECK RATE CITY OF BLOOMINGTON AND THE PORT AUTHORITY THEIR REIMBURSEMENT FROM THE STATE OF MINNESOTA FOR THEIR LOST REVENUES WE DID NOT THANKFULLY THE STATE GRACIOUSLY PROVIDED A TOOL FOR US TO EARN OUR WAY OUT OF IT. THEY KNEW WE COME UP WITH EQUITY FOR MORE PROJECTS WHICH IS WHY THEY CREATED THIS WHY IT SPECIFICALLY SAYS IN THE LANGUAGE CAN BE USED AS EQUITY BECAUSE THEY KNEW HOSPITALITY BUSINESSES AND RETAIL BUSINESSES DON'T HAVE IT RIGHT NOW COMING OUT OF THE COVID PANDEMIC SO THIS TOOL IS IN PLACE UNPRECEDENTED TOOLS IN PLACE, UNPRECEDENTED REGIONAL ASSET AND RESOURCE IS IN PLACE AND IT'S SITTING THERE LOOKING TO BE PUT TO USE IN BLOOMINGTON TO GENERATE BENEFITS TO THE REGION. SO THE QUESTION COMES BACK TO WHAT'S APPROPRIATE FOR BLOOMINGTON'S TECH, RIGHT? IN ADDITION TO THE $2 MILLION A YEAR WHICH IS INTENDED TO GO TO BLOOMINGTON ON THE RECAPTURE, WHERE IS IT FOR AN ADMINISTRATIVE ROLE? YES, YOU HAVE A FIDUCIARY RESPONSIBILITY OF THESE FUNDS. YOU DO. BUT WHERE SHOULD THOSE FUNDS GO SHOULD THEY GO FOR COVID RELIEF? SHOULD THEY GO BACK THE PROJECT FOR WHICH THEY WERE INTENDED TO GROW FOR REGIONAL BENEFIT? RIGHT. WE BELIEVE THAT THEY SHOULD GO BACK INTO THE PROJECT. THAT'S WHERE THEY CAME FROM. THAT'S WHAT THE LEGISLATURE INTENDED FOR WAS TO GROW MALL OF AMERICA, NOT TO GROW BLOOMINGTON. IT WASN'T YOU GOT YOUR RELIEF. SO WHAT'S APPROPRIATE SPLIT IS IT 6040? WE THINK IT SHOULD BE 9010 COMING OUR DIRECTION. RIGHT. SO CAN DEBATE THAT WE AGREE I THINK WITH STAFF THAT WHAT WE REALLY WANT TO SEE IS IF WE'RE ADVANCING $85 MILLION OF THIS REGIONAL TIFF TO GET THIS PROJECT BUILT WE WANT TO SEE THAT $85 BILLION COME BACK TO THAT IS OUR FUNDING SOURCE TO GO BACK INTO THE PROJECT THAT'S WHY RIGHT NOW WE'RE AT A PLACE WHERE IT'S AT LEAST 60 MILLION COMING BACK IN BEFORE WE GET A DOLLAR OF PROFIT OUT OF THIS PROJECT $1 SO THE COVID IS GOING TO BE DELAYED AS LONG AS YOUR RELIEF WHATEVER YOU WANT TO CALL THE ADMINISTRATIVE DOLLARS THAT ARE GOING TO BLOOMINGTON FOR THEIR EFFORTS IN PUTTING THE STEEL TOGETHER AND WE APPRECIATE THAT DON'T DON'T GET ME WRONG WE WE APPRECIATE THE ROLE THAT YOU HAVE THE RESPONSIBILITY THAT YOU HAVE BUT WHEN IT COMES TO WHAT IS APPROPRIATE TO GO BACK INTO THE PROJECT VERSUS GO TO SOUTH LOOP OR GO TO THE CITY OF BLOOMINGTON, I THINK WE WE HAVE A DIFFERENT SLIGHTLY DIFFERENT OPINION AS TO HOW THOSE SPLIT SHOULD WORK. BUT I THINK WE'LL COME WITH A COMPROMISE. I THINK WE'VE COME UP WITH A SOLUTION AT LEAST INTERNALLY OBVIOUSLY SUBJECT TO THESE BODIES TO REVIEW AND APPROVED BUT I JUST JUST WANT THE COMMISSIONERS AND THE COUNCIL MEMBERS TO BE AWARE OF THE REALLY THE SOURCE OF THE FUNDS AND THE INTENT OF THOSE FUNDS. IT ISN'T FOR SELF LOOP DEVELOPMENT. IT ISN'T FOR AFFORDABLE HOUSING. YES THEY CAN BE USED FOR THOSE THINGS BUT THAT'S NOT WHAT THE LEGISLATURE INTENDED WHEN THEY PUT THESE TOOLS IN PLACE FOR COUNCILMEMBER BEAMER AND SPEAKING OF THE LEGISLATURE, JUST WANT TO CONFIRM WE'RE NOT OVERSTEPPING ANY BOUNDS. WE'RE NOT GOING TO COME BACK AND GET THE STATES SLAPPING US ON THE WRIST SAYING WE DID SOMETHING WRONG. THIS IS WHAT IT'S INTENDED DO AND WE'RE NOT BREAKING ANY RULES OR ANY LAWS AND WE'RE SURE ABOUT THAT. MAYOR BUSSEY PRESIDENT ERICKSON COUNCIL MEMBERS COMMISSIONERS COUNCIL MOUA I WOULD DEFER TO PORT COUNSEL NO PRESSURE AS PORT COUNSEL I HAVE REVIEWED THE ORIGINAL LEGISLATION AND IT SAYS CLEARLY THAT YOU CAN USE SPECIAL TARIFF AS LONG AS IT'S IN A SEPARATE ACCOUNT FOR EQUITY AND FOR A NUMBER OF OTHER THINGS I'VE REVIEWED I ACTUALLY DRAFTED THE DOCUMENT SPENDING PLAN DOCUMENT AND SO I CONFIDENT THAT WE ARE IN GOOD STEAD AND HAVE NOT MADE ANY LEGAL MISTAKES ON THE SPENDING PLAN AND THE USE OF THE USES THAT WE ARE PLANNING TO USE. YOU'RE COMFORTABLE WITH THAT COUNCILMEMBER? GOOD GOOD GOOD. THAT'S VERY RELEVANT. SO I KEEP HEARING KEEP HEARING THE WORD EQUITY SO I HEARD THE MALL'S TAKE ON ON EQUITY AND THEN I HEAR US TALKING ABOUT EQUITY. SO WHEN WE SAY EQUITY, YOU KNOW IN THIS RESPECT WHO'S EQUITY IS THAT THE LEGISLATION TALKS ABOUT EQUITY THAT YOU CAN USE SPECIAL TIVE AS EQUITY AND THAT IS WHAT THE PORT IS POTENTIALLY PLANNING TO DO. I'LL LEAVE IT AT THAT. MY NEXT QUESTION IS AROUND THE CITY'S REPUTATION AND I SOMETHING ABOUT CREDIT RATING RISK AND I WANTED TO HEAR A LITTLE BIT MORE ABOUT THAT BECAUSE I'M CONCERNED IF THIS PROJECT WOULD PUT CREDIT RATING AT RISK. HELP ME UNDERSTAND THAT GLORIA SHULER WOULD NEVER ALLOW US TO TO DAMAGE OUR CREDIT RATING. IT'S VERY IMPORTANT TO THE CITY IT'S A IT'S THE BEST RATING YOU CAN HAVE. I GET THAT. THAT'S WHY WHEN I HEARD THAT THAT MY EARS THE HAIRS ON THE BACK OF MY NECK STOOD UP. SO I THOUGHT I MUST I MUST NOT HAVE HEARD THAT CORRECTLY. SO CREATING CREDIT RATINGS RELATE TO THE TWO BONDING AND WE ARE NOT BONDING FOR THIS PROJECT. MS. ECONOMY SCHOLER GOOD EVENING. THANK YOU FOR JOINING THE CONVERSATION. I'M GOING TO SEE IF I GET THIS RIGHT. THANK YOU MAYOR PRESIDENT COMMISSIONERS I'M JUST GOING TO GO AWAY AND KIND OF REMEMBER A MOMENT I'M GOING TO GO AROUND THIS WAY SO I CAN YOU I DO WANT TO SEE YOUR AREA. I HAVE A SIDE ISSUE I'M A NORMAL HEIGHT. AS JULIE WAS MENTIONING THE EQUITY AGAIN ONCE LEGALLY AUTHORIZED STATUTE. SO DO YOU USE IT IN THIS FASHION? IT'S JUST FINE SHE'S OPINED ON THAT FOR THE TIFF BONDS THAT WE WOULD USE FOR THE PARKING RAMP. THAT IS A NORMAL WAY OF FUNDING PARKING RAMPS, WHATEVER. SO THAT'S NOT A CREDIT RATING ISSUE AT ALL. OKAY. SO I MUST HAVE MISHEARD THAT THING BECAUSE I THOUGHT I HEARD SOMEBODY SAY SOMETHING ABOUT CREDIT RATING RISK AND THAT'S THAT SCARED ME. SO THERE BE REPUTATIONAL RISK I THINK. YEAH AND THAT'S WHAT I READ IN THE THERE'S A REPUTATIONAL RISK AND I GOT THAT AND I READ THAT IN THE STAFF AND YOU KNOW AND THAT WAS GOING TO BE MY NEXT QUESTION IS WHAT DOES THAT MEAN YOU KNOW AND THEN AND THEN I HEARD SOMEBODY SAY I THOUGHT I HEARD SOMEBODY SAY SOMETHING CREDIT BUT AND I DIDN'T UNDERSTAND THAT. SO THANK YOU FOR CLARIFYING FORMULA WAS THAT A QUESTION I JUST WANT TO CLARIFY WHAT DOES THAT MEAN? SURE. ALL RIGHT. MAYOR BOSSY PRESIDENT ERICKSON, COUNCIL MEMBERS AND COMMISSIONERS REPUTATIONAL RISK AND THAT THIS IS AN UNUSUAL FUNDING MODEL FOR THE CITY. THIS WOULD BE A LARGE PUBLIC INPUT INTO THIS MODEL WE PREFER UNDER ANY OTHER CIRCUMSTANCES THAT THERE BE PRIVATE EQUITY IN THIS DEAL. THIS IS UNUSUAL. WE'VE SAID IT MANY TIMES AND SO WE WOULD EYES WOULD BE LOOKING AT US AND WE WOULD WANT TO MAKE SURE THAT THIS PROJECT HAD THE BEST CHANCE OF SUCCESS IF WE WERE TO PUT THIS MUCH INPUT INTO IT. THANKS FOR YOUR RESPONSE ON THAT I ASSUME GIVEN WHAT STAFF HAS PUT TOGETHER TONIGHT THAT THAT THEY'RE YOU'RE OKAY WITH THAT IN TERMS OF WHAT YOU'VE GOT TODAY I'M ASSUMING THAT THAT YOU KNOW THIS THIS FITS PART OF THAT STANDARD NEARBY SEE PRESIDENT ERICKSON COUNCILMEMBERS AND COMMISSIONERS WE HAVE TO COME UP WITH A SHORTHAND FOR THAT WE ARE CONTINUING TO ANALYZE NUMBERS SUPPORT TO BE AS DILIGENT AS POSSIBLE WE HAVE AN OUTSIDE ADVISOR THAT IS PROVIDING THEIR OWN ANALYSIS OF THIS DEAL WHICH WE ARE BENCHMARKING AGAINST MALL OF AMERICA'S ANALYSIS. WE WANT TO MAKE SURE THAT WE FEEL CONFIDENT IN ANY DEAL THAT WE PROPOSED BEFORE PUT A TERM SHEET IN FRONT OF YOU ADDITIONAL QUESTIONS. MR. HAGAN I'VE A QUESTION FOR YOU. SO THIS IS OUR THIS IS OUR THIRD CUT AT THIS WE'VE WE'VE MISSED THE FIRST TWO TIMES WHERE WE'RE BACK AT THIS A THIRD TIME I NEED TO HEAR YOU TELL THESE BODIES THAT THIS IS GOING TO WORK, THAT WE ARE WE HAVE FOUND THE RIGHT FORMULA THAT IS GOING TO WORK AND WE'RE GOING TO MOVE FORWARD WITH THIS AND THAT WE'RE GOING TO CUT A RIBBON ON A WATER PARK IN ABOUT TWO AND A HALF YEARS MAYOR PRESIDENT, COUNCIL MEMBERS, PORT COMMISSIONERS IF YOU CAN ASSURE ME THAT WE'RE NOT GOING TO SEE IN THAT GRAPH WHAT WE SAW TWO YEARS AGO. YES. UNDER CURRENT MARKET CONDITIONS WE'RE CONFIDENT THIS PROJECT CAN MOVE FORWARD. I THINK MOST WOULD AGREE MOST ECONOMISTS AGREE THAT WE'RE AT THE TOP OF THE TROUGH NOW AND INSTEAD LOOKING AT IT AT THE BOTTOM AND WE END UP HERE NOW WE'RE LOOKING AT IT HERE HOW DOES IT WORK? OUR HOPE IS THE END OF THE YEAR. THOSE ARE THAT RATES ARE STARTING TO COME BACK DOWN. WE THINK THEY WILL WE'RE TRYING TO PINPOINT THIS PROJECT FOR THE CURRENT CREDIT MARKET CONDITIONS AND PROVIDED THAT THEY DON'T DETERIORATE FURTHER. I THINK WE'RE VERY CONFIDENT THAT WE CAN MOVE THIS PROJECT FORWARD BUT I CANNOT ASSURE YOU THAT THE CREDIT MARKETS AREN'T GOING TO DETERIORATE FURTHER, DON'T KNOW THE FUTURE. BUT I THINK WE'RE CONFIDENT THAT IF THEY STAY WHERE THEY'RE AT OR THEY GET BETTER ,WE'RE IN A POSITION WHERE IF WE'RE AT A 9010 SPLIT THAT WE CAN LET'S TRY I GIVE YOU CREDIT FOR THAT THE STRUCTURE OF THE DEAL THAT WE'VE BEEN TALKING ABOUT STAFF CAN PROCEED VERY GOOD. I HAVE A KIND OF A FOLLOW UP ON THE SAME THAT MR. LUNTZ AND COMMISSIONER KELLY ARE ALSO TALKING ABOUT. IS THIS THE BEST USE IS? THAT'S EXACTLY WHAT YOU WANT TO DO AND I THINK FROM A PROCEDURAL STANDPOINT ESSENTIALLY WHAT THE PORT AUTHORITY DOES IS RESPOND TO PLANS THAT YOU WANT TO BRING AND OBVIOUSLY I THINK YOU'VE DONE A LOT OF ON DIFFERENT THINGS THAT YOU COULD DO BUT YOU'RE ALSO AWARE OF THE LIMITATIONS. YOU KNOW AS WELL AS ANYBODY MANY DOLLARS ARE GOING TO BE COMING IN THERE AND WHAT'S GOING TO BE AVAILABLE AND WHAT CAN BE USED PUBLICLY ETC. SO I THINK IT'S YOU IT'S REALLY INCUMBENT UPON YOU TO TELL US THAT YOU KNOW THIS IS WHAT YOU WANT TO DO AND OBVIOUSLY THERE IS SOME QUESTION ABOUT IT BUT I THINK WE NEED TO REALLY ANSWER THAT QUESTION FOR PEOPLE SO THAT THEY SAY YEAH, YOU KNOW YEAH AND IT'S YOUR JUDGMENT. I MEAN AGAIN ALL WE CAN DO IS RESPOND TO WHAT YOU ASK US, RIGHT? MAYOR PORT PRESIDENT EMBODIES BY FAR THIS WE BELIEVE THIS IS THE BEST WE CAN DO TO AGAIN GOING BACK TO AS WE WORKED WITH STAFF LAST SUMMER THE GOAL WAS NOT HOW TO HOW BIG OF A PARK TO BUILD WHAT'S THE MAXIMUM AMOUNT OF TRAFFIC WE CAN TO MALL OF AMERICA USING THIS $85 MILLION THAT WAS THE GOAL WE LOOKED AT SPORTS COMPLEX. WE LOOKED AT THE MIXED USE COMPLEX LOOKED AT RETAIL. THERE IS NOTHING THAT COMES CLOSE TO A WATER PARK IN TERMS OF THE AMOUNT OF DOLLARS IF PUT IT INTO A AND I DID IT ONE TIME I WISH I WISH I HAD A PRINTED IT BASICALLY PUBLIC DOLLARS PER TOURIST AND BY BY A FACTOR OF OR FOUR IT'S THE WATER PARK NOT WE DON'T WANT TO DO A SPORTS COMPLEX WE DO NOT THAT WE DON'T WANT TO DO A MIXED USE COMPLEX WE DO BUT WE NEED ADDITIONAL PUBLIC FUNDING SOURCES. THE CHALLENGE IS THE CLOCK IS TICKING. WE DON'T HAVE TIME TO GO BACK AND TO STUDY FIGURE OUT WHAT A NEW SPORTS COMPLEX MIGHT LOOK LIKE TO DESIGNED AND SPEND THIS TOOL OR USE THIS TOOL BY THE END OF NEXT YEAR THIS TOOL GOES AWAY. WE HAVE ONE OPPORTUNITY AND WE GOT ONE SHOT AND IT'S A WATER PARK. NOW IF THE BOARDS DECIDE THAT BECAUSE THERE'S EQUITY THEY DON'T WANT TO DO A WATER PARK TOTALLY OR PREROGATIVE. BUT BUT IT'S GONE. THIS TOOL WAS NEEDED BACK IN 2022 RIGHT WHEN THE ECONOMIC CLIMATE WAS AT ITS BEST. HOW MUCH MORE SO IS IT NEEDED NOW? SO AGAIN IF YOU WANT TO RUN IT THROUGH THE GANTLET OF REGULAR CITY TIFF YOUR PREROGATIVE YOU CAN DO THAT YOU WANT TO LOOK AT IT WITH THAT LENS YOU CAN THAT YOU DO HAVE A FIDUCIARY RESPONSIBILITY TO THESE PUBLIC FUNDS AND IT'S TO THE REGION HOW ARE YOU USING THESE FOR THE REGIONAL BENEFIT AS WELL AS LOCAL BENEFIT? THAT'S YOUR CALL. AND IF I COULD A RELATED QUESTION TO THAT. IN ONE OF THE RENDERINGS I COULDN'T HELP BUT NOTICE NEXT TO THE WATER PARK A RATHER LARGE HOTEL. YEAH IF YOU CAN COMMENT ON THAT IT APPRECIATE THAT I'M GLAD YOU NOTICED MR. MAYOR FOR PRESIDENT BOARDS WE DO ANTICIPATE THERE BEING A RATHER LARGE HOTEL RIGHT. THIS WATER PARK MAY BE ONE OF THE HARDEST DEALS I'VE EVER DONE. I THINK THE HOTEL WILL NOT BE GREAT WHEN. YOU HAVE AN OPPORTUNITY TO DEVELOP A HOTEL ATTACHED TO THIS WATER PARK NOT ONLY ATTACHED TO THIS WATER BUT ATTACHED TO MALL OF AMERICA AND ATTACHED TO OUR AMUSEMENT PARK WE THINK WILL BE A VERY DESIRABLE LOCATION FOR A HOTEL. SO HAVE HAD CONVERSATIONS WITH NUMEROUS HOTEL GROUPS. ITEALLY COMES TO WE DON'T WE DON'T KNOW IF WE HAVE A WATER PARK YET. ALL RIGHT. LET GET THE WATER PARK UNDER CONTROL WHEN YOU LEAST GET A TERM SHEET AND AN TIMELINE FOR WHEN WE OVER THIS WATER PARK WILL BE OPEN THEN CAN LOOK TO THE HOTEL. WELL I'M GLAD YOU BROUGHT IT UP BECAUSE THE WATER PARK THAT THIS THIS IS ABOUT MORE THAN A WATER PARK. THIS THIS IS THE LAUNCHING PAD PHASE TWO THERE WILL BE A HOTEL I HOPE WILL BE A SPORTS COMPLEX AND A MIXED USE COMPLEX. ANOTHER DEVELOPMENT ONCE WE GET TO THAT SIDE OF THE ROAD THERE WILL BE I CALL THEM PARASITE PROJECTS THAT WANT TO ATTACH THEMSELVES TO THIS TRAFFIC GENERATOR AS WELL AS MALL OF AMERICA. SO BUT DON'T WANT TO BE OUT THERE THEY CAN'T BE OUT THERE UNLESS THE WATER PARK IS THERE. SO IT REALLY IS KIND OF THE LINCHPIN THAT KIND OF UNLOCKS OUR DEVELOPMENT TO PHASE TWO WHICH IN TURN CREATES ADDITIONAL TIFF TO BACK INTO THE TIFF ACCOUNT RIGHT AS WE BUILD A HOTELS AND OTHER DEVELOPMENTS I'M NOT SURE THE SPORTS COMPLEX WILL GENERATE THAT MUCH TIFF IF ANY BUT THE HOTEL AND THE PRIVATE USES THAT WILL WANT BE AROUND A SPORTS COMPLEX AND THE AND AND THE WATER PARK WILL GENERATE ADDITIONAL TIFF AS WELL. COUNCILMEMBER NELSON, WAS THERE A QUESTION DOWN HERE AS WELL? COUNCILMEMBER NELSON, PLEASE. YEAH, THANK YOU. I KNOW ONE OF THE IMPORTANT REASONS FOR THIS PROJECT IS TO CHANGE THAT PERCENTAGE OF ENTERTAINMENT TO RETAIL WHERE. DOES THIS MOVE THE MALL OF AMERICA TO IN TERMS OF PERCENTAGES? YES, THEY ARE PORT PRESIDENT BOARDS. WHEN WE STARTED OUT I THINK ALI SAID 9010 IS REALLY ABOUT 8020 WHEN THE MALL WAS FIRST OPENED THE AMUSEMENT PARK WAS REALLY THE PRIMARY IN ALMOST THE ONLY A COUPLE OF MINI GOLF COURSES WE CURRENTLY ARE SITTING ABOUT 73 IT'S WITH A LOT OF A LOT OF THE YOU'VE SEEN IT OUT THERE AND I KNOW YOUR DAUGHTER WORKS OUT THERE A LOT OF THE RETAIL THAT HAS GONE OUT HAS BEEN REPLACED WITH RESTAURANTS AND ENTERTAINMENT USES AND THERE'S MORE COMING IN ALL THE TIME EVERY. EVERY MONTH WE HAVE A NEW ENTERTAINMENT USE THAT'S COMING INTO MALL. MOST OF THOSE ARE TWO, THREE, FOUR, 5000 SQUARE FEET. THIS WILL MOVE US CLOSER TO A 6040 CLOSER TO 6040 SPLIT WITH THE GOAL OBVIOUSLY OR AS WE TALKED ABOUT EARLIER BEING CLOSER 5050 THE AMERICAN DREAM PROJECT IS ACTUALLY 55% ENTERTAINMENT, 45% RETAIL. SO IT'S REALLY DIVERSIFY AND I CALL IT AMAZON PROOFING GREAT. THE PROJECT WHERE WE'RE DELIVERING EXPERIENCES YOU CAN'T BUY ON THE ON THE INTERNET AND THAT'S A WATERPARK EXPERIENCE AND SO FOR THE SUSTAINABILITY OF THE MALL WE'VE BEEN TALKING ABOUT THIS SINCE LONG BEFORE COVID LONG BEFORE WHAT YOU'RE READING ABOUT SOUTH OF LONG BEFORE WHAT YOU'RE READING ABOUT IN THESE OTHER MALLS THAT WE'VE GOT TO TRANSFORM OURSELVES THAT THAT'S NOT THAT'S NOT A NEW CONCEPT FOR US BUT HOW TO DO IT RIGHT THEY'RE VERY DIFFICULT, VERY CHALLENGING. THEY TAKE A LOT OF PUBLIC FUNDING EVEN WATERPARKS TAKE A LOT OF PUBLIC FUNDING MORE THAN 17.3% OR WHATEVER OUR RATIO IS IS THAT IN OUR MASTER CONTRACT SO WE HAVE TO COME UP WITH CREATIVE WAYS TO GET THESE PROJECTS DONE. YOU KNOW A GOOD EXAMPLE IS THE RADISSON BLU PROJECT IF YOU RECALL THAT WAS DONE IN 2010. THAT WAS THE ONLY TO MY KNOWLEDGE IT WAS THE ONLY SERVICE HOTEL IN THE COUNTRY BEING BUILT AT THAT TIME WE DID IT THROUGH SOME VERY CREATIVE FINANCING RECOVERY ZONE BONDS OR YOU'LL REMEMBER THIS IT WAS AN INCREDIBLY COMPLEX DEAL THAT WAS A RISKY DEAL IN A LOT OF REGARDS BUT I THINK WE'RE ALL VERY THANKFUL THAT WE TOOK THOSE RISKS IF IT WAS THERE'S A GOOD REWARD AS A WONDERFUL PROJECT THAT WAS BUILT BECAUSE OF THE CREATIVITY OF PUTTING THAT DEAL TOGETHER I THINK I THINK FIVE YEARS FROM NOW WE'RE GOING TO START THINKING ABOUT THE WATERPARK. I'M REALLY GLAD WE USE THIS TOOL FOUND A WAY TO GET THIS DONE AND WE CAN ALL WE CAN ENJOY THE RESULTS OF WHAT THAT WILL PRODUCE FOR BLOOMINGTON, FOR THE MALL, FOR THE HOSPITALITY THAT'S GOING VIRAL . SO AS YOU SHIFT THROUGH THAT, AT WHAT POINT DO YOU DROP THE WORD MALL FROM THE NAME JUST RENAME IT BLOOMINGTON DREAM. BUT I WAS SERIOUS ABOUT THE FIRST HALF OF THE QUESTION. MAYOR FORD PRESIDENT AND BOARDS YOU KNOW IT'S FUNNY YOU ASK THAT QUESTION BECAUSE I THOUGHT OF THAT I HATE IT WHEN DO WE STOP CALLING IT A MALL MALL COMES WITH THE CONNOTATION THAT IT'S A MALL. GREAT. FORTUNATELY MALL OF AMERICA THE BRAND IS SO STRONG RIGHT THAT IT'S RECOGNIZED AS A TOURIST DESTINATION AND IN ENTERTAINMENT DESTINATION I WOULD NOT DOUBT THAT THAT CONVERSATION WILL COME UP AND BE DISCUSSED AGAIN AND MAYBE AT SOME POINT IT'S APPROPRIATE BUT IT'S NOT IT'S NOT SOMETHING WE'RE LOOKING AT CHANGING RIGHT NOW. I THINK IF THEY LIKE YOU KNOW, DISNEYLAND CALL WHAT DO YOU KNOW WHAT IS DISNEY? EVERYBODY KNOWS WHAT DISNEYLAND IS RIGHT? WE ALL KNOW IT IS MALL OF AMERICA. WE WANT TO HAVE THAT SAME BRAND AWARENESS AND I THINK WE DO WHERE PEOPLE WHAT IT IS BUT WE WANT IT TO BE UNDERSTOOD FOR NOT JUST AN AMUSEMENT PARK A WONDERFUL INDOOR AMUSEMENT PARK. WE WANT IT TO BE SEEN FOR AMUSEMENT AND WATERPARK SPORTS COMPLEX MIXED USE FACILITY RIGHT ALL OF THESE OTHER USES THAT THAT'S THAT'S WHERE WE'RE WITH THIS PROJECT THAT WILL BE TRANSFORMATIONAL AS WE ADD ADDITIONAL USES TO THE PROJECT AND BE SEEN AS THE COMPLEX THAT WE'RE GOING TO BE NOT JUST A MALL. I HOPE WE'RE NOT SEEN AS JUST A MALL. ALL THANK I KNOW MY WIFE IS WATCHING THIS INTENTLY TONIGHT AND I KNOW WE DON'T SEE EYE TO EYE ON ON TERMS OF THE TERMS THIS BUT THERE IS A RISK OF NOT DOING ANYTHING AT ALL AND I WANT YOU TO YOU KNOW AS AS CLEARLY AS YOU CAN I THINK THAT THAT I THINK IT'S IMPORTANT FOR RESIDENTS TO UNDERSTAND IF DO NOT DO THIS PROJECT WHAT THE IMPACTS ARE FOR THE MALL, THE AIRPORT PRESIDENT AND BOARDS COUNCIL MEMBER ALONE. AND I'M GLAD YOU BROUGHT THAT UP BECAUSE AS A I TRULY BELIEVE THE GREATEST RISK TO THE CITY OF BLOOMINGTON ON THIS PROJECT IS NOT DOING THIS PROJECT RIGHT THERE IS NO TAXPAYER DOLLARS IN THIS THIS IS A GIFT FROM THE LEGISLATURE IN THE REGION I BELIEVE IF WE DON'T DO THIS IF WE DON'T TRANSFORM MALL OF AMERICA, WE'RE DOWN 12% ON OUR TRAFFIC NOW THIS IS FOUR YEARS AFTER COVID 12% 12% OF 40 MILLION PEOPLE IS A LOT OF PEOPLE SEVEN OR 8 MILLION PEOPLE IS MORE THAN PROBABLY ALL THE OTHER MALLS PUT TOGETHER. RIGHT. IT'S NOT AN INSIGNIFICANT AMOUNT OF PEOPLE THAT AREN'T HERE HOW DO WE GET THEM BACK? RIGHT. I DON'T KNOW THAT THAT MODEL I BELIEVE THAT WE KIND OF HAVE STABILIZED NOW. WE'RE NOT TO BE BACK TO 40 MILLION PEOPLE UNLESS WE ADD ATTRACTIONS LIKE THE WATERPARK AND GROW THE BUSINESS TRAVEL I'LL SPEAK MYSELF RIGHT. I USED TO TRAVEL EVERY MONTH TRAVEL THREE TIMES A YEAR NOW AND I THINK THAT THAT'S JUST THE NEW MODEL WE USED TO GET A LOT OF BUSINESS TRAVEL WE CAME TO THE TWIN CITIES THEY'RE GOING TO MEET WITH CARGILL OR 3 A.M. OR TARGET. THEY WOULD SHOP AT MALL OF AMERICA WOULD BE A CUSTOMER OF OURS. THEY'RE JUST NOT COMING THROUGH. AND SO BECAUSE THEY DON'T LIKE MALL OF AMERICA ANYMORE. THIS IS NOT COMING TO TOWN ANYMORE THAT THAT MODEL HAS CHANGED INTERNATIONAL TRAVEL. I MEAN EVERY THE WORLD HAS CHANGED RIGHT SINCE COVID AND AND SO WE NEED TO CHANGE AS WELL. WE'VE BEEN TALKING ABOUT PRE-COVID NOT A NEW CONCEPT. AGAIN, YOU'VE HEARD ME PREACHING FOR GOING ON 15 YEARS NOW WE WE'RE IN TWO DIRECTIONS. WE'RE EITHER GROWING OR WE'RE DYING AND TO GROW. WE NEED TO GROW WITH NEW USES, NOT MORE RETAIL NEW ENTERTAINMENT USES. AND I DON'T THINK THERE'S ANY I THINK EVERYBODY THAT CONCEPT NOW THAT'S WHAT WE HAVE TO DO. SO IF WE STAGNATE RIGHT WE'RE GOING TO TRAFFIC IN TOURISM DECLINE THEN NOT ONLY IMPACTS ALL OF AMERICA THAT IMPACTS THE HOSPITALITY INDUSTRY AND IMPACTS RESTAURANTS AND IN FACT HAZELWOOD ONE OF OUR FAVORITE RESTAURANTS ACROSS THE STREET IF OUR TRAFFIC AND TOURISM DECREASES I THINK RIGHT NOW WE STABILIZED NEED A WAY TO INJECT DRAW MORE TRAFFIC AND TOURISM AND THERE'S NO BETTER WAY IN OUR OPINION THAN ADDING THIS WATER PARK I'M NOT SURE WHEN YOU SAID HAZELWOOD YOU POINTED AT ME WITH YOU THERE. HOW MANY TIMES HAVE YOU SEEN ME THERE? I'M NOT SURE BUT EVERYBODY'S COUNTING UNFORTUNATELY COUNCIL WORKED ADDITIONAL QUESTIONS WRAP SUMMATION OR COUNCILMEMBER LOWMAN I'M READY FOR WRAP UP AND SUMMATION HERE. SO, UM, YOU KNOW, AGAIN I WANT TO THANK THE STAFF FOR THE HARD WORK THAT YOU'VE DONE THE MALL UM AND ALSO I WANT TO THANK THE CITY MANAGER THE PORT PRESIDENT, THE MAYOR, ANYBODY ELSE I MAY HAVE MISSED IN TRYING TO BRING THIS THING FORWARD. YOU KNOW, ON THE POSITIVE SIDE OF THIS, YOU KNOW CERTAINLY I'M A CAPITALIST AND I CAN SEE A YOU KNOW, A GOOD DEAL. I KNOW MY CHILDREN ARE AT HOME ROOTING FOR FOR THIS WATER PARK SO THEY CAN HAVE THEIR BIRTHDAYS THERE. AND WHEN I THINK ABOUT THIS IN TERMS OF WHAT AT STAKE FOR OUR TAXPAYERS, UM, THIS IS AN INCREDIBLE OPPORTUNITY TO UH FOR FUTURE TAXPAYERS IN TERMS OF ADDITIONAL REVENUE IN TERMS OF WHAT THOSE TAXPAYERS WILL BE ABLE TO GET LONG AFTER UM MANY OF US WILL BE ON THIS BOARD AND I THINK THAT'S SOMETHING THAT I'M THINKING ABOUT AS I LOOK AT THIS PARTICULAR UH PROPOSAL THE MALL IS AN INSTITUTION THAT IS A MAJOR INSTITUTION OR A COMMUNITY AND AND I KNOW THAT FOR FOR MANY YEARS SOMETIME IT HAS GOTTEN A BAD REPUTATION OR SOMEHOW, YOU KNOW, GETS THE SPECIAL DEALS AND THAT TYPE OF THING. BUT IT'S A MAJOR CONTRIBUTOR TO OUR COMMUNITY AND I THINK WE NEED TO REMEMBER THAT AS WE MAKE THESE DECISIONS UH OF WHAT THEY HAVE ABLE TO GIVE. BUT ON THE OTHER HAND THE ENVIRONMENTALISTS ME AS I LOOK AT THIS PARTICULAR PROPOSAL IS IS VERY CONCERNED BUT I DO KNOW THAT THE MALL IS THERE AND WILLING TO HAVE THAT DIALOG AND THAT CONVERSATION AGAIN AND THERE'S A HISTORY THERE IN TERMS OF OF THE MALL DOING THINGS RESPECT TO ENVIRONMENTAL THINGS WITHOUT BEING ASKED AND SO I AM GOING TO BE LOOKING VERY CAREFULLY UM SINCE WE DO HAVE CLIMATE EMERGENCY AND THE VERY IMPACT OF THIS BUILDING IN TERMS OF WHAT THAT MEANS IN TERMS OF FUTURE GENERATIONS AS WELL IT'S NOT JUST THE FUNDS, CANDY, THAT MY CHILDREN WOULD ENJOY BUT IT'S ALSO WHAT TYPE OF WORLD THAT WE'RE GOING TO LEAVE FUTURE GENERATIONS WITH THAT BUILDING AND SO THAT I'M GOING TO BE WATCHING THAT VERY CAREFULLY BETWEEN NOW IN THE TIME THAT WE MAKE THIS DECISION ABOUT THIS PARTICULAR BUILDING AND I'M HOPING ON THE NIGHT THAT WE CAN GET TO SOME OF THE DETAILS ABOUT THAT IMPACT, HOW WE CAN MITIGATE THAT AS BEST AS POSSIBLE. AND AGAIN WITH THAT BEING SAID, I ALSO UNDERSTAND WE ARE IN A CAPITALISTIC MARKET AND WE CAN ONLY DO WHAT'S REASONABLE AROUND THAT IS THE LAST PIECE IS AROUND EQUITY HERE THIS UNPRECEDENTED TO NOT HAVE EQUITY HERE AND WE MUST TAKE THIS SERIOUSLY UH YOU KNOW THIS IS A STATEMENT WHEN WE WHEN WE DO THIS AND I THINK WE NEED TO BE CAREFUL WHEN WE MAKE DECISIONS THIS UM NOW WE HAVE A GREAT PARTNER IN BUT YOU KNOW, WE DO THIS FOR OTHER PARTNERS AND. I UNDERSTAND THIS IS A, YOU KNOW, A SPECIAL TYPE OF THING THAT WE'RE DOING. UM, YOU KNOW, IF WE DO MOVE FORWARD THIS BUT THIS A STATEMENT FROM YOU KNOW WE HAVE A CREDIT RATING THAT WE HAVE TO WITH THIS SHOWS SOMETHING TO THE MARKET AND I THINK WE NEED TO IT'LL BE INCREDIBLY CAREFUL WITH HOW WE DO THIS AND SO I THINK THAT STAFF HAS TAKEN THAT INTO ACCOUNT FROM WHAT I'VE SEEN SO FAR AND I'M LOOKING FORWARD TO CONTINUE TO HAVE THAT DIALOG BUT I CONTINUE UM AS A COUNCILMEMBER HAVE THAT CONCERN AROUND THAT IN TERMS OF ARE WE DOING EVERYTHING WE CAN TO MAKE SURE THAT THAT MAKES SENSE MOVING FORWARD AND FINALLY I WOULD SAY THAT UH THAT IN TERMS OF THIS AS WE LOOK AT THAT I DO NOT WANT TO DISCOUNT THE FACT THE MALL IS ALSO A TAXPAYER IN THE CITY OF BLOOMINGTON. WITH THAT BEING SAID, I HOPE THAT STAFF WILL CONTINUE TO FORWARD TO GET THE BEST DEAL FOR ALL TAXPAYERS IN BLOOMINGTON THAT WE CONTINUE TO PRESS THIS TO GET EVERY DIME AND EVERY BIT OF MONEY WE CAN GET OUT OF THIS PARTICULAR PROPOSAL GIVEN THE RISK WITH RESPECT TO EQUITY THANK YOU VERY COUNCILMEMBER. OTHERS WISHING TO CHIME IN MR. PRESIDENT THE LAST WORD. WELL, WE'VE OBVIOUSLY GOT SOME WORK TO DO UNFORTUNATELY WITH LIKE THIS BECAUSE OF THE DECEMBER 25TH DEADLINE WE HAVE KIND OF HAD TO MOVE PERHAPS FASTER ON THIS THAN PEOPLE MIGHT BE COMFORTABLE. THAT'S ONE OF THOSE THINGS THAT COME UP FROM TIME TO TIME AND I THINK ALL WE CAN TRY TO DO IS TO TO GET INFORMATION TO PEOPLE AND. I THINK AGAIN IN TERMS OF A PROJECT I'VE BEEN IN CLOSE COMMUNICATION WITH STAFF AND. I KNOW HOW HARD THEY'VE BEEN WORKING ON GETTING THIS DONE AND SHANE HAS BEEN AN INTEGRAL PART OF THIS TEAM AND SO I THINK WE HAVE TO LOOK AT THIS AS RESPONDING TO REQUESTS FROM THEM ALL. THEY'RE THE ONES HAVE TO MAKE THE PRIMARY BUSINESS DECISION ABOUT WHAT THEY WANT TO DO WITH THEY KNOW WHAT THE RESOURCES ARE. AND I THINK IN THAT CONTEXT TOO WE'LL HAVE TO TO CAREFULLY GO AND I'M SURE WE'LL HAVE SOME SPIRITED DISCUSSIONS AND AND EVERYBODY MIGHT NOT AGREE THAT'S WHAT WE GET INTO. SO I THINK I LOOK FORWARD TO THE NEXT WEEKS AND GETTING MORE INFORMATION AND DEALING WITH IT AND AGAIN IN TERMS OF TIMING THERE'S GOING TO BE A TERM SHEET THAT WE WILL BE DISCUSSING THE CURRENT DATES FOR THAT ARE THE 15TH AND THE 16TH AND THAT WOULD BE THE BODIES WOULD BE ASKED TO APPROVE IT AT THAT POINT. AND THEN OF COURSE THAT DIRECTS STAFF TO BRING BACK DEFINITIVE AGREEMENTS WHICH WOULD BE COMING BACK LATER AND NOTHING IS FINAL UNTIL THE DEFINITIVE AGREEMENTS ARE SIGNED. SO I THINK IN TERMS OF OF TIME FOR PEOPLE TO HAVE GET USED TO THESE THINGS AND THAT YOU KNOW WE DO HAVE A LITTLE TIME BUT WE DO NEED TO MOVE AND WE WE WANT TO TAKE ADVANTAGE OF THIS TOOL THAT IS AVAILABLE TO US WITHIN THE CONSTRAINTS. THANK YOU. MR. PRESIDENT. WELL, UNLESS THERE'S ANYONE ELSE. THANK YOU. THANK MR. HAGAN. MR. BLAIR, THANKS FOR BEING HERE THIS EVENING. THANK YOU VERY MUCH TO FOR THE INFORMATION AND THE WELL-PRESENTED AND WELL THOUGHT OUT AND VERY CLEAR INFORMATION THAT YOU WERE ABLE TO PROVIDE TO US AND COUNSEL IMPORTANT THANK YOU FOR THE DISCUSSION TONIGHT AND THIS IS I MEAN IT'S BEEN IT WAS 2 HOURS OF QUESTIONS BASICALLY AND I HOPE WE GOT THEM ALL ANSWERED OR AS MANY ANSWERED AS WE POSSIBLY COULD. AND I WOULD AGREE WITH YOU, MR. PRESIDENT. THIS IS THIS IS THE FIRST PART THIS WAS AN INFORMATION PART. THE CONVERSATION CONTINUES BETWEEN PARTIES AND I'M LOOKING FORWARD TO THAT CONVERSATION. SO THANK YOU SO ALSO VERY MUCH ON OF THE CITY COUNCIL I WOULD LOOK FOR A MOTION TO ADJOURN THIS MEETING OF THE CITY COUNCIL WITH THE JOINT MEETING WITH THE PORT AUTHORITY SOME MOTION IN A SECOND TO ADJOURN THE CITY COUNCIL MEETING ON FAVORITE SIGNIFY BY SAYING I I OPPOSED MOTION CARRIES WE ARE ADJOURNED AND I WILL THESE ARE IN THE PORT ALREADY VERY GOOD THANK YOU ALL ALL