BUT HE'S READY GOOD EVENING EVERYONE IT IS 6:00 AND I WILL CALL CITY COUNCIL PORTION OF THE CITY COUNCIL PORT AUTHORITY CONCURRENT TO ORDER AND I WILL CALL THE PORT AUTHORITY TO ORDER NOW I BELIEVE BECAUSE WE HAVE COMMISSIONER PETERSON ON ON NICE WAVE VERY GOOD JOB I THINK WE PROBABLY HAVE TO DO A ROLL CALL OF THE THE PORT AUTHORITY. I DON'T THINK WE NEED TO DO OF THE CITY COUNCIL. CORRECT OR SHOULD WE SO YEAH. SO WILL HAVE TO DO A ROLL CALL OF THE PORT AUTHORITY JUST TO GET THE THE ROSTER ESTABLISHED AND THEN ANY VOTES WOULD HAVE TO BE ROLL CALL AS SO MARK DO YOU WANT TO CALL THE ROLL. YEAH I'M DOING IT PRESIDENT ERICKSON HERE COMMISSIONER BUSSEY PRESENT COMMISSIONER NELSON COMMISSIONER HUNT COMMISSIONER LUNTZ COMMISSIONER KELLER AND COMMISSIONER PETERSON HERE. ALL RIGHT. YOU ALL HAVE THE THE AGENDA IN FRONT OF YOU WE'VE GOT JUST THREE ITEMS THE APPROVAL OF MINUTES, THE NEW BUSINESS AND THEN THE ADJOURNMENT ON WANTED TO MAKE SURE EVERYBODY HAD THAT AND ALSO WANT TO REMIND EVERYONE IN ORDER TO TALK YOU GOT TO PUSH THE BUTTON IN FRONT OF YOU SO THE GREEN LIGHT COMES ON AND OTHERWISE OTHERWISE STEVE WON'T BE ABLE TO HEAR YOU AND ANYONE ON THE WATCHING THE RECORDING OR WATCHING IT ONLINE WILL NOT ABLE TO HEAR YOU EITHER. SO IF YOU CAN REMEMBER THAT AS WELL FIRST ORDER OF BUSINESS IS THE APPROVAL OF THE MINUTES FROM OUR MARCH 28TH CONCURRENT MEETING AND I WOULD LOOK FOR A CITY COUNCIL MOTION TO APPROVE THE MINUTES FROM THE PORT AUTHORITY CITY COUNCIL CONCURRENT MEETING MINUTES FROM MARCH 28TH SO MOVED SECOND GOT A MOTION BY COUNCILMEMBER DALLESSANDRO SECONDED BY COUNCILMEMBER CARTER TO APPROVE THE MINUTES ON BEHALF OF THE CITY COUNCIL NOW FOR COUNCIL DISCUSSION ALL THOSE IN FAVOR PLEASE SIGNIFY BY SAYING I I OPPOSED CARRIED SEVEN ZERO AND I WOULD ASK FOR A SIMILAR MOTION FROM PORT AUTHORITY QUESTION FIRST QUESTION FIRST YES THIS RELATES TO YOU CHAIRMAN ON THE OF FIRST PAGE FOURTH FULL OF FULL OF POINT UP AND I'M JUST I'M JUST ASKING FOR CLARIFICATION MORE THAN ANYTHING BUT YOU WERE QUOTED AS SAYING THAT THERE IS NO RISK TO TAXPAYERS WITH THIS PROJECT AND I'M JUST WONDERING I'D FIRST OF ALL I DON'T RECALL YOU SAYING THAT BUT IF BELIEVE THAT FINE GOOD AND DANDY BUT WHEN YOU GO DOWN PAGE SIX OR SEVEN, THERE ARE ALL KINDS THERE. WELL, NOT ALL KINDS BUT THERE ARE A NUMBER OF IDENTIFIED SHOWN AND THE BULLET POINTS. SO YOU KNOW, IT GOES BACK THERE'S NO FREE LUNCH SO I WAS JUST WONDERING WHERE YOU WANT TO LEAVE IT THAT WAY OR NOT BUT I JUST WANTED TO POINT IT OUT. WELL, I THINK COMMISSIONER LYONS POINT THAT I WAS MAKING IS THAT THE FUNDS THAT WE HAVE ARE ALL CASH IN HAND IN THE BANK IN TERMS OF THE TAX INCREMENT FUNDS THAT WE HAVE AVAILABLE IMMEDIATELY. AND THEN ANYTHING THAT WOULD BE BEYOND THAT WOULD BE SOMETHING THAT WOULD BE ONLY THROUGH REVENUE BONDS AND SO REVENUE BONDS WILL NOT IMPACT THE TAXPAYERS OF BLOONGTON. THEY'RE STRICTLY AGAINST THE THE PEOPLE THAT BUY THE BONDS. SO THE CONTEXT WAS DONE IN THAT CASE AND I THAT STATEMENT STANDS AS IT IS GREAT I KNEW WITH YOUR FINANCE BACKGROUND HERE IS A REASONING BEHIND IT. THANK YOU. ALL RIGHT. WELL I WOULD THEN ENTERTAIN MOTION FOR THE APPROVAL OF THE MINUTES BY THE PORT AUTHORITY OF MOTION MADE BY SECOND 1/2 BY COMMISSIONER BUSSEY, PLEASE. CALDERON. ERICKSEN YES, I SEE I NELSON. I HUNT LUND'S I KELLAR PETERSEN I MOTION CAREY SEVEN ZERO. VERY GOOD. ITEM 2.1 ARE ON OUR AGENDA IS THE MAIN EVENT WHICH I THINK IS WHY EVERYONE IS HERE TONIGHT RIGHT? CONSIDERATION OF THE MALL OF AMERICA WATER PARK TERM SHEET MUSIC FROM OUR PORT AUTHORITY IS HERE. I THINK JASON I DON'T KNOW IF YOU GOING TO BE CONTINUING OR HELPING OUT AS WELL AND HOW WE'RE GOING TO LINE UP AND WE'LL START OUT WITH HOLLY. GOOD EVENING ON THIS BASIC WELCOME. GOOD EVENING. MAYOR FESTUS. MM HMM. GOOD. ALL RIGHT. GOOD EVENING. MAYOR BUSSEY ERICKSON, COUNCIL MEMBERS AND COMMISSIONERS, THANK VERY MUCH FOR HAVING US HERE THIS EVENING. MY NAME IS HOLLY MESA. I AM THE PORT AUTHORITY FOR THE CITY OF BLOOMINGTON. TONIGHT WE ARE GOING TO PRESENT TO YOU THE UPDATED PROJECT PROPOSED FOR THE MALL OF AMERICA WATER PARK AND WE ARE GOING TO ASK YOU TO DIRECT STAFF TO DEVELOP AGREEMENTS AND DOCUMENTS BASED ON THE PROPOSED MLK WATER PARK TERM SHEET INCLUDED IN YOUR PACKETS . SO OUR FOR THIS EVENING IS AS FOLLOWS I'LL GIVE AN OVERALL INTRODUCTION TO THE PROJECT WE WILL RE GROUND OURSELVES IN THE 2013 SOUTH LOOP PRINCIPLES 2016 MLK CONTRACT OBJECTIVES REPRESENTATIVES OF 555 AND THE MALL OF AMERICA WILL GIVE AN OVERVIEW OF THE WATER PARK PROPOSAL IN MORE DETAIL. WE HEAR COMMENTS FROM THE SUSTAINABILITY COMMISSION'S REPRESENTATIVE. WE WILL TALK ABOUT THE PROPOSED PUBLIC FINANCIAL ASSISTANCE FOR THIS PROJECT. WE WILL TALK THROUGH THE ADDITIONAL TERMS IN THE TERM SHEET THAT HAVE NOT BEEN OUTLINED BEFORE YOU AND THEN WE'LL TALK ABOUT THE BENEFITS RISKS OF THE PROJECT. AND THEN WE WILL GO TO THE SUGGESTION MOTION SUGGESTED MOTION AS WELL AS FURTHER DISCUSSION AND Q&A. SO TO TAKE YOU BACK THE BEGINNING, WHY WAS A WATER PARK PROPOSED PROPOSED HERE? A WATER PARK HAS ACTUALLY BEEN A PROPOSED PART OF MALL OF AMERICA PLAN SINCE ITS INCEPTION. 555 THE OWNERSHIP GROUP FROM ALL OF AMERICA HAS A WATER PARK AT THEIR MALL PROJECT IN EDMONTON AS WELL AS THEIR PROJECT IN NEW JERSEY. HERE IN BLOOMINGTON CONVERSATIONS WERE RENEWED IN 2018 IN EARNEST AROUND THIS WATER PARK AND YOU HAVE SEEN PREVIOUS ABOUT THIS PROJECT SINCE THEN IN 2021 A NEW TOOL WAS MADE AVAILABLE TO THIS PROJECT WHICH WAS SPENDING PLAN TIF THAT WAS MADE AVAILABLE BY STATE LEGISLATURE IN RESPONSE TO ECONOMIC DIFFICULTIES FOLLOWING THE COVID 19 PANDEMIC THAT ALLOWED US TO USE THE TIFF FUNDING WE HAVE HERE IN BLOOMINGTON FOR THE MALL OF AMERICA IN WAYS THAT WE TYPICALLY CANNOT. TYPICAL TIF IS USED FOR PUBLIC PUBLIC IMPROVEMENTS THIS TIF COULD BE INVESTED DIRECTLY A PROJECT TO CREATE ONGOING AND CONSTRUCTION JOBS AND THE TIFF THAT WE HAVE AVAILABLE AND THAT WE ARE TALKING ABOUT THIS EVENING IN THE SPENDING PLAN TIFF DOES HAVE AN EXPIRATION DATE IT EXPIRES AND MUST BE SPENT BY DECEMBER OF 2025. ANOTHER REASON WHY WE'RE LOOKING AT A WATER PARK PROJECT IS BECAUSE MALL OF AMERICA CONTINUES BE A REGIONAL DRAW AND WE WANT TO MAKE SURE THAT THE MALL REMAINS HEALTHY. THE MALL IS THE EPICENTER OF THE HOSPITALITY INDUSTRY HERE IN BLOOMINGTON. WE KNOW THAT WHEN CUSTOMERS COME TO THE MALL THEY'RE ALSO POTENTIALLY STAYING AT OUR HOTELS, SPENDING MONEY AT OUR RESTAURANTS AND OUR GAS STATIONS. WE ALSO KNOW THAT THE MALL IS A SATELLITE SITE FOR A LOT OF ACTIVITY THAT TAKES PLACE IN MINNEAPOLIS, SAINT PAUL AND IN THE REGION SOMETIMES THAT ARE COMING TO SEE A SHOW STAY HERE AND GO TO THE MALL OF AMERICA. AND SO CONTINUING TO KEEP THAT ASSET HEALTHY IS VERY IMPORTANT. ANOTHER REASON IS THE MALL OF AMERICA IS CHANGING ITS RETAIL MIX. SO WHEN THE MALL WAS FIRST CREATED IT WAS ABOUT 20% RETAIL OR 20% ENTERTAINMENT, 80% RETAIL AND THEY ARE FINDING AS MANY MALLS ARE THAT THEY NEED SHIFT THAT RATIO TO BE MORE OF A 50% RETAIL 50% ENTERTAINMENT MODEL. AND FINALLY THIS BRINGS ADDITIONAL CITY REVENUE TO US . AND LOOKING AT THAT AND FURTHER DETAIL, SOME OF THE ESTIMATED ADDITIONAL REVENUE COULD BE AS FOLLOWS WE'RE LOOKING AT PROJECTIONS INCLUDING 900,000 IN THE FIRST YEAR OF ADMISSIONS TAX OUR GENERAL FUND 40,000 IN THE FIRST YEAR OF LIQUOR AND WINE TAX TO OUR SOUTH LOOP DEVELOPMENT FUND 2.5 MILLION IN PROPERTY TAXES WITH 429,000 BEING THE CITY'S PORTION POTENTIALLY NEW LODGING TAX ESTIMATES OF 350,000 PER YEAR IN YEAR ONE WITH A TOTAL ESTIMATED ADDITIONAL TAX REVENUE TO THE CITY OF AN ESTIMATED 1.7 MILLION. AND SO THE PROJECT AS PROPOSED IS AS FOLLOWS THAT WE 160 MILLION OF MALL OF AMERICA TIFF INTO THIS WATER PARK. 85 MILLION GOES INTO THE WATER PARK ITSELF AND 75 MILLION GOES INTO PUBLIC IMPROVEMENTS INCLUDING A PARKING RAMP INFRASTRUCTURE. THIS IS MALL OF AMERICA TECH WHICH THAT IT'S FENCED MONEY THAT CAN ONLY BE USED IN THE MALL OF AMERICA PROJECT AREA. THE WAY WE HAVE SET UP THE TERMS WE CAPTURE WATER PARK CASH FLOW AFTER THE DEBT SERVICE AND WE WILL CAPTURE THAT INTO TWO FUNDS. 60% GOES INTO A MALL OF AMERICA DEVELOPMENT FUND THAT CAN BE INVESTED INTO PROJECTS IN A SIMILAR WAY THAT WE CAN INVEST OUR SPENDING PLAN TO AND THEN 40% WOULD GO INTO A PORT EMOTIVE ADMINISTRATIVE FUND THAT WOULD HAVE THE SAME RULES AS OUR TYPICAL TIFF ADMINISTRATIVE FUNDS. WE COULD INVEST IT INTO PROJECTS IN THE MALL AREA OF PUBLIC IMPROVEMENTS OR WE COULD USE THAT CITY CITYWIDE FOR AFFORDABLE HOUSING. WE ARE REQUIRING FUTURE EQUITY FOR THIS PROJECT. THE MALL IS UNABLE TO BRING IT TO THE PROJECT AT THIS TIME BUT WE DO THINK THAT'S IMPORTANT TO DEMONSTRATE THE COMMITMENT TO THE PROJECT IN THE FUTURE AND AS FAR AS WE HAVE STUDIED UNDER CURRENT MARKET CONDITIONS THIS PROJECT PROPOSAL WILL HAVE DEBT COVERAGE BRINGING YOU BACK TO THE 2013 OVERARCHING PRINCIPLES THAT SET BY THESE BODIES. THEY ARE AS FOLLOWS TO PRUDENTLY INVEST PUBLIC FUNDS TO HELP TRANSFORM SOUTH LOOP TO MEET THE CITY'S VISION AHEAD OF MARKET TIMELINES TO TRANSITION THE 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 TOTAL TAX BASE. KEEPING TAXES STABLE BY SPREADING CITY COSTS OVER A VARIETY OF PROPERTY TYPES TO CREATE A NEW NEIGHBORHOOD PROVIDING ADDITIONAL LIVING AND RECREATIONAL OPTIONS FOR RESIDENTS TO PROMOTE A POSITIVE DEVELOPMENT ENVIRONMENT SO THAT PRIVATE INDUSTRY CAN ADD JOBS AND EMPLOYMENT OPTIONS TO THE CITY TO INCREASE EXPOSURE AND AWARENESS SOUTH LOOP TO PROMOTE DEVELOPMENT ACTIVITY TO INCREASE SUSTAINABILITY BY USING INFRASTRUCTURE MORE EFFECTIVELY AND SHARING RESOURCES TO. INVEST IN PLACEMAKING TO FOSTER THE CREATIVE SECTOR AND ESTABLISH THE SOUTH LOOP AS A DISTINCTIVE DESTINATION BEYOND MALL OF AMERICA AND TO PREPARE FOR CHANGES TO DEVELOPMENT FORM AND FUNCTION DUE TO TECHNOLOGY. LOOKING AT OUR LAND USE FRAMEWORK FOR THIS AREA SEE THAT? YES. WHILE WE ARE HOPING TO BUILD A DENSER AND BUILD THIS OUT WITH HOUSING WITH OFFICE THERE ARE ALSO DISTINCT LAND USES AND THE AREA IN BROWN AROUND MALL OF AMERICA WAS PLANNED TO BE PREDOMINANTLY RETAIL AND ENTERTAINMENT SO WATER PARK USE DOES FIT WITHIN THIS FRAMEWORK. ADDITIONALLY THE 2016 MALL OF AMERICA MASTER CONTRACT OBJECTIVES ARE AS TO MAKE PRUDENT PUBLIC INVESTMENTS THAT ARE BASED ON A FORMULA NOT AHEAD OF PRIVATE INVESTMENT USED ONLY TO THE THAT PUBLIC RESOURCES ARE AVAILABLE BASED ON CONSERVATIVE FINANCIAL PROJECTIONS AND MODELING ONLY FOR DEFINED PUBLIC IMPROVEMENTS. AND WE DO HAVE AN ASTERISKS THERE BECAUSE AS WE HAVE EXPLAINED SPENDING CAN BE USED FOR WIDER PURPOSES THAN OUR TYPICAL PUBLIC IMPROVEMENT REQUIREMENT. WE WANT TO SUPPORT THE LONG TERM VIABILITY OF MALL AMERICA ,PROTECT THE CITY'S DISCRETION ON THE USE OF PUBLIC FUNDS. ENSURE THAT MALL OF AMERICA ACKNOWLEDGES ITS FINANCIAL RELATIONSHIP WITH THE CITY BY PROMPTLY AND OPENLY COMMUNICATING TO THE CITY ALL IMPORTANT FINANCIAL AND OPERATIONAL CHANGES AND TO MONITOR THE EMIRATES INVESTMENT MAINTENANCE OF PUBLIC IMPROVEMENTS. AN INTERNAL MALL OF AMERICA FEATURES. AND WITH THAT I WILL TURN IT OVER TO OUR REPRESENTATIVES HEAR FROM 555 AND MALL OF AMERICA KURT HAGAN LEAVING MR. HAGAN THAT EVENING. MAYOR PRESIDENT ERICKSON COUNSEL IMPORTANT MEMBERS. GOOD TO BE BACK AGAIN AND TRY TO BE BACK AGAIN HOPEFULLY LAST TIME FOR A WHILE LOOKING AT STAFF'S REPORT IT LOOKS LIKE READS LIKE A RAP SHEET HOW MANY TIMES HAVE WE BEEN BACK HERE TALKING ABOUT THIS WATER PARK? AND I WAS REMINDED OF A BIBLICAL PARABLE THAT. I WANTED TO SHARE THIS THAT YOU MAY BE FAMILIAR WITH OF THE PERSISTENT WIDOW WHO CONTINUES TO GO BACK IN FRONT OF A JUDGE TIME AND TIME AGAIN . SOME POINT HE FINALLY SAYS GRANT HER WISH JUST TO GET RID OF HER DIDN'T WANT TO BOTHER. SO I'M SAYING THERE IS BIBLICAL PRECEDENCE TO APPROVE THIS TERM SHEET TONIGHT BUT I HAVE BETTER REASONS BETTER REASONS TO MOVE FORWARD WITH THE TERM SHEET AND I WANT TO ENUMERATE OF THOSE FOR YOU SEVERAL OF THEM WE COVERED THREE WEEKS AGO WHEN WE WERE HERE AND THE UPDATE I KNOW A COUPLE OF YOU WEREN'T HERE BUT I'LL ENUMERATE JUST A FEW OF THEM I KNOW WE'VE COVERED A MANY MANY TIMES BUT SOME OF THEM THAT ARE I THINK MOST IMPORTANT WE TALKED LAST TIME ABOUT HOW THIS IS AN UNPRECEDENTED OPPORTUNITY I BELIEVE THIS IS AN UNPRECEDENTED OPPORTUNITY AND WHY I SAY THAT IS THERE'S REALLY AT LEAST THREE ELEMENTS OF THIS DEAL THAT THAT I BELIEVE ARE UNPRECEDENTED. THE FIRST HALEY HIT ON YOU KNOW, THE SOURCE OF THE FUNDS BEING REGIONAL TIFF THAT THAT IN AND OF ITSELF IS FOR A PROJECT LIKE THIS I BELIEVE IS ON IT I DON'T KNOW THAT'S EVER BEEN DONE FOR THE STATE IN THE STATE RIGHT THE STATE THIS IS 1012 YEARS AGO RECOGNIZED THE IMPORTANCE TO REINVEST IN MALL OF AMERICA. IT'S NUMBER ONE TOURIST ATTRACTION AND THE STATE RECOGNIZED THE BENEFITS TO THE STATE AND THE REGION IN TERMS OF TAXES AND WAS WILLING TO PROVIDE A REGIONAL SOURCE THANKS TO MUCH THANKS TO BLOOMINGTON REPRESENTATIVE TAX CHAIR AT THE TIME MADELINE CHESKY NOT A LOCAL SOURCE TO HELP MALL OF AMERICA GROW AND EXPAND AND TO CONTINUE TO BE SUCCESSFUL SO YOU'VE GOT THE REGIONAL TIFF THEN YOU'VE GOT NOW SPENDING PLAN TIFF OR TIFF FLEXIBILITY WHICH IS A VERY UNUSUAL TOOL NOT UNPRECEDENTED I THINK IT WAS USED AT LEAST ONCE BEFORE IN THE ECONOMIC I BELIEVE AFTER THE GREAT RECESSION BUT NOW BEING AGAIN TO REALLY HELP PROJECTS LIKE OURS RECOVER FROM THE PANDEMIC. RIGHT. THE STATE RECOGNIZE THAT HOSPITAL AND PROJECTS LIKE MALL OF AMERICA ARE PROBABLY NOT ABLE REINVEST IN THEIR PROPERTIES RIGHT NOW GIVEN THE IMPACTS OF THE PANDEMIC AND THEY CREATED THIS TOOL TO HELP US DO JUST THAT IN OUR PROJECTS AND EXPAND AND TO GROW. SO IF YOU PUT THOSE TWO STATE PROVIDED TOOLS TOGETHER, I ASSURE YOU THAT'S UNPRECEDENTED TO HAVE REGIONAL TIFF THAT'S FLEXIBLE FOR A PROJECT THAT'S WHAT MAKES THIS PROJECT WORK WITHOUT THOUGH THAT FLEXIBILITY AND THAT REGIONAL TIFF I WOULDN'T BE STANDING TONIGHT. SECOND I THINK UNPRECEDENTED AS I MENTIONED AS WE TALKED LAST TIME FOR MALL OF AMERICA ,IT IS AN OPPORTUNITY TO MOVE FORWARD WITH A BIG PROJECT LIKE THIS THAT DOESN'T REQUIRE THE UPFRONT TIFF. IT'S COMING IN LATER. THAT'S AN UNPRECEDENTED SOLUTION TO I THINK IN A CREATIVE SOLUTION TO KIND OF THIS COULD THIS THIS CONFLICT THAT WE'RE IN WHERE THE STATE SPECIFICALLY AND INTENTIONALLY REMOVED EQUITY REQUIREMENTS SO PROJECTS LIKE THIS COULD USE IT AS TIFF YET THE CITY HAS EQUITY REQUIREMENTS I WANTED TO SEE THAT AND SO WE'VE KIND OF PULLED THOSE TWO TOGETHER AND IN A SOLUTION HERE THAT I THINK IS VERY CREATIVE AND ALLOWS A PROJECT LIKE THIS TO MOVE FORWARD FOR THE MALL. THIRD, I THINK IT'S AN UNPRECEDENTED OPPORTUNITY FOR BLOOMINGTON. I DON'T KNOW OF ANY OTHER CITY THAT HAS AN OPPORTUNITY TO BUILD A REGIONAL TOURIST DESTINATION LIKE THIS. THINK OF A CENTER SPORTS ARENA YOUTH SPORTS COMPLEX THAT DOESN'T HAVE LOCAL TAXES INVOLVED IN THAT. USUALLY IT'S AT LEAST LOCAL TIFF IF NOT LOCAL LODGING TAXES LOCAL SALES TAX TO SUPPORT THOSE PROJECTS. IN THIS CASE THERE IS NO FINANCIAL RISK TO THE CITY OF BLOOMINGTON ALL BEING PROVIDED FOR FROM THE STATE. SO THINK THOSE THREE THINGS ARE ALL UNPRECEDENTED AND IT PRESENTED THIS OPPORTUNITY THAT ARE IN FRONT OF US SO BACKING UP TO LAST FALL AGAIN WHY A WATER PARK? I THINK IT WAS ASKED AT THE LAST MEETING IT'S A GREAT QUESTION WHY A WATER PARK? SO WE WE YOU KNOW, IT BECAME CLEAR TO US LATE LAST THAT THE FORMER WATER PARK PLAN THAT WE HAD DESIGN SIMPLY WAS NO LONGER AN OPTION WITH THE ESCALATED INTEREST RATES AND CONSTRUCTION COST THAT THAT WINDOW HAD CLOSED THE PROJECTS OFF THE TABLE. WE MET WITH CITY LEADERSHIP AND WITH STAFF AND SAID LOOK WE'VE GOT THIS TIME LIMITED OPPORTUNITY TO USE THIS THIS TOOL, THIS $85 MILLION. WHAT SHOULD WE INVEST IN ? HOW CAN WE INVEST IT AS INTENDED BY THE STATE TO DRAW TOURISM TO MALL OF AMERICA AND TO THE REGION TO BLOOMINGTON SO WE DEVELOPED COLLECTIVELY I THINK THREE OBJECTIVES ON WHAT THIS PROJECT SHOULD DO HOW SHOULD THIS BE DRIVEN? AND THE FIRST OBJECTIVE WAS WAS HOW DO MAXIMIZE THE PUBLIC RETURN ON INVESTMENT PUBLIC RETURN THE MOST TOURISTS AND GUESTS THAT WE CAN GET FOR $5 MILLION. WHAT TYPE OF A PROJECT CAN MAXIMIZE THE TRAFFIC AND TOURISM TO THE REGION IN THE STATE? THAT'S THE INTENT OF THE REGIONAL TIF. THAT'S WHY WE HAVE IT. THE SECOND OBJECTIVE WAS HOW CAN THIS PROJECT BE USED HELP BUSINESSES LIKE MALL AMERICAN HOSPITALITY INDUSTRY RECOVER FROM THE IMPACTS OF COVID THAT WAS THE INTENT OF THE SPENDING PLAN TIFF SO WE'VE GOT TO HIT THE WE GOT TO HIT THE LEGISLATIVE OBJECTIVES. THE THIRD WAS AS HOLLY MENTIONED, HOW DO WE REPOSITION OF AMERICA TO CLOSER TO A 5050 MIX? WE KNOW THAT FORWARD RETAIL WILL ALWAYS BE WHERE THE MAJORITY OF OUR REVENUES COME FROM BUT TO SUPPORT THAT RETAIL WE NEED WE NEED MORE ENTERTAINMENT AND ALTERNATIVE USES TO DRIVE TRAFFIC TO THE CENTER. SO THOSE ARE KIND OF THE THREE OBJECTIVES WE SAID OKAY WHAT CAN WE COME UP WITH THAT REALLY HITS THESE THREE GOALS? AND SO OBVIOUSLY IF YOU LOOK AT THE DIFFERENT USES THAT THAT ARE OUT THERE, RETAIL IS NOT ONE OF THEM. WE'RE TRYING TO GET AWAY FROM THAT AND FOCUS ON OTHER USES OFFICES AND THERE'S NO CHANCE FOR FOR AN OFFICE DEVELOPMENT IN THIS MARKET NOR WOULD WE WANT IT IT'S REALLY THAT'S FAIRLY LOW DENSITY USE HOTELS THERE'S NO NEED FOR MORE HOTELS UNLESS YOU CREATE MORE DEMAND TO FILL THOSE HOTELS OTHERWISE THERE'S REALLY NOT A NET NET GAIN FOR BLOOMINGTON. SO THAT REALLY BROUGHT BACK TO AN ENTERTAINMENT DEVELOPMENT AND WE HAD JUST A YEAR PREVIOUS FINISHED WE JOINTLY WITH THE BCB OURSELF AND PORT COMMISSION TO STUDY ON A MIXED USE FACILITY AMATEUR SPORTS COMPLEX AND WE DID A FEASIBILITY STUDY THAT CAME BACK THAT WAS COINCIDENTALLY WE FINISHED UP A YEAR SOONER AND SO WE HAD THE RESULTS OF THAT STUDY WHAT COULD WHAT COULD WE DO WITH THIS MULTI-USE FACILITY AND THEN WE KNEW WHAT WE COULD DO WITH A WATER PARK, ALBEIT A SMALLER WATER PARK. AND IF YOU LOOK AT THOSE TWO, THE MULTI-USE FACILITY ACCORDING TO THE FEASIBILITY REPORT WHICH COSTS SOMEWHERE BETWEEN 75 AND $100 MILLION FOR THE PROGRAM THAT THEY HAD RECOMMENDED SAY THAT IT COST 85 BECAUSE THAT'S ALL WE HAD WOULD HAVE AVAILABLE TO US. SO WE WOULD HAVE DESIGNED IT TO $85 MILLION MULTI-USE FACILITY. IT WAS PROJECTED TO GENERATE 509,000 PEOPLE A YEAR IN YEAR THREE STABILIZED A YEAR AND I THINK IT WAS 54,000 ROOM NIGHTS A YEAR WATER PARK ON THE NEW AND BY THE WAY 100% PUBLICLY FUNDED RIGHT. THE BUILDING ITSELF BUILT BOTH PROJECTS WATER PARK AND THE SPORTS MULTI-USE FACILITY WHICH BOTH OF WHICH NEED A PARKING DECK AND THAT'S SO ALL OF THAT IS KIND OF STAGNANT. SO WHAT ARE THE BUILDING COSTS? THE BUILDING COST OF MIXED USE FACILITY CALL IT $85 MILLION BECAUSE WE WOULD HAVE DESIGNED TO THAT'S ALL THE MONEY WE HAD SAME THING WITH WATER PARK WE'RE GOING TO WHAT'S WHAT'S THE BIGGEST WATER PARK WE CAN GET USING THE $85 MILLION SO THE MIXED USE FACILITY AGAIN WOULD 100% PUBLICLY FUNDED FOR $85 MILLION DRAW 500,000 PEOPLE AND 54,000 ROOM NIGHTS THE WATER PARK 700,000 PEOPLE. RIGHT. IT'S ABOUT 35% PUBLICLY FUNDED. IT'S A $245 MILLION PROJECT AND DRAWS 90,000 ROOM NIGHTS SO SIMPLE MATH THAT THAT THE WATER PARK WILL DRAW MORE PEOPLE GENERATE MORE ROOM NIGHTS AT LESS COST. AND BY THE WAY, THE SPORTS COMPLEX LOSES MONEY AND THE REPORT WAS VERY CLEAR THAT WE COULD EXPECT TO LOSE A COUPLE HUNDRED THOUSAND DOLLARS A YEAR BECAUSE IT COULDN'T PAY FOR THE OPERATING ON ITS OWN, MUCH LESS ANY OF THE DEBT FOR THE PROJECT WHEREAS A WATER PARK CAN SUPPORT ITSELF MOVING . SO FOR US THE CHOICE WAS CLEAR THE BEST WAY TO USE THESE DOLLARS TO MEET THOSE OBJECTIVES WOULD BE A WATER PARK RIGHT? SO WE HAD TO WE HAD TO COMPLETELY REIMAGINE THIS WATER PARK KNOWING THAT THE OLD PLAN WOULDN'T WORK. KIND OF GO BACK TO THE DRAWING TABLE AS TO HOW DO WE HOW DO WE CUT LITERALLY 30% OUT OF THE PROJECT BY BUDGET AND HOW DO WE MAINTAIN OUR FOCUS ON SUSTAINABILITY? RIGHT. THAT WAS ONE OF THE GOALS THAT WE HEARD LOUD AND CLEAR FROM FROM THESE BODIES THE FIRST TIME AROUND. SO KIND OF GIVEN THOSE OBJECTIVES YET, HOW DO WE MAINTAIN THE ENTERTAINMENT VALUE OF THE PREVIOUS WATER PARK WE REDESIGNED THE WATER PARK AND MADE REALLY THREE MAJOR CHANGES THAT WE WENT THROUGH THREE WEEKS AGO. ONE WAS TO ALMOST ELIMINATE THE WAY FOR THE AIRPORT 52,000 SQUARE FEET. THE NEW WAVE POOL IS 8700 SQUARE FEET, SOMETHING LIKE THAT. IT'S AN 87% SMALLER WAVE POOL. WAVE POOL WAS MASSIVE RIGHT. AND IT TOOK UP A LOT OF SPACE IN THE PROJECT SO BY DOWNSIZING THAT IT FREED UP SPACE SO THAT WHEN WE MADE THE BUILDING SMALLER WE COULD STILL KEEP ALL THE RIDES AND SLIDES WE PUSHED THE RIDES THE SLIDE TOWERS ON THE OUTSIDE OF THE BUILDING INSTEAD OF THE INSIDE OF THE BUILDING. SO THAT AGAIN ALLOWED US TO KIND SHRINK THAT ENVELOPE AND THE THIRD CHANGE AND I THINK THE MOST SIGNIFICANT CHANGES THE RETRACTABLE ROOF AS YOU CAN SEE BEHIND US WE BELIEVE THAT FIRST OFF THERE'S AN ENTERTAINMENT VALUE TO IT TO HAVE A COMPLETELY CLEAR ROOF OVER THE ENTIRE PROJECT BUT TO BE ABLE TO OPEN IT UP AND OPEN UP THE WINDOWS THERE'S ALSO WINDOWS ON THE SIDES AND ALLOW FRESH AIR IN AND OUT. WE THINK OUR ENGINEERS THAT THIS COULD BE THE SINGLE MOST IMPORTANT ARCHITECTURAL ELEMENT CHANGE WE COULD MAKE TO REDUCE ENERGY IN THIS BUILDING ENERGY CONSUMPTION IN THIS BUILDING AND IT'S IT'S COMMON SENSE RIGHT. YOU THINK ABOUT IT AND OUR WATER PARK IN WEST EDMONTON OR WATER PARK IN NEW JERSEY ANY TIME WE'RE ABOVE PROBABLY 55 DEGREES OR 60 DEGREES WE'RE AIR CONDITIONING. RIGHT. BECAUSE ALL OF THAT HEAT GENERATED BY THE WATER, BY THE PEOPLE, BY THE LIGHTS IS CAPTURED EVEN SO IT'S EVEN 60 DEGREES AND WE'RE AIR CONDITIONING. THEY'RE BUILDING NOW YOU HAVE THE ABILITY OPEN UP THIS ROOF PARTIALLY ENTIRELY RIGHT. AND YOU CAN REGULATE HOW MUCH FRESH AIR THAT YOU'RE BRINGING SO IT WILL HAVE A SIGNIFICANT IMPACT ENERGY REDUCTION AND THE SIZING OF THE AIR CONDITIONING THAT'S NEEDED FOR THIS PROJECT. SO THOSE ARE KIND OF THE THREE MAJOR CHANGES THAT WE MADE THAT WE COVERED THREE WEEKS AGO. WHAT'S NOT CHANGED IS OUR COMMITMENT TO SUSTAINABILITY, RIGHT? SO THESE BODIES KNOW WE HAVE BEEN MIRKA AS YOU'VE HEARD ME SAY BEFORE HAS BEEN SUSTAINABLE BEFORE SUSTAINABLE WAS KIND OF THE COMMON LANGUAGE ARCHITECTURE TODAY IT WAS DESIGN HAD LEAD OR US GREEN BUILDING COUNCIL BEEN AROUND 35 YEARS AGO I DO BELIEVE THAT ALL AMERICA WOULD BE LEED CERTIFIED AND IN FACT NOW THEY DO HAVE A PROGRAM THAT WE JUST MET WITH THEM A FEW WEEKS KIND OF A RETROACTIVE PROGRAM WHERE YOU CAN GO BACK AND CERTIFY THAT ARE IN EXISTENCE AND WE'RE GOING TO GO THROUGH THAT PROCESS. BUT SINCE U.S. GREEN BUILDING HAS COUNSEL HAS BEEN AROUND SINCE LEED HAS BEEN AROUND EVERY PROJECT DEVELOPED HAS BEEN LEED CERTIFIED RADISSON BLU J.W. MARRIOTT THE OFFICE TOWER PHASE ONE C EXPANSION ARE ALL LEED BUILDINGS AND WE DID THAT WITHOUT A REQUIREMENT OF THE CITY. THAT'S THAT'S WHAT WE DO. WE DO HAVE A FOCUS ON SUSTAINABILITY WILL CONTINUE THAT COMMITMENT TO SUSTAINABILITY WE WILL MAKE A COMMITMENT AS WE'VE OUTLINED IN THE TERM SHEET TO SEEKING LEED SILVER NOW IT'S ONLY COMMITMENT BECAUSE THERE IS NO LEED CERTIFICATION FOR WATER PARKS THAT TODAY IT'S IMPOSSIBLE TO GET A WATER PARK CERTIFIED AGAIN. WE'VE MET WITH THE US GREEN BUILDING COUNCIL. I THINK THEY ARE WILLING WORK WITH US EXCITED TO ACTUALLY WORK WITH US TO ESTABLISH STANDARDS A WATER PARK THEY WOULD LIKE TO SEE THIS BE THE FIRST LEED CERTIFIED WATER PARK IN THE COUNTRY AS A DEMONSTRATION PROJECT THAT THEY CAN USE ELSEWHERE SO THEY'RE WILLING TO WORK WITH US. BUT UNTIL WE KNOW THOSE STANDARDS ARE WE DON'T KNOW IF WE CAN ACHIEVE AND WHAT IT WILL TAKE TO ACHIEVE IT EVEN IF WE DO KNOW WHAT THE STANDARDS THE WAY LEED LEED WORKS IS YOU DON'T KNOW WHAT YOUR SCORE UNTIL SIX MONTHS TO A YEAR AFTER YOU'RE OPEN RIGHT. YOU SUBMIT FOR LEED CERTIFICATION UNTIL THE PROJECT IS OPEN YOU'VE GOT DATA PERFORMANCE DATA OF OPERATING PERFORMANCE DATA THAT YOU SUBMIT TO. THEY GO THROUGH AND SCORE SCORE POINTS DIFFERENT DIFFERENT THINGS LIKE TAKING A COLLEGE EXAM YOU DON'T KNOW WHAT YOUR IS GOING TO BE UNTIL YOU GET TILL YOU GET THE REPORT CARD BACK. THAT'S KIND OF HOW IT WORKS FOR LEED. WE KNOW WHERE WE THINK WE'RE GOING TO GET POINTS IN DIFFERENT CATEGORIES. WE KNOW HOW MANY POINTS WE THINK WE'RE GOING TO GET BUT YOU JUST DON'T KNOW UNTIL YOU GET THAT BACK. SO THAT'S WHY WE CAN ONLY MAKE A COMMITMENT TO MAKE BEST EFFORTS TO ACHIEVE LEED BUT UNTIL THERE IS A STANDARD SET OUT AND WE UNDERSTAND WHAT IT TAKES TO DO THAT WE CAN'T COMMIT TO IT. WE'VE ALSO MAINTAINED OUR ENHANCED SUSTAINABILITY INVESTMENT. IF YOU RECALL PREVIOUSLY IN THE LAST TERM SHEET WE COMMITTED TO IT SPENDING AT LEAST $5 MILLION TOWARDS SUSTAINABILITY AND SUSTAINABLE DESIGN. WE'VE MAINTAINED THAT $5 MILLION AND IT'S A SMALLER BUILDING RIGHT? SO IT WENT FROM REALLY $15 A SQUARE FOOT TO $22 A SQUARE FOOT AND. I CAN I CAN ALMOST GUARANTEE YOU THAT WE WILL SPEND SIGNIFICANTLY MORE THAN THAT. I WOULD TELL WE UNDERSTAND WHAT GET INTO THE MODELING AND THE DESIGN WE DON'T KNOW WHERE THE BEST USE OF THOSE DOLLARS ARE AND HOW THEY WOULD IMPACT SUSTAINABILITY. WE'LL CERTAINLY I THINK AT THE END OF THE DAY SPENDING PROBABLY TWICE THAT AMOUNT BUT I JUST CAN'T COMMIT TO THAT AT TIME. THE OTHER BENEFITS THAT HAVEN'T CHANGED I THINK THIS REPORT OR THE STAFF REALLY OUTLINES THEIR IMPORTANCE TO MALL OF AMERICA SUSTAINABILITY IMPORTANCE TO THE BLOOMINGTON HOSPITALITY INDUSTRY, THE IMPORTANCE TO THE REGION, THE STATE ALL OF THAT HAS NOT CHANGED THE TO BLOOMINGTON'S TAX BASE HAS NOT CHANGED THOSE ALL THOSE BENEFITS ARE STILL IN PLACE ALBEIT A SMALLER PROJECT. THE OTHER OPPORTUNITIES I THINK IT'S IMPORTANT TO NOTE THAT ARE CREATED BY THE WATER PARK IS I DON'T WANT TO CALL THEM UNINTENDED CONSEQUENCES BUT A RESULT OF DOING THE WATER PARK IS LIKELY A WATER PARK HOTEL RIGHT THAT WILL LOOK AGAIN TO SATISFY THE DEMAND FOR THE NEW THE NEW DEMAND THE HOTEL DEMAND THAT WILL BE CREATED BY THE WATER PARK. IT WILL MAKE SENSE TO PUT A WATER PARK HOTEL ATTACHED TO THIS WHICH AGAIN CREATES MORE JOBS AND TAXES AND TOURISM THE UNIQUE PIECE I THINK THAT THAT'S REALLY UNIQUE ABOUT THE WAY THE TERM SHEET IS STRUCTURED IS RECAPTURING $100 MILLION OF WATER PARK PROFITS WHICH IN TURN GO BACK INTO MALL OF AMERICA AND SOUTH LOOP FOR YET ADDITIONAL DEVELOPMENT. SO I CALL IT A TWO FOR ONE, RIGHT. AS OPPOSED TO DOING THE SPORTS OR SOMETHING UPFRONT WHERE YOU'RE SPENDING ALL THE MONEY, YOU'RE NOT GETTING ANYTHING BACK HERE. YOU'RE SPENDING THE MONEY GETTING IT BACK, SPENDING IT AGAIN SO EFFECTIVELY YOU COULD POTENTIALLY DO BOTH RIGHT FOR FOR THE SAME DOLLARS. BEFORE I CLOSE THOUGH I DO WANT TO GIVE A COUPLE OF THANK YOUS ONE TO HOLLY AND JASON FOR AND SHANE WHO I'VE BEEN WORKING WITH FOR MANY MONTHS ON THIS TERM SHEET FOR COMING UP WITH I THINK IS A VERY CREATIVE SOLUTION TO SOLVING THE CHALLENGE WE WERE HAVING ABOUT THIS EQUITY NO EQUITY HOW DO WE GET THROUGH THIS AND WE DID AND I GIVE CREDIT FOR IT. THAT WASN'T MY IDEA. THAT WAS THEIR IDEA AND I THINK IT WAS A VERY FAIR WAY TO MOVE THIS PROJECT FORWARD ALSO MOSTLY THANKS TO THAT TO STATE AND REGION STATE LESLATIVE LEADERS THAT REALLY PROVIDED THESE TOOLS TO US RECOGNIZING THE IMPORTANCE OF MALL OF AMERICA TO THE TO THE STATE. ALSO WANT TO THANK SOME OF MY FRIENDS THE FRIENDS OF MALL AMERICA HAVE BEEN HERE TONIGHT. THE ASHLEY BONNIE AND JAN AND DAN IS HERE AND I KNOW WE UNSOLICITED LETTER FROM MINNESOTA SPORTS AND EVENTS APPRECIATE THAT THE REGIONAL CHAMBER HAS BEEN STRONG SUPPORTERS OF OURS IN IN MOVING THIS FORWARD I SHALL ALSO LETTER COME OUT FROM THE BUILDING TRADES OUR FRIENDS AT THE BUILDING TRADES AND THEIR SUPPORT FOR THIS PROJECT AND I APPRECIATE THAT AND SO IN CLOSING I SIMPLY WANT YOU TO CONSIDER YOU KNOW, BACK TO THE RISK QUESTION, RIGHT. WHICH IS THE GREATER RISK MOVING FORWARD OR NOT MOVING FORWARD? I THINK AS WE'VE TALKED ABOUT THERE IS NO RISK TO BLOOMINGTON TAXPAYERS. THERE'S NOT THERE'S REPUTATIONAL RISK. THERE'S RISK TO POTENTIALLY LOSING THIS $85 MILLION OF REGIONAL MONEY THAT DOESN'T COME BACK. I WOULD SUBMIT YOU THAT EVEN IF THAT WERE THE CASE AND I DON'T THINK THAT WOULD BE THE CASE THAT'S STILL THE RIGHT INVESTMENT TO MAKE RIGHT? IT'S STILL A BETTER INVESTMENT THAN YOUTH SPORTS COMPLEX THAT I THINK WOULD BE THE ALTERNATIVE BUT IN THIS CASE. I BELIEVE IT IS COMING BACK IN IN WATERPARK PROFITS IT COULD BE REINVESTED IN THE PROJECT. SO WITH THAT I ASK FOR YOUR SUPPORT LOVE TO MOVE THIS PROJECT FORWARD. WE THINK IT'S GOOD FOR BLOOMINGTON WE THINK IT'S GOOD FOR MALL OF AMERICA. WE THINK IT'S GOOD FOR THE HOSPITALITY INDUSTRY FOR, THE REGION AND FOR THE STATE. SO THANK YOU. I'LL STAND FOR QUESTIONS. I'LL COME BACK COME BACK AND SIT DOWN THIS TIME I REMEMBER LAST IN ABOUT 3 HOURS MAYOR BUSSEY AND PRESIDENT ERICKSON, COUNCILMEMBERS AND COMMISSIONERS DON'T WORRY THAT'S COMING. MR. HAGAN SO I DID WANT TO TAKE A MOMENT TO INTRODUCE COUNCILMEMBER DWAYNE LOWMAN IS GOING TO READ A STATEMENT FROM THE SUSTAINABILITY COMMISSION . AS MR. HAGAN STATED SUSTAINABILITY IS AN IMPORTANT CONCERN OF THIS PROJECT WATER PARKS DO CONSUME ENERGY, CONSUME WATER AND SUSTAINABILITY IS VERY IMPORTANT TO THE CITY OF BLOOMINGTON, THE PORT AUTHORITY STAFF AND REPRESENTATIVE OF MALL OF AMERICA HAD THE OPPORTUNITY TO PRESENT TO THE SUSTAINABILITY COMMISSION ON APRIL 9TH AND TALK ABOUT SOME OF THE PRELIMINARY DESIGNS FOR THE PROJECT AND THE SUSTAINABILITY COMMISSION HAD THE OPPORTUNITY TO RECONVENE AND DISCUSS THOSE AND SHARE THEIR COMMENTS WITH COUNCIL MEMBERS AND COMMISSIONERS. SO WITH THAT I WILL TURN OVER TO COUNCILMEMBER LOWMAN. THANK YOU ALL AND MAYOR, MAYOR AND PORT OFFICIALS AND COUNCIL MEMBERS I'D LIKE TO THANK THE SUSTAINABILITY COMMISSION'S EFFORTS AND WORK THAT THEY PUT FORWARD IN CREATING THE TWO MEMOS. THE SUSTAINABILITY COMMISSION IS A GROUP OF RESIDENTS APPOINTED BY THE COUNCIL AND THE STAFF TO REVIEW AND REVIEW THE PROPOSAL FOR A WATER PARK AND DRAFTED TO MEMBERS ON APRIL 16 THAT OUTLINED THE COMMISSION'S CONCERNS WITH THE PROPOSAL AND HOW IT OUTLINED OR ALIGNED WITH THE CITY'S ENERGY ACTION PLAN THAT CALLS FOR REDUCING ENERGY GREENHOUSE GAS EMISSIONS BY 75% BY 2035. THE COMMISSION ALSO RAISED CONCERNS WITH THE ALIGNMENT OF THE PROPOSAL WITH THE CLIMATE ENERGY EMERGENCY THAT WAS UNANIMOUSLY ADOPTED IN 2022 BY THE CITY COUNCIL. THE DETAILED RECOMMENDATIONS AND CONCERNS FROM THE COMMISSION CAN BE READ IN DETAIL IN THE INCLUDED PUBLIC PACKET. THOSE RECOMMENDATIONS TO THE COMMISSION'S DESIRE TO SEE A LEAD CERTIFICATION WITH THE PROJECT AND IF NOT OBTAIN THE OTHER THAT WOULD THAT MAY MAKE THE PROJECT MORE IN KEEPING WITH THE GOALS LAID OUT BY THE COUNCIL WITHIN THE CLIMATE EMERGENCY AND THE ADOPTED ENERGY ACTION PLAN. FURTHERMORE, THE COMMISSION EXPRESSED ITS THAT ALL ELEMENTS OF THE PROJECT AREN'T WITH THE GROUP'S DEEP CONCERN REGARDING THE ENERGY ACTION AND CLIMATE EMERGENCY. PLEASE INCLUDE THE FULL TEXT OF BOTH MAMMALS INTO THE PERMANENT RECORD AS PRINTED IN THE PACKET. THANK YOU FOR THAT COUNCILMEMBER AND I DO WANT TO POINT OUT TO EVERYONE HERE OBVIOUSLY YOU'VE SEEN THE PACKET AND ANYBODY WATCHING AT HOME OR WITH US THIS EVENING YES AS IS AS COMMISSIONER AND COUNCILMEMBER LOWMAN OUT THE TWO MEMOS ARE INCLUDED IN THE COUNCIL PACKET THEY'RE PART OF THE PUBLIC RECORD ON ALL OF THIS AND I APPRECIATE THAT . I ALSO WANTED TO ADD THAT I DO APPRECIATE THE WORK OF THE SUSTAINABILITY COMMISSION AND OUR STAFF WHO SUPPORT THEM FOR THEIR FOR THEIR THOUGHTFUL AND THOROUGH REVIEW OF THIS PROPOSAL. I OBVIOUSLY THAT THIS HAS BEEN A CHALLENGING PROCESS. I APPRECIATE THE PROFESSIONALISM THE EXPERTIZE AND THE OBVIOUS PASSION THE SUSTAINABILITY COMMISSION HAS BROUGHT TO THIS ISSUE AND I RESPECT THE CONCLUSIONS THEY'VE COME TO AND THE CONCERNS THAT THEY'VE SHARED. THEY ARE RIGHTFULLY CONCERNED ABOUT THE FUTURE AND THEY'RE DOING WHAT THE COUNCIL BASICALLY TASKED THEM WITH DOING IN RESPONSE TO OUR CONCERNS ABOUT CLIMATE CHANGE . BUT AS MR. HAGAN DID MENTION, THE PROPOSED WATER PARK UNIQUE IF APPROVED IT WILL BE THE LARGEST PROJECT WE WILL HAVE PARTNERED WITH A DEVELOPER ON SINCE MALL OF AMERICA PHASE TWO WHEN THE J.W. MARRIOTT IN THE OFFICES AT MALL OF AMERICA WERE BUILT. IT'S ALSO NOTABLE BECAUSE IT WILL BE A SIGNIFICANT WATER AND ENERGY USER FOR. THAT REASON WE ASKED THE SUSTAINABILITY COMMISSION TO LOOK AT A COUPLE OF YEARS AGO WHEN WE WERE LAST DISCUSSING THIS AS A TERM SHEET AND I SUGGEST THAT ASKING THE SUSTAINABILITY COMMISSION TO REVIEW IT IN ITSELF IS UNIQUE. WE HAVE NOT ASKED IT FOR ASK THAT COMMISSION TO REVIEW MOST OTHER ECONOMIC DEVELOPMENT OR REDEVELOPMENT PROJECTS IN THE CITY OF BLOOMINGTON WE HAVE WITH NUMEROUS DEVELOPERS AND BUSINESSES OVER MY TIME THE COUNCIL AND WHETHER IT BE THROUGH TIFF AGREEMENTS OR BUSINESS SUBSIDIES FOR JOB CREATION OR ZONING FLEXIBILITY TO MAKE REDEVELOPING IT AND ECONOMIC DEVELOPMENT HAPPEN. WE'VE DONE THAT FOR MULTI-FAMILY THAT'S AFFORDABLE FOR MIXED USE AND TRANSIT ORIENTED DEVELOPMENT FOR SMALL BUSINESS GROWTH AND FOR BUSINESS EXPANSION AND RETENTION. WE HAVEN'T ASKED FOR ANY OF THOSE PROJECTS TO BE REVIEWED FOR THEIR ENVIRONMENTAL IMPACT AND OF THOSE PROJECTS WE'VE SUPPORTED RECENTLY FOR GROWTH AND REINVESTMENT ARE KNOWN TO BE HIGH CONSUMERS OF ENERGY AND WATER HERE IN BLOOMINGTON AND ASKING US TO APPLY SPECIFIC STANDARDS OR TARGETS RELATED TO ENERGY USE AND WATER CONSUMPTION TO THIS SPECIFIC PROJECT WHEN THE COUNCIL AND THE PORT HAVE NOT YET AGREED TO A SPECIFIC STANDARD REGARDING TO REDEVELOPMENT OR DEVELOPMENT IS A COMPLICATED ISSUE DOING SO NOW WITHOUT HAVING THAT SIGNIFICANT CONVERSATION AND HAVING BY THE COUNCIL AND BY THE PORT AUTHORITY ABOUT WHETHER AND WE SET THOSE STANDARDS FOR DEVELOPMENT WOULD BE IN MY OPINION A MISTAKE AT THIS TIME. WE WANT TO UNDERSTAND THE ENVIRONMENTAL IMPACTS OF THE PROPOSED PARK. WE WANT TO WORK WITH 555 TO MITIGATE IMPACTS AND IF APPROVED WE WANT TO MEASURE ITS IMPACT GOING FORWARD. I AM CONFIDENT THAT FIVE WANTS TO DO THE RIGHT THING AND WANTS TO MAKE THIS PROJECT AS ENERGY AND EFFICIENT AS POSSIBLE WITHIN THE FINANCIAL FRAMEWORK WE'RE WORKING WITH IT'S IN THEIR INTEREST AS AN OWNER AND OPERATOR TO DO JUST THAT. I EXPECT TO CONTINUE TO WORK WITH OUR STAFF TO IDENTIFY THOSE OPPORTUNITIES AND CONTINUE WORKING TO OUT HOW TO INCORPORATE INCORPORATE THEM INTO THIS PROJECT. IF APPROVED . THANK YOU VERY MUCH MAYOR AT TIME I WOULD INVITE JASON SCHMIDT SYSTEM PORT AUTHORITY ADMINISTRATOR UP TO SPEAK TO THE FINANCIALS OF THE PROJECT . ALL RIGHT GOOD. EVENING MAYOR PRESIDENT ERICKSON, COUNCILMEMBERS AND COMMISSIONERS AS STATED JASON SCHMIDT, THE ASSISTANT PORT AUTHORITY ADMINISTRATOR AND I'M GOING TO GO KIND OF THE FINANCIAL MODEL AS TO WHAT IS LAID OUT THE TERM SHEET AS WELL AS THE ADDITIONAL TERMS THAT WE ARE PRESENTING AND ASKING FOR A VOTE ON FROM THESE TWO BOARDS. SO THE 2024 PROPOSED WATER PARK WHAT THIS IS IT IS A PRIVATELY OWNED WATER PARK THAT WE WERE WORKING ON. SO THE MALL OF AMERICA WATER OWNER LLC WOULD BE THE OWNER AND THEY WOULD BE THE ONE TAKING OUT THE PRIVATE LOAN FOR THIS WATER PARK. WHAT IS BEING PROPOSED IS A 144,000 SQUARE FOOT POOL HALL AND BELOW OR WITHIN A APPROXIMATELY 220,000 SQUARE FOOT BUILDING ENVELOPE IT WILL INCLUDE A WAVE POOL AND A LAZY RIVER OVER 30 WATER FEATURES AND SLIDES AND THE TOTAL PROJECT COST IN RESERVES ARE RIGHT AROUND $373 MILLION. SO BEFORE WE GET INTO THAT, I JUST WANT TO DO A QUICK OVERVIEW AS TO HOW TAX INCREMENT FINANCING WORKS. SO BASED ON LEGISLATION, A PORTION OF PROPERTY TAXES THAT THAT TIFF DISTRICT PROPERTIES PAY IS COLLECTED IN THIS CASE FOR THE MALL OF AMERICA THE PORTION THAT IS COLLECTED IS IS THAT DISPARITIES PORTION AS PREVIOUSLY STATED THE TAX THAT COMES IN GOES INTO TWO DIFFERENT ACCOUNTS. ONE IS A PROJECT FUND WHERE THAT THAT MONEY IS INVESTED INTO THE PROJECTS BASED ON THE APPROVED DEVELOPMENT AGREEMENTS. THE OTHER FUND IS AN ADMINISTRATIVE AND RESERVE FUND THAT IS TO HELP PAY FOR EITHER STAFF'S TIME WITH ADMINISTERING THAT ACCOUNT AND ADDITIONALLY IT'S ALSO A POOLED MONEY THAT CAN BE USED ON FUTURE PROJECTS OR OTHER PROJECTS THAT THE BOARDS FEEL IS IS EVIDENT USE OF THESE FUNDS CAN GO TOWARDS FUNDING PUBLIC IMPROVEMENTS WITHIN THAT GEOGRAPHICAL AREA OR. IT CAN BE USED FOR AFFORDABLE HOUSING CITYWIDE AND ADDITIONALLY IN ORDER FOR THESE FUNDS TO TO BE CONSIDERED BEFORE THESE BOARDS STAFF USUALLY INTERNALLY AS WELL AS WORKING WITH CONSULTANTS WILL DO A PERFORMA AND NEEDS ANALYSIS TO DETERMINE WHAT IS THAT THE FINANCIAL NEED OF THESE PROJECTS SO THE MALL OF PUBLIC FUNDING SOURCE IS THAT TIFF THE MALL OF AMERICA'S TAX INCREMENT FINANCING DISTRICT THE 2016 MASTER REDEVELOPMENT CONTRACT LAYS OUT THE REQUIREMENTS AS TO HOW THAT MONEY IS DETERMINED AND WHERE IT CAN BE SPENT AND IT REQUIRES THAT ALL PARTIES AGREE TRIPLE THE PORT AUTHORITY AND THE CITY COUNCIL NEED TO AGREE ON EXACTLY HOW THAT MONEY IS TO BE SPENT AND IT REQUIRES THE FUNDING NEEDS ANALYSIS WITH THE MALL OF AMERICA TAX INCREMENT FINANCING PLAN 90 90% OF THE TAX INCREMENT THAT COMES IN GOES INTO THAT PROJECT FUND FOR THE MALL OF AMERICA'S USES AND 10% GOES INTO THE MALL OF AMERICA IS ADMINISTRATIVE FUND THAT HAS THE DISCRETION OF JUST THE CITY COUNCIL THE PORT AUTHORITY MALL OF AMERICA AMERICA TIFF CANNOT BE USED FOR OTHER USES IN BLOOMINGTON SO IT CAN ONLY BE STRICTLY USED FOR THE DEVELOPMENT AROUND THE MALL OF AMERICA MALL OF AMERICA SPENDING PLAN TIFF SO AS MY BASIC STATED NORMALLY TIFF CAN ONLY BE USED FOR TIFF ELIGIBLE EXPENSES TYPICALLY, PUBLIC IMPROVEMENTS ARE CREATING AFFORDABLE HOUSING BUT THE 2021 LEGISLATION THAT WAS PASSED ALLOWED TIFF THAT WAS MOVED OVER INTO A SPENDING ACCOUNT THAT FLEXIBILITY THAT FLEXIBILITY OF THAT MONEY CAN NOW GO DIRECTLY INTO INVESTMENTS EITHER AS EQUITY OR SIMILAR INVESTMENTS THAT THE PORT OR CITY DETERMINES IS NECESSARY TO MAKE CONSTRUCTION HAPPEN AND IS FEASIBLE AND IT CREATES JOBS. THE WATER PARK PROJECT RIGHT NOW IS EXPECTED TO CREATE ROUGHLY 251 FULL TIME EQUIVALENT JOBS AS ANALYZED THIS SPENDING PLAN TIFF MUST BE SPENT BY THE END OF 2025 AND ANY SPENDING POINT IF THAT IS NOT SPENT JUST GETS MOVED BACK OVER INTO THE REGULAR ACCOUNT IS NOT LOST. IT JUST LOSES THAT FLEXIBILITY AND IT COULD ONLY BE USED FOR PUBLIC IMPROVEMENTS OR AFFORDABLE THE FUNDING OF THE MALL OF AMERICA TIFF DISTRICT SO AS OF 2023 THERE WAS APPROXIMATELY $89 MILLION IN THE MALL OF AMERICA SPENDING PLAN FUND AND THE IN THE TIF CAPITAL PROJECT FUND THERE WAS APPROXIMATELY 14 MILLION AT THE END OF THE YEAR BALANCE THAT CAPITAL PROJECTS FUND HAS AVERAGED IS PROJECTED TO AVERAGE ABOUT AN ADDITIONAL $10 MILLION PER YEAR OUT TO 2034. 2034 IS THE YEAR WITH WHICH THIS INCREMENT WOULD STOP PER HOUR PER HOUR AGREEMENTS SO THE WATER PARK PROJECT SO AS PREVIOUSLY STATED THE TOTAL PROJECT COSTS ARE $373 MILLION OF THAT 250 IS FOR THE WATER PARK 75 MILLION IS FOR THE PUBLIC IMPROVEMENTS THE PARKING RAMP AND THE PUBLIC INFRASTRUCTURE. THERE'S $48 MILLION OF ADDITIONAL COSTS FROM RESERVES AS WELL AS FINANCIAL COSTS TO GET TO THAT TOTAL OF 373 MILLION. THE PROPOSED FINANCIAL ASSISTANCE PACKAGE BASED ON THESE SOURCES 85 MILLION WOULD BE COMING FROM THE MALL OF AMERICA SPENDING PLAN TIFF 75 MILLION WOULD BE COMING FROM THE MALL OF AMERICA TIFF ACCOUNT WITH WHICH WOULD GO TO THE TIFF AND THEN $213 MILLION WOULD BE COMING FROM PRIVATE DEBT FINANCING ONCE AGAIN THE MALL OF AMERICA WATER PARK OWNER LLC WOULD BE THE ONE TAKING OUT THAT PRIVATE LOAN BECAUSE THEY WILL BE THE OWNING THIS WATER PARK IN EXCHANGE FOR THIS LARGE AMOUNT OF ASSISTANCE AT THE BEGINNING AND AS PREVIOUSLY STATED WE ARE LOOKING TO CAPTURE 100% OF THE WATER PARK CASH FLOW SO THIS IS ANNUALLY SO HOW THIS WORKS THE WATER PARK IS GOING TO CREATE REVENUE REVENUE WILL COME IN FROM TICKET SALES, FOOD SALES, TOWEL SALES ETC. THEN THERE WILL BE EXPENSES. EXPENSES WILL THEN COME OUT OF THAT REVENUE TO PAY FOR SALARIES OF THE EMPLOYEES FOR THE UTILITIES, ANY RESERVES THAT NEED TO BE DONE AND THEN THEY WILL HAVE THEIR ANNUAL DEBT SERVICE PAYMENT SO THEIR PAYMENT FOR THAT LOAN THAT THEY TAKE OUT THAT WILL GO TO THE BANK THE REMAINDER IS THE CASH FLOW THAT IS THE PROFITS, THAT IS THE PORTION THAT WE ARE LOOKING TO CAPTURE ANNUALLY AND RIGHT NOW THE PROPOSAL BEFORE YOU IN THE TERM SHEET IS THAT 60% OF THAT ANNUAL CASH FLOW WILL FLOW TO THE MALL OF AMERICA DEVELOPMENT FUND AND 40% OF THAT CASH FLOW WOULD FLOW TO THE MALL OR THE PORT MALL OF AMERICA TIFF ADMINISTRATIVE AND RESERVE FUND. SO A LITTLE BIT MORE INFORMATION REGARDS TO THOSE TWO FUNDS. SO THIS SO 60% GOES TO THE MALL OF AMERICA DEVELOPMENT FUND USES FROM THIS FUND WILL BE AT THE DISCRETION AND APPROVAL OF CITY COUNCIL THE PORT AUTHORITY AS WELL AS 555 AND IT IS TO SERVE AS A GAP FINANCING ON FUTURE MALL OF AMERICA DEVELOPMENT PROJECTS SO THIS MONEY WOULD BE STRICTLY GOING BACK TO THE DEVELOPMENT FUTURE DEVELOPMENT PROJECTS AROUND THE MALL OF AMERICA. THE OTHER PERCENT GOES INTO THE PORTS MALL OF AMERICA TIFF ADMINISTRATION AND RESERVE FUND USES FROM THIS FUND WILL BE AT THE DISCRETION OF THE PORT AUTHORITY FOR TIFF ELIGIBLE PROJECTS. WE'LL LOOK FOR AN EMPHASIS ON SUSTAINABILITY AND CLIMATE RESILIENT PROJECTS WITHIN THE SOUTH LOOP AREA AND IN ADDITION THIS MONEY CAN ALSO GO FOR AFFORDABLE HOUSING PROJECTS CITYWIDE AND STATE STATUTE DICTATES THE USES OF THIS FUNDING THE WAY THE TERMS ARE WRITTEN A MINIMUM OF $40 MILLION WOULD GO INTO THIS PORT TIFF ADMINISTRATIVE FUND WITH A MAXIMUM ALLOWANCE GOING IN AT ABOUT AT 60 MILLION CAPTURE OF CASH FLOW DOES NOT STOP UNTIL PRIVATE EQUITY AND MINIMUM OF $100 MILLION IS CAPTURED OVER TIME BETWEEN TWO ACCOUNTS. SO WE CONTINUE TO CAPTURE THAT CASH FLOW UNTIL THESE TWO ITEMS HAPPEN. EQUITY IS BROUGHT IN AND LEAST A MINIMUM OF $100 MILLION HAS BEEN CAPTURED AT THE LAST PREVIOUS MEETING THE QUESTION CAME UP HOW DID WE COME UP WITH THAT MINIMUM $100 MILLION? SO I JUST WANTED TO HIGHLIGHT IT ON THIS SLIDE. SO 85 MILLION THAT IS THE THAT IS THE SPENDING PLAINTIFF. SO WE ARE LOOKING TO CAPTURE 100% PAYBACK OF THAT SPENDING PLAINTIFF BECAUSE THAT'S GOING DIRECTLY INTO THE WATER PARK THE 75 MILLION THAT IS GOING INTO THE PUBLIC IMPROVEMENTS WE LOOKED AT OUR PREVIOUS RECAPTURE AGREEMENTS ON PREVIOUS MALL OF AMERICA DEVELOPMENT PROJECTS AS WELL AS TIFF FINANCIAL DETERMINED PROJECTS WITHIN THE CITY LOOKED AT WHAT WAS THAT PRECEDENT THAT WE'VE LOOKED AT WHEN USING RECAPTURE THAT RECAPTURE IS THAT A REPAYMENT IS CAPPED AT 50% OF THAT PUBLIC INFRASTRUCTURE INVESTMENT AND SO IN THIS CASE IT'S TO THE WATER PARK AND IN THIS CASE THAT PARKING RAMP ISN'T SOLELY GOING TO BE USED BY THE WATER PARK. IT WILL BE SHARED WITH FUTURE USES THAT WATER PARK HOTEL AS WELL THE FUTURE DEVELOPMENT TO THE NORTH AND SO WE LOOK WORKING WITH THE MALL OF AMERICA THE WATER PARK IS GOING TO ACCOUNT FOR ABOUT 40% OF THE DEMAND OF THAT PARKING STRUCTURE. SO WHAT WE THEN DID IS WE TOOK THE 75 MILLION WE APPLIED 40% TO THAT. THAT'S THE WATER PARKS ALLOCATION OF RAMP GIVES YOU THE 30 MILLION AND THEN 50% OF THAT IS 15 MILLION. AND SO THAT'S WHY WAS 50 MILLION PLUS 85 MILLION GETS US TO THAT MINIMUM 100 MILLION THAT WE'RE LOOKING TO CAPTURE AS I JUST WANT TO STATE AGAIN IT'S A MINIMUM OF 100 MILLION IF A IF EQUITY PRIVATE EQUITY DOES COME IN BY THE TIME 100 MILLION HAS BEEN REACHED, THAT ACCOUNT WILL TO GROW UNTIL THE PRIVATE EQUITY IS BROUGHT TO THIS. SO FUTURE PRIVATE EQUITY AS I JUST STATED SO TERMINATION OF THAT WATER PARK CASH WILL CAPTURE DOES NOT OCCUR UNTIL A MINIMUM OF $100 MILLION ONCE AGAIN IS CAPTURED INTO THOSE TWO ACCOUNTS AND. AT LEAST 30% OF PRIVATE EQUITY IS PROVIDED AT A FUTURE DATE AND THAT IS BASED ON THE VALUE OF THE WATER PARK AT THE TIME THE EQUITY IS APPLIED EQUITY COULD COME FROM THE MALL OF AMERICA OWNER OF THE WATER PARK OWNER AND IT COULD COME FROM AN EQUITY PARTNER TO INCENTIVIZE THE INCREASING TO INCENTIVIZE INCREASE IN THE VALUATION OF THE WATER PARK. SO WE WANT TO MAKE SURE THAT THE VALUE OF THE WATER PARK CONTINUES TO GROW OVER TIME AND THAT THE MANAGERS DON'T WITH OR HOLD BACK THE NET OPERATING INCOME. SO WE WANT TO INCENTIVIZE THEM TO INCREASE THE VALUE OF THE WATER PARK THROUGH THAT INCREASED NET OPERATING INCOME . I KNOW WHY THE WATER PARK OWNER IS ABLE TO EARN UP TO HALF OF THAT REQUIRED 30% PRIVATE EQUITY AND THE VALUATION AND CAP RATE OF THE WATER AT THE TIME OF THE PRIVATE EQUITY CONTRIBUTION IS DETERMINED BY OUR THREE APPRAISALS THREE PARTY APPRAISAL PROCESS WITH WHICH THE PORT AUTHORITY WOULD OBTAIN AN APPRAISER 555 WOULD OBTAIN AN APPRAISER AND THEN THOSE TWO APPRAISERS WOULD TURN OF A WOULD IN TURN SELECT A THIRD ONE AND THEN WE WOULD LOOK AT OVERALL FINDING THE VALUE OF THE WATER PARK. IT'S A WATER PARK PERFORMER NEEDS ANALYSIS SO STAFF HAS BEEN WORKING WITH OUTSIDE CONSULTANTS WITH WITHIN REVIEWING THIS PROFORMA AS WELL AS THE STUDIES THAT HAVE BEEN DONE FROM THE 555 CONSULTANTS AS WELL AS ALL OF THE PREVIOUS STUDIES FROM 2018 THAT THE CITY AND PORT AUTHORITY HAS ENTAILED AS WELL THROUGH VARIOUS CONSULTANTS UNDER CURRENT MARKET CONDITIONS TODAY WE WE'RE ABLE TO SAY THERE IS ENOUGH COVERAGE FROM THE WATER PARK PRIVATE PROFITS TO COVER THE CURRENT DEBT SERVICE ON THE WATER PARK AND THIS IS ALL BASED ON CURRENT PROJECTIONS AS OF TODAY STAFF AND CONSULTANTS WE WILL CONTINUE TO REVIEW THE DRAFT BASED ON ONE MARKET CONDITIONS SO AS IF THIS PROJECT IS TO MOVE FORWARD, WE'LL CONTINUE TO ANALYZE IN CASE OF INTEREST RATES OR ANYTHING SLIDES TO MAKE SURE THAT THIS PROJECT STILL HAS THAT AS THE PROJECT MOVES FORWARD AND PER OUR TERM SHEET WE ARE REQUIRING THAT 555 REQUIRES A CONDITIONAL LENDER TERM SHEET WITH WHICH THAT WOULD BE BROUGHT AT THE TIME WE BRING ANY AGREEMENTS BEFORE BOARD SO WE WILL HAVE A CONDITIONAL TERM LENDER SHEET FROM 555 AT THE TIME ANY AGREEMENTS WOULD COME BEFORE THIS BOARD FOR ASSURANCE. SO JASON ONE POINT ON THIS SLIDE IS IS MY UNDERSTANDING WHAT WE DO HAVE IS IF WE DON'T HAVE THE CONDITIONS OR WE DON'T MAKE THE KIND OF MONEY WE'D LIKE TO MAKE WHICH WE THINK WE CAN MAKE WOULD NOT THAT THERE IS A SUBORDINATION CLAUSE IN MANAGEMENT FEES IT WOULD THEN PROVIDE SOME ADDITIONAL FLEXIBILITY TERMS OF BEING ABLE TO MEET THE DEBT SERVICE. MR. PRESIDENT, GETTING AHEAD OF ME ON MY POWERPOINT SLIDES THERE IS COMING UP HERE. YES, THAT IS CORRECT . SO ANOTHER THING I WANT TO LAY OUT HERE AS IS PURSUIT COSTS. SO BACK IN 2022 AT THAT TIME THE MALL AMERICA AND THE CITY COUNCIL AND PORT AUTHORITY GRANTED THE MALL A TIFF LOAN FOR PURSUIT COSTS OF THE WATERPARK. CURRENTLY THE MALL OF AMERICA CONTINUES TO DRAW FROM THAT TIFF FOR THESE ADDITIONAL PURSUE COSTS OF MOVING THIS PROJECT FORWARD AS PART OF A FUTURE AGREEMENT. SO IF FUTURE AGREEMENTS WERE TO COME BEFORE THIS BOARD AND YOU LOOK AT MOVING THIS TERM SHEET ALONG, WE WOULD BE LOOKING TO CREATE ANOTHER SPENDING PLAN. TIFF OF UP TO SIX AND A HALF MILLION DOLLARS WHICH WOULD BE THE OF ANY FINAL PURSUIT COSTS UNTIL CLOSING MALL OF AMERICA'S EXISTING TIFF LOAN MATURITY WOULD BE WOULD WE WOULD BE LOOKING TO EXTEND THAT TO MAKE SURE IT ALIGNS WITH THE THE MALL OF AMERICA PROJECT FUND SO THAT THEY COULD LOOK TO PAY BACK THAT TIFF LOAN AND I JUST WANT TO STATE ALL REPAID TIFF GOES BACK INTO THE MALL OF AMERICA'S TIFF ACCOUNT AND THEN LASTLY PREVIOUS PURSUIT COSTS ARE BE OR TO BE REIMBURSED FROM THE RESPECTIVE FUNDS. SO THE MALL OF AMERICA DEVELOPMENT FUND AND ARE EXCLUDED FROM MINIMUM $100 MILLION SO SUSTAINABLE DESIGN. I JUST WANT TO QUICKLY HIGHLIGHT THE TERMS MR. HAGAN HAD ALREADY LAID OUT MAJORITY OF THESE THAT HAVE BEEN AGREED TO BETWEEN CITY STAFF AND THE DEVELOPMENT TEAM AND SO THE DEVELOPER IS COMMITTING TO USING THE ENERGY DESIGN ASSISTANCE PROGRAMS OF BOTH XCEL ENERGY, CENTERPOINT ENERGY. ONCE AGAIN THEY BE PRESENTING THE ENERGY DESIGN ASSISTANCE PROGRAM TO THE SUSTAINABILITY COMMISSION AS WELL AS THEY NEED TO A SUMMARY OF THE ENERGY EFFICIENCY, FUEL SWITCHING AND RENEWABLE ENERGY OPPORTUNITIES THAT HAVE AT LEAST A GREATER THAN 5 TO 15 YEAR PAYBACK FOR CONSIDERATION AS WELL AS EXPLORING ADDITIONAL FUNDING SOURCES THAT MAY BE OUT THERE. THEY'RE ALSO COMMITTING TO ENHANCE SUSTAINABILITY INVESTMENT. SO AS MR. HAGAN HAD ALREADY STATED, THE DEVELOPER WILL SPEND A MINIMUM OF $5 MILLION IMPLEMENTING ENERGY EFFICIENCY SWITCHING AND RENEWABLE ENERGY OPPORTUNITIES. THESE MOST LIKELY WILL BE IDENTIFIED IN THAT ENERGY ASSISTANCE ENERGY DESIGN ASSISTANCE PROGRAM FROM XCEL AND CENTERPOINT THAT HAVE AT LEAST A FIVE YEAR OR LESS PAYBACK AS WELL AS A THIRD PARTY REPUTABLE THIRD PARTY REVIEW OF THE OPEN AIR BUILDING SYSTEM WITH RETRACTABLE ROOF. SO WE WANT TO MAKE SURE WE'RE UNDERSTANDING WHAT IS THAT TRUE SUSTAINABILITY MEASUREMENT FROM THAT THIRD PARTY. ADDITIONALLY 555 AND THE WATER PARK ENTITY IS AGREED TO ANNUALLY PROVIDING CITY WITH THE WATER PARKS MONTHLY ENERGY AND WATER UTILITY BILLS COLLABORATION WITH ENERGY EFFICIENCY PARTNERS AND THEY WILL ALSO BE PARTICIPATING IN THE CITY'S ENERGY BENCHMARKING PROGRAM AS REQUIRED BY ORDINANCE. AND THEN THE DEVELOPER HAS AGREED TO MAKE BEST EFFORTS TO ACHIEVE CERTIFICATION OR MINNESOTA B3 GUIDELINES FOR THE WATER PARK THIS PAYING THE SUSTAINABLE DESIGN EXPERTIZE AND ENERGY MODELING NEEDED TO TRY TO ACHIEVE CERTIFICATION. AND ONCE AGAIN THE BEST EFFORTS ARE TO REALLY TO CONTINUE WORKING WITH THAT U.S. GREEN BUILDING COUNCIL TO CONTINUE TO EXPLORE THE LEAD STANDARDS FOR THIS TYPE OF BUILDING BECAUSE AS MR. HAGAN STATED, THOSE STANDARDS ARE NOT CURRENTLY THERE FOR INDOOR WATER AND THEY WILL NEED TO BE WORKED ON WORKING SIDE BY SIDE THE STAFF OF THAT COUNCIL. THE PARKING RAMP WILL INCLUDE ENHANCED SUSTAINABILITY MEASURES WHICH WILL BE GUIDED CITY STAFF. AND THEN LASTLY IF THERE ARE ANY OUTSIDE OF OTHER OUTSIDE FUNDING SOURCES THAT WE ARE ABLE TO LOCATE AND FIND FOR SUSTAINABILITY RELATED PROJECTS BOTH THE CITY PORT AND 555 WOULD CONSIDER THOSE ADDITIONAL SUSTAINABLE MEASURES AND UTILIZING THOSE FUNDING SOURCES AND ADDITIONALLY WITH USING THE BENCHMARKS AND STUFF WE ARE LOOKING I DIDN'T STATE THIS IN ITEM C TO LOOK THAT LAST PAYBACK OF TRYING TO TO CAPTURE THE XCEL ENERGY REBATES THE CENTERPOINT ENERGY REBATES AS WELL AS ANY OTHER VOUCHERS OR TAX CREDIT PROGRAMS THAT HAVE BEEN OFFERED EITHER BY THE STATE AND OR FEDERAL GOVERNMENTS GOVERNMENTS. SO ADDITIONAL TERMS I JUST WANT TO KIND OF THIS AS WELL. SO THE WATER PARK ENTITY THE OWNER WILL BE LOOKING TO EITHER DO A TO PURCHASE OR DO A GROUND LEASE FOR THE LAND WITH WHICH THE PARK WILL BE SITUATED ON WITHIN THE TERM SHEET WE HAVE CAPPED THAT VALUE AT THE CITY'S ASSESSED VALUE OF THE TWO PROPERTIES WHICH IS $21.26 MILLION. THE MANAGEMENT FEE THERE IS A BASE MANAGEMENT FEE OF THREE AND A HALF PERCENT THAT THE MANAGER OF THE WATER PARK IS ABLE TO SECURE. BUT IT IS ALSO A PERFORMANCE BASED AGREEMENT AS WELL THAT THERE ARE INCENTIVES THAT THEY CAN GET UP TO A 5% MANAGEMENT FEE IF THEY MEET THOSE INCENTIVES BUT THE BASE IS AT THREE AND A HALF PERCENT. AND AS PRESIDENT ERICKSON HAS STATED, WE ARE LOOKING WITHIN THE TERM SHEET TO SUBORDINATE THE MANAGEMENT FEE. SO IF THE WATER ANNUAL WATERPARK CASH FLOW IS NOT ENOUGH TO PAY THE DEBT SERVICE THE ANNUAL DEBT SERVICE THAT THE MANAGEMENT FEE IS SUBORDINATED TO HELP COVER THAT DEBT PAYMENT AND MOST LIKELY THE LENDER IS GOING REQUIRE THAT IT'S MOST LIKELY THAT THE LENDER WOULD REQUIRE THAT AS WELL. BUT WE WANTED TO MAKE SURE WE HAD IT IN THE IN OUR TERMS AS WELL IN CASE OF THAT NOT THERE SELF-POLICE FUNDING GOING TO CONTINUE TO COME FROM THE SOUTH LOOP DEVELOPMENT FUND TO 2045 THIS IS CURRENTLY HAPPENING TODAY AND SO THIS IS JUST MEMORIALIZING THAT OUT TO 2045 AND ONCE AGAIN THE TERM SHEET WE WILL HAVE AN OPEN BOOK TO ALL OF THE WATER PARK FINANCIAL STATEMENTS SO THAT WE CAN GO AHEAD AND REVIEW ALL OF THE DOCUMENTS, THE FINANCIALS OF THIS PROCESS WORKING WITH OUR FINANCE TEAM AS WELL AS OUR MUNICIPAL ADVISORS TO MAKE SURE THAT THEY LIVING UP TO THE TERMS WITH WHICH WE HAVE IN THIS TERM SHEET AS WELL AS IN THEIR WRITTEN AND EXECUTED AGREEMENTS. AND WITH THAT I WILL TURN IT BACK OVER TO THE PORT AUTHORITY ADMINISTRATOR MAY ALL RIGHT THANK YOU ALL. MAYOR PRESIDENT ERICKSON COUNCIL MEMBERS AND COMMISSIONERS AS WE WRAP UP THIS PRESENTATION WE WANTED TAKE A MOMENT TO REFLECT AND PULL TOGETHER THE QUESTIONS THAT WE ARE ASKING YOU TO CONSIDER TODAY. THIS IS A POLICY QUESTION FOR YOUR CONSIDERATION WHETHER WE WISH TO MAKE THIS PUBLIC INVESTMENT IN THIS WATER PARK AT THIS TIME AND WHETHER YOU WISH TO DIRECT STAFF TO CONTINUE ON DEVELOPING AGREEMENTS 555 IN THE MALL OF AMERICA AS A REMINDER IN SUMMARY THE BENEFITS OF THIS PROJECT INCLUDE THAT IT WILL BECOME A RECREATIONAL MANATEE TO THE CITY AND TWIN CITIES REGION. IT WILL HELP ADD RESILIENCY TO THE SOUTH LOOP AND MALL OF AMERICA BY BRINGING NEW VISITS TO THE DISTRICT ADDITIONALLY 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. SO THE HOSPITALITY INDUSTRY REMAINS VERY IMPORTANT HERE. IT WILL GENERATE NEW ADMISSIONS TAXES AND LODGING TAXES AS WELL AS NEW PROPERTY TAXES TO THE GERAL FUND. THE MALL OF AMERICA DOES INTEND TO OFFER DISCOUNT TICKET PRICES AND ADDITIONAL PERKS TO CITY RESIDENTS AND THE PROJECTED WATERPARK REVENUE CAPTURES ADDITIONAL POTENTIAL FUNDING STREAMS. SO THAT ASPECT OF THIS TERM SHEET AND THIS DEAL WE THINK IS A VERY EXCITING OPPORTUNITY FOR THE CITY TO BE ABLE TO CAPTURE SOME OF THE REVENUES FROM THIS PROJECT AND, REINVEST IT INTO FUTURE PROJECTS AND ALSO PRIORITIES FOR THE CITY. THERE ARE OF COURSE RISKS TO THIS PROJECT THE RISK THAT THE PROJECT CANNOT PAY DEBT OR DOES NOT PERFORM AS EXPECTED THAT WOULD BE BORNE THE DEVELOPER AND ITS FINANCING ENTITIES NOT THE BLOOMINGTON TAXPAYERS. SO IT WOULD BE VERY LIKELY TO REMAIN A WATER PARK DUE TO THE VALUE OF THE ASSET ONCE IT'S CONSTRUCTED BUT THAT DOESN'T MEAN THAT WATER CASH FLOW WOULD NO LONGER BE CAPTURED FOR FUTURE PROJECTS. WE ALSO DON'T KNOW THE TIMING OF THE FUTURE EQUITY FOR THIS DEAL CITY REPUTATION IS A RISK. THIS IS AN UNUSUAL WE ARE MAKING A LARGE INVESTMENT IN IT BY NOT REQUIRING AT THE BEGINNING STAGE OF THIS PROJECT WE ARE BREAKING WITH OWN PRECEDENT BUT WE DO BELIEVE BY REQUIRING EQUITY LATER ON WE ARE OFFERING A GOOD COMPROMISE AND WE FEEL CONFIDENT IN THIS OPPORTUNITY AND ADDITIONALLY THERE ARE RISKS OF NOT DOING THIS PROJECT TO CONSIDER IS THAT THE MALL OF AMERICA'S PERFORMANCE COULD PLATEAU OR DECLINE. WE KNOW THAT SINCE COVID 19 THERE FOOT TRAFFIC HAS BEEN DOWN THEY ARE RECOVERING IT BUT IT IS IMPORTANT TO KEEP THEM ALL FRESH TO CONTINUE BRING NEW AMENITIES TO THE MALL AND THEN THERE ARE LIMITATIONS ON STAFF SO IF WE DID NOT DO THIS PROJECT AS ASSISTANT PORT AUTHORITY ADMINISTRATOR SCHMIDT DID SAY WE WOULD NOT LOSE A STAFF, WE WOULD RETAIN BUT IT WOULD LOSE THE SPENDING FLEXIBILITY THAT IT CURRENTLY HAS PART OF THE SPENDING PLAN AND THAT EXPIRES IN DECEMBER OF 2025 POTENTIAL NEXT STEPS. SO TONIGHT WE ARE ASKING YOU TO APPROVE THE TERM SHEET AND DIRECT US TO MOVE FORWARD DEVELOPMENT AGREEMENTS AND THEN IN SPRING AND SUMMER THE MALL OF AMERICA TEAM WOULD ADVANCE FINANCING AND DESIGN LATER IN SUMMER OF 2024 WE'D BE COMING BACK TO YOU FOR CONSIDERATION OF AGREEMENTS IN SPRING OF 2025 SEEING CONSTRUCTION COULD COMMENCE AND IN LATE 2027 WE ANTICIPATE COMPLETION AND OPENING AND SO AS A SUMMARY ONE MORE TIME WE ARE ASKING IN THESE TERMS SHEETS TO INVEST 160 MILLION OF MALL OF AMERICA TIP INTO THE PROJECT 85 MILLION INTO THE WATER PARK ITSELF AND 75 MILLION IN PUBLIC IMPROVEMENTS ITS MALL OF AMERICA TIP IS FENCED MONEY AND CAN ONLY BE USED IN THIS AREA. THE TERM SHEET WILL ALLOW US TO CAPTURE WATER PARK CASH FLOW AFTER DEBT SERVICE INTO TWO FUNDS ONE FOR MALL OF AMERICA DEVELOPMENT FUND THAT CAN BE USED MUCH LIKE THE SPENDING PLAN TIFF CAN AND ONE FROM ALL OF AMERICA TIFF ADMINISTRATIVE FUND THAT WE CAN USE FOR PUBLIC IMPROVEMENTS WITHIN THE AREA OR AFFORDABLE CITYWIDE AND WE WILL BE REQUIRING EQUITY AT A FUTURE DATE IN ORDER TO TERMINATE THE CASH FLOW CAPTURE. SO WE DO HAVE SUGGESTED MOTIONS THIS EVENING BUT BEFORE WE MOVE ON TO THEM I WOULD LIKE TO TAKE THE OPPORTUNITY TO RECEIVE QUESTIONS. I WOULD LIKE TO INVITE HAGENBECK UP AS WELL AS DAVE LAIR PROJECT ARCHITECT AND ASSISTANT ADMINISTRATOR SCHMIDT AND THEN WE DO ALSO HAVE PORT COUNSEL ON HAND AS WELL AS OUR CONSULTANT SHANE REDWING FROM ELAS TO ANSWER QUESTIONS AS WELL. WELL THANK YOU ALL FOR THE INFORMATION QUESTIONS AND I'M SURE THERE ARE SOME COUNCILMEMBER WHY DON'T YOU KICK US OFF? THANK YOU. THANKS EVERYBODY. THANK YOU VERY GOOD EVENING, EVERYONE. I HAD A COUPLE OF SMALL QUESTIONS AND THEN I HAVE ONE SPECIFIC QUESTION THAT MIGHT TAKE A LITTLEIT TO GET TO AND I IMAGINE MR. LEHRER MIGHT BE THE RIGHT PERSON ANSWER THIS ONE. SO BUT THE QUICK QUESTIONS I JUST NOTED IN THE IN THE DOCUMENTATION THAT THE WATER PARK CASH FLOW WOULD TERM UNDER A NEW OWNERSHIP IF THERE IS DEFAULT I JUST DIDN'T I WASN'T AT THE LAST MEETING UNFORTUNATELY I DIDN'T HEAR IT IN THE NOTES OR SEE IT IN THE NOTES OR HEAR IT IN THE CONVERSATION WHY NOT AND I JUST WONDERED IF SOMEBODY COULD ANSWER THAT QUESTION FOR ME QUICKLY. I MEAN IF IF THERE'S A NEW OWNER, WHY DOES THE CASH FLOW TERMINATE? I JUST WONDERED WHY . MAYOR PRESIDENT ERICKSON COMMISSIONERS COUNCIL MEMBER COUNCILMEMBER DALLESSANDRO AND SO I BELIEVE THAT SLIDE IS IN THE RISK AS FAR AS IF THE PROJECT TO GO INTO BANKRUPTCY AND AT THAT IF A NEW OWNER WERE TO COME IN BASICALLY AS I RECALL THAT NEW OWNER IS NO LONGER SUBJECT TO THE DEVELOPMENT AGREEMENT BECAUSE THE DEVELOPMENT AGREEMENT IS WITH THE WATER PARK ENTITY IN 555 NOT THE NEW OWNER. IT MAKES SENSE. I JUST WANTED TO UNDERSTAND THAT. THANKS. THE NEXT QUESTION I HAD IS RELATED TO THE $100 MILLION YOU SPOKE OF NOT THAT LONG AGO. THE I UNDERSTAND THE 6040 SPLIT BUT I BELIEVE THAT THE THE PORTION BACK TO THE CITY IS CAPPED AT 60 MILLION AND I JUST WONDERED WHY WAS. MAYOR PRESIDENT COUNCIL MEMBER WE GO. COMMISSIONER. COUNCILMEMBER D'ALESSANDRO THAT WAS A NEGOTIATED NUMBER. IT IS IT WAS SIMPLY ONE THAT WE FELT WAS REALISTIC BETWEEN STAFF, OUR CONSULTANTS AND THE MALL OF AMERICA. OKAY. THANK YOU. OKAY. SO MY MY BIGGEST QUESTIONS ARE RELATED TO THE AND THIS MR. LEHRER EVEN APOLOGIZE IF MAYBE YOU HAVE TO BRING UP YOUR ATTORNEYS HERE I'M FOR THAT BUT IN MY UNDERSTANDING THE NOTION OF BEST EFFORTS HAS A SPECIFIC LEGAL CONNOTATION AND WE DON'T HAVE ANY MEASUREMENT AND IN THE TERMS HERE TO UNDERSTAND WHAT HOW WE WOULD MEASURE THE QUALIFICATION OF BEST EFFORTS. AND SO I'D LIKE TO REALLY UNDERSTAND HOW WE ARE INTENDED TO INTERPRET THAT LANGUAGE OF BEST EFFORTS AS IT RELATES TO THE LEAD CERTIFICATION AND HOW WE INTEND TO MEASURE IT SO WE CAN DECIDE WHETHER OR NOT. THE MALL OF AMERICA HAS TRULY LIVED UP TO THAT NOTION OF BEST EFFORTS. WHAT IS OUR MEASUREMENT TOOL WITH THE HELP OF THE CITY ATTORNEY SHE PROVIDED SOME EXAMPLES OF WHAT EFFORTS ARE AND IN ESSENCE IT IS EFFORTS THAT ARE MORE THAN JUST THE REASONABLE EFFORTS. IT'S NOT SUPER CLEAR BUT THAT'S WHAT WE'VE FOUND WHEN WE LOOKED ON THE INTERNET BASICALLY. YEAH, TOTALLY TOTALLY UNDERSTAND. I GUESS MY QUESTION ISN'T I'M FINE WITH THAT INTERPRETATION OF BEST EFFORTS BUT I'M QUESTIONING IS WHAT ARE WE DOING TO MEASURE IT? LIKE HOW DO WE DECIDE AS AS ENTITIES THAT WE'RE GOING TO MEASURE WHETHER OR NOT BEST EFFORTS WERE ATTEMPTED AND ACHIEVED OR WHATEVER? FOR EXAMPLE. RIGHT SO SOME INTERPRETATIONS OF BEST EFFORTS COULD BE LIKE YEAH WELL WE TRIED AND IT DIDN'T HAPPEN AND THAT'S OKAY AND IF EVERYBODY AGREED TO THAT THAT WOULD BE TOTALLY. I WOULD PERSONALLY NOT BE COMFORTABLE WITH THAT RIGHT. IF SOMEBODY SAID IN THIS PARTICULAR CASE LEED SILVER OR B3 FOR MINNESOTA B THREE WAS THE EASIER ONE WE WENT WITH B THREE OKAY MAYBE WE'D ALL AGREED TO THAT AND WE WOULD BE FINE WITH IT. I MIGHT BE FINE WITH IT. I JUST DON'T KNOW WHAT WE'RE GOING TO USE TO MEASURE THE TERM BEST EFFORT SO I CAN'T SAY WHETHER I LIKE IT OR NOT AND THAT'S A PROBLEM IN A CONTRACT IN MY OPINION LARGELY NOT FOR NOT FOR OUR COMMON UNDERSTANDING OF BEST EFFORTS OUR COMMON UNDERSTANDING AND HOW TO ENFORCE THE TERMINOLOGY. SO I'M JUST WONDERING IF WE HAVE ANY THOUGHTS ON THAT OR YOU KNOW, MAYBE IN OTHER AGREEMENTS AND MR. I THOUGHT THIS ABOUT IN YOUR SITUATION BECAUSE I KNOW YOU DO A LOT OF LEED CERTIFICATION. WHAT DO YOU USE GENERALLY SPEAKING TO DETERMINE IF SOMEBODY MADE A BEST EFFORT IN A CASE LIKE THAT? MR.. MR.. LEHRER AND I THINK COMMISSIONER KELLER HAS SOME LAWYERLY INSIGHTS SURE TO. ADD TO THIS AS WELL I'VE ACTUALLY RESEARCHED THIS QUESTION. CAN YOU PLEASE TURN ON YOUR MICROPHONE TO ME? THANK YOU. I'D SAY THAT ACTUALLY RESEARCH THIS AS A LAWYER TO ANSWER QUESTIONS LIKE THAT AND YOU'RE JUST DEAD BEING WITH THE AMBIGUITY IT MEANS A LOT OF THINGS DEPENDING HOW YOU SAY IT SOME PEOPLE SAYS BEST EFFORTS MEANS IT'S SOMETHING YOU WILL DO AS A PRIORITY OVER OTHER COMMITMENTS SOME SAY OTHERWISE. I READ A LAW REVIEW ARTICLE SOME YEARS AGO WHICH HAD A CATCHY TITLE WHICH I CAN ONLY SUMMARIZE IT SAID BASICALLY WHAT ITS BEST EFFORTS MEAN NOTHING. SO SO YOU'RE JUST DEAD BANG ON IN MY VIEW YOU ALL MIGHT DISAGREE THAT THERE'S SOME AMBIGUITY IT RESPONDS TO YOUR CONCERN ABOUT HOW WE MIGHT ADDRESS THAT AMBIGUITY. PERHAPS EXAMPLE CLAUSE PERHAPS SPECIFIC CONCERNS WHAT THAT MEANS IN THE CONTEXT OF A SPECIFIC ISSUE COULD BE USEFUL BUT IF WE GET IN AND LITIGATE BEST EFFORTS YOU'RE GOING TO SPEND SOME TIME MONEY AND EFFORT AND TRYING TO NAIL DOWN AND I'M NOT MEMBERS OF I REALLY HOURS I BELIEVE YOU LEAVING ME NUTS I COMPLETELY UNDERSTAND THAT THAT'S WHY THAT'S WHY I THINK A SHARED AGREEMENT OF WHAT THE IS IS IMPORTANT BECAUSE THAT REDUCES THE REQUIREMENT OF THAT OF LITIGATION AND AMBIGUITY. SO THAT'S THE REASON FOR MY QUESTION. WE ALL AGREED THEN THERE WOULDN'T BE ANY AMBIGUITY. YOU EITHER DID IT OR YOU DIDN'T IT AND THAT'S FINE. YES. AND I WOULD BE POOR AND UNEMPLOYED. I WASN'T THINKING OF YOU WHEN I WHEN ASKED THE QUESTION, SIR, BUT I WAS AND MR. LAWYER ,WHAT HOW DO YOU USUALLY WORK ON THE NOTION OF BEST EFFORTS ? I'M HERE. I SEE. SO YEAH. I MEAN IF I SEE PRESIDENT ERICKSON, COUNCIL MEMBERS, COMMISSIONERS AND COUNCILMEMBER SANDRA A COUPLE OF POINTS. IT'S A REALLY GOOD QUESTION. FIRST OF ALL RIGHT NOW THE WATER PARK IS REGISTERED INTO THE LEAD CERTIFICATION PROCESS TAKEN A STEP TO TAKE CARE OF THAT PART OF IT. EVEN WITH ALL THE VESTED POWERS OF OUR MAYOR, HE COULDN'T CONVEY LEED CERTIFICATION ONLY THE U.S. GREEN BUILDING COUNCIL CAN CONVEY THAT CERTIFICATION CONDITION SO IT'S NOT SOMETHING THAT MYSELF AS AN ARCHITECT WHO HAVE DONE DOZENS AND DOZENS OF LEED CERTIFIED PROJECTS AND FACILITATED THAT EFFORT I CAN'T CONVEY THAT IT'S ONLY THE PROCESS THAT LEED HAS IDENTIFIED THAT WE CAN SUBMIT POINTS AND CREDITS AND REVIEW. AND ONE OF THE BIGGEST THINGS IN FACT THE U.S. GREEN BUILDING COUNCIL STATED FOR US IS THAT THERE'S NO PREREQUISITE BUILDING TO BENCHMARK AGAINST SO WE'LL HAVE TO RELY ON A ALTERNATIVE PATH THAT'S NOT BEEN DONE BEFORE IN ORDER TO MAKE THE PREREQUISITE CONDITION OCCUR AND THAT'S A REALLY TOUGH STANDARD AND PROJECTS IN OTHER . I AM A LICENSED ARCHITECT ALSO IN THE DISTRICT COLUMBIA IN WASHINGTON AND THEY REQUIRE A REGISTERED PROJECT FOR LEED CERTIFICATION IN ORDER TO RECEIVE A BUILDING PERMIT. AND SO BUT IT DOESN'T REQUIRE THEM TO GET LEED CERTIFICATION IN ORDER IN THE FUTURE JUST AS THAT KIND OF STANDARD. MM HMM. SO WHEN WE LOOK AT MAKING BEST EFFORTS, IT'S REALLY IN COOPERATION WITH OUR EFFORTS WITH U.S. GREEN BUILDING COUNCIL SOMETHING THAT WE CAN'T PROMISE ABOUT THEIR EFFORTS. AND SO WE'RE TAKING MANY EFFORTS RIGHT NOW ON OUR OWN TO GET TO THIS LEVEL. BUT WE CAN'T WE CAN'T COMMIT OR PROMISE LEED CERTIFICATION BECAUSE IT'S NOT US TO PROMISE. THAT MAKES TOTAL SENSE TO ME AND I AND UNDERSTAND THAT I MEAN I WAS JUST KIND OF PERUSING I'D DONE SOME LOOKING THE SILVER LEVEL AND THE AMOUNT OF POINTS YOU HAVE TO GET OUT OF THE 110 THAT ARE REQUIRED AND ALL THE DIFFERENT PLACES WHERE YOU CAN GET THEM AND I GET IT YOU'RE GOING TO PLAY A GAME IN A GOOD WAY OF LIKE I CAN'T DO ALL OF THOSE AND GET ALL THE 11 POINTS IN WATER BUT I MIGHT BE ABLE TO GET MORE THAN 20 POINTS IN ENERGY AND YOU'RE GOING TO PLAY THAT GAME TO TRY GET TO YOUR NUMBER AND I COMPLETELY UNDERSTAND THAT I WHAT I'M WHAT I'M HOPING THAT WE CAN COME TO AND THIS DOESN'T HAVE TO BE FOR THESE TERMS JUST WANTED CLARIFICATION AS WE GO INTO THEM BIGGER DOCUMENTS IS THAT WE WE ALL HAVE A SHARED UNDERSTANDING OF WHAT THOSE BEST EFFORTS ARE GOING TO LOOK LIKE AND IF IT GETS HARD OR IT GETS LITTLE MORE EXPENSIVE WE DON'T STOP DOING IT IF WE REALLY BELIEVE WE'RE GOING TO TRY TO DO BEST EFFORTS. THAT'S WHAT I'M THAT'S WHAT I MEAN BECAUSE I THINK I THINK AS SOON AS IT GETS HARD SOME PEOPLE WILL WALK AWAY AND SAY WELL WE TRIED LIKE I SAID AND IF WE'D ALL THINK THAT THAT'S WHAT WE MEAN THAT'S THAT'S OKAY. BUT I CAN TELL YOU THAT THIS COUNCIL DOES NOT THINK THAT THAT'S WHAT THIS MEANS. AND SO I'M LOOKING FOR A LITTLE BIT OF A HIGHER STANDARD THERE. SO IF THAT IF THAT'S HELPFUL AND MAKE SOME SENSE, I WOULD ENCOURAGE YOU ALL TO THINK ABOUT THE CLOSER YOU CAN GET TO SOME SOME SPECIFICS ABOUT WHAT BEST EFFORTS LOOKS LIKE, I THINK THE BETTER OFF WE ALL ARE GOING TO BE I HAVE EVERY CONFIDENCE YOU'LL TRY BEST EFFORTS. THAT'S NOT A POINT. IT'S JUST A MATTER OF MAKING SURE WE DON'T HAVE AN ISSUE OF LIKE AMBIGUITY AS AS MR. KELLER SAID WHEN IT COMES DOWN TO QUESTIONS THAT WE MIGHT GET YOU FROM OUTSIDE PARTIES. IF I COULD JUST ADD A LITTLE COLOR TO THAT IN THE CONTEXT OF SOMETHING AS SPECIFIC AS GETTING HIM A CERTIFICATION OF ANY KIND TO ME NOT BEING OUR IT IS A LITTLE EASIER BECAUSE THE PROCESS ACCESS DEFINES MUCH OF WHAT NEEDS TO BE DONE AND I WOULD THINK EVEN THOUGH THIS IS A CASE FIRST IMPRESSION FILING PROMPTLY RESPONDING PROPERLY TO QUESTIONS, POKING PEOPLE IN THE RIBS IT TAKES IT'S A LITTLE EASIER WHEN YOU USE THAT EXPRESSION IN THE CONTEXT OF YOU KNOW YOU'LL USE YOUR BEST EFFORTS TO MAKE A PROFIT. WHY AND THEN MAYBE IT SHOULD BE COMMERCIALLY REASONABLE OR WHATEVER BUT BUT THAT DOESN'T BOTHER ME IN IN ANY SORT OF QUASI REGULATORY THING BECAUSE WHAT HAS TO BE DONE IS A LITTLE BIT MORE CLEAR AND FAILURE IS A LITTLE BIT LESS AMBIGUOUS. DOES THAT FAIR? YES. YEAH. AND I COMPLETELY AGREE WITH THAT AND I COMPLETELY UNDERSTAND THE REGULATORY PROCESS ASSOCIATED WITH THAT. AND I'M NOT ASKING YOU ALL TO TRY TO MAKE LEAD THINGS DIFFERENT THAN WHAT THEY DO. I MOSTLY CARE THAT HAS BEEN PUT UP AS A VERY, VERY BIG POINT BY THE BODIES SAY WE ARE TRYING TO BE SUSTAINABLE AND I JUST WANT TO UNDERSTAND THE DEFINITION OF THAT MEANS AND IF BEST EFFORTS HAS A DEFINITION THAT WE CAN ALL AGREE TO I THINK IT WOULD BE PRUDENT TO GET THERE, THAT'S REALLY IT. THE LAST QUESTION I HAVE IS RELATED TO THAT WHICH IS COMMITMENT TO ACHIEVE. YOU'RE GOING TO WORK WITH THE ENERGY PROGRAMS AT CENTER POINT AND EXCEL AND I THINK THAT'S GREAT. THEY HAVE TWO PROGRAMS. ONE IS A BASIC PROGRAM ONES THAT ENHANCE PROGRAM. THEY HAVE DIFFERENT DO WE KNOW WHICH ONE WE ARE STRIVING FOR AND CAN YOU TALK A LITTLE BIT MORE ABOUT THE COMMITMENTS THAT ARE ASSOCIATED WITH THAT? BECAUSE MY UNDERSTANDING IS THAT THERE ARE COMMITMENTS THAT YOU HAVE TO AGREE TO IN ORDER TO BE A PART OF THAT AND THEY COME WITH SOME BENEFITS. I UNDERSTAND THAT TOO. SO JUST A LITTLE BIT MORE TO HELP PEOPLE UNDERSTAND THE CONTEXT FOR THAT THEY'LL BE GREAT PROBABLY MAYOR BUSSEY PRESIDENT ERICKSON COUNCIL MEMBERS, COMMISSIONERS AND COUNCIL MEMBER DALLESSANDRO SO EXCEL ENERGY DESIGN ASSISTANCE PROGRAM HAS AN ENHANCED VERSION AND I KIND OF I'LL CALL IT A REGULAR THEY HAVE PROBABLY JUST LIKE A DIFFERENT NAME FOR IT. THEY CALL IT BASIC YEAH AND WHAT WE HAD A MEETING WITH FOLKS FROM THE ADMINISTRATORS OF IT COMPANIES AS WELL AS XCEL ENERGY AND THE ENHANCE REQUIRES A MANDATE OF A 30% REDUCTION IN A BENCHMARK OF ENERGY CONSUMPTION FOR THE BUILDING IN ORDER TO MEET THE ENHANCED PROGRAM REQUIREMENTS . AGAIN IT'S A PROGRAM THAT'S BASED ON OTHER PROJECTS AS A BASELINE. YEAH AND IS WHERE WE RUN INTO ISSUES WHETHER IT'S LEED OR WITH EXCEL'S PROGRAM IS THAT THERE AREN'T ANY OTHER WATER PARKS INDOOR WATER PARKS THAT HAVE A BASELINE IN ORDER TO MEASURE THIS OUT. SO WE HAVE TO BE VERY CREATIVE IN EXAMINING THAT. WE'RE INTENT ON LOOKING AT THAT BUT WE DON'T HAVE ENOUGH INFORMATION OR DATA RIGHT NOW TO DETERMINE WHETHER WE'RE GOING TO DO ENHANCED OR THE OR THE REGULAR VERSION. OKAY THANKS. APPRECIATE IT. THANK YOU THANK YOU. COUNCILMEMBER. THANK YOU. I WAS GOING TO BALANCE IT OUT HERE AND SEE IF WE GO BACK AND FORTH HERE. BUT JUST ONCE I HAVE TWO QUICK NUMBER QUESTIONS I THINK FOR JASON PROBABLY ONE IS 21.21 GOING $260 FOR THE DIRT ASSESSOR'S ESTIMATED MARKET VALUE. HOW MUCH LAND WE'RE TALKING ABOUT MAYOR PRESIDENT ERICKSON COUNCIL MEMBERS COMMISSIONER LUND I DO NOT HAVE THE ACTUAL IS IT TEN ACRES ROUGHLY BETWEEN THE TWO PARCELS? OKAY, TEN ACRES. SO TEN ACRES THAT'S ROUGHLY OUT OF A TOTAL OF 2223, 25 NORTH OF THE MALL OF AMERICA SELF OF EAST AMERICAN BOULEVARD. SO YOU'RE ABOUT 40% OF THE LAND BEING USED FOR THIS DEVELOPMENT AND THEN AT A TOTAL COST OF THE PROJECT OF $250 MILLION 220,000 SQUARE FEET IN THE BUILDING ENVELOPE . MY THIRD GRADE MATH TELLS ME THAT'S ABOUT 11 $136 A SQUARE FOOT. AND I'VE ASKED THIS QUESTION BEFORE AND I WILL AGAIN HOW MUCH OF THAT IS IS BRICKS AND MORTAR HOW OF IT IS WHEELS, MECHANICALS FIXTURES DECORATIONS, FAKE PALM TREES, HANGINGS, ALL THAT STUFF AND? I MEAN MY EXPECTATION IS THAT THIS IS WAY, WAY HIGHER AS A PERCENTAGE OF TOTAL COST THAN IT WOULD BE FOR A TYPICAL REAL ESTATE DEVELOPMENT DUE. DEPUTY MAYOR BUCCI PRESIDENT ERICKSON COUNCIL BOARD MEMBERS I'M NOT QUITE SURE COMMISSIONER LUNCH WHAT THE QUESTION WAS SO OF THE $245 MILLION THAT THAT IS OUR DESIGN BUILD CONTRACT AMOUNT RIGHT THAT WILL BE WITH RIGHT I'M SORRY I THOUGHT JASON SAID 250 MILLION JUST TO CLOSE ENOUGH FOR 50. YEAH WE'VE OKAY WE'VE WE'VE ROUNDED UP OKAY AT THIS AT THIS LEVEL OF DESIGN SO YES THAT THAT IS THAT IS HARD AND SOFT COST RIGHT INCLUDES ENGINEERING INCLUDES STEAMING INCLUDES ALL OF THOSE COMPONENTS THAT YOU WERE TALKING ABOUT. IT DOES NOT INCLUDE AND MR. HAGAN, I BELIEVE COMMISSIONER LINES IS ASKING DO YOU HAVE A PROPORTION HOW MUCH IS IT? YEAH, WE HAVE MACHINES. ALL THE ACCOUTERMENTS THAT GO OPERATING THIS BUSINESS BECAUSE THIS IS NOT REAL ESTATE. THIS IS A BUSINESS. OKAY SO THERE'S SO MUCH FOR BRICKS, MORTAR, ROOF GLASS SHELL THE SHELL IT'S A CUBIC AREA BUILDING WE UNDERSTAND THAT COVERING A LOT OF LAND AREA AND THAT THE MYSTERY OF MYSTERY COVE SO I'M JUST WONDERING I KNOW THAT 250 IS JUST LIKE 4% 50% MECHANICALS 50% IN CLASSICALLY DEFINED REAL ESTATE OR WHATEVER IT IS. SO COMMISSIONER LYNCH I'M SORRY. SO THE REAL ESTATE IS OUTSIDE OF THAT NUMBER RIGHT. THAT'S THE THAT'S ADDITIONAL $21 MILLION. SO THE 245 $250 MILLION IS THE BUILDING EVERYTHING INSE THE BUILDING IF YOU'RE LOOKING FOR JUST THE ENVELOPE COST THE ENVELOPE ITSELF THE ENVELOPE IS ABOUT $50 MILLION. BUT I MEAN WE'RE HAPPY SHARE WITH YOU WE'VE GOT A VERY DETAILED BREAKDOWN OF WHAT THAT IS BUT YOU CAN GO YOU KNOW I DON'T KNOW WHAT YOU WOULD INCLUDE IN THAT. DO YOU WANT INCLUDE SITE WORK YOU WANT TO INCLUDE BOOKS AND FOUNDATIONS? IT'S A VERY I MEAN IT'S LITERALLY PROBABLY 30 PAGES OF BREAKDOWNS OF THOSE COSTS WHICH YOU'RE CONSIDERING WE'VE MACHINES INTERIOR DECORATIONS, THEME THEMATIC DECORATIONS YOU'RE CONSIDERING THAT PART OF THE BUILDING COST, CORRECT? YOU ARE CONSIDERED PART OF THE TOTAL PROJECT COST, RIGHT. SO YEAH. HOW ARE YOU. I'M JUST TRYING TO GET TO YEAH. CLASSICALLY REAL ESTATE ROOF WALLS. IT WOULD BE A SHAME TO OPEN A WINDOWS YEAH. TO SIT DOWN AND REALLY GO THROUGH WHAT ALL THOSE ITEMS ARE AND SEE WHICH BUCKET YOU WOULD WANT TO PUT THEM IN . I'D BE HAPPY TO DO THAT BUT IT'S YOU KNOW, HOW DO YOU DEFINE THE BUILDING? WELL, THE IMPLICATION THAT BEING WHEN IT COMES TO REAL ESTATE TAX VALUATION, THOSE MECHANICAL SYSTEMS ARE NOT TAXABLE. THEY'RE NOT REAL ESTATE TO SOME EXTENT. SO THAT'S ALWAYS A QUESTION I BOOK $1,136 A SQUARE FOOT IT'S A BIG NUMBER KNOW AND ON THAT POINT FROM ALL MY EXPERIENCE ANYHOW SO WE DON'T HAVE AN ANSWER FOR THAT RIGHT NOW BASICALLY NO BUT I'D BE HAPPY TO SHARE THAT WITH YOU BUT NOT PUBLICLY. WE COULD GO THROUGH THAT. WE DO HAVE THAT WE DO HAVE VERY DETAILED INFORMATION ON IT BUT. WE WILL AGREE THAT THAT'S AN EXTREMELY EXPENSIVE PER SQUARE FOOT, THAT THESE THESE ARE EXTREMELY EXPENSIVE BUILDINGS . COUNCILMEMBER NELSON. THANK YOU, MAYOR. I JUST NOTE THAT THAT OVER $1,000 A SQUARE FOOT IS ABOUT THE SAME AS THE BUILDING AT BRYANT PARK. SO JUST ADD UP AGAIN BUT MAYBE IT'S JUST SAYING I'D LIKE TO TOUCH ON THE SUSTAINABILITY PART OF THIS. JUST A COUPLE QUICK QUESTIONS TO FOLLOW UP WITH MY COLLEAGUE'S QUESTIONS. THE THE $5 MILLION COMMITMENT THERE'S A COUPLE OF THINGS THAT HAVE QUESTIONS ABOUT HOW THAT GETS INTERPRETED A, IF THERE ARE TAX CREDITS THAT COME BACK FOR SOLAR OR THINGS LIKE THAT, THE 30% TAX CREDIT HOW DOES THAT COULD FACTORED INTO THAT? WHO DOES THAT GO TO? DOES GO TO THE PROJECT DOES IT GO BACK INTO THE FUND? IS THAT NET OF ALTERNATIVES AS AN EXAMPLE IF IT WOULD COST SOME NUMBER TO PUT IN A STANDARD HEATING COOLING SYSTEM AND A DIFFERENT NUMBER TO DO A GEOTHERMAL SYSTEM IS IT A NET NUMBER OF THE DIFFERENCE OF THOSE AND DOES THE ROOF COUNT AS PART OF THAT BECAUSE I HEARD THAT THAT WAS AN IMPORTANT ENERGY EFFICIENCY THING AND TO MY UNDERSTANDING THAT BY ITSELF COST MORE THAN $5 MILLION. SO HOW IS THAT $5 MILLION DEFINED WITH ALL THOSE VARIABLES OF HOW THAT SUSTAINABILITY COMMITMENT IS GOING TO BE EXECUTED? GO AHEAD YOUR BUSHEY ERICKSON COUNSEL IMPORTANT MEMBERS SO THAT'S THAT'S THAT'S A THAT'S HARD QUESTION RIGHT SO IN IN IN OUR BUDGET WE'VE INCLUDED IN OUR PROJECT TOTAL PROJECT COST BUDGET AN ADDITIONAL $5 MILLION FOR ENHANCED SUSTAINABILITY. WE DON'T KNOW UNTIL WE GET INTO THE ENGINEERING WHAT ALL IS ALREADY INCLUDED WHAT IS NOT WE SO SO IT'S A SET IF YOU WILL SO TO ME THAT WOULD BE NET READ IF THERE'S A REBATE COMING BACK FROM XCEL THAT PAYS FOR THE ADDITIONAL COST FROM THEN IT'S NOT A NET COST RATE SO SHOULD BE AN ACTUAL PROJECT COST THAT WOULD BE ASSIGNED TO THE PROJECT OR FINANCED BY THE PROJECT WE ANTICIPATE THE ABILITY TO SHOW THAT THE RETRACTABLE ROOF WILL HAVE SIGNIFICANT IMPACTS ON REDUCING OUR ENERGY CONSUMPTION AND WE DO THINK WE SHOULD RECEIVE CREDIT FOR THAT. THE COST OF THAT IS NOW WHAT IS THE COST OF THAT OR IT ROLLERS IN THE TRACKS YOU KNOW HOW MUCH OF THE COST OF THAT ROOF IS THE RETRACTABLE COMPONENT? I DON'T KNOW. WE'D HAVE TO GET INTO THAT BUT I THINK I THINK OUR OUR POINT IS WE WILL BE INVESTING DOLLARS TO DO THIS RETRACTABLE ROOF AND THAT SHOULD BE CREDITED TO THE PROJECT. WE DIDN'T HAVE THAT BEFORE SO WE'RE GOING TO HAVE TO FACTOR THAT IN . IF WE GO THROUGH THE ENGINEERING WE DECIDE THAT THERE REALLY IS NO BENEFIT TO THE ROOF. WELL THEN IT SHOULDN'T COUNT. RIGHT. BUT I DON'T THINK THAT WOULD BE THE CASE. SO JUST FOR CLARIFICATION THERE YOU HAVE THE RETRACTABLE IN THE BUDGET AND THEN YOU ADDITIONALLY HAVE A $5 MILLION FOR DURING DESIGN TO LOOK AT SUSTAINABILITY BOTH OF THOSE THINGS ARE IN THE BUDGET AS THAT COMBINED COMBINED. OKAY. WE'RE ASSUMING THAT WE'RE GOING TO DO THE RETRACTABLE ROOF. YEAH BUT WE'RE ALSO ASSUMING THAT IT'S JUST PART OF THE PROCESS THAT WE GO THROUGH THE EXCEL PROGRAM. RIGHT AND WE'RE GOING TO COME WITH ITEMS THEY DON'T MAKE THEM RECOMMENDATIONS THEY DON'T RECOMMEND ALL IT'S A MATH IT'S A MATH EQUATION WHERE IT SAYS WELL IF YOU DO THIS IT WILL PAY ITSELF BACK IN X NUMBER OF YEARS. RIGHT? SO BUT THEY LEAVE IT UP TO THE BUILDING OWNER BECAUSE THERE ARE OTHER FACTORS IN THOSE DECISION PROCESSES BESIDES MATH. SO EXAMPLE IF YOU'RE REPLACING FURNACE IN YOUR HOUSE XCEL MAY SAY IF YOU GO TO A SUPER HIGH EFFICIENCY FURNACE YOU QUALIFY FOR THESE THREE REBATES AND PAYBACK ON THAT ADDITIONAL COST WOULD BE THREE YEARS WHATEVER THE NUMBERS IS. BUT IN YOUR HOUSE IT MAY BE THAT YOUR FURNACE IS IN THE MIDDLE OF YOUR BASEMENT AND ALL THE CEILINGS ARE FINISHED OUT AND YOU'D HAVE TO PUT IN FRESH AIR TO DO A SUPER HIGH EFFICIENCY FURNACE SPEED. YOU GOT TO TEAR OPEN ALL THE CEILINGS. IT DOESN'T MAKE SENSE FOR YOU, RIGHT? SO XCEL DOESN'T SAY YOU HAVE TO DO IT SAYS THIS IS THE ENERGY REDUCTION THAT WOULD HAPPEN IN THE CREDITS THAT YOU QUALIFY FOR AND THE OWNER NEEDS TO MAKE A DECISION IS THAT FOR THIS PROJECT? RIGHT. SO IT'S IT'S IT COMES BACK TO YOU CAN'T SIMPLY S MUST RATE IF IT HITS A CERTAIN LEVEL IMPLEMENT THIS THERE ARE OTHER FACTORS THAT THAT NEED BE CONSIDERED AS PART OF THAT DECISION PROCESS AND I THINK THAT'S WHERE REALLY COMES BACK TO COUNCIL MEMBER DALLAS OWNERS COMMENTER HOW DO YOU HOW DO YOU MEASURE BEST EFFORTS? A REALLY GOOD QUESTION RIGHT NOW PART OF IT COMES TO TRUST WORKING TOGETHER FOR 32 YEARS YOU KNOW OUR DESIRE RIGHT WHAT WE'VE TRIED TO WHAT WE'VE DONE WITHOUT YOUR INSISTENCE I THINK IS NEEDS TO BE MEASURED WE WANT THIS TO BE WHY WOULDN'T WE WANT THIS TO BE LEED SILVER ALL RIGHT THAT'S GOOD FOR ALL OF US AND. WE WILL STRIVE TO ACHIEVE THAT. BUT UNTIL WE UNDERSTAND THAT MEANS WHAT THAT TAKES RATE WHEN WE ADD THINGS TO THE BUDGET EVEN SUSTAINABILITY ITEMS AS GOOD AS THEY ARE THAT MEANS WE NEED TO TAKE SOMETHING ELSE OUT RIGHT? THERE IS A FIXED BUDGET SO PICK A NUMBER $10 MILLION THAT WE'RE GOING TO ADD TO SUSTAINABILITY ENHANCEMENTS. OKAY. WELL THAT MEANS $10 MILLION OF OTHER THINGS COME OUT. WHAT ARE THOSE OTHER THINGS? THE SLIDES AND RIDES WELL HOW DOES THAT IMPACT REVENUES HOW DOES THAT IMPACT ATTENDANCE RATE? THERE ARE A LOT OF OTHER FACTORS THAT ARE IMPORTANT TO THIS PROJECT SUSTAINABLE CITY BEING ONE OF THEM. THERE'S NO DENYING THAT. BUT YOU KNOW, THESE BODIES NEED TO LOOK AT THE PROJECT THROUGH MANY LENSES OR WEREN'T PROBABLY THE MOST TIME WE SPENT WITH STAFF IS WAS DISCUSSING HOW DO HOW ARE WE SURE THAT WE'RE GOING TO GET PEOPLE AND ENOUGH REVENUE TO PAY THE DEBT RIGHT WELL IT'S A GOOD QUESTION AND THAT'S ALL OF OUR GOALS TO MAKE SURE THAT THEY CAN PAY THE DEBT, MAKE SOME PROFITS, PAY THIS BACK. BUT BUT YOU NEED TO WEIGH THAT AGAINST WHAT ARE THE BENEFITS OF ENHANCED SUSTAINABILITY TO SOME POINT. RIGHT. AT SOME POINT THERE'S A LAW OF DIMINISHING RETURNS. I THINK THERE WILL BE A LOT OF THINGS ARE JUST OBVIOUS, RIGHT. LED LIGHTS AND THINGS THAT WE WOULD DO ANYWAY THAT JUST MAKE TOTAL SENSE AND OF COURSE WE WILL DO THOSE AND THERE ARE GOING TO BE THINGS THAT ARE GOING TO BE LESS OBVIOUS AND THEY'RE GOING TO COME AT A COST AND A FINANCIAL COST BUT SOMETHING ELSE HAS COME OUT OF THE BUDGET TO PAY FOR THAT WHAT IS THAT WHAT'S THAT TRADE OFF AND THAT'S THAT'S A PROCESS WE'LL HAVE TO GO THROUGH AND I APPRECIATE THAT CORY BECAUSE YOU KNOW ON A MUCH SMALLER MUCH, MUCH, MUCH SMALLER SCALE I DEAL WITH THAT IN MY OWN BUSINESS, YOU KNOW I MEAN I BUILD IN ADDITION TO THE MOST STRINGENT ENERGY CODE IN THE COUNTRY. I DON'T CONSIDER THAT ENHANCED ENERGY EFFICIENCY. I ASSUME WHEN I'M GOING BEYOND THAT I'M DOING THAT AND IT SOUNDS TO ME CORRECT ME IF I'M WRONG THAT WE'RE ON THE SAME PAGE THERE THAT IF YOU DO BASIC THINGS LIKE LED LIGHTING THAT IF YOU BUILD THE STRUCTURE TO THE CODE THAT'S THERE BUT THEN YOU'RE GOING TO YOU HAVE A BUDGET BAKED INTO WHAT WE'RE LOOKING AT IN TERMS OF THIS TERM SHEET TO DO ADDITIONAL $5 MILLION BEYOND WHAT IS NORMAL. IT MIGHT CORRECT AND UNDERSTANDING THAT CORRECT OKAY THAT THAT I APPRECIATE IF I MIGHT JUST ONE OTHER QUESTION IN A DIFFERENT DIRECTION BECAUSE I THINK THIS IS SOMETHING THAT I GET A LOT OF QUESTIONS ABOUT WHY WOULD THE CITY OF BLOOMINGTON PUT MONEY INTO THIS PROJECT? I THINK STAFF HAS TOUCHED ON THAT THIS IS NOT CITY OF BLOOMINGTON. MONEY CAN JUST TALK FOR A LITTLE BIT ABOUT FISCAL DISPARITIES BECAUSE IT'S A TAX THAT I THINK A LOT OF RESIDENTS DON'T UNDERSTAND BECAUSE. THEY DON'T PAY IT. IT'S ON COMMERCIAL INDUSTRIAL PROPERTIES. EVERY BUSINESS THIS CITY PAYS IT. IT'S I THINK MANDATED BY THE IF I'M NOT INCORRECT AND THAT FROM OF AMERICA DOES HAVE A SPECIAL POSITION IN THAT THE DISPARITIES PAID BY THE MALL OF AMERICA GOES INTO THIS FUND THAT'S BEING USED IN THIS FUND THAT WE'RE BEING USED IS ENTIRELY FUNDED BY FISCAL DISPARITIES TAXES PAID BY THE MALL OF AMERICA. SO IT'S NOT BEING FUNDED BY ANY OF THE OTHER FISCAL DISPARITIES PAID BY ANY BUSINESS IN BLOOMINGTON. AM I CORRECT IN BASIC UNDERSTANDING OF THAT? MAYOR BUSSEY, PRESIDENT ERICKSON, COUNCIL MEMBERS AND COMMISSIONERS I'M ACTUALLY GOING TO HAVE JULIE ADDINGTON SPEAK TO FISCAL DISPARITIES ON ,HER BEHALF SORRY FOR THE QUESTION. IT'S IT'S RATHER EXCITING PART THIS IS GOOD EVENING MR. MAYOR BUSSEY PRESIDENT ERICKSON COMMISSIONERS CITY COUNCIL MEMBERS MANY YEARS AGO WE HAD LEGISLATION THAT PROVIDED THAT FISCAL DO CERTAIN FISCAL DISPARITIES WOULD BE CONSIDERED TAX INCREMENT AND WE HAVE UTILIZED THAT TAX INCREMENT OVER TIME AND WE WILL DO SO UNTIL THE MALL OF AMERICA TIF DISTRICT ENDS AND THAT HAS BEEN IN FOR MANY YEARS. DOES ANYONE HAVE ANY QUESTIONS WITH RESPECT TO THE FISCAL DISPARITIES? SO WHAT YOU'RE TALKING ABOUT THOUGH THAT IS SPECIFICALLY THE FISCAL DISPARITIES BY THE MALL OF AMERICA, CORRECT? YES, THAT IS CORRECT. THE FISCAL DISPARITIES THAT IS PAID BY EVERY OTHER BUSINESS IN THIS COMMUNITY GOES ELSEWHERE. AND YOU KNOW, I THINK FOR MINOR BLOOMINGTON IS THE SECOND LARGEST NET CONTRIBUTOR TO FISCAL DISPARITIES AND IT'S GOING TO PLACES LIKE LAKEVILLE HELP THEM DEVELOP AND THINGS LIKE THAT. IS THAT GENERALLY ACCURATE? YES AND THAT IS ABSOLUTELY CORRECT. OKAY. SO SO THIS ONE IS ACTUALLY THE LEGISLATURE HAS ALLOWED US TO ACTUALLY USE SOME OF THAT FISCAL DISPARITIES RIGHT HERE IN BLOOMINGTON WITH RESTRICTIONS THAT IT HAS TO BE USED AT THE MALL. WE CAN'T USE IT ANYWHERE ELSE BUT AS TIFF CORRECT. OKAY. AND EXPIRES AND IT EXPIRES. YEAH. SO OKAY I JUST BECAUSE I THINK THAT'S ONE OF THE MOST CRITICAL THINGS THE BIGGEST QUESTION I GET FROM PEOPLE IS WHY IS INVESTING IN THIS PROJECT AND THERE IS NO MONEY. I MEAN I PAY PROPERTY TAXES. I OWN A HOUSE, I DO BUSINESS IN BLOOMINGTON, I PAY LICENSE FEES, OTHER FEES PAY TAXES. THERE IS NO BLOOMINGTON MONEY OTHER THAN THE MONEY PAID BY MALL OF AMERICA GOING INTO THIS PROJECT. IS THAT ACCURATE CURRENTLY? YES THAT IS TRUE. THANK YOU. THANK YOU . OKAY. I JUST WANT TO HEAR THIS. THE MICROPHONE PLEASE FOR GOD SAKE I HAVE TO PUSH ANOTHER BUTTON. I'M NOT ON A CASH MACHINE OR ANYTHING ELSE. I'M GOING TO LOSE MY OKAY. SO WE HAVE A REALLY NICE STRAIGHTFORWARD MOTION LET'S GO LOOK AT THIS FURTHER NEGOTIATE BASICALLY BUT I THINK I HEARD THAT THERE'S A AT LEAST A PERCEPTION AND OKAYING THE DEAL THIS IS A GOOD DEAL THAT'S NOT WHAT I'M GOING TO VOTE ON. I'M GOING TO VOTE ON THIS SENTENCE HERE AND I WANT TO MAKE SURE BECAUSE THIS IS GOING TO BE ON TV AND ALL THAT STUFF THAT PEOPLE ARE NOT MISTAKEN ABOUT THE IMPORT OF THE ACTUAL MOTION BECAUSE WE'RE NOT WE'RE NOT APPROVING THE PROJECT PER SAY WE'RE APPROVING THE GOOD THE EXTENSION OF THE GOOD THAT YOU HAVE DONE INTO THE NEXT PHASE OF THE GOOD THAT YOU HAVE DONE. AND I MEAN YOU'VE COUNCIL MEMBER PROPERLY CONCERNED ABOUT WHAT PERCEPTION IS AND AND AND I GUESS YOU KNOW FOR THE AUDIENCE AT HOME IF NOTHING ELSE I JUST TO MAKE SURE THAT UNDERSTAND THAT PEOPLE UNDERSTAND THIS IS STEP TRANSACTION AND WE'RE APPROVING MOVING BUT NOT THE ULTIMATE THING BECAUSE OF US MAY FALL BY THE ROADSIDE AS THIS GETS MOVE FORWARD MARY BUSSEY PRESIDENT ERICKSON COUNCIL MEMBERS AND THAT'S CORRECT. THE MOTION TONIGHT IS TO DIRECT STAFF TO DEVELOP AGREEMENTS AND DOCUMENTS BASED ON THE ATTACHED EMOJI WATERPARK TERM SHEET FOR CONSIDERATION AT A FUTURE CONCURRENT MEETING OF THE CITY COUNCIL AND PORT AUTHORITY THERE'S STILL SIGNIFICANT WORK TO BE DONE TO DEVELOP AGREEMENTS THEMSELVES AND THE PROJECT WILL HAVE TO GO THROUGH THE TYPICAL PROCESS AT THE CITY AS WELL. MR. LUNTZ I AGREE WITH COMMISSIONER KELLER BUT THE IMPLICATION IF THIS GOES AHEAD IS THAT THIS PROJECT IS IMPROVED AND I RETICENCE ON THIS FROM THE VERY, VERY START EVERYONE KNOWS THAT THE RETICENCE STARTS FROM I DON'T WANT THE PROJECT IF THE PROJECT THE TERMS THEY'VE NEGOTIATED THE INITIAL TERM SHEET I THINK IS PRETTY GOOD JOB DONE BUT I SEE THIS THIS PROJECT IN NONCOMPLIANCE WITH MORE THINGS WE HAVE ON THE WEBSITE IN THE SOUTH OF PLAN THE CREATIVE PLACEMAKING POWER PLAN AND THE UNCERTAIN SUSTAINABILITY PORTIONS OF IT AND THOSE ARE BIG PROBLEMS. THEY'RE UNKNOWNS. WE CAN ARGUE ABOUT THE FEASIBILITY OF BUILDING A WATER PARK IN MINNESOTA. I MEAN IT'S LIKE BUILDING AN CASTLE TO THE ARCTIC CIRCLE. I MEAN I DON'T KNOW BUT THE BASIC FACT IS THAT THE THIS WATER AN AMUSEMENT PARK ATTRACTION DOESN'T FIT THE GOALS THE GUIDELINES IF YOU READ THEM AND YOU LOOK AT THE AND YOU LOOK AT THEM, IT'S JUST RIGHT THERE. LET'S TAKING THE NEIGHBORHOOD FROM SUBURBAN TO URBAN WITH A BIG TEN ACRE LATERAL HORIZONTAL USE FROM YOU SHOW ME WHERE THAT HAPPENS THE HERE MY BRAIN AND I THOUGHT EVERYONE'S BRAIN WAS THIS IS GOING TO A THIRD TWIN CITIES BUSINESS CENTER THE FUND REAL ESTATE FUNDAMENTALS ARE TERRIFIC THIS GOING TO BE LIKE A BUCKET IN ATLANTA IT WAS GOING TO BE A WALL STREET IN DALLAS AND ARLINGTON, VIRGINIA PUTTING TEN ACRES TO A CUBIC ORIENTED FLAT USE IS JUST NOT WHAT THE PLAN IS AND MOST MOST DISAPPOINTING TO ME IS THAT I HAVE A LOT MORE OF LAUDED EXTOLL MALL OF AMERICA COMPANY MANY TIMES FOR BEING BEING GREAT PROPERTY MANAGERS, BUILDERS OPERATORS LEASING AND INNOVATORS AND CREATORS CREATIVITY PEOPLE. I DON'T SEE ANY INNOVATION OR CREATIVITY HERE THIS IS THE SAME TIMEWORN MODEL USED JERSEY AND EDMONTON WITH A TWIST AND A ROUGH AND IT IS IT IS THEM FORGOING THE OPPORTUNITY IN THIS TERRIFIC AREA TO BECOME A CITY BUILDER THAT'S DIFFERENT FROM A SUBURBAN HORIZONTAL USE DEVELOPER. THIS IS A CHANCE TO BE A CITY BUILDER AND THAT'S WHY MY OPPOSITION IS FUNDAMENTAL RIGHT. THE FACT THAT IT IS WHAT IT IS SINCE THAT IS AND TO SOME EXTENT IN RESPONSE TO ME I FEEL LIKE I NEED TO SAY SOMETHING I GOT ONE MORE TRANCHE OF THINGS TO SAY LATER ON AND AT LEAST TO SOME EXTENT I THINK RESPOND TO YOUR CONCERN ALTHOUGH THERE WILL BE BIT MORE PROCESS PIECES BUT YOU AND I HAVE TALKED AND I FULL WELL UNDERSTAND YOUR POSITION SO SORRY. WELL I THINK COMMISSIONER EVERYBODY CAN ARRIVE AT DIFFERENT CONCLUSIONS AND THAT'S WHERE WE HAVE SEVEN PEOPLE ON THE PORT AUTHORITY AND WE VOTE AND LOOK AT THESE THINGS AND WE ALL HAVE TO MAKE DECISIONS ABOUT WHAT WE THINK MAKES THE MOST I WOULD HAVE TO SAY IN HAVING BEEN INVOLVED THIS SINCE THE INCEPTION LOOKING AT IT THAT I THINK THAT THIS IS EXACTLY WHAT WAS CONTEMPLATED WAY BACK. JIM LINDAHL GOT INVOLVED WITH THIS PROJECT AND LOOKING TO BRING SOMETHING TO THE CITY AND THE THING THAT I HAVE LOOKED AT WITH THIS PROJECT IS THAT WATERFORD IS SOMETHING THAT WE KNOWAS WORKED. I THINK CURT DID A GOOD JOB OF TALKING ABOUT OTHER THINGS THEY'VE LOOKED AT BUT THEY DON'T KNOW THEY WORK. BUT BUT IF TAKE A LOOK AT WHAT THE ZONING AND EVERYTHING FOR LET'S SAY IT'S A IT'S RETAIL ENTERTAINMENT IT AND SO I THINK THAT WHAT WE NEED IS A DEGREE THAT'S PART OF THE PROCESS THAT WE GO THROUGH. SO I THINK IT'S IMPORTANT TO MOVE FORWARD AND I KNOW WE'VE GOT SOME OTHER PEOPLE THAT HAVEN'T HAD A CHANCE TO GET THEIR POINTS IN AND INCLUDING COMMISSIONER SITTING UP THERE IN THE SCREEN. RIGHT. SO I DON'T KNOW WHO'S THE NEXT STEP IN THE HEARING PROCESS HERE. COMFORTABLE ANY ADDITIONAL QUESTIONS HERE ON THE SIDE? COUNCILMEMBER LOWMAN, I THINK YOU JUST HAD A COUPLE OF QUESTIONS FOR STAFF AND THEN I'LL GO BACK TO ONE ONE QUESTION I HAVE ON THE SUSTAINABLE DESIGN PIECE IN TERMS OF WHERE WE'RE AT WITH YOU KNOW, WITH THIS PROJECT, WHERE DOES THE DISCUSSION LIE WHERE WE TALK ABOUT LABOR PEACE THAT HAPPEN HERE OR AT SOME OTHER STAGE OF THE GAME. THEN ALSO I'VE GOT SOME QUESTIONS FOR KURT AROUND YOU KNOW JUST GENERAL LABOR PHILOSOPHY AS IT COMES TO YOU KNOW BUILDING OUT THE PROJECT ITSELF AND HOW THEY'RE GOING TO KNOW WHO THEY'RE GOING TO USE TO TO GET THAT DONE. MAYOR BUSSEY, PRESIDENT ERICKSON, COUNCIL MEMBERS AND COMMISSIONERS I UNDERSTAND THAT THIS TOPIC HAS COME UP BEFORE FOR THIS PROJECT AND SO I'M ACTUALLY GOING TO TURN IT OVER TO MR. HAGAN TO SPEAK TO THAT REPORT PRESIDENT COUNCIL MEMBERS, PORT COMMISSIONERS WE DO HAVE AN AGREEMENT WITH YOU RIGHT HERE LONG STANDING I DON'T KNOW MAYBE TEN YEARS AGO NOW I THINK IT WAS IN WHEN WE DID PHASE SEE WHERE THERE'S A PROJECT NEUTRALITY AGREEMENT AS WE CALL IT WHERE FOR HOSPITALITY HOTEL PROJECTS SO ANY HOTEL PROJECT BECOMES A WATERPARK HOTEL IN THIS CASE WE'RE BOUND BY THAT AGREEMENT THAT SAYS WE WILL REMAIN NEUTRAL AND THERE'S A LIST OF ITEMS IN THAT AGREEMENT AND WHAT WE AGREE TO AND WE FULLY INTEND TO HONOR THAT. SO I THINK THAT A UNITE HERE LABOR PEACE AGREEMENT IS ALREADY IN PLACE REGARDING BUILDING TRADES AS I THINK THESE BODIES KNOW WE'VE WORKED WITH THE BUILDING TRADES NOW AND I THINK AS DAN MCCONNELL SENT A LETTER OUT FOR 35 YEARS ACTUALLY 38 YEARS GOING BACK EVERY WE'VE DONE AT MALL OF AMERICA HAS BEEN UNDER A PROJECT LABOR AGREEMENT AND DON'T INTEND TO STOP THAT NOW. RIGHT. SO WE HAVEN'T NEGOTIATED ONE YET FOR THE WATER PARK. WE WILL I HAVE NO DOUBT THAT OF IT WILL BE UNION CONSTRUCTION RIGHT STANDARD AGREEMENTS THAT WE ALWAYS HAVE THERE ARE SPECIALTY TRADES WE HAVE DEAL WITH THOSE THEMING ARTISTS THINGS LIKE THAT THAT ARE LOCAL THAT WILL BE BROUGHT IN AND WE'LL WORK THAT THROUGH WITH DAN AND THEY PLAY LOCAL BENEFITS AND THEY HAVE TO PAY PREVAILING WAGES AND YOU KNOW THAT'S PRETTY TYPICAL FOR US AND THAT WILL HAPPEN AGAIN ON THIS PROJECT. SO THANKS FOR CLARIFYING THAT FOR ME IN THE MURRAY. JUST HAVE ONE LAST QUESTION ON THE ART SUSTAINABLE DESIGN PIECE. I SEE THAT THESE TERM SHEET WAS PUT TOGETHER ON APRIL 16TH I BELIEVE IT WAS KIND OF THE SAME TIME THE SUSTAINABILITY COMMISSION PUT TOGETHER THEIR THEIR THEIR LETTER. SO MY QUESTION IS FOR YOU KNOW REALLY IT'S FOR MAYBE IT'S FOR THE MAYOR AND THE MANAGER AND FOR THE THE PORT DIRECTOR, YOU KNOW IN TERMS OF THE ITEMS THAT WERE BROUGHT FORTH FROM THE SENATE SUSTAINABILITY COMMISSION, WERE THOSE IDEAS AT ALL CONSIDERED WITH RESPECT TO THE SUSTAINABLE DESIGNS THAT ARE HERE IN THE PROJECT CAN YOU JUST GIVE A LITTLE I KNOW THAT'S GOING TO BE A QUESTION THAT THE THE COMMISSION HAS WITH RESPECT TO THIS PARTICULAR PROPULSION FORCE. ABSOLUTELY. MAYOR BUSSEY PRESIDENT ERICKSON, COUNCIL MEMBERS AND COMMISSIONERS, WE VERY MUCH APPRECIATED THE TIME AND THOUGHT THAT THE SUSTAINABILITY COMMISSION PUT INTO THESE RECOMMENDATIONS. UNFORTUNATELY WE WERE NOT ABLE COMMIT TO ALL OF THEM AT THIS TIME. IT DID RESULT IN A INCREASE FROM THE MALL OF AMERICA SIDE FROM 3.5 MILLION TO 3 TWO 5 MILLION COMMITTED TO THE PROJECT. SO THERE WAS AN INCREASE IN COMMITTED FUNDS TO THE PROJECT ALSO THE ADDITION OF SOME MORE TAILORED LANGUAGE AROUND HOW THEY WILL PRESENT INFORMATION BACK TO THE SUSTAINABILITY COMMISSION OR TO THE CITY COUNCIL ABOUT WHEN THEY DO HAVE THEIR XCEL ENERGY DESIGN ASSISTANCE PROGRAM. WE WILL BE ABLE TO SEE THAT INFORMATION. SO SOME OF THAT LANGUAGE WAS INCORPORATED. WE UNDERSTAND IT IS NOT AS MUCH AS WOULD BE DESIRED. WE ACKNOWLEDGE THAT BUT OUR HOPE IS THAT AS THE PROJECT PROCEEDS AND AS WE START TO SEE THESE OPPORTUNITIES STUDIED WITH EXCEL LEED THE U.S. GREEN BUILDING COUNCIL WILL BE THREE WHATEVER IT MAY BE THAT THOSE IDEAS AS MALL OF AMERICA AND THEIR ARCHITECTS AND ENGINEERS REVIEW THEM WE SEE MORE OF THOSE INCORPORATED INTO THE PROJECT. THANKS FOR CLARIFYING THAT. I DO KNOW THAT'S A QUESTION WILL BE ASKED. I THINK WE HAVE COMMISSIONER WHO'S BEEN VERY PATIENT SITTING THERE WE'LL AS EYES WILL OPEN UP THANK YOU TO JUST TWO COMMENTS. ONE IS THAT YOU IN EARLIER CONVERSATIONS ABOUT THIS I'VE BEEN REALLY CONCERNED ABOUT THE EQUITY SITUATION WITH RESPECT TO THE PROJECT AND I THINK THAT THE SOLUTION THAT THE STAFF AND THE PROPERTY OWNERS HAVE NEGOTIATED HERE REALLY ADDRESSES MY CONCERNS AROUND THAT. AND I THINK IT'S A IT'S A BIG IMPROVEMENT TO THE PROJECT AS IT IS AS IT WAS DISCUSSED EARLIER YESTERDAY. I JUST WANT TO RESPOND TO A LITTLE BIT IS THE CONCEPT THAT THIS ISN'T WHAT WAS CONTEMPLATED ON THIS PARTICULAR SITE AND I, I WHILE DURING THE MEETING I WAS KIND OF GOING DIGGING BACK IN THE JASON BOOTH AND LOOKING AT THE SIX TWO ZONING DISTRICT AND INDOOR RECREATION ALL USERS WERE LISTED AS PERMITTED USERS IN THAT ZONING DISTRICT HOUSING USES WERE LISTED AS CONDITIONAL AND IF I REMEMBER RIGHT BACK WHEN WE ADOPTED THE SIX TWO DISTRICT THAT WAS BECAUSE OF THE PROXIMITY TO THE RUNWAY AND THE TARGET TRAFFIC FROM THE AIRPORT AND WE FELT LIKE WE WANTED TO BE MORE CAREFUL ABOUT LOCATING RESIDENTIAL USES IN THAT PARTICULAR LOCATION. AND SO I THINK, YOU KNOW, THIS REALLY HAS BEEN SOMETHING THAT'S CONTEMPLATED SINCE THE BEGINNING OUR ZONING DISTRICT AND COMPREHENSIVE PLAN SPECIFICALLY TO HELP THEM IN THE DIRECTION OF THIS SORT OF USE. SO THE IDEA THAT SOMEHOW THIS IS COUNTER TO WHAT WE HAD PLANNED ON DOING IN THIS PARTICULAR LOCATION JUST ISN'T SUPPORTED THE ACTIONS THAT WE'VE DONE IN THE PAST AND SO ,YOU KNOW, I THINK WE'RE STILL A WAYS FROM HAVING AGREEMENT THE A LOT OF THIS IS IN THE DETAILS BUT I THINK THAT IN TERMS OF THE BIG PICTURE OBJECTIONS THAT I HAD I THINK THIS IS A BIG MOVE FORWARD FROM WHAT WE BEFORE IN TERMS OF THE TERM CHANGE AND IT'S THE PART THAT MIGHT THANK YOU TO MR. PEARSON NEXT . COUNCILMEMBER THANK YOU, MAYOR ME I'M SORRY MR. MAYOR JUST A POINT OF ORDER ARE WE ONTO COMMENTS NOW OR ARE WE STILL DOING QUESTIONS? I WAS IT I WASN'T SURE I HAD COMMENTS THAT WERE SEPARATE FROM QUESTIONS BUT I DIDN'T KNOW WHE WE WERE IN THE I WE'RE APOLOGIES FOR THE INTERRUPTIONS. I THINK WE'VE KIND OF MELDED THE TWO TOGETHER RIGHT NOW SO IT'S YEAH I WOULD SAY I HAD COMMENTS LEADING TO QUESTIONS . OKAY. YOU MEAN MR. MAYOR, YOU DON'T WANT TO SEGREGATE FOUR QUESTIONS LIKE WE TRIED TO DO. WE WERE GIVEN MADE A RUN AT THAT LAST TIME AND IT DIDN'T WORK OUT. SO NO, WE'RE I THINK IF PEOPLE HAVE QUESTIONS AND COMMENTS AND I THINK THE EFFORT DO I USE MY BEST EFFORTS I THINK JUST TO HAVE THIS AS A A DISCUSSION NO QUESTIONS AND DISCUSSION. SO COUNCILMEMBER THANK YOU MAYOR. I HAVE A QUESTION REGARDING JUST MILESTONE FUNDS AND CONTINGENCY FOR THE FACT THAT WE'RE USING ALL OF THE FUNDS WITHIN IT. SO WHAT WHAT HAVE WE PLANNED CONTINGENCY IN CASE THERE'S OVERRUNS IS THAT BORNE SOLELY BY THE PROPERTY OWNER OR ARE WE GOING TO HAVE OUR OWN CONTINGENCY SUPPORT THAT MAYOR PRESIDENT ERICKSON, COUNCILMEMBERS CMISSIONERS, COUNCILMEMBER AS OF RIGHT NOW THE TERM IS 100 $160 MILLION OF PUBLIC ASSISTANCE. SO OVERAGES OR OVERRUNS IS BORNE BY THE DEVELOPER OR WOULD NEED TO LOOK AT THEY'RE DOING SOME VALUE ENGINEERING TO MAKE SURE THAT THEY CAN GET WITHIN THEIR FINANCING TERMS. MR. HUNT THANK YOU COMMENT AND THEN QUESTIONS I'LL HAVE TO HAVE TO SAY COMMENT BECAUSE I GO BACK NOT QUITE AS FAR AS YOU BUT I'M ALSO THE DAYS DEVELOPMENT THAT I'M PLANNING. BUT I DISTINCTLY REMEMBER THE SIMON YEARS THERE WAS NEVER GOING TO BE ANY WATER AND WAS COMPLETELY OFF THE TABLE SO WE HAD THAT ONE EIGHT YEAR PERIOD WHERE THERE WAS SALMON IN HERE VERSUS 555 CREMATIONS WHERE WHAT PEOPLE DON'T SO THEREFORE NO WATER SO I HAVE TO SAY THAT SO ANYWAY SO WELL A COUPLE OF QUESTIONS SOME FOR JASON, SOME FOR MR. HAGEN AND THE THE MONITORING THIS AND THE FREQUENCY IN LOOKING AT THE FINANCIALS THE INTENT TO LOOK AT IT MONTHLY, QUARTERLY AND JUST ANNUALLY OR WHAT'S THE INTENT FOR THE CASH FLOW TO MEASURE ONCE IT'S OPERATING AND THE INCOME IS COMING IN ? SURE MAYOR PRESIDENT ERICKSON COMMISSIONERS COUNCIL MEMBERS COMMISSIONER HUNT. AS OF RIGHT NOW WE HAVEN'T GOTTEN INTO FULL DETAILS AS TO AS TO HOW OFTEN IF IT'S GOING TO BE QUARTERLY ANNUALLY IT DEFINITELY WILL BE ANNUALLY DEPENDING ON THE INFORMATION THAT OUR MUNICIPAL ADVISORS MAY NEED WITH REGARDS TO REVIEW AS WELL AS OUR CITY'S FINANCE TEAM. WE MAY GET THE ANNUAL WINE BUT MAYBE EVEN NEED TO AGGREGATE IT DOWN TO THE MONTHLY DEPENDING ON WHAT IS IS NEEDED FOR OUR REVIEW. AND SO I WOULD SAY OUR TERM SHEET IS WIDE OPEN TO ALLOW US TO HAVE OPEN. YEAH AND I WOULD I WOULD JUST THINK MONTHLY MIGHT BE AN ORDER MAYBE A QUARTERLY BASIS TRAILING 12 MONTHS CERTAINLY THE ANNUAL BUT LOOKING IT THAT SO YOU'VE GOT THE HANDLE ON WHAT'S ACTUALLY COMING IN . THE OTHER QUESTION ON THAT IS IS THE THE OPEN BOOK AND HOW MUCH IS THERE IN THERE IS THERE GOING TO BE EACH OF THE FINANCIAL STATEMENTS AND HOW MUCH HAS BEEN SEEN ON THE NEW JERSEY AND FROM ALL REPORTS? NEW JERSEY IS DOING VERY WELL IN EDMONTON. I DON'T HAVE ANYTHING TO SAY ON I DON'T KNOW WHETHER STAFF HAS SEEN THOSE NUMBERS AND WHERE YOU'RE AT ON THAT AND HOW DOES THAT COMPARE TO THE PROJECTIONS THAT ARE BEING PUT IN PLACE FOR THE WATER PARK HERE? FOLLOW UP QUESTION ON THAT IS WE'VE HEARD THERE'S COMMENT THAT THERE WOULD BE POTENTIAL REDUCTION BLOOMINGTON RESIDENTS. I DON'T THINK I EVER HEARD AN ACTUAL DOLLAR AMOUNT NEVER HEARD AN ACTUAL COMMITMENT AS TO WHEN I THINK ONE MEETING MR. HAGEN HAD SUGGESTED IT MIGHT BE A DISCOUNT IT MIGHT BE WEEKDAYS WE NEVER REALLY HEARD IS IT PRIME DAYS? IS THERE WHAT MIGHT THE FEES BE WE CERTAINLY SAW THE 100 BUCKS A PERSON IN NEW JERSEY. WHAT ARE YOU ANTICIPATING HERE IN THIS MARKETPLACE AS A COMPARISON AND HOW DO THOSE NUMBERS COMPARE IN YOUR PROJECTIONS? SURE. THEY'RE PRESIDENT COMMISSIONERS COUNCIL MEMBERS COMMISSIONER HUNT, TO GET AT YOUR FIRST QUESTION STAFF AS WELL AS OUR CONSULTANT BACK IN 2022 WE ACTUALLY WENT OUT TO NEW JERSEY AND SAT DOWN WITH THE FINANCIAL FOLKS OPERATING THAT WATER PARK AND REVIEWED THE FINANCIALS OUT THERE WITH REGARDS TO LIVE ANALYSIS OF THEIR COMPUTER SYSTEM AND FROM THAT OUR CONSULTANT AT THAT TIME WAS ABLE TO TO STATE THAT THAT WATER PARK WAS MEETING WAS MEETING AND EXCEEDING PROJECTIONS THAT WERE WERE SET AT THAT TIME FOR THE NEW JERSEY WATER PARK AS FAR AS YOU KNOW UTILIZING THEM IN IN THE CURRENT PROFORMA THAT WE ARE RIGHT NOW STAFF HAS SOMEWHAT LOOKED AT THAT BUT AS PREVIOUSLY BACK IN 2022 WHEN WE WORKED WITH H.L. AND A WITH REGARDS THE REVIEW OF THE PROJECT IT YOU KNOW IT IS ADJUSTED FOR THE FOR THE MARKET FACTOR FROM EAST COAST TO THE MIDWEST TO ADJUST FOR THAT TICKET PRICE AS WELL AS KIND OF THE THE AVERAGE SPEND FOR GUEST AND SO THE ANALYSIS THAT STAFF HAS DONE HAS LOOKED AT THAT TO CONFIRM THAT IT IS USING KIND OF THE MIDWEST PROJECTIONS FOR THE TYPICAL WATER PARK USER. WITH REGARDS TO THE WATER PARK DISCOUNT WE HAVE BEEN NEGOTIATING WITH 555 WITH KURT ON THAT ANALYSIS RIGHT NOW WE I CANNOT STATED A DOLLAR AMOUNT BUT IT IS GOING TO BE EQUIVALENT TO A MILITARY DISCOUNT IS HOW WE HAVE KIND OF TERMED IT WITH WITH MR. HAGAN. ADDITIONALLY WE HAVE ALSO LOOKED AT ALSO INCLUDING ADDITIONAL PERKS INTO THAT AS WELL SO AS WELL AS A BLOOMINGTON RESIDENT DISCOUNT IT COULD BE ADDITIONAL PERKS FROM FRITO WE'LL USE OR OR LOCKER USAGE AND SO I CAN LET MR. HAGAN EXPAND ON THAT THEY ARE PRESIDENT ERICKSON COUNCIL MEMBERS COMMISSIONER YEAH THAT'S YOU KNOW IT WE'VE TALKED ABOUT THAT PROBABLY SECOND ONLY TO EQUITY THE BLOOMINGTON FROM OUR PERSPECTE BLOOMINGTON RESIDENTS WERE REPRESENTED ABOUT 4% OF OUR REVENUE RIGHT SO GIVE YOU 50% DISCOUNT RATE BUT IT BECOMES A POLITICALLY SENSITIVE QUESTION RIGHT. IS A BLOOMINGTON RESIDENT MORE IMPORTANT THAN A MILITARY PERSONNEL? AND THEN YOU GET INTO THE DEBATE OF WHY ARE THEY GETTING THIS DISCOUNT IN SOMEBODY ELSE'S? SHOULD THE REGION GET A DISCOUNT BECAUSE IT'S REALLY THEIR DOLLARS NOT ONLY $10 SO IT BECOMES A A POLITICALLY QUESTION. IT'S NOT IT'S NOT FROM OUR PERSPECTIVE IT'S NOT A MATERIAL QUESTION IN TERMS OF DOLLARS. RIGHT. IT REALLY DOESN'T I WON'T SAY IT DOESN'T MATTER BUT IT'S MORE WE NEED TO WORK THROUGH IN ONE OF THE ONE OF THE ITEMS OUR OPERATIONS GROUP CAME UP WITH WAS MAYBE WE DO SOMETHING RATHER THAN A DISCOUNT, MAYBE . DO YOU KNOW EARLY ADMISSION FOR BLOOMINGTON RESIDENTS ON ON THESE DAYS WE'LL OPEN IT UP EARLY FOR ONLY BLOOMINGTON RESIDENTS THREE TOWELS FREE FREE PERKS I THINK WHAT WE NEED TO WORK THROUGH WITH STAFF AGAIN THERE'S NO RESISTANCE ON OUR TO PROVIDING A DISCOUNT TO BLOOMINGTON RESIDENTS WE JUST NEED MAKE SURE THAT WE'RE TREATING OTHERS FAIRLY AND WE'RE NOT UPSETTING OTHER VESTED PARTIES ARE INTERESTED IN THIS IN THIS WATERPARK AND OTHER YOU KNOW CONSTITUENTS IT'S A COMMENT THAT IT JUST SEEMS THAT THROUGHOUT THE THERE'S THE COMMENTARY RUNNING COMMENTARY THAT BLOOMINGTON RESIDENTS ARE GOING TO RECEIVE A DISCOUNT. SO PEOPLE THAT ARE LISTENING AND SO FORTH COULD BE EXPECTING THAT AND MIGHT LIKELY BE EXPECTING YEAH, WE WILL HAVE A KIND OF MILITARY AND THIS IS SPECIFIC BECAUSE IT IS AS A DISNEY YOU KNOW THERE'S THERE'S JUST NOT A DISCOUNT FOR A VETERAN OR MILITARY YOU HAVE TO MEET CERTAIN CRITERIA. YOU KNOW, IT'S NOT LIKE TO A HOME DEPOT AND SHOWING YOUR VA CARD OR SAYING I I'M RETIRED I'M FORMER MILITARY VERSUS IN ORDER TO GET A DISCOUNT AT DISNEY YOU HAVE TO BE EITHER INJURED FOR MILITARY OR CERTAIN VERY STIPULATED SPECIFIC STIPULATIONS SO I'M KIND OF AND THERE WILL BE CAREFUL HOW ARE YOU SAYING IT WE'RE A MILITARY DISCOUNT WELL IT'S AWESOME YEAH IT'S ALSO MY UNDERSTANDING THAT IN FLORIDA IF YOU'RE A FLORIDA RESIDENT YOU DO GET SOME DISCOUNTS AT DISNEY WORLD. SO AGAIN IT'S SOMETHING THAT I THINK THAT THERE'S PROBABLY MECHANISM THAT WORKED AND YOU COULD BLOOMINGTON DAYS AND YOU COULD EVEN HAVE BEEN 30 DAYS OR SOMETHING ELSE THAT YOU MAY FEEL THAT YOU ALL RIGHT MR. RODRIGUEZ YOU WANT TO THANK YOU MR. AND PRESIDENT COMMISSIONERS JUST GOING BACK TO ONE OF COMMISSIONER HUNT'S FIRST QUESTIONS ON THE FINANCIAL PERFORMANCE AND I HEARD THE QUESTION IS YOU'RE RECOMMENDING REGULAR STRUCTURED MEETINGS ON A ON A CERTAIN TIMELY BASIS BUT WE WILL HAVE INFORMATION ABOUT THE PERFORMANCE BECAUSE THE OPERATION WILL HAVE TO BE REMITTING ADMISSIONS TAX LIQUOR TAX AS WITH ANY OTHER BUSINESS IN THE CITY OF BLOOMINGTON, THOSE COME IN ON A REGULAR OR CYCLE SO WE'LL BE ABLE TO SEE THE KIND OF ACTIVITY THAT'S HAPPENING ALMOST REAL TIME. THANK YOU, COUNCILMEMBER CARTER. THANK YOU, MAYOR. I' JUST GOING TO SHARE MY COMMENTS NOW. MAYBE I'LL GET STARTED HERE OR STARTED AGAIN. SO FIRST I JUST WANT TO THANK STAFF AND THE 555 TEAM AND REALLY THANK YOU TO EVERYBODY WHO HAS BEEN ASKING SUCH GOOD QUESTIONS. I KNOW IT'S MADE ME, YOU KNOW, KIND OF CHALLENGE OWN THINKING. SO I WILL SAY BEFORE I COUNCIL SAGE I JOINED JANUARY 2020. I WAS ONE OF THOSE BLOOMINGTON RESIDENTS THAT WAS PROBABLY NOT A HUGE FAN OF THIS IDEA ONLY BECAUSE I WAS LIKE WHY DOES THE MALL OF AMERICA GET SO MUCH ATTENTION RIGHT? AND THEN I JOINED COUNCIL JANUARY 2020 AND VERY SOON BECAME A PARENT OF WHY THE MALL IS SO IMPORTANT SO IMPORTANT TO BLOOMINGTON THE PANDEMIC HIT AND WE HAD A $7 MILLION HOLE IN OUR BUDGET BECAUSE THE WAS SHUT DOWN AND THE HOTELS WERE EMPTY AND I MEAN I STILL REMEMBER THE MOMENT THAT JAMIE TOLD US THAT AND WE HAD TO FIGURE OUT WHERE WE WERE GOING TO CUT, WHAT POSITIONS WERE WE NOT GOING TO FILL, WHO WAS LOSING THEIR JOBS WHAT PROGRAMS WERE NO LONGER GOING TO OPERATE, WHAT PARTS OF THE CITY WHERE ARE WE JUST GOING TO SHUT DOWN AND IT WAS I MEAN IT WAS SOME OF THE HARDEST DAYS, RIGHT? I'M SURE MANY OF OUR LIVES AND SO I WAS ON THE COMMUNITY ADVISORY BUDGET COMMITTEE SO HE WASN'T LEFT OUT. BUT GOING THROUGH THAT TWO THINGS BECAME VERY APPARENT TO ME ONE WE NEEDED TO KIND OF DIVERSIFY OUR ECONOMIC DEVELOPMENT PRIORITIES. THE CITY WHICH WE'RE DOING THE PORT IS EXPANDING IN SCOPE AND THE SECOND WAS THAT YOU KNOW, WE HAD TO MAKE SURE THAT THE TOURISM INDUSTRY STAYED VIBRANT AND HEALTHY IN BLOOMINGTON SO THAT WE DIDN'T HAVE A SITUATION LIKE THAT AGAIN. AND YOU KNOW, THERE MIGHT BE COMMUNITY MEMBERS THAT DISAGREE WITH THAT. THAT WAS A DECISION THAT WAS MADE DECADES AND DECADES AGO TO DOUBLE DOWN ON THE HOTEL AND TOURISM INDUSTRY, THE MALL OF AMERICA AND I FEEL LIKE IT'S INCUMBENT UPON US NOW TO MAKE SURE THAT IT STAYS HEALTHY. AND SO WHEN I THINK ABOUT THE ADDITIONAL REVENUE THAT THIS IS GOING TO GENERATE FOR OUR COMMUNITY AT A TIME WHEN WE HAVE INCREASING INFRASTRUCTURE INVESTMENT NEEDED, WE'RE MOVING TO A HYBRID FIRE DEPARTMENT IN OUR STATE GRANTS GOING TO RUN OUT IN A COUPLE OF YEARS LIKE WE NEED THIS ADDITIONAL REVENUE AND SO WITH THAT SAID OBVIOUSLY MY POSITION IS THAT I'M GOING TO BE SUPPORTING MOVING FORWARD WITH THIS TERM SHEET. I DID WANT TO ACKNOWLEDGE AND THE SUSTAINABILITY COMMISSION'S DISCUSSION AND RECOMMENDATIONS I WAS SORRY I COULDN'T MAKE THE MEETING BECAUSE WE HAD AN HRA MEETING AT THE SAME TIME BUT I THINK PROBABLY MY BIGGEST CHALLENGE WITH THE SUSTAINABILITY PIECE IS WHAT YOU MENTIONED MARY AND THAT'S WE DON'T HAVE A POLICY OR STANDARDS IN PLACE AND SO WE HAVE BEEN ASKING FOR THIS FOR WITH THIS WATER PARK AND I FEEL LIKE IT'S I MEAN THE CONVERSATION HAS JUST GOTTEN BETTER RIGHT THE THINGS THAT ARE COMING FORWARD HAVE JUST GOTTEN BETTER AND I THINK THAT IS TO THE CREDIT OF THE SUSTAINABILITY COMMISSION THE THINKING THAT HAS BEEN DONE AND OF COURSE TO THE CREDIT TO YOU AND YOUR TEAM. KURT, AS YOU MENTIONED, THIS HAS BEEN A PRIORITY FOR US FOR A LONG AND SO WITHOUT HAVING A POLICY AND STANDARDS IN PLACE ,REALLY HARD FOR ME TO SAY WELL I WOULDN'T WANT TO MOVE FORWARD WITH THIS PROJECT WHEN WE HAVEN'T DONE THE SAME THING FOR OTHER PROJECTS AND WE KNOW WE HAVE PROJECTS WE'VE SUPPORTED THAT ARE HUGE WATER USERS TERRIBLE FOR ENVIRONMENT AND WE'VE NEVER ASKED ONE QUESTION IF WE'RE IMPROVING THEY'RE IMPROVING THEIR PUBLIC SUPPORT AND SO SO AS MUCH AS I AGREE WITH THE SUSTAINABILITY COMMISSION AND I FEEL VERY THAT WE AS A COUNCIL NEED TO PRIORITIZE GETTING A POLICY IN PLACE, GETTING THOSE STANDARDS IN PLACE. I CAN'T I'M NOT GOING TO LET THAT I'M GOING TO CONTINUE I'M GOING TO SUPPORT THIS PROJECT . SO THE THE LAST THING THAT I WAS GOING TO SAY AND I THINK IT'S BEEN SAID MULTIPLE TIMES NOW ANOTHER REASON I AM SUPPORTING IS THAT TAXPAYER DOLLARS BLOOMINGTON TAXPAYER DOLLARS ARE NOT AT RISK OR GOING INTO THIS PROJECT I'M NOT GOING TO GO INTO IT. I'M NOT GOING TO REPEAT WHAT'S ALREADY BEEN SAID. BUT THAT'S A REALLY BIG DEAL FOR OUR COMMUNITY AND IT'S A BIG DEAL FOR ME AND SO I JUST WANTED TO SAY IT AGAIN FOR THOSE ARE LISTENING. THOSE ARE MY COMMENTS. THANK YOU. COUNCILMEMBER. I KNOW COMMISSIONER KELLER MAKE SOME MORE COMMENTS PROBABLY THE LAST OF ME I'LL BE GLAD TO HEAR. I WANT TO THANK MR. AND FOR SOMETHING THAT HAPPENED IN THE LAST MEETING YOU USED THE WORD WELL USED PHRASE ACKNOWLEDGING OUR THE TREASURY OBLIGATIONS AND MAYBE WE DON'T ABOUT THAT ENOUGH BUT THAT'S A REAL THING AND I TRY TO KEEP THAT MIND READ IT IT DOESN'T STAY IN MY MIND ALL THE TIME BECAUSE WE'RE RARELY CONFRONTED WITH SOMETHING OF THIS COMPLEXITY NOT MUCH LESS THE MAGNITUDE SO DIFFERENCES OF OPINION OBVIOUSLY GOOD DISCUSSION OBVIOUSLY. I'VE BEEN HONORED TO BE ON A COMMISSION THAT HAS AN INCREDIBLE ARRAY OF TALENTS THAT GOD KNOWS I DON'T HAVE. I DON'T HAVE A CALCULATOR. THIS GENTLEMAN DOES FOR EXAMPLE AND I THINK WE'VE DONE WELL SIGNIFICANT PART OF THAT HAVING SAID THAT WHAT I HARPED ON IN OUR LAST MEETING IS I FEEL WE'VE GOT THIS GAP IN HOW THIS GETS DONE. I UNDERSTAND THE SENSE OF URGENCY I UNDERSTAND 50 PEOPLE CAN'T GET IN A ROOM TO NEGOTIATE BUT ALSO HAVE DONE ENOUGH TRANSACTIONS IN 40 YEARS TO KNOW THAT 50 PEOPLE CAN GIVE INPUT TO 510 PEOPLE IN A ROOM THAT'S MEANINGFUL AND ADD SOME DETAIL THE EQUITY PIECE IS ONE OF THE THINGS THAT HAS BOTHERED ME ARE WE HAD TO TALK ABOUT THAT FELT BETTER ABOUT IT THEN BUT THERE'S STILL A LOT OF CAKE TO BE BAKED IN THAT AND MY CONCERN IS I HEARD SUMMER 2024 HOW IS IN THE FACE OF WHAT I BELIEVE ARE VERY GOOD LAWS OF GOOD LAWS CAN WE GET SPECIFIC UPDATES ABOUT WORDS AND THINGS AND GIVE SPECIFIC INPUT BECAUSE TO BE CLEAR I I'M GOING TO VOTE AND THIS IS WHY I ASKED THIS QUESTION SURE I'M GOING TO VOTE FOR THE PROPOSED MOTION. I'M NOT VOTING FOR A DEAL THAT IN DETAIL EXPANDS IN ONE WAY OR ANOTHER BEYOND OR IN IN CONFLICT WITH THIS I'D MEAN I'D JUST READ EVERYONE KNOWS THEY START DOWN THIS PATH AND THAT NUMBER MIGHT CHANGE BECAUSE YOU MAKE AN ADJUSTMENT HERE AND MAKE AN ADJUSTMENT THERE AND I THINK THAT GIVEN THE PACE THAT WE'VE BEEN PRESENTED WITH WE HAVE TO FIND A WAY FOR COUNCIL AND THE PORT AUTHORITY TO BE INVOLVED AT A LEVEL OF GRANULAR THAT WOULD NOT TYPICALLY BE THE CASE TYPICALLY YOU KNOW YOUR STAFF EVERYBODY AGREES I THINK WONDERFUL COME TO US SAY WHAT WE'RE GOING TO DO ON THIS. THIS IS WHAT IT LOOKS LIKE AND THEN THAT KID GETS BEHAVIOR AND COMES BACK JUST THE AS AS WE'RE TIRED AND WE'RE, YOU KNOW, THUMBS UP. I PROBABLY VOTED NO THAN FIVE YEARS AND FIVE TIMES AND GOD KNOWS HOW MANY YEARS. SO I AM GIVING YOU ASK AND MY ASK IS HELP US FIND A WAY TO KNOW WHAT'S GOING ON IN A MEANINGFULLY SUBSTANTIVE WAY SO IT PEOPLE MIGHT BE ON THE FENCE WON'T SAY IS YOU KNOW CLAUSE 2.4 IS OVER THE TOP AND I'M JUST NOT GOING THERE I TO KNOW A LOT MORE ABOUT THIS EQUITY THING I THINK THERE ARE SOME STRUCTURAL QUESTIONS WE'VE TALKED ABOUT THIS THAT THAT I UNDERSTAND AND AND I THINK IT IS UNDERSTANDABLE THAT PEOPLE HAVE BEEN TALKING THESE NUMBERS AND THAT IS THE HEART AND SOUL OF IT BUT THERE ARE OTHER KEY THINGS AND AND AND SO THAT LORD KNOWS I HAVE NO SUGGESTIONS FOR YOU BECAUSE I JUST DON'T KNOW THE LAW AS MUCH AS YOU CERTAINLY TO JULIE BUT I WOULD REALLY LIKE TO HAVE PEOPLE INVOLVED IN GREATER NUMBERS WITHOUT BACK THE WORK BUT WITH MEANINGFUL AND A MEANINGFUL OPPORTUNITY TO COMMENT SO THAT WHEN WE DO GET TO THAT MEETING IN SUMMER 2024 WE'LL SAY WELL OF COURSE THAT'S WHAT WE SAID AND YOU KNOW THUMBS UP AND ALL THAT. SO AGAIN TO REITERATE I'M VOTING FOR THIS. I'M NOT FOR A DEAL. I DON'T KNOW WHAT THE IS GOING TO BE I KNOW SOME THINGS ABOUT IT THAT ARE AGREED IN DETAIL NOW AND AGAIN. I KNOW SOME OF THAT NEED TO CHANGE AS THINGS GET ADJUSTED BUT I MAY IT BUT I'M VOTING CONFIDENCE TO YOU AND YOUR FOLKS AND YOU AND YOUR FOLKS TO WORK HONESTLY AND FORTHRIGHTLY TO TRY TO GET TO SOMETHING THAT WE AS COMMISSIONERS AND COUNCIL PEOPLE TRADITIONALLY HAVE NOT BEEN INVOLVED WITH AT AGAIN A LEVEL OF GRANULARITY SO WE CAN HAVE A SIMILAR MOTION THAT SAYS YEAH LET'S DO THAT THE WAY I WROTE IT DOWN SO I, I COULD SUGGEST A SOLUTION BUT THAT NEVER BOTHERED ME BEFORE BUT IT'S MAKING ME CRAZY NOW SO THAT'S ALL I HAVE. WELL, THANK YOU COMMISSIONER KELLER, I MEAN, I THINK ONE OF THE THINGS THAT'S IMPORTANT WHEN WE GET INVOLVED WITH A MAJOR PROJECT LIKE THIS IS EYES TAKE TIME AND REFLECT HOW WE CAN MAKE THE PROCESS BETTER. AND THAT'S PARTICULARLY IMPORTANT FOR THE PORT AUTHORITY WHERE WE'RE NOW BECAUSE WITH YOUR EXPANDED AUTHORITY WE'VE HAD A LOT OF THAT WE'VE HAD TO DEAL WITH THAT WE JUST HEN'T LOOKED AT BEFORE THIS. SO I THINK THAT THERE'S REAL MERIT TO DOING THAT AND WE'LL CERTAINLY ASK HOLLY AND JASON AND EVERYBODY TO TRY TO DO THAT AND I SEE THAT I SEE COMMISSIONER LANCE BUT I ALSO SEE WE HAVE COMMISSIONER PETERSON OUT THERE WITH HIS HAND OUT QUIETLY. SO I JUST, I JUST WANTED TO LET YOU KNOW THAT I'M GOING TO HAVE ABOUT TEN MORE MINUTES AND THEN I NEED TO I HAVE A HARD STOP IN ABOUT 10 MINUTES. SO IF WE'RE IF WE'RE CONVERGING ON MOTION MAKING I'M KIND OF READY TO DO THAT. BUT I ALSO DON'T WANT TO CUT OFF THE DISCUSSION. MR. LUNTZ DID YOU YES. I'VE GOT A COMMENT THAT TOOK THREE COMMENTS. I'LL MAKE THEM QUICK. THE FIRST ONE AND I DIDN'T EXPAND ON AS MUCH AS I WANTED RELATIVE TO WAS RELATIVE. THE DESIGN EXCELLENCE REQUIREMENT UNDER CREATIVE PLACEMAKING FOR THE SOUTHLAND DISTANCE DISTRICT IF THE WATER PARK IS BUILT THE WAY IT'S SHOWN THE FIRST PERMUTATION OF THIS ON THE NONPROFIT MODEL THE BUILDING WAS ENTIRELY ENCLOSED AND WAS NEITHER SEEN OR HEARD. THIS ONE WILL BE BOTH SEEN AND HEARD AND IMPLICATION ON THAT IS IF YOU KNOW WOULD BE FOR FUTURE BUSINESS GROWTH IN THE SOUTH ARE PEOPLE GOING TO WANT TO WALK ARE GOING TO WANT TO LOCATE IN THE SOUTH LOOP HAVING TO LOOK AT THIS FACILITY AND TO HEAR THIS FACILITY WITH 6000 PEOPLE A DAY WITH A ROOF AND WALLS OPEN OKAY THAT'S ONE CONSIDERATION THE CONSIDERATION THE OTHER TWO THINGS ARE IRONIES. THE ONE IRONY IS THAT THE PROJECTIONS OF THE CASH FLOW ON THIS ARE GOING TO BE VERY, VERY STRONG. THEY'RE GOING TO GO USE TO EXPAND AFFORDABLE HOUSING AND IRONING BEING NET ONE HAS TO WONDER WHETHER THOSE PERSONS LIVING IN AFFORDABLE HOUSING WOULD EVER HAVE THE WHEREWITHAL TO ATTEND AND THE FACILITY. THE LAST IRONY IS TOTALLY CONJECTURE GOD FORBID IF IT GOES AHEAD AND IT DOES NOT BECOME THE SUCCESS THAT SEEMS TO BE ON THE HORIZON WHAT WOULD BE THE RE ADAPTIVE USES ? I REMEMBER BACK THE FIRST ITERATION OF THIS THERE WAS IT WAS CONJECTURE THAT MAYBE THIS COULD BE A HYDROPONICS FARM. WELL I THOUGHT. WOW THAT'S REALLY WELL YOU KNOW WHAT IT'S NOT GO DOWN. I 35 NORTH OF OWATONNA LOOK AT THE RIVER ALL LET US FARM TEN ACRES UNDER GLASS WITH GLASS IT DOESN'T LOOK THAT DIFFERENT EXCEPT FOR THE NOODLES SHOOTS AND FUNNELS EXTRUDING OUT OF THE BUILDING. SO ANYHOW THOSE THOSE ARE JUST COMMENTS AND OBSERVATIONS COUNCILMEMBER DALLESSANDRO AND COUNCILMEMBER LOWMAN AND THEN I WOULD MAKE SURE THAT WE RESPECT COMMISSIONER PETERSON'S HEART. HIS HEART'S NOT ONE HUNDRED PERCENT AGREE WITH YOU, MR. MAYOR. THANK YOU FOR MAKING IT. I'M LIKE I SAID, I USUALLY TRY TO DO QUESTIONS THEN COMMENTS AND IF I'D KNOWN I WOULD HAVE JUST GOTTEN IT ALL OUT. UNDERSTOOD. APOLOGIES FOR THAT SIR. SO TWO THINGS REALLY QUICKLY. ONE I WHAT I HAVE NOT SEEN I'VE ASKED FOR IN JAMIE WILL LAUGH WHEN I BRING THIS UP BECAUSE I KNOW HE PUT IT IN BOLD LETTERING LAST TIME WE TALKED. WHY DO WE NOT HAVE INFORMATION ABOUT THE WISCONSIN DELLS AS A WAY TO LOOK AT WHAT WATER PARKS ARE DOING AND HOW TO MEASURE IMPACT? I HAVE NOT UNDERSTOOD WHY WHEN THEY'RE LESS THAN 4 HOURS AWAY FROM US WE CAN'T GO GET A LOT OF INFORMATION THAT US GET A LOT MORE COMFORTABLE WITH NOT ONLY THE THE ECONOMIC IMPACT OF A WATER PARK OF THAT SIZE IN A PLACE ALSO THEIR ENERGY UTILIZATION, THEIR WATER UTILIZATION I THEY'VE GOT TO BE THINKING ABOUT THAT STUFF JUST LIKE YOU YOU KNOW BECAUSE HAVE A WE THEY HAVE AS MUCH INCENTIVE TO BE SUSTAINABLE AND COST PRODUCTIVE AS ANY OTHER WATER PARK OWNER. SO I'VE BEEN FRUSTRATED WITH NOT HAVING THAT INFORMATION BECAUSE IT JUST LIKE SUCH A GIMME. SO I'LL THROW THAT OUT THERE AND SAY MAYBE WE COULD GO GET BECAUSE YOU KNOW, I'LL TAKE A TRIP TO THE DELLS. I'M HAPPY TO. ANYBODY WANT TO JOIN ME? IT'D BE GREAT, BUT I BET YOU THEY COULD TELL US THERE IS A WISCONSIN DELLS TOURISM BUREAU JUST LIKE WE HAVE AND. I BET YOU THEY'D LOVE TO HAVE LUNCH WITH US SO MAYBE WE COULD DO THAT BECAUSE THINK WE WOULD GET A LOT OF ANSWERS TO A LOT OF QUESTIONS NOT ONLY HOW THIS THING IS GOING TO HAVE IN TERMS OF I MEAN I JUST LOOKED IT UP THE 1.95 BILLION IN ECONOMIC IMPACT TO THE CITY WISCONSIN DELLS. THAT'S A BIG NUMBER. NOW I'M NOT SAYING WE THEY HAVE WE HAVE ONE OR TWO THAT'S NOT THE SAME. BUT THEY THEY THEY WOULDN'T BE ABLE TO TELL YOU THAT IF THEY DIDN'T HAVE A LOT OF DATA AND I BET THEY'D BE WILLING TO SHARE IT. SECONDLY AND MORE IMPORTANTLY AND COUNCILMEMBER CARTER SAID THIS VERY, VERY WELL SO MUCH OF WHAT HAS CAUSED SO MUCH KERFUFFLE BOTH IN THE PUBLIC AND WITH ME PERSONALLY ON A MORAL GROUNDS IS THIS IDEA THAT WE'RE GOING TO BUILD SOMETHING THAT IS INHERENTLY NOT SUSTAINABLE. RIGHT. THE FACT THAT PEOPLE AROUND THE WORLD ARE GOING TO NOT HAVE ACCESS WATER IN THE NEXT 50 YEARS AND WE'RE GOING TO PUT WATER INTO A POOL LIKE OF A MASSIVE SIZE IS JUST REALLY HARD TO TAKE WHEN YOU THINK ABOUT IT RIGHT ON MORAL GROUNDS. NOW I'M NOT HERE TO SIT ON A MORAL HIGH HORSE. I'M HERE TO PASS AN ORDINANCE BUT I WOULD REALLY LOVE TO HAVE BUILDING STANDARDS THAT MAKE IT EASIER FOR ME TO DRIVE MY POLICY DECISIONS BECAUSE OTHERWISE I'M LEFT EITHER WITH THE LOWEST DENOMINATOR WHICH IS WHAT WE HAVE TODAY WHICH IS NOTHING. GOOD LUCK TO YOU OR WE HAVE OUR MORAL COMPASSES AND THAT'S NOT FAIR BECAUSE PUTS IT ON ME AS A VERY PERSONAL DECISION AND THAT'S NOT WHAT I'M SITTING IN THIS CHAIR FOR. SO I ENTREAT US CITY COUNCIL AND ON PORT. MY UNDERSTANDING FROM FROM EARLIER CONVERSATIONS IS THAT THE SUSTAINABILITY COORDINATOR WENT AND GOT HENNEPIN COUNTY MONEY SO TO TO ACTUALLY FUND SOMEBODY TO HELP US BUILD A SUSTAINABLE POLICY AND SUSTAINABLE BUILDING POLICY. AND SOMEHOW THAT GOT KILLED AND I DON'T KNOW HOW BUT IT GOT KILLED INTERNALLY BECAUSE IT NEVER GOT BROUGHT COUNCIL AND SO I, I WOULD IF YOU TOLD ME TODAY THAT YOU COULD I WOULD WANT THE PLANNING ALONG WITH THE PORT AUTHORITY AND THE SUSTAINABILITY IN PLANNING COMMISSIONS IN STAKEHOLDER MANAGEMENT ROLES TO MAKE THIS THEIR NUMBER ONE NUMBER ONE PRIORITY SO THAT THIS TIME NEXT YEAR WE'RE NOT SITTING HERE HAVING THIS CONVERSATION AND IT JUST HAS TO BE WE CAN'T CALL IT CLIMATE AND THEN NOT DO SOMETHING TO CHANGE THE TRAJECTORY OF ECONOMIC DEVELOPMENT IN THE CITY TO BE MORE SUSTAINABLE. WE JUST WE SHOULDN'T DO THAT AND WE HAVE SAT ON IT FOR TWO YEARS. SO I ENTREAT ON THAT FRONT. HAVING SAID THAT. YEAH. ON THE BASIS OF THE INFORMATION IN FRONT OF ME I'LL BE SAYING YESTERDAY LIKE . THANK YOU, COUNCILMEMBER COUNCILMEMBER TILLMAN. QUICKLY, STEVE, MUCH TIME WE GOT FOR YOU. I DON'T. MM HMM. THE I CAN DO PROBABLY FIVE MORE MINUTES. OKAY. THANK YOU. I WANT TO JUST BE MINDFUL THAT SO I WILL TRY TO KEEP MY REMARKS AS BRIEF AS POSSIBLE. SO OBVIOUSLY I'M MEMBER OF THE SUSTAINABILITY COMMISSION AND I'VE A MEMBER OF THE SUSTAINABILITY COMMISSION FOR A LONG TIME. TODAY HAPPENS TO BE EARTH DAY AND YOU KNOW KURT, YOU KNOW, I ALSO GO BACK TO RELIGIOUS TYPES OF THINGS. WELL, IN MY TRADITION THAT I GREW UP IN IT WAS DIFFERENCE BETWEEN A CONTRACT AND A COVENANT AND REMEMBER THE MAGIC THAT I SAW WHEN THE MALL OF AMERICA FIRST PUT TOGETHER AND I BELIEVE IN THAT MAGIC A KID GROWING UP HERE THAT THE AMAZING THINGS CAN HAPPEN OVER THERE AT THE MALL AND I ENTRUST IN COVENANTS OF THAT IDEA THAT THAT'S POSSIBLE THAT WE WOULD HAVE A LEED CERTIFIED WATER PARK THAT REALLY SETS THE BENCHMARK FOR AN ENTIRE PLANET. I KNOW SOME OF MY COLLEAGUES YOU KNOW THEY'RE NO LONGER ON THE THE COMMISSION WHEN WE FIRST CAME FORWARD WE ASKED SHOULD REDUCE THAT SIZE OF THE POOL THE POOL AND YOU DID IT YOUR YOU DID THE LEAD CERTIFICATION. I WAS THERE IN THE ROOM FRIDAYS AGO AND WATCHED YOU TAKE THE FIRST STEP ON THAT. SO THERE'S MANY MORE THINGS THAT I COULD SAY HERE. I THINK YOU'VE THE WORK AND DONE THE MISSION AND I'VE BEEN VERY SUPPORTIVE OF THIS THIS PARTICULAR PROJECT AND I LOOK FORWARD FOR TO TO MOVE THIS PARTICULAR PROPOSAL FORWARD. THANK YOU, COUNCILMEMBER. I UNDERSTAND I MEAN THERE'S DISCUSSION WE COULD PROBABLY GO ON ALL NIGHT. I HAVE NO DOUBT ABOUT THAT AND I APPRECIATE THAT THE THE THOUGHT AND THE PASSION THAT PEOPLE ARE PUTTING THIS. I DO WANT TO MAKE SURE THAT WE GET TO A SPOT THAT WE DON'T CUT OFF COUNCILMEMBER PETERSON. AND I ALSO WANT TO ECHO WHAT WHAT WITH COMMISSIONER WHAT COMMISSIONER KELLER SAID THE BASICALLY WERE THE MOTIONS TONIGHT ARE TO CONTINUE THE DISCUSSION. WHAT WE'RE SAYING IS CONTINUE THE DISCUSSION AND THIS IS NOT THE BE ALL AND END ALL THIS IS NOT THE FINAL VOTE THAT WE'LL BE TAKING ON THIS. THIS IS NOT THE FINAL OPPORTUNITY FOR DISCUSSION THIS. AND SO AGAIN, I WANT TO MAKE SURE THAT WE HAVE A FULL BODY ON BOTH BOTH BODIES VOTING ON THIS AS WE DO THIS. AGAIN APOLOGIZING FOR FOR CUTTING SHORT. BUT MR. PRESIDENT, I THINK THAT MIGHT BE THE WAY TO GO HERE NOW. I THINK AND WHAT I WOULD WOULD DO IS ENTERTAIN MOTION FOR THE PORT AUTHORITY MOTION CONTAINED PAGE EIGHT OF YOUR PACKAGE OF MOTION COMMISSIONER KELLER DO WE HAVE A SECOND, SECOND, SECOND BY COMMISSIONER NELSON. ANY FURTHER DISCUSSION? DO YOU WANT TO CALL THE ROLL PLEASE? ERICKSON YES. BUSSEY I. NELSON I. HUNT NO, NO LUNDS NO. KELLER YES. AND PETERSON YES. MOTION CARRIES 5055023 AND CITY COUNCIL I LOOK FOR A MOTION TO DIRECT STAFF TO DEVELOP AGREEMENTS AND DOCUMENTS BASED ON THE ATTACHED WATER PARK TERM SHEET FOR CONSIDERATION AT A FUTURE CONCURRENT MEETING OF THE CITY COUNCIL AND THE PORT AUTHORITY. SECOND OF THIS MOTION BY COUNCILMEMBER REED ASKED SECOND BY COUNCILMEMBER LOGAN NO FURTHER COUNCIL DISCUSSION ON THIS. ALL THOSE IN FAVOR PLEASE SIGNIFY BY SAYING I I OPPOSED MOTION CARRY SEVEN ZERO. WELL THANK YOU TO TWO STAFF TWO TO ALL INVOLVED THANKS OUR OUR OUR CITY STAFF THE COMMISSIONS AND SO ON AND THANKS TO ALL OF YOU FOR THIS DISCUSSION AND I DO WANT TO REITERATE ONCE AGAIN THIS JUST THE NEXT STEP AND IT WAS GOING TO BE MY FINAL QUESTION TO YOU ,HOLLY. WHAT ARE THE NEXT STEPS? HOW DO WE HOW DO WE CONTINUE THIS AND WHEN ARE WE GONNA GET BACK TOGETHER TO TALK MORE ABOUT THIS? ABSOLUTELY. MAYOR PRESIDENT ERICKSON, COUNCIL MEMBERS AND COMMISSIONERS, THANK YOU VERY MUCH FOR YOUR TIME ATTENTION TONIGHT AND YOUR CONSIDERATION OF THE MATTER. WE WILL BE BACK YOU WITHIN THE NEXT FEW MONTHS WITH AGREEMENT WE WILL COMMENCE WORKING ON THOSE WITH PORT COUNCIL IMMEDIATELY. VERY GOOD SO MUCH. THANK YOU COUNCIL BOARD MEMBERS. APPRECIATE IT. VERY GOOD. COUNCILMEMBER REEDER AND YOUR MICROPHONE PLEASE. JUST ONE QUICK COMMENT. I JUST WANT TO SAY THAT WE DO NEED TRANSPARENCY IN THE FUTURE FOR ANY BIG PLANS TO GET MORE INFORMATION TO US AVAILABLE AND IT'S OVERWHELMING TO TO AND AS YOU ALL KNOW, I'M JUST LEARNING THE THE ROPES HERE BUT IT MAKES IT OVERWHELMING TO TRY TO ABSORB ALL THE INFORMATION. AS YOU KNOW, I'M A BIG SUPPORTER OF THIS PROJECT EVEN THOUGH LOT OF IT WAS SITUATIONS IN MY AREA I WOULD NOT SUPPORTERS OF IT BUT WE DO TO HAVE MORE INFORMATION AND I AGREE WITH YOU, COMMISSIONER THAT WE SHOULD HAVE A LOT MORE INVOLVEMENT IN THESE PLANS IN FUTURE. AND WITH THAT SAID, I MEAN AGAIN, I SUPPORT PROJECT TOTALLY BUT I JUST NEED TO SAY THAT THANK YOU THANK COUNCILMEMBER COUNCILMEMBER NELSON. THANK YOU, MAYOR. I DIDN'T WANT TO MAKE ANY WHERE WE'RE WAITING FOR STEVE BECAUSE I DON'T THINK THEY WERE GERMANE TO THE VOTE. BUT I WANT TO JUST THANK STAFF AND CURT AND TRIPLE FIRE FOR THE WORK THAT THEY'VE DONE ON THIS. I THINK THE DEAL WAS PARTICULARLY WITH REGARDS TO THE EQUITY EKSTROM EXTRAORDINARILY INNOVATIVE AND I REALLY APPRECIATE THAT THEY CAME UP WITH A SOLUTION TO THAT ISSUE WHERE THE CITY GETS ALL THE BENEFITS OF EQUITY UP UNTIL YOU KNOW THE MALL OF AMERICA PUTS EQUITY INTO IT. SO YOU KNOW AND WE MAY DO EVEN BETTER IN THE FACT THAT WE CAN RECYCLE OR REUSE MONEY FOR ANOTHER PROJECT THAT WE UNLOCKED SOME OF THIS MONEY FOR A POTENTIAL OF DIFFERENT TYPES OF PROJECTS I THINK IS IS A HUGE WIN. OUR STAFF AND OUR TEAM FOR THE CITY OF BLOOMINGTON FOR THE SOUTH LOOP FOR EVERYTHING AND I JUST REALLY APPRECIATE ALL THE WORK THAT HAS INTO THIS. I DO CONCUR WITH COMMISSIONER KELLER AND, MY COLLEAG MR. RIVAS HERE SORRY COUNCILMEMBER THAT YOU KNOW, THE MORE INFORMATION THE SOONER THE BETTER FOR EVERYBODY. BUT I THINK WE ALL ARE GOING TO AGREE WITH THAT. I JUST HAVE ONE QUESTION NOW BECAUSE I HEARD IT COME UP A COUPLE OF TIMES AS BE CVB BUT IS IT NOT NOW BMT GOOD COUNCILMEMBER WE ALL KNOW THAT IN THE FUTURE THAT'S A MISTAKE. I MEAN IN CONVENTION VISITORS IS NOW BLOOMINGTON, MINNESOTA TRAVEL AND TOURISM AT ITS CROWN ALONE IS CORRECT? THAT'S CORRECT. CITY COUNCIL I WOULD ENTERTAIN A MOTION TO ADJOURN SO MOVED GOT A MOTION BY COUNCILMEMBER DALLESSANDRO SECOND BY COUNCILMEMBER CARTER TO ADJOURN COUNCIL ALL IN FAVOR PLEASE SIGNIFY BY SAYING I YES OPPOSED MOTION CARRY SEVEN ZERO AND I WILL IS THERE ON THE PART 30 WE ARE ADJOURNED. THANK YOU ALL. THANK YOU