Financial- Invoices Misc. (1 - 2 Files)

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To: Boazd of Directors From: Courthouse Square Task Force Date: December 3, 1997 Re: Task Force Recommendations The following are the observations and recommendations of the Chamber's Cotu-thouse Square Task Force. In short, the Courthouse Square issue presents substantial problems for our community. T'he mistakes made, the constant changes in the "financial models" presented by the County, the newspaper's relentless coverage, and the public's current unrest with elected officials all create a situation with no easy or quick-fix solutions. The Task Force has attempted to analyze the project by breaking down the issue into two key questions: 1) Is it fmancially feasible for the County and Transit District to proceed with Phase II of this project? (As discussed in this report, "Phase II" would represent the completion of architectural working drawings and all competitive bids for the project.) 2) Considering the current political and media climate surrounding this project, can the County and Transit District effectively build the project at this time without considerable political consequences? The Task Force did note key mistakes that the project team has made. The lack of a competitive bidding process, the mismanagement of contractual agreements, and early financial assumptions based on incomplete and inaccurate information are clearly mistakes that have added to the current crisis. However, with the mistakes noted, it was the intent of the task force to focus on options for the future and not on determining appropriate atonement for past mistakes. Financial Feasibility of Courthouse Square Summary; Using the latest information from the County, the percentage of square footage to be occupied by public offices would now qualify the entire project for financing at the government rate. Consequently, we anticipate that the Certificates of Participation issued by the County will have an effective interest rate of less than 6% per annum. Of the total square footage, the County would occupy 99,036 sq. ft., Transit 28,780 sq. ft., and 14,184 sq. ft. would be available for lease to the private sector and for future expansion of county needs. Debt service will remain constant throughout a 25 year repayment term. Thereafter, the County would own its space free and clear. Thus, when measured against prospective lease rates over the same term, the fixed rate for the debt repayment compazes favorably. Therefore, if the Courthouse Square project is built efficiently, it is financially feasible if the issues of pazking and potential reduction in other County services are addressed.