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11/17/97 11:09 [^)503 588 5495 HUMAN K~SUUKC~S <br />~. <br />~ <br />~ ~; <br />~ <br />~ <br />, <br />~ <br />~ <br />~ <br />, ~ <br />EXHIBIT 4 <br />Courthouse SquareProject - --- <br />Interview Panel Planning Session <br />June 4,1996 <br />R~.lph Schwartzman, Saba <br />7im IVtcGregor, SABA <br />Mark Hudsbeth, US Bank <br />Nancy McClain, US Bank <br />Discussion: <br />iriaynard was introduced as an expert on COP financing <br />General obligation bonds <br />revenue bonds <br />COPs <br />Each can be ta~ ~empt or taxable. There is no such thing, evidence of participation in a stream of <br />income. <br />Lots of COPs, general obligations, full faith in credit to back up the debt. Revenue is pledging a <br />certain stream of revenue to back up debt. <br />No gen <br />' previsi <br />~.:.,a:,,~ <br />~a1 obligation, or revenue pledge, do not have to <br />~. They are not binding successive governing t <br />does not require vote, does not meet the test of ' <br />to vote, because there is a walk away <br />es to honor that COP. Since it is not <br />' gating agenc~es rate them and consider them an obligation. ff you walk away you tuin your credit <br />rating. There have been problems wh~e one government enters into these obligaxions and the next <br />govemment walks away. Rating a8encies notice this. <br />~ <br />If they are tax exemp~ they are subjed to the same provisions in the governiag code, the market will <br />want to know what it is for, how the organization plans to keep the obligation, and how they will <br />, pay i~ That puts a lot of burden on a braad new building, space. <br />To be tax exempt there are very specific things those thin8s can finauce, retail is not one of those <br />~ things. These things need to be looked at aad rated on their merit by a bonds expert. Rthen you <br />. start iatroducing private space you start runnin8 into Problem9. <br />~ You can have about 10 percent private space in a tax exempt office. There a.re cestain types of tax <br />exempt bonds, but most do not apply to retail space. <br />' In its sttuc~ure it is a lease purrl~ase agreement, tYPically sold by a governmeat entity and as a public <br />offering. If you private or broker lease purchase agreement, that is not a public offering. <br />1~ <br />i <br />