Special Bd. of Aldermen — 12/20/2018 Page 7
Mr. Cummings
So to Alderman Gidge’s point though there are ways where there are weaknesses that we are thinking about.
An example of that is the operator and you know one of the things that | was really concerned with and we
have been internally struggling with is making sure we have an operator in place and make sure that operator
is reputable. Originally we were thinking we were going to create a non-profit and have that non-profit execute
and then we moved away from that and we have a really respected operator who has done this time and time
again that should give us confidence that they can replicate it here.
But then in addition to that, what | recommend and | hope will finally occur is the minimum contract that we
enter into with that operator be 7 years. So that way the equity investor and the CDE all know what they are
buying for the 7 years. So we do have weaknesses, we are trying to think through where those weaknesses
are, we are trying to strengthen them so that we have the best project as we move forward. Again, this is
evolving; each different element brings about a new surprise which we are trying to address.
Alderman Dowd
| am pretty sure | understand the process and hopefully my questions aren’t quite as innocuous. The question
| have, oh and before | say that, everyone that is involved in each one of those blocks has a vested interest in
this being successful. So for it to fail -— somebody would have to have a least invested interest in making it
successful and | don’t think you’d find that
The first question | have is in the upper left hand corner, the $15.5, as | understand it we would have to sell the
bonds for that to start. So my question is when is that and how is the amount of time to set up the rest of it?
Mr. Cummings
Thank you, so when you'd have to sell it is going to come about after we get basically a letter of commitment.
So it is a two-phased type of approval process; a CDE if they are interested in us will give us notice that we are
eventually receive the credit or the allocation. Once that occurs, there is a window of period in-between that, 3,
4, 5 whatever it is months and we would need to begin the process of selling the bond and using the bond
proceeds. During that time is when you actually set up all these other structures that go along with supporting
this deal.
Alderman Dowd
What do you feel is the time-frame to get from the upper block to have everything in place?
Mr. Cannon The bond funds have to flow into the project at closing, and we expect, we hope to hear, get some
kind of commitment from CDE’s the next round of funding for CDE’s is in February, we hope to get some kind
of positive reaction, whether it be one CDE or two CDE’s by the end of March. Given that we would expect to
fall 2019 closing. Once the closing date is set, the bond can be sold.
Alderman Dowd
So | have a question for Mr. Fredette if he’s still here.
President Wilshire
Treasurer Fredette, could you come up to the microphone please?
