Special Bd. of Aldermen — 05/20/2019 Page 14
And it is a fair point to make as to how high we want to capitalize that endowment fund. We made a
commitment very early on that we would have an endowment fund. | am working very hard to make sure that
we retain money into an endowment fund until this group and the Steering Committee otherwise instructs me
that we can repurpose those funds in a different way. But | haven’t heard that yet so we are still maintaining
that money for working capital, despite the fact and yes | do agree that Spectacle Management has said that
he can run the Performing Arts Center without the need of a subsidy.
But those are conversations that we will have as this project continues to evolve and will be very important as
we are looking at that left-hand side of the project where we are talking about the stewardship of the
endowment fund and the building and the contract with Spectacle Management, which are conversations that
we will have if we are successful later on this summer. Thank you Madam President.
Alderman Dowd
Just one quick thing, the last 7 school projects going back 16 years we have never spent a significant amount
of our contingency money; it was always carried forward into the next project. So you have contingency for the
unknown unknowns and we’ve been pretty good at making sure that we know what we need to know.
President Wilshire
Thank you. | am going to just finish the Public Hearing. Anyone here that wishes to give testimony in
opposition to R-19-136.
Testimony in Opposition
Mr. Teeboom Since I’m the only member of the public here | will locate for the next turnaround. Mr.
Cummings and | appreciate what Cummings does | already said | think he does a good job managing things.
He does a terrible job estimating things. | have a Memorandum here holding in my hand and it says in his
Memorandum it’s the only published memorandum ever presented by Mr. Cummings. “Construction costs
$11.5 million dollars. The bond adds up to $15.5 and the assumption was if you have a $4 million dollar
endowment fund to subsidize operation of the Performing Arts Center; $4 million was not going to be spent on
construction. So $11.5 million dollars is on the record. You are now facing a project of about $20 to $22
million dollars. So you can go from $15.5, you are $7 or $8 million dollars off, even if you spent the entire
endowment fund against construction, you are $7 or $8 million dollars off. | think this Board ought to ask Mr.
Cummings to present some spread sheets the next time he makes a presentation not so much arm waving as
specifically on the figures. Because this Board is going to have own up, you know, you have all these
investment things and maybe this leveraging thing and all the financial stuff is funny money.
Some of you have to get this from the architect, because it’s funny money. You have to ask Mr. Cummings,
and he is perfectly capable of doing this, he’s a capable guy. Come up with a detailed spread sheets, take the
information presented by the architects. He can talk to them in private about how D&A comes to and how
much the insurance comes to. And you have Harvey Construction, if you estimate a very competent estimator,
they do all the work for the schools. You can ask Harvey Construction to come before you instead of Mr.
Cummings who is basically not a financial guy, he’s the development director. His job is to promote things.
Get Harvey in here. Harvey is the one estimate this job that’s why you are paying them over $400,000.00 or
$500,000.00 for and get them to give you details of how the construction goes forward, what happens to the
$4.5 million dollars that comes in, if private money doesn’t come in, how low can you go before you no longer
have a 750 viable seat theater? My God guys, you are elected to do your job. Do your job. Thank you.
