Minutes 1996 0903 - Laserfiche WebLink

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Minutes - City of San Leandro City Council and Page - 8 - Redevelopment Agency Meeting - September 3, 1996 The following Motion was then introduced: Minute Order No. 96 -34, Matter of Downtown Ice Skating Rink. (2207) The City Council will not support the downtown ice skating rink during the December holidays and directed staff to identify and report back on other possible activities. M /S /C Loeffler and Glaze. Ayes: 5 Noes: 0 Absent: Lothrop Abstain: Corbett 6.6 Report on Closed Session actions taken. The City Attorney, Steve Meyers, announced that the Closed Session pertained to the proposed Renaissance Conference Center. He noted that direction was given to staff and that Mr. Jeff Davenport and Mr. Dan McFadden were in the audience and available for questions at this time. Mr. Davenport explained the name change to Network Conference Company. Council Member Galvan requested information about the financial risk, the total project costs, and the level of private financing. Mr. Davenport stated that the company is in the process of packaging $22.5 million for the project. He said $6 million is in equity, and they are in conversation with three pension funds and two banks for long -term financing. Mr. McFadden said they are still developing the final budget, somewhere near $38 million. Of that, $19 million would come from the City; he said the City could not exceed that amount per agreement. Council Member Glaze emphasized that it would be a loan. He questioned who would receive the Center in the case of default. Mr. Davenport noted that the City would then be in the position of negotiation with other parties. Mayor Corbett asked why they were willing to take the risk. Mr. Davenport noted the size of the project, that the area is underserved, and that the company has a strong track record for successful projects. He introduced Dan Marks, who is in charge of sales, to provide further clarification. Mr. Marks cited the success at San Jose's Hayes Mansion project. He noted the importance of location and that San Leandro can be successful due to accessibility. Council Member Glaze asked for a comparison between the proposed San Leandro project and the Hayes Mansion site. Mr. Marks described how the project would be marketed. Council Member Galvan asked about competition in the East Bay. It was noted that competition is not as much local as national and gave examples of the Napa Valley wine country and the Tahoe areas. A facility in San Leandro will be superior in providing amenities, as well as easier to access.