WEBVTT

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with you momentarily.
S children children

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>> I would like to call the

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durham city council meeting to

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order on monday, September 20th
at 6:00 P.M.

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Can we take a moment for silent

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meditation, please.
[Moment of silence taken.]
>> thank you.

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I would ask Councilman Clement

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to lead us in the pledge.

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>> I pledge

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[Reciting U.S. Pledge]
>> I will ask the clerk to call

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the roll, please.

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[Roll call]
>> we have two proclamations to

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present this evening.

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one is in respect to parks and
recreation.

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We would ask the director rhonda

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parker to join me, venita smith

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and alice.

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proclamation reads...
Whereas,durham parks and
recreation's mission is to

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provide opportunities for our
community to play more; and
whereas,playing is a valuable

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part of a child's healthy
development; and whereas,a

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productive, healthy, and
physically fit child becomes a

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socially competent and
productive adult; and whereas,

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childhood obesity has tripled in
the last 30 years from lack of

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physical activity; and whereas,
the city of durham acknowledges

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that children are our most
valuable resource, and that we

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must ensure safe and accessible
playspaces for all our children;

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and whereas,on this day
annually, we agree to inform the

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entire community about the
importance of play and to

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celebrate the achievements we
have made in making it a

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priority of political
importance; and whereas,durham

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parks and recreation will ensure
our annual recognition as a

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playful city usa community and
will coordinate this effort with

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the support of the mayor; and
whereas,the mayor has

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proclaimed September 24, 2010,
as the official play day in

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durham, encouraging all citizens
to rally for time and space for

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free, unstructured play for all
children in this community; and

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whereas,durham parks and
recreation, representing

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durham's continuing status as a
nationally recognized playful

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city usa community, encourages

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all citizens to participate and
advocate on this play day and

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learn more about the importance
of play in the lives of
children.

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Now, therefore, I, william v.
"
bill"
bell, mayor of the city

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of durham, north carolina do
hereby proclaim friday,

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September 24, 2010 as "
dpr play
more day"

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in durham, and hereby

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urge all citizens to take
special note of this observance

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by encouraging residents,
businesses and institutions to

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use dpr play more day to
celebrate the importance of play

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and make a commitment that all
of our children will have the

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time and space for play in our
community.
Witness my hand and the

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corporate seal of the city of
durham, north carolina, this

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20th day of September 2010.

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i would like to present this to

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shonda parker for any comments

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she May have.

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>> I'm pleased that the city of

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durham is one of 16 communities
in north america that has

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received this designation.

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So give yourself a round of
applause.

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It is for everyone here, all the
citizens of durham.

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Give yourselves a round of
applause.

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[Applause]
[Applause]

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>> dpr after-school programs

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will have special play days and

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field days at special centers.
We have community garden

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products at wd hill and edison

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johnson recreation center.

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Volunteers from glaxosmithkline

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will conduct a park trail and

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cleanup and the birch avenue

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association will host a cleanup

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at before avenue park.

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The argon hills neighbor
association will conduct a park

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cleanup at holt school road
park.

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The crowning event for the day

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will be the opening of the

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bethesda park at 5:30 P.M. On
friday evening.

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It will include self-guided
tours of the new park.

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Sports demonstrations and a

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special performance by the
bethesda bluegrass band.

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I hope you will all come join us
on September 24th for play more
day.

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If you want to see more

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activities check our website at
www.Dprplaymore.Org.

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We also have some fliers in the

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front on the grand opening of
bethesda park.

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Thank you city council mayor

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bell and city manager.

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>> this next proclamation, I
won't read it.

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It will be a part of the record,

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but again, it focuses similarly

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on children, the national

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childhood obesity awareness
month.

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it speaks to the significant
disparages exist in children

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based on the rates of poverty.

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Adolescent obesity is
psychological.

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Children are targets of
discrimination.

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Leads to low self-esteem and

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persists until adulthood.
Mayor

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mayors across the nation are
raising awareness and addressing

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the issue of childhood obesity.
I declare
hereby proclaim September 2010
as "

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national childhood obesity
awareness month"
in durham, and
hereby urge all citizens to take

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special note of this observance;
and to raise public awaes
d bizeurittoddss
ilooobit

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witness my hand and the
corporate eaofheitof
durham, nor cola,hi

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0tdaofepmb 20

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this will be part of our public

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record and also for the council

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of mayors.

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[Applause]
>> mayor pro tem.

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>> thank you, Mr. Mayor.

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as most of you know, saturday

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night Councilman Clement's life

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was celebrated at the civic
center.

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And the funds raised from that
event went toward the

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establishment of the howard
clement scholarship fund.

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I did not present a proclamation
to him on saturday night because

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I wanted to do it tonight.

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Mr. Clement, I am not going to

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read those 12 whereases, like I
did saturday night.

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But I just wanted to bring to
the attention of the community,

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just a few of them, I think, and

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one of them, I think that is so
important is howard clement

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joined thousands across the
united states with a March on

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washington, featuring the late

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Dr. Martin luther king, junior
on August 28, 1963.

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listening to his I have a dream
speech, which represented a

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defining moment, leading howard
clement into a commitment to

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become more intimately involved

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in the life of his community.

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And then the other whereas that
I think is so important is,

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after the assassination of the

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late Dr. Martin luther king,

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junior, a group called the black
solidarity committee for

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community improvement was
channelling the resulting anger

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into more positive and
meaningful action.

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As a matter of fact, howard
clement served as chair.

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As a result of the action of the
organization, many changes were

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made in durham, including the

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formation of the first durham

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human relations commission.

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The black solidarity committee

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for community improvement was

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also successful in obtaining

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better housing, employment, and
recreational opportunities for

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people who availed themselves

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for this occasion.
Also, this is the last one,

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Mr. Clement, in May of 1983,
howard clement was appointed to

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the city council to fill the

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place of sloan laked
 -- elected

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to the city council for a

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four-year term in 1985 and
subsequently reelected every

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term up to the present, serving

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as mayor pro tem in 1997-2001.

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He served as city council

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liaison to the durham housing

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authority, member of the durham
chapel hill study group,

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Chairman Of the passenger
vehicle for hire committee.

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Chairman Of the towing
committee.

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I will leave out the part about

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your being a delegate to the
republican national, since you

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were redeemed.

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Ok.
[Chuckling]
[Chuckling].

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but the most important thing,

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howard, is the fact that every

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tuesday morning you are at
fayetteville street school

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reading to students.

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That is the piece that I felt
the whole community needed to

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know about.

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Not only because you are doing

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it because I challenge the
community to stop talking about

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the problems that our children

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have and do something to help
solve them or to deal with the

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root causes of them.
So Mr. Clement, at this point, I

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will give you the proclamation.

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We proclaimed saturday aj howard
clement third day in durham.

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What I would like to do is

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proclaim this entire week howard

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clement week so that people will

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be conscious of the fact that
they need to make a difference

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in the community, touch the life
of a child.

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Thank you, Mr. Mayor.

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[Applause]

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>> if I May say a few words,

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just a few.
Thank you.

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Thank you to my family, durham

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community, to our father in
heaven for the many blessings

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that he's bestowed upon us
during this period.

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i am indeed grateful and I
certainly am grateful for the

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support of my colleagues on the

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city council along with city

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staff who turned out at the

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gathering on this past saturday.

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I'm indeed grateful.

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Thank you so much.

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thank you so much.

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Thank you, Mr. Mayor.
>> you're welcome.

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Let me ask, are there any other
comments?

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If not, we'll move with the

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priority items presented by the
city manager.

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>> thank you, Mr. Mayor.
One minor request on the agenda

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this evening.

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we have two public hearings this

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evenings, item 26, green fire

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economic development incentive

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for capital investment and
number 31 for the voluntary

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annexation petitions.

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I would request that we reverse
the order.

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put item 31 first and 26 to
follow, thank you.

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>> you're welcome.
Are there -- is this priority

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items or entertain the motion?
Properly moved and seconded.

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Question on the priority items?

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hearing none, Madam Clerk, open
the vote.

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Close the vote.

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>> passes 7-0.

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>> recognize Councilman Clement.
>> I'm concerned about the

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report that I received this

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weekend concerning our water

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situation
situation.

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And I would hope, Mr. Manager,

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that you would give us at

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thursday's worksession more

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details accounting.

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I know it is according to the

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manager's report received this

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past weekend there is 167 days

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of supply remaining available in
our reservoir with respect to

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water resources.

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And the reservoir status is
79.5%.

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that seems awfully low, to me.
And I don't see any prediction

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that there will be some rain in

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the offing to help buttress the
supply of water.

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I remember two years ago we went

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through drought situation, are

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we taking appropriate steps

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within our communities and our

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homes to ward off a most serious

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drought consequence?

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if we can get information from

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our water people on thursday,

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Mr. Manager, I would welcome it.

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I was alarmed by the supply,
167.

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That is half a year.

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we need to take more proactive

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steps to deal with this.

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I just don't think we're in a
position to undergo what we

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experienced two years ago with

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respect to our water supply.
so managers, if you can give us

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a more detailed report of our
water situation on thursday at

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worksession, I would be
grateful.
>> thank you, Mr. Clement.

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We'll be sure to have water
management staff available to

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answer any other questions you
have.
>> thank you.

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>> ask city attorney for
priority items.

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>> thank you, Mr. Mayor, no
priority items.

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>> likewise, city clerk?
>> yes, Mr. Mayor, members of

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the city council.

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We have with us this evening,

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natasha naz rus phelps who was
recently appointed to the board

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of adjustments to be arc -- 

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appointed this evening.

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>> I natasha phelps, do hereby
solemnly swear they will support

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and maintain the constitution of

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the united states and the

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constitution and laws of north

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carolina, not inconsistent there

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with, and they will faithfully

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and impartially discharge the

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duties of my office as a member

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of durham board of adjustments,

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so help me God.

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i have read, understand, and

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subscribe to the code of ethics

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of the city of durham.

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[Applause]

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>> congratulations.

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we look forward to your support

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and your efforts on the board of
adjustments.
If there is anything council and

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staff can do in helping you,

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give us a call.

00:18:59.160 --> 00:19:00.422
Appreciate your willingness to
serve.

00:19:03.219 --> 00:19:05.620
>> I apologize [Inaudible].
>> [Laughter].

00:19:08.000 --> 00:19:09.328
>> everyday is a play day for
him.

00:19:11.156 --> 00:19:12.562
>> we'll move now to the consent
agenda.

00:19:13.562 --> 00:19:15.562
The consent agenda consists of

00:19:16.906 --> 00:19:18.906
items that May be passed with a

00:19:19.780 --> 00:19:21.969
single vote.
If a member of the council or a

00:19:22.547 --> 00:19:24.547
member of the public chooses to

00:19:25.484 --> 00:19:27.484
have an item removed, we'll

00:19:28.141 --> 00:19:29.578
discuss that later during the
agenda.

00:19:30.688 --> 00:19:32.688
I will read the heading of each

00:19:34.312 --> 00:19:36.484
one of the consent agenda items.
1. Approval of city council
minutes.

00:19:38.297 --> 00:19:40.297
4. Boards, committees and

00:19:40.531 --> 00:19:42.500
commissions attendance reports
for the period July 1, 2009-

00:19:43.500 --> 00:19:45.500
June 30, 2010

00:19:47.297 --> 00:19:48.766
5. Housing appeals board-
appointment

00:19:51.310 --> 00:19:53.310
6. Bid report-July 2010

00:19:57.609 --> 00:19:59.750
7. Streets, parks and recreation
and open space ordinance
amendment

00:20:02.984 --> 00:20:04.984
8. Fy 2011 contract between the

00:20:06.656 --> 00:20:09.281
city of durham and center for
documentary studies

00:20:09.859 --> 00:20:11.859
9. Contract with community

00:20:12.656 --> 00:20:15.940
partnerships inc., for workforce
investment act funded youth

00:20:15.656 --> 00:20:17.656
framework services not to exceed

00:20:18.828 --> 00:20:20.828
$225,000.00

00:20:21.203 --> 00:20:23.672
10. Contract with general
management solutions, inc. For

00:20:23.766 --> 00:20:25.766
workforce investment act (Wia)

00:20:27.969 --> 00:20:30.734
Funded adult and dislocated
worker services not to exceed
$825,000.00

00:20:33.250 --> 00:20:35.250
11. City of durham employment

00:20:36.406 --> 00:20:39.219
and training fy 2011-2012 grant
project ordinance for U.S.

00:20:39.375 --> 00:20:41.375
Conference of mayors/wal-mart

00:20:41.922 --> 00:20:43.922
foundation private grant

00:20:44.160 --> 00:20:46.160
12. Contract with builders of

00:20:46.391 --> 00:20:48.391
hope inc. For young parents

00:20:49.266 --> 00:20:51.266
green job training program

00:20:52.125 --> 00:20:54.125
13. Proposed sale of surplus

00:20:54.562 --> 00:20:56.469
real estate located at 410
melbourne street, parcel 131494

00:21:00.297 --> 00:21:02.297
16. Contract for fy2010 edward

00:21:04.000 --> 00:21:06.000
byrne justice assistance grant

00:21:07.844 --> 00:21:09.906
with the district attorney and
the administrative office of the

00:21:09.906 --> 00:21:11.906
courts

00:21:13.281 --> 00:21:15.281
17. 2010 target grant award

00:21:16.859 --> 00:21:18.859
8. 2010 high intensity drug

00:21:19.940 --> 00:21:20.625
trafficking area (Hidta) Grant
award

00:21:22.953 --> 00:21:24.328
19. Use of asset forfeiture
funds

00:21:27.469 --> 00:21:30.297
20. Eplus group, inc. Computer
lease agreement fiscal year 2011

00:21:33.172 --> 00:21:35.297
21. Change in authority
membership pursuant to city code

00:21:35.297 --> 00:21:37.297
section 50-422 (B)

00:21:39.109 --> 00:21:41.109
22. Contract wpr-1, mud valve

00:21:42.672 --> 00:21:44.672
replacement

00:21:49.470 --> 00:21:51.359
26. This item can be found on
the general business agenda-
public hearings.

00:21:51.656 --> 00:21:54.453
31. This item can be found on
the general business agenda-
public hearings.

00:21:56.859 --> 00:21:58.859
32. Contract amendment one with

00:21:59.000 --> 00:22:01.188
the triangle transit authority
for operation of durham transit
services

00:22:07.310 --> 00:22:09.310
entertain a motion for the

00:22:09.297 --> 00:22:11.297
approval of the consent agenda.

00:22:12.344 --> 00:22:15.203
Properly moved and seconded.
madam clerk, open the vote.

00:22:18.250 --> 00:22:20.250
Close the vote.

00:22:22.750 --> 00:22:24.750
>> it passes 7-0.

00:22:29.922 --> 00:22:31.922
>> next item is general agenda

00:22:32.266 --> 00:22:34.266
public hearings.

00:22:35.328 --> 00:22:37.438
we have
31. Public hearing for voluntary
annexation petitions received by

00:22:37.438 --> 00:22:39.438
January 1, 2010

00:22:46.266 --> 00:22:48.266
>> good evening, bertha johnson.

00:22:48.969 --> 00:22:50.969
This is a tax exempt property.

00:22:52.406 --> 00:22:55.344
I'm happy to answer any
questions.
>> for the public hearing, i

00:22:57.156 --> 00:22:59.156
would ask are there questions

00:22:59.219 --> 00:23:01.719
from members of city council for
the staff on this item?

00:23:03.250 --> 00:23:05.484
If not, let me ask if there is
anyone in the public that would

00:23:06.594 --> 00:23:08.594
like to speak on this item?

00:23:08.859 --> 00:23:11.625
This is a public hearing item?
I would ask if there is anyone

00:23:13.594 --> 00:23:14.969
that wants to speak on this
item?

00:23:16.620 --> 00:23:18.578
Let the record reflect that no
one asked to speak on this item.

00:23:18.969 --> 00:23:20.969
I will declare the public

00:23:22.780 --> 00:23:24.780
hearing closed and the matter is

00:23:26.953 --> 00:23:28.844
back before the council.
Properly moved and seconded.

00:23:34.922 --> 00:23:36.922
Did you want to come speak?

00:23:50.266 --> 00:23:52.797
this is it.
Let me finish the public hearing

00:23:53.641 --> 00:23:55.641
and I will get back with you.

00:23:55.812 --> 00:23:57.203
The public hearing has been
closed.

00:23:58.172 --> 00:24:00.375
let the record reflect that no
one in the public wanted to

00:24:00.375 --> 00:24:03.250
speak on this item.
The hearing is closed.

00:24:03.922 --> 00:24:05.922
Motion is made and second.

00:24:07.156 --> 00:24:09.156
Madam Clerk, open the vote.

00:24:11.297 --> 00:24:13.297
Close the vote.

00:24:18.703 --> 00:24:20.703
>> passes 7-0.

00:24:22.000 --> 00:24:24.310
>> we May have a hopefully
relatively short agenda after

00:24:24.310 --> 00:24:26.703
the next item.
That being the case, I will give

00:24:27.672 --> 00:24:29.672
you three minutes on the items

00:24:30.281 --> 00:24:32.812
you want to speak on that have
already passed.

00:24:38.719 --> 00:24:41.250
Next item is the public hearing
on t
26. Greenfire economic
development incentive contract

00:24:41.250 --> 00:24:44.125
for capital investments for city
center revitalization of the
"hill building" in downtown
durham

00:24:46.531 --> 00:24:48.531
I will open the public hearing.

00:24:50.922 --> 00:24:52.922
And we will hear a staff report.

00:24:53.828 --> 00:24:56.359
>> good evening, city council
members, both members of the

00:24:56.734 --> 00:24:59.266
administration and of the
viewing public.

00:25:02.844 --> 00:25:04.844
i'm kevin dick member of the

00:25:06.781 --> 00:25:08.438
economic workforce development
for the city.

00:25:14.470 --> 00:25:16.281
We have a proposal for the spark
hotel project in downtown

00:25:16.281 --> 00:25:18.750
durham.
The objectives of our

00:25:19.160 --> 00:25:21.750
presentation tonight are to
ensure that the following

00:25:22.125 --> 00:25:25.310
questions are answered in hopes
that they will help you make a

00:25:26.000 --> 00:25:28.938
fully informed decision.
Number one, what is the spark

00:25:30.766 --> 00:25:32.234
hotel and what are the intended
amenities?

00:25:33.172 --> 00:25:35.172
Two, why the spark hotel

00:25:36.906 --> 00:25:38.906
important for the continued

00:25:39.470 --> 00:25:40.781
resurgence and revitalization of
downtown durham?

00:25:41.984 --> 00:25:43.812
and three, what is the
administration recommending in

00:25:44.953 --> 00:25:47.781
terms of the public investment
and redevelopment of the hill

00:25:48.578 --> 00:25:51.219
building with the spark hotel.
Four, what would the city gain

00:25:52.484 --> 00:25:54.484
from such an investment?

00:25:54.625 --> 00:25:56.625
And five, why does this proposal

00:26:06.828 --> 00:26:08.828
make sense for durham taxpayers?

00:26:11.310 --> 00:26:13.310
The spark hotel is being planned

00:26:14.141 --> 00:26:16.141
by green fire development, llc.

00:26:19.470 --> 00:26:21.470
Green fire, as many of you know

00:26:21.188 --> 00:26:24.160
has a strong collection of
properties in and around
downtown durham.

00:26:24.859 --> 00:26:26.859
Some of the previous development

00:26:27.594 --> 00:26:29.594
projects have shown on the

00:26:31.328 --> 00:26:33.891
screen as they have reflected a
pattern thus far development

00:26:34.125 --> 00:26:36.125
that has been consistent with

00:26:37.266 --> 00:26:39.266
the downtown master plan in the

00:26:40.672 --> 00:26:43.609
city center market retail study.
These include the baldwin

00:26:43.969 --> 00:26:45.969
building, crest building and

00:26:46.938 --> 00:26:48.938
legacy tower as well as chapel

00:26:52.453 --> 00:26:55.470
hill street and faucet street
buildings.
Another such development has

00:26:55.578 --> 00:26:57.578
been rogers alley.

00:27:00.160 --> 00:27:01.625
You can see some of the
amenities

00:27:02.422 --> 00:27:04.422
amenities, associated with the

00:27:05.953 --> 00:27:08.859
ground floor restaurants,
courtyard, office, apartments

00:27:10.000 --> 00:27:12.000
for rent and you can see a

00:27:12.328 --> 00:27:14.328
substantial portion of it

00:27:14.438 --> 00:27:16.438
currently leased.

00:27:16.734 --> 00:27:19.469
And these developments of rogers
alley reflect a pattern of

00:27:20.780 --> 00:27:22.406
development that is consistent
with the downtown master plan in

00:27:24.875 --> 00:27:27.781
the city of santa barbara retail
study.
One of the advantages that we

00:27:28.984 --> 00:27:30.984
feel that the redevelopment of

00:27:31.188 --> 00:27:33.547
the hill building into the park
hotel we bring about is more

00:27:34.391 --> 00:27:35.781
foot traffic in the city's
center.

00:27:38.250 --> 00:27:40.953
And a return of the city's
center to a prominence as well

00:27:43.359 --> 00:27:45.969
as a stronger downtown business
climate.

00:27:46.859 --> 00:27:49.359
in addition to having a stronger
downtown business climate, we

00:27:51.000 --> 00:27:53.703
feel that the park hotel will
provide an excellent complement

00:27:55.703 --> 00:27:57.609
to cultural arts and
recreational opportunities in

00:28:00.470 --> 00:28:02.470
downtown durham such as durham

00:28:03.141 --> 00:28:05.156
performing arts, and durham
athletic park.

00:28:08.625 --> 00:28:10.625
the spark hotel and spa is a

00:28:12.125 --> 00:28:14.125
165-room -- planned to be a
165-room luxury hotel with

00:28:17.620 --> 00:28:19.620
intended amenities such as 6,000

00:28:19.938 --> 00:28:21.938
square feet of retail space,

00:28:24.328 --> 00:28:26.328
spa, fitness center, 7,000

00:28:27.547 --> 00:28:29.172
square feet of parking and valet
center.

00:28:30.375 --> 00:28:32.375
There is investment from green

00:28:32.906 --> 00:28:34.312
fire development llc and its
investors.

00:28:35.578 --> 00:28:37.578
The development partner would be

00:28:38.375 --> 00:28:40.375
interstate hotels and resorts.

00:28:40.656 --> 00:28:43.547
One of the foremost operators in
the world.
In addition to the advantages I

00:28:44.359 --> 00:28:46.359
mentioned earlier in terms of

00:28:48.125 --> 00:28:50.125
the return of the city center,

00:28:50.797 --> 00:28:52.797
specifically this will help with

00:28:54.203 --> 00:28:55.562
the revitalization of paris
street.

00:28:56.859 --> 00:28:58.859
It is located at the terminus -- 

00:28:59.438 --> 00:29:01.438
not the terminus, but one end of

00:29:03.438 --> 00:29:05.438
the criticism c

00:29:06.470 --> 00:29:08.470
 -- the ccb plaza,

00:29:08.141 --> 00:29:10.984
we feel the added foot traffic
and patrons in downtown that

00:29:10.984 --> 00:29:12.984
could be brought about as a

00:29:13.109 --> 00:29:15.109
result of the hotel would help

00:29:16.422 --> 00:29:18.422
downtown businesses, including

00:29:18.781 --> 00:29:21.625
those on pear street.
What would the city -- what

00:29:23.625 --> 00:29:25.625
would the proposed incentive of

00:29:25.766 --> 00:29:27.766
the city look like?

00:29:27.938 --> 00:29:29.938
Well, it would involve a

00:29:31.438 --> 00:29:32.969
lump-sum loan payment of
$1 million.

00:29:34.734 --> 00:29:36.734
And this would be based upon the

00:29:37.234 --> 00:29:39.641
development of a certificate of
occupancy that involves the

00:29:41.438 --> 00:29:43.438
hotel being ready for customers.

00:29:43.484 --> 00:29:45.953
It would not be a shell
certificate of occupancy.

00:29:47.578 --> 00:29:49.578
In other words, we would not pay

00:29:50.453 --> 00:29:52.453
out a loan unless a building

00:29:52.594 --> 00:29:54.160
were developed for hotel
customers.

00:29:55.562 --> 00:29:57.562
In addition to the loan, a

00:29:58.620 --> 00:30:00.620
10-year incentive payment of

00:30:02.797 --> 00:30:05.438
annual payments of 115 thousand
a year.

00:30:07.375 --> 00:30:08.703
$150,000 in years two through
15.

00:30:10.312 --> 00:30:12.109
For the grand total of
4.2 million.

00:30:14.344 --> 00:30:16.984
money will be paid if and only
if, number one, the first

00:30:18.109 --> 00:30:20.984
condition is that the developers
would need to commence and

00:30:21.922 --> 00:30:23.922
construction would need to

00:30:24.516 --> 00:30:27.125
commence by July 31, 2011.
Construction would need to

00:30:28.156 --> 00:30:30.156
conclude by July 31, 2013, and

00:30:30.219 --> 00:30:32.219
the hotel must be continuously

00:30:32.500 --> 00:30:34.500
operated during the course of

00:30:37.620 --> 00:30:39.906
the 15-year incentive term.
What would the city get in

00:30:43.703 --> 00:30:45.703
return for its investment?

00:30:48.141 --> 00:30:50.141
Virtually, the city would get a

00:30:51.438 --> 00:30:53.438
luxury hotel and spa operated by

00:30:54.250 --> 00:30:55.906
one of the foremost operators in
the world.

00:30:56.375 --> 00:30:58.375
It would add to the ability of

00:30:59.780 --> 00:31:01.780
downtown to be a more viable

00:31:01.359 --> 00:31:03.359
convention center and more

00:31:04.484 --> 00:31:06.922
active destination for
travelers.
Substantial private investment

00:31:08.422 --> 00:31:10.422
in including 30 million in

00:31:11.156 --> 00:31:14.620
qualified capital investment as
per our economic development

00:31:14.531 --> 00:31:16.531
policy and resolution.

00:31:17.641 --> 00:31:19.906
at least 250 to 300 jobs,
including approximately 125

00:31:20.969 --> 00:31:22.969
permanent jobs with a

00:31:24.141 --> 00:31:26.141
substantial percentage paying

00:31:28.141 --> 00:31:30.141
above the liveable wage of

00:31:30.375 --> 00:31:33.219
$11.40 per hour.
In addition the city would see

00:31:35.125 --> 00:31:37.953
over $2 million in incremental
property tax revenues.

00:31:39.422 --> 00:31:41.940
over 1 million in parking
revenues for 20 years.

00:31:42.688 --> 00:31:44.797
It would be a plan by green fire
to lease parking spaces in the

00:31:44.797 --> 00:31:47.562
city center.
The possibility of an overall

00:31:50.000 --> 00:31:52.703
net gain of nearly 6 million to
the city.

00:31:53.500 --> 00:31:55.703
Over $12 in private investment
for every dollar of public

00:31:55.703 --> 00:31:57.703
investment.

00:31:58.906 --> 00:32:00.906
as I said earlier, a boost for

00:32:04.160 --> 00:32:06.160
other downtown business.

00:32:06.344 --> 00:32:08.844
I mentioned the creation of 250
to 300 jobs.

00:32:10.781 --> 00:32:12.781
And the workforce development

00:32:12.859 --> 00:32:14.859
agreement that green fire plans

00:32:14.891 --> 00:32:17.310
to enter into as a part of the
proposal is very important.

00:32:19.000 --> 00:32:21.000
What it does is make the durham

00:32:22.620 --> 00:32:24.620
job link career system the

00:32:26.969 --> 00:32:29.531
primary source for referrals and
possible hires for not only the

00:32:30.109 --> 00:32:32.812
permanent jobs to be created as
a result of the development but

00:32:36.516 --> 00:32:38.875
also the temporary construction
jobs.

00:32:40.470 --> 00:32:42.984
Also a durham based business
plan in place to ensure as many

00:32:43.281 --> 00:32:45.281
durham based professional

00:32:45.922 --> 00:32:47.922
services firms and construction

00:32:50.922 --> 00:32:52.922
firms have an opportunity to bid

00:32:54.703 --> 00:32:56.828
on the work associated with the
project.

00:32:57.828 --> 00:32:59.828
That would involve the

00:33:00.844 --> 00:33:02.844
practicals in qualified capital

00:33:03.766 --> 00:33:05.766
investment that would relate for

00:33:06.312 --> 00:33:08.469
opportunities in the durham
based business.

00:33:09.160 --> 00:33:11.160
You should mention that embedded

00:33:11.750 --> 00:33:13.750
in the workforce development

00:33:13.812 --> 00:33:16.781
agreement is a partnership with
the job link and north carolina

00:33:18.312 --> 00:33:20.422
central university as well as
durham technical community

00:33:21.328 --> 00:33:23.984
college, both of which have
hospitality and tourism and

00:33:24.953 --> 00:33:27.000
culinary training programs which
provide an opportunity for

00:33:31.938 --> 00:33:33.938
graduates of the institutions to

00:33:34.109 --> 00:33:35.875
compete for some of the job
opportunities available at the

00:33:39.734 --> 00:33:42.172
spark hotel.
Why does the project make sense

00:33:44.172 --> 00:33:46.172
for durham taxpayers?

00:33:46.953 --> 00:33:49.422
And my estimation, there are
three ways that can be

00:33:49.422 --> 00:33:51.484
evaluated.
Personally, are we paying too

00:33:51.484 --> 00:33:54.219
much?
Are we paying too early?

00:33:56.656 --> 00:33:59.266
Is the public dollar protected?
Third, what is our contribution

00:34:01.531 --> 00:34:03.531
relative to others?

00:34:05.940 --> 00:34:07.797
well, according to a third-party
consultant who analyzed the

00:34:10.000 --> 00:34:12.000
financials related to this

00:34:12.938 --> 00:34:14.938
proposal, our money is necessary

00:34:16.470 --> 00:34:18.470
and is not an overly -- is not

00:34:18.250 --> 00:34:20.250
an overly abundant contribution

00:34:20.844 --> 00:34:22.250
as an investment in this
project.

00:34:23.780 --> 00:34:25.453
They found that the proposed
investment by the city to be

00:34:26.453 --> 00:34:28.453
well in line with what the

00:34:28.953 --> 00:34:31.891
project was to be successful.
Secondly, are we paying too
early?

00:34:34.620 --> 00:34:36.620
Well, as a said earlier, the

00:34:41.500 --> 00:34:44.344
risk upon any public dollars -- 
well, the risk to the city in

00:34:45.906 --> 00:34:48.641
terms of the public dollars not
being spent widely is mitigated

00:34:49.160 --> 00:34:51.160
by the fact that we would not

00:34:51.406 --> 00:34:52.781
pay money until the project is
built.

00:34:53.953 --> 00:34:56.547
We would not pay any money until
the -- unless the project was

00:34:57.422 --> 00:34:58.750
started on time and completed on
time.

00:34:59.953 --> 00:35:02.328
And finally, we wouldn't pay any
money unless the project were

00:35:02.328 --> 00:35:04.328
continuously operated.

00:35:05.328 --> 00:35:07.328
We would not pay any money to

00:35:07.922 --> 00:35:09.969
green fire development llc,
unless the project were

00:35:10.203 --> 00:35:11.562
continuing to be operated by
them.

00:35:12.797 --> 00:35:15.000
As I said earlier, our
construction relative to others

00:35:17.266 --> 00:35:19.266
is $1 public investment for 12

00:35:22.312 --> 00:35:24.312
of private, which is consistent

00:35:24.875 --> 00:35:27.641
with economic development
proposals and incentives

00:35:28.312 --> 00:35:31.156
approved in the past and have
related to a substantial

00:35:35.281 --> 00:35:36.953
contribution in the downtown.
Practical

00:35:37.828 --> 00:35:40.156
projects such as west village
and american tobacco come to

00:35:44.266 --> 00:35:46.266
mind.

00:35:46.734 --> 00:35:48.734
>> a few other advantages,

00:35:49.940 --> 00:35:51.940
again, I spoke earlier about the
downtown master plan.

00:35:52.375 --> 00:35:55.310
There is a strong level of
consistency in this project with

00:35:56.172 --> 00:35:58.734
the downtown master plan.
Specifically, it helps downtown

00:36:01.160 --> 00:36:02.375
again become a major activity
center.

00:36:05.812 --> 00:36:07.812
Also helps create a vibrant,

00:36:08.188 --> 00:36:10.984
compatible, well mix of uses.
A mentioned the various

00:36:14.156 --> 00:36:16.688
amenities available in the spark
hotel.

00:36:18.266 --> 00:36:20.266
Also another advantage is the

00:36:22.625 --> 00:36:24.625
fact that the anticipated

00:36:25.734 --> 00:36:27.734
increase in bookings and

00:36:28.000 --> 00:36:30.266
meetings would help the downtown
marriott convention center in

00:36:32.203 --> 00:36:34.203
terps of the book -- in terms of

00:36:34.250 --> 00:36:37.219
the booking in their meeting
rooms.
We think that would help offset

00:36:38.109 --> 00:36:40.516
some of the operating loss that
has been happening with the city

00:36:41.422 --> 00:36:42.984
and county investments in the
convention center.

00:36:45.688 --> 00:36:47.688
And finally, it converts a

00:36:48.940 --> 00:36:50.953
significant and viable and
visible downtown building into a

00:36:53.625 --> 00:36:55.625
new use and supports

00:36:57.406 --> 00:37:00.620
sustainability with the adaptive
reuse of a building.

00:37:01.562 --> 00:37:03.000
With that I am open to
questions.

00:37:14.470 --> 00:37:16.470
>> recognize Councilman Ali.
Speen thank you.

00:37:18.219 --> 00:37:20.859
I believe this proposal is in
line with what we would like to

00:37:22.250 --> 00:37:24.594
do with downtown durham.
We're continuing to have things

00:37:24.594 --> 00:37:26.594
going on.

00:37:27.531 --> 00:37:30.391
I have a question about the cash
flow projection that I didn't
see until just now.

00:37:34.172 --> 00:37:37.109
i see we have a $1 million loan
that would be incented at the

00:37:37.531 --> 00:37:40.203
time of co.
On the cash flow, I see that we

00:37:41.969 --> 00:37:43.969
have a payback of the loan at

00:37:44.812 --> 00:37:46.812
4.17 in 20-year term.

00:37:47.844 --> 00:37:49.844
I just wanted -- I did not see

00:37:52.188 --> 00:37:54.922
the -- I do see the use of cash,
the source of cash, I don't see

00:37:55.953 --> 00:37:57.953
the use of how they pay that

00:37:58.297 --> 00:38:00.297
loan back in cash flow amount.

00:38:01.422 --> 00:38:03.422
Did you look at the chart, the

00:38:03.625 --> 00:38:05.625
revised chart number 26?

00:38:06.310 --> 00:38:08.562
It says that the loan -- it says
the loan documents will

00:38:09.297 --> 00:38:11.297
stipulate the company will not

00:38:12.672 --> 00:38:15.234
be obligated repay the loan with
interest until such time as the

00:38:16.203 --> 00:38:18.516
primary development of the use
of the hill building property,

00:38:21.453 --> 00:38:24.453
that which resolves, matures or
is paid off but no later than 20

00:38:25.780 --> 00:38:28.160
years of the completion date.
I want to make sure that either

00:38:30.156 --> 00:38:32.531
I don't see it or it is not on
here.
>> I believe there May have been

00:38:35.422 --> 00:38:38.359
a couple of iterations of this
spreadsheet from the first time

00:38:39.672 --> 00:38:41.672
we spoke to the final version.

00:38:41.703 --> 00:38:43.703
You should see something in

00:38:43.797 --> 00:38:45.797
fiscal year 33.

00:38:50.984 --> 00:38:52.719
A lump-sum repayment of
$1.8 million.

00:38:53.984 --> 00:38:56.547
so the interest is capitalized
on the loan until the end?

00:38:56.547 --> 00:38:58.547
>> right.

00:38:59.688 --> 00:39:01.688
No payments until no later than

00:39:02.219 --> 00:39:04.219
20 years unless they pay the

00:39:04.422 --> 00:39:06.422
initial debt off sooner.

00:39:07.359 --> 00:39:10.620
>> I want to make sure the
discrepancies in the cash flow.

00:39:11.500 --> 00:39:13.703
I hope my colleagues see this is
a viable deal.

00:39:14.141 --> 00:39:16.703
for green fire to put this
together can be supported by

00:39:16.938 --> 00:39:18.938
this council to move forward.

00:39:19.780 --> 00:39:21.780
Thank you, Mr. Mayor.

00:39:22.780 --> 00:39:24.780
>> kevin, could you elaborate a

00:39:25.312 --> 00:39:27.312
little bit more on your comments

00:39:27.672 --> 00:39:29.672
about payments unless payments

00:39:30.516 --> 00:39:32.516
by the city would be based on

00:39:32.578 --> 00:39:35.422
the hotel being continually
operated?
What did you mean by that?

00:39:36.219 --> 00:39:39.156
what does that mean?
>> that means if green fire for

00:39:39.391 --> 00:39:41.453
some reason went out of
business, wasn't able to

00:39:42.656 --> 00:39:44.656
continue operating the hotel,
our financial relationship with

00:39:45.266 --> 00:39:47.266
green fire would cease at that

00:39:47.734 --> 00:39:49.766
point and our incentive payments
would stop.

00:39:51.906 --> 00:39:54.766
We would still have the luxury
hotel that would already be

00:39:56.470 --> 00:39:58.470
built, but we would no longer be

00:39:58.344 --> 00:40:00.641
paying incentive payments for
for example, they were not able

00:40:01.470 --> 00:40:03.719
to continue existing and
operating the hotel.

00:40:06.453 --> 00:40:08.453
>> so we will have given the

00:40:13.125 --> 00:40:16.125
one-million dollar loan, but the
113,000 those payments would

00:40:16.328 --> 00:40:18.328
cease is what you mean?

00:40:19.000 --> 00:40:20.359
>> if the hotel ceased to
operate.

00:40:21.734 --> 00:40:23.734
But also there is security on

00:40:27.875 --> 00:40:29.875
the $1 million loan as well.

00:40:33.469 --> 00:40:35.469
In the, vent that green fire

00:40:35.609 --> 00:40:38.109
ceased to operate the hotel, we
would still have the security

00:40:39.780 --> 00:40:41.780
interest in that hotel that

00:40:42.780 --> 00:40:44.780
would no longer be required.

00:40:47.250 --> 00:40:50.188
>> make me feel a little more
comfortable with the rate there.

00:40:52.125 --> 00:40:54.125
I raised the question with the

00:40:57.594 --> 00:40:59.594
city manager that I saw as far

00:41:00.766 --> 00:41:03.310
as the mark and room rates.
Maybe you should tell us what

00:41:05.470 --> 00:41:08.470
the room rates are as proposed.
>> the average daily rates that

00:41:09.516 --> 00:41:11.516
green fire has put in the pro

00:41:11.844 --> 00:41:13.375
forma documents are $185 a
night.

00:41:14.141 --> 00:41:16.141
That is consistent with other

00:41:16.156 --> 00:41:18.156
luxury hotels in the area, based

00:41:19.250 --> 00:41:21.250
upon the information we have

00:41:23.859 --> 00:41:25.859
from durham convention and

00:41:26.125 --> 00:41:28.125
visitoro borough.

00:41:29.938 --> 00:41:32.310
>> what hotels are paying that
kind of rent?

00:41:32.310 --> 00:41:34.310
Marriott?

00:41:34.297 --> 00:41:36.297
>> I think those questions May

00:41:37.531 --> 00:41:39.531
be better asked for the folks

00:41:43.812 --> 00:41:46.812
from green fire.
I believe a representative from

00:41:48.780 --> 00:41:50.780
the convention bureau is here.

00:41:50.781 --> 00:41:52.781
>> it wasn't clear to me that

00:41:52.984 --> 00:41:55.328
there was someone here to speak
for green fire.

00:41:56.620 --> 00:41:58.620
>> all right.

00:41:59.125 --> 00:42:01.125
recognize mayor pro tem and

00:42:01.766 --> 00:42:03.766
council member.

00:42:12.469 --> 00:42:14.969
>> kevin, I read the section
seven about good-faith efforts

00:42:16.375 --> 00:42:18.984
to contract with durham first.
I would like some inclusion by

00:42:20.609 --> 00:42:22.984
the office of equity assurance
and equal opportunity, that is

00:42:23.578 --> 00:42:25.578
the office that has been

00:42:26.453 --> 00:42:28.453
established for deals like this.

00:42:31.531 --> 00:42:33.531
I think that office needs to be

00:42:33.656 --> 00:42:35.656
involved in helping set goals,

00:42:37.656 --> 00:42:39.656
number two, to somehow

00:42:39.906 --> 00:42:41.906
supplement the project so it is

00:42:43.310 --> 00:42:45.969
easier for smaller firms to bid
successfully on the project.

00:42:48.547 --> 00:42:50.547
I would certainly, tom, ask that

00:42:51.438 --> 00:42:53.438
you have doea involved in this

00:42:54.250 --> 00:42:56.812
because they have the expertise.
Not saying you don't, but they

00:42:58.250 --> 00:43:00.156
are -- that is what they get
paid for.

00:43:02.516 --> 00:43:04.656
>> I believe Mr. Digs' office
has had communication already.

00:43:06.620 --> 00:43:08.188
>> not on this part, I don't
think.

00:43:08.953 --> 00:43:11.391
But if you would -- 
>> have you, kevin?

00:43:12.328 --> 00:43:15.297
>> we have had communication.
>> recently?
>> yes, recently.

00:43:17.562 --> 00:43:19.562
We have spoken with Ms. Giles

00:43:19.641 --> 00:43:22.375
office about sharing the
information with the firms in

00:43:25.547 --> 00:43:28.281
the small disadvantaged business
enterprise database so we can

00:43:28.344 --> 00:43:30.109
include them in communications
about the project.

00:43:30.516 --> 00:43:32.516
>> I think it would still be

00:43:33.250 --> 00:43:35.250
good for the developer, calling

00:43:35.812 --> 00:43:37.812
all of you who are assigned to

00:43:39.719 --> 00:43:41.719
work with our doea department.

00:43:42.125 --> 00:43:44.125
thank you.

00:43:44.766 --> 00:43:46.766
>> are there other questions?

00:43:50.310 --> 00:43:52.310
I recognize Councilman.

00:43:52.500 --> 00:43:55.375
>> I have to come back to this.
The one point, maybe this is for

00:43:56.109 --> 00:43:57.547
the budget or the finance
director.

00:43:59.547 --> 00:44:02.516
The $1.8 million that would be
capitalized at the end of 20

00:44:04.375 --> 00:44:06.484
years, you have the financial
statements to show that the

00:44:06.484 --> 00:44:09.484
organization can pay that.
From the statement we have here,

00:44:09.953 --> 00:44:12.719
we're only look at the council
member is looking at revenue and

00:44:13.250 --> 00:44:15.250
sources of how they use that

00:44:21.828 --> 00:44:23.828
revenue to offset.

00:44:26.620 --> 00:44:27.500
i don't see I zeroing out of the
payment.

00:44:29.172 --> 00:44:31.969
>> it is figured if it is paid
off.
The lump sum payment would be

00:44:32.672 --> 00:44:34.672
less than the annual debt

00:44:37.344 --> 00:44:40.344
service on the bounds they would
issue for the project.

00:44:40.875 --> 00:44:43.219
They would have sufficient cash
to pay us off.

00:44:43.891 --> 00:44:45.891
>> are they 22 year bonds.

00:44:46.688 --> 00:44:48.688
>> 22 years is the current plan.

00:44:49.391 --> 00:44:51.891
>> the 22 year bonds would be
there, so potentially we can

00:44:53.922 --> 00:44:56.438
start getting paid in year 22.
Meanwhile the interest will

00:44:56.734 --> 00:44:59.266
continue to capitalize during
that period of time?
>> correct.

00:44:59.766 --> 00:45:02.641
>> the building, we would have
the collateral on that building

00:45:02.766 --> 00:45:04.766
during the whole period?

00:45:04.844 --> 00:45:06.844
>> that is correct.

00:45:07.578 --> 00:45:09.938
>> not a negative pledge, this
is full collateralization?

00:45:12.160 --> 00:45:14.160
>> we have a subordinate

00:45:14.281 --> 00:45:17.281
interest at als.
>> all right.
Thank you.

00:45:18.281 --> 00:45:20.281
>> other questions from members

00:45:20.688 --> 00:45:22.688
of the council?

00:45:22.859 --> 00:45:24.859
Recognize Councilman Brown.

00:45:27.188 --> 00:45:29.188
>> thank you, Mr. Mayor.

00:45:33.875 --> 00:45:35.875
I have a question for the

00:45:36.969 --> 00:45:39.780
manager who stated we have a
security interest in the

00:45:39.780 --> 00:45:41.609
building.
Will that put the city in a

00:45:45.344 --> 00:45:46.672
second or third position or
where?

00:45:48.188 --> 00:45:50.312
>> we would be subordinate to
whatever debt was issued to

00:45:52.160 --> 00:45:54.160
construct the project, but not

00:45:54.688 --> 00:45:57.516
subbardinate to future -- 
subordinate to future financing

00:45:58.391 --> 00:46:00.828
the developer May take for other
parts of the project.

00:46:03.125 --> 00:46:04.969
>> realistically, that puts us
in a second position, correct.

00:46:06.531 --> 00:46:08.531
>> depending on how many other

00:46:12.734 --> 00:46:15.780
loans they have, but yes,ek
effectively we are behind the

00:46:17.469 --> 00:46:18.875
money used to construct the
project.

00:46:20.484 --> 00:46:22.484
>> I want to go back to what my

00:46:23.141 --> 00:46:25.250
colleague was getting at, farad.
I don't want to confuse.

00:46:27.953 --> 00:46:30.688
i am looking at the mark-up copy
here.
And perhaps I read this wrong.

00:46:32.250 --> 00:46:34.250
Are you telling us that there

00:46:37.562 --> 00:46:39.562
will be no interest payment on

00:46:39.828 --> 00:46:42.000
the loan?
>> correct.

00:46:43.620 --> 00:46:45.620
>> the loan payment on the loan

00:46:46.297 --> 00:46:48.297
and the interest after 22 years?

00:46:51.781 --> 00:46:53.781
>> correct.

00:46:54.875 --> 00:46:56.875
>> I just want to make sure

00:47:01.250 --> 00:47:04.188
everyone interests that.
Thank you.
>> other questions?

00:47:04.984 --> 00:47:07.219
If not, we will move to the
persons who have signed up to

00:47:07.219 --> 00:47:10.620
speak.
Again, this being a public
hearing.

00:47:10.656 --> 00:47:12.656
as I call your name, if you will

00:47:12.797 --> 00:47:14.125
proceed to the podium to the
right.

00:47:16.328 --> 00:47:18.328
And we will have three minutes

00:47:18.969 --> 00:47:20.969
per -- I'm going to call on you

00:47:25.160 --> 00:47:27.160
the way you signed up.

00:47:27.906 --> 00:47:29.406
Proceed to the podium to the
right.

00:47:31.547 --> 00:47:33.812
we would ask that you limit your
comments to three minutes.

00:47:35.160 --> 00:47:37.516
The reason I call you the way
you signed up.

00:47:38.160 --> 00:47:40.160
Let me just go ahead.

00:47:40.953 --> 00:47:42.859
You still have three minutes for
each, please.

00:47:44.234 --> 00:47:46.234
Wendy jefferies.

00:47:46.969 --> 00:47:48.969
Don pathen wrote.

00:47:50.310 --> 00:47:52.310
Shelly green.

00:47:52.875 --> 00:47:54.875
darla turner.

00:47:54.969 --> 00:47:56.969
Bill carcoff.

00:47:58.875 --> 00:48:00.875
Ted conner, scott harmon.

00:48:03.484 --> 00:48:05.484
Matt drew, jim hart.

00:48:06.344 --> 00:48:08.344
Pastor sylvester williams.

00:48:12.656 --> 00:48:14.656
larry hester.

00:48:15.656 --> 00:48:17.656
Stephan magiano.

00:48:17.719 --> 00:48:20.125
Michael bric co.
John contin.

00:48:20.125 --> 00:48:22.125
Seth goss.

00:48:27.500 --> 00:48:29.969
Victoria peterson.
Just state your name and address

00:48:30.266 --> 00:48:32.203
as you speak.
>> yes, sir.

00:48:32.312 --> 00:48:34.312
>> good afternoon.

00:48:34.438 --> 00:48:36.984
My name is wendy jefferies, the
director of sales and marketing

00:48:38.219 --> 00:48:40.219
with the durham marriott hotel

00:48:41.188 --> 00:48:43.188
and durham convention center.

00:48:44.922 --> 00:48:46.812
The address is 201 foster street
here in downtown.

00:48:48.859 --> 00:48:50.859
I want to offer our support for

00:48:51.359 --> 00:48:52.891
the proposed green fire hotel
project.

00:48:54.531 --> 00:48:57.620
currently the 44,000 convention
center is supported by the

00:48:58.234 --> 00:48:59.828
durham hotel, which is 190
sleeping rooms.

00:49:01.641 --> 00:49:03.672
For a facility of our size,
realistically we need between

00:49:04.703 --> 00:49:06.578
four and 600 room nights to
support it.

00:49:07.266 --> 00:49:09.266
With the addition of adding

00:49:09.750 --> 00:49:12.609
hotel rooms downtown, we will
have walkable hotel rooms to the

00:49:13.812 --> 00:49:15.812
durham convention center.

00:49:17.953 --> 00:49:20.250
The closest walk is 2
.5 miles.

00:49:21.484 --> 00:49:24.219
To bring added conventions to
downtown, that is what is

00:49:26.891 --> 00:49:28.453
required is building hotel
rooms.

00:49:29.310 --> 00:49:31.766
Those visitors eat in
restaurants, shop in the shops

00:49:33.797 --> 00:49:35.797
and visit our venues.

00:49:40.406 --> 00:49:42.641
so we definitely support the
proposal.
Thank you.

00:49:46.375 --> 00:49:49.172
>> good evening, I'm dawn
pathenross, member of the durham

00:49:49.281 --> 00:49:51.281
convention center authority.

00:49:52.453 --> 00:49:55.780
During the time I served on that
authority, it has come to my

00:49:56.125 --> 00:49:58.781
attention the type of facts and
figures wendy iterated.

00:50:00.797 --> 00:50:03.310
So I have realized how under
utilized our convention center

00:50:03.891 --> 00:50:05.234
is because of the lack of hotel
rooms.

00:50:06.625 --> 00:50:08.625
I would offer my personal

00:50:09.310 --> 00:50:11.310
support also to increasing

00:50:12.172 --> 00:50:14.172
downtown walkable hotel rooms

00:50:17.406 --> 00:50:19.406
toward this incentive.

00:50:20.516 --> 00:50:22.516
>> good evening, mayor, council,

00:50:22.578 --> 00:50:24.578
shelly green, President And ceo

00:50:25.516 --> 00:50:27.219
of the durham convention and
visitors' bureau.

00:50:30.953 --> 00:50:32.953
As the head of the visitors'

00:50:33.953 --> 00:50:35.953
bureau all are my constituents,

00:50:36.000 --> 00:50:37.359
I'm not here for or against the
package.

00:50:38.328 --> 00:50:40.328
i'm here to offer information I

00:50:40.594 --> 00:50:43.266
hope will be helpful to you
because I'm knowledgeable about

00:50:44.969 --> 00:50:47.969
the hotel market in durham.
One thing is indisputable is we

00:50:48.969 --> 00:50:51.438
need additional hotel rooms in
downtown durham.

00:50:59.470 --> 00:51:01.470
as hair pro tem cora coal

00:51:02.780 --> 00:51:04.780
Mcfadden can agree, we're below

00:51:06.484 --> 00:51:08.484
cities of our size, 65% below

00:51:08.688 --> 00:51:10.688
cities our size in the state as

00:51:11.234 --> 00:51:13.234
far as members of hotels that

00:51:13.797 --> 00:51:16.734
are within walking distance.
Incentives for economic
development deals have been

00:51:17.797 --> 00:51:19.797
around for a long time but have

00:51:19.828 --> 00:51:21.828
not been around for more than

00:51:22.141 --> 00:51:24.141
two decades for hotel projects.

00:51:24.547 --> 00:51:26.516
That we're having this
discussion is very different

00:51:29.470 --> 00:51:31.470
from what it was many years ago.

00:51:31.547 --> 00:51:33.547
When faced with similar dilemmas

00:51:33.922 --> 00:51:35.922
with not enough hotel rooms in

00:51:38.594 --> 00:51:41.484
their town, many cities, like
jacksonville, columbus, ohio.

00:51:41.859 --> 00:51:44.531
Even raleigh.
What they have done is cities

00:51:45.359 --> 00:51:48.310
have provided financing for not
only convention centers but

00:51:48.797 --> 00:51:51.797
actual downtown hotels and
provided significant amounts of
funding.

00:51:51.969 --> 00:51:53.969
That is not really what you have

00:51:54.620 --> 00:51:55.438
on the table in front of you
today.

00:51:56.672 --> 00:51:59.470
You have a different kind of
proposal.

00:52:01.109 --> 00:52:03.516
other hotels have objected
particularly when occupancy tax

00:52:04.781 --> 00:52:06.781
money is put in to repair or to

00:52:07.922 --> 00:52:10.422
provide any of that incentive.
You are taking it from those who

00:52:12.125 --> 00:52:14.125
are generating that money.

00:52:14.562 --> 00:52:16.984
There was a question that you
were posed about whether or not

00:52:19.656 --> 00:52:22.625
a new hotel brings in additional
visitors or new revenue or does

00:52:23.266 --> 00:52:26.172
it just spread around the
visitors that are already here.

00:52:27.109 --> 00:52:29.797
And I can tell you, just looking
at our history in durham over

00:52:32.406 --> 00:52:34.406
the last 15 years, that when new

00:52:34.469 --> 00:52:36.469
hotels have been built, we have

00:52:37.875 --> 00:52:40.609
been able to generate additional
demand that filled those rooms.

00:52:42.780 --> 00:52:45.160
one of the most recent examples
in 1998, we had more than 1100

00:52:45.391 --> 00:52:47.391
hotel rooms that opened all in

00:52:49.250 --> 00:52:51.422
the same year, followed by 705
rooms the next year.

00:52:52.859 --> 00:52:55.940
Those were mostly in and around
southeast durham.

00:52:55.766 --> 00:52:57.766
Near research triangle park,

00:52:58.859 --> 00:53:00.859
there was a desperate need for

00:53:00.906 --> 00:53:03.641
hotel rooms.
the market responded, built the

00:53:04.531 --> 00:53:06.203
rooms and the demand was there
soon after that.

00:53:06.641 --> 00:53:09.547
I don't think you have to worry
about that maybe as much as you

00:53:09.641 --> 00:53:12.219
might have thought.
Generally, you only want to put

00:53:12.484 --> 00:53:14.375
additional hotel rooms where
there is demand.

00:53:16.344 --> 00:53:18.656
As far as the rate, you asked a
question about that.

00:53:20.940 --> 00:53:22.940
Is that rate reasonable?

00:53:23.328 --> 00:53:25.797
i did just a little search today
about 5:00 [Beep] This

00:53:25.797 --> 00:53:27.797
afternoon.

00:53:29.469 --> 00:53:32.940
Hotels that are full-service -- 
>> I'm going to keep everybody

00:53:33.469 --> 00:53:35.906
at three minutes.
We'll come back and ask you if

00:53:35.906 --> 00:53:37.906
we have any questions.

00:53:40.500 --> 00:53:42.500
Thank you.

00:53:43.344 --> 00:53:46.141
>> good evening, Mr. Mayor,
madam pro tem, city council.

00:53:47.250 --> 00:53:49.250
I'm director of government

00:53:49.344 --> 00:53:52.156
relations for north carolina
central university.

00:53:53.984 --> 00:53:55.984
From our chancellor, faculty

00:53:56.359 --> 00:53:58.359
members, and greetings from our

00:54:03.625 --> 00:54:05.310
over 9,000 students on the
campus.

00:54:06.828 --> 00:54:08.969
we are the number-one ranked
university in the country.

00:54:10.844 --> 00:54:12.844
We're excited about that as well

00:54:14.780 --> 00:54:17.160
as it being our centennial.
Thank you mayor pro tem.

00:54:19.780 --> 00:54:21.578
I am here briefly.
We are excited about the

00:54:22.375 --> 00:54:25.312
prospect of this opportunity for
students.
Our school of business currently

00:54:26.750 --> 00:54:29.719
has one of the few
internationally accredited

00:54:29.984 --> 00:54:32.297
hospitality and tourism programs
in the country.

00:54:32.297 --> 00:54:34.766
We're excited about the
opportunity to partner with this
project.

00:54:36.620 --> 00:54:37.969
Let me tell you that we recently
partnered with the city of

00:54:40.828 --> 00:54:42.828
durham in the seeds program, so

00:54:43.562 --> 00:54:45.969
our first training program
greener tomorrow for teen
parents.

00:54:47.312 --> 00:54:49.406
it focused on gardening,
customer service and culinary

00:54:49.406 --> 00:54:52.406
skills.
The program is active here in

00:54:56.281 --> 00:54:59.160
durham, working withio's -- 
with joe's diner, the department

00:55:00.344 --> 00:55:03.219
of correction and their program.
This opportunity would present

00:55:03.750 --> 00:55:05.750
an effort together with green

00:55:06.219 --> 00:55:08.484
fire for our students to have
internship opportunities but

00:55:09.359 --> 00:55:10.828
also lifelong possible career
opportunities.

00:55:11.391 --> 00:55:13.469
We have met with the
representative from green fire.

00:55:14.940 --> 00:55:16.940
Our director of our program.

00:55:16.766 --> 00:55:19.344
We have met with Mr. Digs'
office.
We are ready to forge our

00:55:20.438 --> 00:55:23.000
relationship should you approve
this proprosal.

00:55:23.844 --> 00:55:26.812
Durham is fortunate to have
this.
Thank you for the support of not

00:55:28.609 --> 00:55:30.609
only durham but our students and

00:55:31.109 --> 00:55:33.781
their destination graduation
success.
Thank you.

00:55:34.125 --> 00:55:36.125
>> you're welcome.

00:55:42.828 --> 00:55:44.219
>> good evening, I am bill
calhov.

00:55:45.797 --> 00:55:47.797
Under separate cover you

00:55:48.172 --> 00:55:50.172
received my point piece.

00:55:50.234 --> 00:55:52.141
I want to highlight that
tonight.

00:55:53.906 --> 00:55:56.780
First and foremost, we need to
transformative project in the
city center.

00:55:56.547 --> 00:55:59.406
This has the opportunity to be
the transformative project like

00:56:00.250 --> 00:56:01.672
american tobacco was in that
district.

00:56:02.781 --> 00:56:05.375
As you know, downtown durham,
inc. Asks three questions when

00:56:06.109 --> 00:56:08.156
we work with developers or the
public sector.

00:56:08.781 --> 00:56:10.984
the first question is, is the
project consistent with the

00:56:11.781 --> 00:56:14.328
downtown master plan?
Kevin has certainly pointed that

00:56:14.391 --> 00:56:16.391
out to you.

00:56:16.453 --> 00:56:18.453
And it also is very consistent

00:56:18.859 --> 00:56:20.859
with the retail market analysis

00:56:21.328 --> 00:56:23.672
and also the parastreet
redevelopment plan.

00:56:24.406 --> 00:56:27.172
The second question we ask, is
the project a good deal for the

00:56:27.875 --> 00:56:30.578
durham taxpayers?
i think david and kevin have

00:56:32.406 --> 00:56:34.406
laid out a financial plan for

00:56:34.547 --> 00:56:37.109
you that you heard earlier that
protects the public taxpayer.

00:56:37.984 --> 00:56:40.516
As all the deals we have been
involved with in the past 15

00:56:41.109 --> 00:56:43.781
years, we work with developers,
let them know there are no

00:56:45.156 --> 00:56:47.750
payments until the deal is done,
the project is built.

00:56:48.359 --> 00:56:49.750
That is consistent with this
project.

00:56:50.891 --> 00:56:52.891
>> one thing that has not been

00:56:53.234 --> 00:56:55.969
mentioned tonight is finally the
sin centive being offered is

00:56:57.000 --> 00:56:59.000
money that frankly does not
currently exist.

00:57:00.938 --> 00:57:02.938
The incentives are derived from

00:57:03.703 --> 00:57:05.703
the investment of the developer

00:57:06.672 --> 00:57:08.672
and the project's new tax

00:57:10.516 --> 00:57:12.516
revenues, not existing funds.

00:57:12.953 --> 00:57:15.188
is the funding available to get
it done?

00:57:16.391 --> 00:57:18.688
Your third-party consistents
noted that the developers need

00:57:20.188 --> 00:57:22.891
an incentive to make the project
happen.
In addition since green fire is

00:57:25.188 --> 00:57:27.188
seeking $25 million in recovery

00:57:27.453 --> 00:57:30.172
zone facility bonds, it is very
critical that the project be

00:57:31.234 --> 00:57:33.938
seen as a community priority.
by sending that message in the

00:57:34.531 --> 00:57:36.531
form of being a partner in it,

00:57:37.109 --> 00:57:39.375
it will allow the approval of a
local government commission and

00:57:40.609 --> 00:57:42.609
send a message of confidence to

00:57:45.375 --> 00:57:46.781
the bond markets and other
investors.

00:57:47.812 --> 00:57:50.188
I had a list of nine other
reasons to support this.

00:57:52.125 --> 00:57:54.484
i will highlight just a couple.
One downtown nor the community

00:57:55.781 --> 00:57:57.781
is being helped by a nearly

00:57:57.984 --> 00:57:59.984
vacant building of the sun trust

00:58:01.594 --> 00:58:04.234
tower historical significance.
Second a third-party consultant,

00:58:04.734 --> 00:58:07.266
pundant strategic partners
confirmed hundreds of hotel

00:58:09.328 --> 00:58:12.109
rooms are needed within one mile
of the durham convention center

00:58:13.641 --> 00:58:16.469
to increase revenues and reduce
the current operating losses.

00:58:17.781 --> 00:58:20.750
Third, an issue that jim goodman
and I often talk about in terms

00:58:21.750 --> 00:58:23.922
of future investment in the
community, that is this project

00:58:25.922 --> 00:58:27.922
will keep the momentum.

00:58:28.859 --> 00:58:30.859
The momentum of downtown

00:58:31.625 --> 00:58:33.625
revitalization moving forward.

00:58:35.620 --> 00:58:37.328
it is a key factor in investor
confidence in a community.

00:58:39.562 --> 00:58:41.531
We support this package to
provide green fire the

00:58:42.234 --> 00:58:44.328
opportunity to get the deal
done.

00:58:44.375 --> 00:58:46.375
Thank you.

00:58:50.875 --> 00:58:52.875
[Beep]

00:58:53.203 --> 00:58:55.203
[Beep].

00:58:55.641 --> 00:58:58.609
>> good evening I'm ted connor
with the durham chamber of
commerce.

00:58:59.484 --> 00:59:02.156
I want to make a few
observations regarding the
project.

00:59:02.453 --> 00:59:05.219
Activity is good throughout the
downtown and generally improving

00:59:05.859 --> 00:59:07.859
except in one area.

00:59:08.625 --> 00:59:10.625
This hotel project will be a
transformative project.

00:59:11.562 --> 00:59:13.969
The central core of downtown
doesn't have nearly enough

00:59:13.969 --> 00:59:16.828
activity.
this hotel will inject a

00:59:17.641 --> 00:59:19.797
tremendous amount of new street
activity that will energize this

00:59:20.203 --> 00:59:23.780
upper portion of downtown.
Very much like what american

00:59:23.844 --> 00:59:26.781
tobacco did to the southern part
of downtown and what west

00:59:27.281 --> 00:59:28.719
village did to western part of
downtown.

00:59:30.547 --> 00:59:31.984
The hotel will be a destination
location.

00:59:32.984 --> 00:59:34.984
Attracting thousands of

00:59:36.312 --> 00:59:38.312
customers, visitors, hotel

00:59:38.828 --> 00:59:40.828
employees each year, creating a

00:59:41.391 --> 00:59:43.656
beehive of activity and palpable
level of energy.

00:59:44.188 --> 00:59:46.188
This new level of energy and

00:59:47.391 --> 00:59:49.531
activity serves to fuel durham's
downtown renaissance.

00:59:50.234 --> 00:59:53.000
It is this level of activity
that will continue pushing

00:59:53.938 --> 00:59:55.938
downtown forward.

00:59:56.780 --> 00:59:58.312
Shelly noted, it was noted
earlier that by having more

00:59:59.734 --> 01:00:01.734
hotel rooms downtown, this

01:00:02.812 --> 01:00:04.906
serves to expand the downtown -- 
durham's convention center

01:00:05.312 --> 01:00:07.312
business and bring more

01:00:08.156 --> 01:00:10.953
businesses and conventions to
downtown.
Bringing therefore more

01:00:11.359 --> 01:00:14.156
customers, more activity.
If you ever imagine when you

01:00:14.422 --> 01:00:16.984
travel to downtown for a
convention or meeting, you go

01:00:17.359 --> 01:00:20.188
around downtown, you happen to
go to the coffee shops,

01:00:20.922 --> 01:00:23.703
restaurants, stores, spending
money, spending money, it is all

01:00:24.734 --> 01:00:27.703
we want from our customers in
durham to create new retail
revenue.

01:00:28.375 --> 01:00:29.766
This is what we want the
downtown.

01:00:30.875 --> 01:00:33.234
It is really truly supports what
our downtown revitalization is

01:00:33.234 --> 01:00:36.470
doing.
I would also like to observe

01:00:37.160 --> 01:00:39.844
that green fire has worked
doggedly, doggedly in the trying

01:00:43.160 --> 01:00:45.719
economic times to try to find a
creative approach for private

01:00:50.562 --> 01:00:52.219
sector equity and bonds for the
boutique project.

01:00:53.359 --> 01:00:55.359
I applaud them for their

01:00:55.797 --> 01:00:57.203
creativity and stamina and
tenacity.

01:00:58.328 --> 01:01:00.859
I know in my heart that green
fire's project is tremendously

01:01:02.641 --> 01:01:04.844
successful and very supportive
of downtown durham and durham in

01:01:04.844 --> 01:01:06.266
general.
I thank you.

01:01:07.470 --> 01:01:09.703
I hope you will consider the
comments tonight to support the

01:01:10.780 --> 01:01:11.547
project.
Thank you.

01:01:14.984 --> 01:01:17.470
>> you're welcome.
>> good evening.

01:01:21.250 --> 01:01:23.250
my name is scott harmon.

01:01:23.656 --> 01:01:26.656
I serve on the durham chamber of
commerce and vice chair of the

01:01:28.188 --> 01:01:30.359
pear street advocacy group.
My comments tonight are personal

01:01:30.438 --> 01:01:33.266
in nature.
Many know I have been a critic

01:01:33.703 --> 01:01:36.562
of green fire development.
I have not always agreed how

01:01:36.562 --> 01:01:38.344
they conducted themselves with
the public.

01:01:40.906 --> 01:01:43.844
i have been sometimes overly
candid about those opinions.

01:01:44.375 --> 01:01:47.219
But I'm here to tell you that
this project I think is really,

01:01:47.844 --> 01:01:49.250
really, really important to
downtown.

01:01:50.656 --> 01:01:53.470
I don't know about y'all, but I
have been working twice as hard

01:01:54.750 --> 01:01:56.750
for half the money for two years

01:01:56.922 --> 01:01:59.828
now in this economic situation.
I have five employees, two are

01:02:02.594 --> 01:02:03.969
on part-time to build up more
work.

01:02:05.203 --> 01:02:07.703
With those compromises, I know
I'm far more fortunate than many

01:02:07.703 --> 01:02:10.500
in the community.
As a small business person with

01:02:10.734 --> 01:02:13.266
people working for him who are
trying to put food on the table

01:02:13.875 --> 01:02:15.875
for their families and children,

01:02:16.812 --> 01:02:18.906
I have no direct benefit from
this project whatsoever.

01:02:20.812 --> 01:02:23.484
I'm not their architect, sadly.
one day to do a project like

01:02:24.422 --> 01:02:26.844
this would be a lot of fun.
This project is so obviously

01:02:28.188 --> 01:02:30.984
important to durham right now.
What I think would seal the deal

01:02:36.422 --> 01:02:38.422
as far as downtown division, but

01:02:40.438 --> 01:02:42.703
put an end to the economic
uncertainty.

01:02:43.500 --> 01:02:46.438
this is more important than the
american tobacco deal and the

01:02:47.109 --> 01:02:49.766
golden belt deals were important
and made a lot of sense, but it

01:02:50.438 --> 01:02:52.438
happened at times when it was

01:02:54.172 --> 01:02:56.172
easy to make the investments.

01:02:56.844 --> 01:02:58.781
Times are not so good.
It is uncertain.

01:02:59.953 --> 01:03:02.781
We have an opportunity with the
bonds to really -- how often do

01:03:04.594 --> 01:03:07.484
you get to take an incentive
program and have it have an

01:03:07.797 --> 01:03:09.266
impact on those who work in the
community.

01:03:10.469 --> 01:03:13.940
It is good for all of durham,
downtown and I heartily urge you

01:03:13.156 --> 01:03:14.625
to support it.
Thank you.

01:03:19.938 --> 01:03:21.938
>> you're welcome.

01:03:22.109 --> 01:03:23.469
>> good evening, Mr. Mayor,
council.

01:03:25.344 --> 01:03:26.703
i am matt drew, libertarian
party.

01:03:29.344 --> 01:03:31.641
I have a few concerns with the
project.

01:03:31.656 --> 01:03:34.609
I'm sure most everyone knows
this is not the first time green

01:03:35.156 --> 01:03:37.422
fire has been in front of city
council asking for money.

01:03:39.625 --> 01:03:42.453
The first time it was a million.
Then it grew and grew and grew

01:03:44.500 --> 01:03:46.562
and now it is almost s30
million.

01:03:47.703 --> 01:03:49.703
4 million plus the 25 million in
recovery bonds.

01:03:54.234 --> 01:03:56.344
It is interesting to me that
this project can't seem to go

01:03:56.344 --> 01:03:58.578
forward.
Every time they come back

01:03:59.406 --> 01:04:00.781
they're asking for more and more
money.

01:04:02.516 --> 01:04:04.516
That should be a signal from the

01:04:05.780 --> 01:04:07.780
market that perhaps a top-end

01:04:08.688 --> 01:04:10.781
boutique hotel with a pool on
the roof May not be the way to

01:04:10.781 --> 01:04:13.188
go.
We don't need to finance and

01:04:14.297 --> 01:04:16.984
fund this giant hotel.
I have a series of issues here.

01:04:17.766 --> 01:04:20.469
One is that there is no baseline
in the cash flow analysis.

01:04:22.234 --> 01:04:24.234
The cash flow analysis does not

01:04:24.734 --> 01:04:26.734
consider the current cash flow

01:04:27.203 --> 01:04:28.734
that the building is providing
the city.

01:04:29.875 --> 01:04:31.609
Any of the tenants or taxes from
the building.

01:04:32.375 --> 01:04:35.375
We find ourselves in the
situation where we are

01:04:35.984 --> 01:04:38.453
displacing existing businesses
to build a new business.

01:04:38.719 --> 01:04:40.719
We will lose tax revenue.

01:04:41.188 --> 01:04:44.156
The analysis in the tax flow
revalues the building at five

01:04:45.470 --> 01:04:46.625
times its current value, which
seems odd.

01:04:48.156 --> 01:04:50.391
i realize there is a $50 million
investment going into the

01:04:50.391 --> 01:04:52.828
building.
The current valuation is

01:04:52.828 --> 01:04:54.828
4.5 million.

01:04:55.297 --> 01:04:57.828
If I did my math correctly with
the property tacks we're e

01:04:58.859 --> 01:05:00.859
talking about that would be

01:05:12.312 --> 01:05:15.470
valued at 20 million.
Issues with the partners.

01:05:15.891 --> 01:05:17.891
May not know the hotels and

01:05:18.453 --> 01:05:20.453
resorts is so well run that they

01:05:21.156 --> 01:05:23.156
actually were did retail studied

01:05:29.266 --> 01:05:31.531
from the new york stock
exchange.

01:05:32.620 --> 01:05:34.500
Believe it not, it was funded by
the chinese government.

01:05:34.969 --> 01:05:36.969
When we give the money to green

01:05:37.406 --> 01:05:39.406
fire and their partners issue

01:05:39.578 --> 01:05:41.578
we're providing subsidies for

01:05:41.641 --> 01:05:43.469
some of the richest people in
america and to the chinese.

01:05:43.906 --> 01:05:45.781
They're the ones that end up
getting the money because

01:05:46.219 --> 01:05:48.547
they're the ones that will be
running the hotel.

01:05:49.484 --> 01:05:51.484
they're the final owners, the

01:05:59.125 --> 01:06:01.125
final runners.

01:06:04.391 --> 01:06:06.391
In a time that we are borrowing

01:06:08.828 --> 01:06:11.375
money to pave our streets and
funding chinese and these

01:06:11.500 --> 01:06:13.500
investors for the pool in the

01:06:14.203 --> 01:06:16.203
sky is not the best way to move

01:06:16.312 --> 01:06:19.470
forward and improve downtown
durham.
Thank you.

01:06:21.780 --> 01:06:23.780
>> you're welcome.

01:06:26.625 --> 01:06:28.250
>> pastor sylvester, I call
james hall.

01:06:29.391 --> 01:06:31.391
Is he here?

01:06:31.625 --> 01:06:33.422
you were next.
Pastor williams?

01:06:34.594 --> 01:06:36.391
>> Mr. Mayor, members of the
council.

01:06:37.734 --> 01:06:39.734
My jaim is jim hobbs.

01:06:41.172 --> 01:06:43.172
I am the director by title of a

01:06:46.312 --> 01:06:48.312
very small organization calls

01:06:50.906 --> 01:06:52.609
the hospitality alliance in
north carolina.

01:06:53.906 --> 01:06:55.953
I am here on behalf of three
members of the organization that

01:06:56.812 --> 01:06:59.470
have developed and in the future
will develop hotel properties

01:07:01.281 --> 01:07:04.219
here in durham, durham county.
And I will identify those

01:07:04.562 --> 01:07:06.562
individuals because since I'm

01:07:07.531 --> 01:07:09.531
here representing them.

01:07:11.125 --> 01:07:13.125
they're Mr. Rodney jones,

01:07:15.234 --> 01:07:17.234
Mr. Bob winston and Mr. Doyle

01:07:18.703 --> 01:07:20.780
parish with summit hospitality
group.

01:07:23.203 --> 01:07:25.203
And their request for me this

01:07:25.750 --> 01:07:28.719
evening is to ask me to oppose
the hotel incentives.

01:07:30.609 --> 01:07:33.609
Earlier today, I sent you
electronically a two-page letter

01:07:34.953 --> 01:07:36.953
that outlines a small part of

01:07:37.781 --> 01:07:39.188
their concerns regarding this
project.

01:07:41.328 --> 01:07:43.922
I'm going to quickly cover those
three items.

01:07:44.797 --> 01:07:46.797
It is being repeated again here

01:07:47.620 --> 01:07:49.620
this evening, if you look at the

01:07:49.940 --> 01:07:51.641
city documents as they come
forward for your perusal on this

01:07:51.641 --> 01:07:53.641
project.

01:07:54.734 --> 01:07:56.734
it is made to look like this is

01:07:58.375 --> 01:08:00.375
new tax revenues that are being

01:08:00.750 --> 01:08:03.160
paid out against the payments
you're going to make.

01:08:05.281 --> 01:08:07.281
That is a relatively simple

01:08:08.160 --> 01:08:10.160
concept that is put in there.

01:08:10.516 --> 01:08:11.922
Those of us in the hotel
business.

01:08:14.484 --> 01:08:17.940
hotel demand is a static market
issue, if you would.

01:08:18.940 --> 01:08:20.940
It is not unlike if a new

01:08:20.766 --> 01:08:23.000
grocery store comes in to durham
county and builds.

01:08:23.906 --> 01:08:25.906
It builds because it is building

01:08:27.438 --> 01:08:29.438
a newer facility or building in

01:08:29.875 --> 01:08:31.875
a better locate

01:08:33.312 --> 01:08:35.984
ion to be able to
serve the community.

01:08:36.984 --> 01:08:38.984
The next-door opens, you are not

01:08:39.281 --> 01:08:41.281
suddenly selling more groceries

01:08:42.281 --> 01:08:43.688
in durham county that you were
before.

01:08:44.359 --> 01:08:46.219
Simply individuals that went to
grocery stores in other areas

01:08:47.391 --> 01:08:49.391
are going to this one.

01:08:50.625 --> 01:08:52.625
Sales are falling for someone.

01:08:56.359 --> 01:08:58.359
indeed, the some 7,300 rooms

01:09:03.109 --> 01:09:05.109
that are going -- 37300 rooms

01:09:05.234 --> 01:09:07.234
are number member projected for

01:09:07.641 --> 01:09:09.641
this development to enjoy.

01:09:09.672 --> 01:09:11.672
Those number of rooms and that

01:09:11.688 --> 01:09:13.688
amount in sales is going to

01:09:14.984 --> 01:09:16.984
shift to hotels in the current

01:09:17.219 --> 01:09:18.625
market into the hotel.
Simple.

01:09:20.219 --> 01:09:21.625
Over years, demand will grow the
community.

01:09:24.297 --> 01:09:26.297
It has, as was referred to.

01:09:28.234 --> 01:09:30.234
But this hotel opens, it will

01:09:31.266 --> 01:09:33.297
not enjoy new demand coming into
the community.

01:09:34.172 --> 01:09:36.172
It will shift the demand into

01:09:37.234 --> 01:09:39.234
text revenues.

01:09:41.141 --> 01:09:43.672
One taxpayer, to a different
taxpayer.

01:09:46.641 --> 01:09:49.516
[Beep] Thank you for your time,
folks.
>> you're welcome.

01:09:49.688 --> 01:09:51.688
Pastor williams?

01:09:53.940 --> 01:09:54.922
>> I would like for us to
acknowledge the council and

01:09:58.953 --> 01:10:01.297
thank you for serving and all
you do.

01:10:03.156 --> 01:10:05.156
I am pastor sylvester williams.

01:10:05.172 --> 01:10:07.172
I would like to thank my

01:10:07.500 --> 01:10:09.500
heavenly father for his son

01:10:10.000 --> 01:10:12.172
christ jesus our lord, we
finished the observation of the

01:10:14.406 --> 01:10:15.875
feast of trumpets, day of
atonement.

01:10:16.438 --> 01:10:18.438
We rejoice for christ has atoned

01:10:20.344 --> 01:10:22.344
for our sins.

01:10:23.312 --> 01:10:25.688
I am here as the chair for the
economic development

01:10:27.470 --> 01:10:29.470
professional chains.

01:10:29.422 --> 01:10:31.422
The reason durham professional

01:10:32.328 --> 01:10:34.328
chain was started was to foster

01:10:34.766 --> 01:10:37.594
economic growth in the
african-american community.

01:10:38.469 --> 01:10:40.469
jessie callus has been working

01:10:42.938 --> 01:10:44.938
with green fire, ie carl

01:10:49.641 --> 01:10:51.906
williams to get third%
participation of the

01:10:51.906 --> 01:10:54.516
african-american community in
this project.

01:10:54.609 --> 01:10:56.547
It is something that should be
and can be done.

01:10:59.312 --> 01:11:01.891
we want to see more money spent
in african-american community so

01:11:03.156 --> 01:11:06.310
it too can prosper and grow.
Nol not talking about the other

01:11:06.422 --> 01:11:08.422
70%, just the 30%.

01:11:08.891 --> 01:11:10.891
We believe that with this

01:11:11.156 --> 01:11:13.156
project going forward and with

01:11:13.203 --> 01:11:15.828
agreements that we're seeking,
that this can happen, it can

01:11:16.703 --> 01:11:19.641
take place.
Thank you.

01:11:26.141 --> 01:11:28.984
>> you're welcome.
>> my name is larry hester.

01:11:32.891 --> 01:11:35.470
I live at 3526 abercrombie
drive.
I have always felt that all the

01:11:36.188 --> 01:11:39.620
extra money that the city had
needed to be spent on

01:11:39.594 --> 01:11:41.594
fayetteville street.

01:11:41.688 --> 01:11:43.688
but with that said, tonight I'm

01:11:45.125 --> 01:11:47.125
here to support this project.

01:11:48.438 --> 01:11:50.438
Green fire has reached out to

01:11:52.531 --> 01:11:54.766
our community to foster
inclusion.

01:11:56.812 --> 01:11:59.000
Jessie callus, contracting
services have met, had a series

01:12:00.172 --> 01:12:02.172
of meetings with green fire

01:12:04.641 --> 01:12:06.547
about african-american
participation.

01:12:13.156 --> 01:12:15.188
We know that jesse has a 14-year
relationship with scasca.

01:12:22.734 --> 01:12:24.734
i know jesse nam

01:12:25.328 --> 01:12:27.328
and I know carl.

01:12:28.641 --> 01:12:31.344
There was a 40% african-american
participation.
Everything worked out fine.

01:12:32.906 --> 01:12:34.406
We are looking at 30% in this
project.

01:12:35.109 --> 01:12:37.781
Rehab projects lend themselves
more to small contractors,

01:12:39.344 --> 01:12:41.109
putting small contractors
together.

01:12:42.391 --> 01:12:45.250
this project, so many floors, I
think they have 16 floors, there

01:12:46.156 --> 01:12:48.156
is even a greater opportunity

01:12:48.688 --> 01:12:50.688
since there is redundancy in

01:12:52.688 --> 01:12:54.500
each floor, you only have one
toilet, one bathtub, electrical,

01:12:56.828 --> 01:12:58.828
the code, all of those types of

01:13:01.766 --> 01:13:04.312
issues are pretty much defined.
during those meetings, some of

01:13:05.609 --> 01:13:07.609
the items that were discussed

01:13:08.160 --> 01:13:11.160
were electrical, plumbing,
demolition, framing, drywall,

01:13:12.484 --> 01:13:15.109
painting, flooring, tile,
construction clean up, post

01:13:15.547 --> 01:13:17.547
construction cleanup.

01:13:19.547 --> 01:13:20.984
And hvac, depending on the type
specified.

01:13:24.625 --> 01:13:26.656
there May be some opportunities
there.

01:13:28.391 --> 01:13:31.391
Carl has made a presentation to
the durham business and

01:13:32.938 --> 01:13:35.531
professional chain and to the
economic development -- and to

01:13:37.780 --> 01:13:39.469
the durham committee on affairs
of black folks.

01:13:41.344 --> 01:13:43.344
The committee has not taken a

01:13:43.609 --> 01:13:45.953
position.
[Chuckling].

01:13:49.281 --> 01:13:51.719
Well, we are black folk.
The durham committee on the

01:13:54.984 --> 01:13:56.984
affairs of black people.

01:13:59.940 --> 01:14:01.940
We are available to work with

01:14:01.969 --> 01:14:03.969
green fire to finalize this

01:14:05.797 --> 01:14:07.797
project and its expectations.

01:14:08.297 --> 01:14:10.672
Contracts create jobs in our
community when the contracts are

01:14:10.672 --> 01:14:13.578
real.
We have a community that is in

01:14:13.875 --> 01:14:15.875
desperate need of jobs.

01:14:17.141 --> 01:14:18.578
We also have a lot of qualified
technicians.

01:14:21.250 --> 01:14:23.953
People who have the ability to
construct, to meet a schedule,

01:14:27.940 --> 01:14:29.940
and to get the job done.

01:14:29.391 --> 01:14:31.391
I will have to say that private

01:14:31.953 --> 01:14:33.953
enterprise does not have to

01:14:36.500 --> 01:14:38.500
follow [Beep] Oh, ok.

01:14:39.562 --> 01:14:41.734
Can I finish the sentence?
>> you are welcome.
>> ok.

01:14:43.844 --> 01:14:45.297
One of the things about
government.

01:14:46.780 --> 01:14:48.875
>> I said no.
>> you said no?

01:14:53.719 --> 01:14:55.719
>> no, no, no.

01:14:58.344 --> 01:15:00.219
[Inaudible]
[Inaudible].

01:15:01.516 --> 01:15:03.516
>> thank you, mayor, city

01:15:12.000 --> 01:15:14.000
council, steve manning -- 

01:15:14.734 --> 01:15:17.328
mangano, we have been around for
a while, working hard to bring

01:15:19.000 --> 01:15:21.000
in new and innovative projects.

01:15:21.234 --> 01:15:23.234
Recruited chefs from chapel hill

01:15:24.375 --> 01:15:26.938
including charlie, jim and
revolution, two highly

01:15:27.578 --> 01:15:29.780
successful restaurant
establishments.

01:15:30.160 --> 01:15:32.160
A little bit about my background

01:15:32.578 --> 01:15:34.578
being as I'm a hotel management

01:15:36.688 --> 01:15:39.359
graduate and mba at carolina, I
worked the hilton hotels for a

01:15:40.828 --> 01:15:43.940
number of years and moved up
through their organization

01:15:45.203 --> 01:15:47.500
starting with an internship and
management training program and

01:15:47.938 --> 01:15:49.938
upper management.

01:15:53.000 --> 01:15:55.938
we met with ntcu and I'm
enthusiastic about working with
the program.

01:15:56.844 --> 01:15:58.672
I teach at the art institute on
this topic.

01:16:01.844 --> 01:16:03.844
A pag of -- passion of mine is

01:16:04.844 --> 01:16:06.984
helping students get this
experience and knowledge and

01:16:07.781 --> 01:16:09.781
move them up the careers.

01:16:10.940 --> 01:16:12.940
we have two phenomenal schools

01:16:12.719 --> 01:16:15.328
to do that with.
Hotel ice will address the

01:16:16.828 --> 01:16:18.828
mayor's question on rates.

01:16:20.625 --> 01:16:23.594
Our competitive set is
washington duke, umstead.

01:16:24.203 --> 01:16:26.562
That is the end of the market
we're playing on.

01:16:27.578 --> 01:16:29.500
Not displacing the marriott.
They're in support.

01:16:30.969 --> 01:16:33.141
we're not displacing the durham
hilton who will be the manager

01:16:33.812 --> 01:16:36.547
on this hotel.
Interstate is one of the largest

01:16:37.516 --> 01:16:39.781
operators in the country.
They manage every single brand

01:16:41.547 --> 01:16:43.656
and they, together with us have
recruited star wood and their

01:16:45.125 --> 01:16:47.125
flag on to this property.

01:16:47.359 --> 01:16:50.188
There is only 17 star wood
luxury collections in the
country.

01:16:50.188 --> 01:16:52.625
few in the world.
This will garner national

01:16:52.734 --> 01:16:54.734
attention for durham.

01:16:54.859 --> 01:16:57.234
From a demand standpoint, we are
creating new demand.

01:16:58.406 --> 01:17:01.266
There is no doubt about it.
Other people would think

01:17:01.875 --> 01:17:04.547
differently, this hotel will
create new demand.

01:17:04.641 --> 01:17:07.469
One the durham convention
center, which is proven to need

01:17:08.375 --> 01:17:10.375
more rooms.

01:17:11.780 --> 01:17:13.375
we are working closely with
washington duke to work with

01:17:14.470 --> 01:17:16.470
their additional meeting space

01:17:16.391 --> 01:17:18.359
and jointly on all of us selling
rooms throughout durham.

01:17:19.656 --> 01:17:21.797
This is a collaborative
hospitality effort for people

01:17:22.625 --> 01:17:24.453
interested in the city center of
downtown durham.

01:17:26.310 --> 01:17:28.310
To create a hotel of this
magnitude within walking

01:17:29.310 --> 01:17:31.828
distance with the revenue to
generate and type of customer to

01:17:33.141 --> 01:17:35.406
bring down and angle out and
spend money on the community is

01:17:36.969 --> 01:17:38.969
a win-win for everybody.

01:17:39.844 --> 01:17:42.312
We're passionate about inclusion
on this issue.

01:17:45.780 --> 01:17:47.516
Creating 125 full-time jobs.
250 jobs total created

01:17:47.578 --> 01:17:50.344
throughout this process.
We are committed to the

01:17:50.891 --> 01:17:53.594
community and always have been.
we're here locally.

01:17:53.781 --> 01:17:55.859
Have always been here in
downtown durham.

01:17:57.156 --> 01:17:59.156
We have numerous vendors we use

01:17:59.688 --> 01:18:02.656
throughout the processes today
in property management
throughout our buildings.

01:18:03.000 --> 01:18:05.562
This is our commitment, we make
that commitment to you.

01:18:07.328 --> 01:18:08.703
Thank you for your time.
[Beep].

01:18:11.234 --> 01:18:13.234
>> you're welcome.

01:18:14.470 --> 01:18:16.406
>> good evening.
Thanks for giving me the

01:18:18.141 --> 01:18:20.688
opportunity to speak on this.
I'm the President Of the art

01:18:21.780 --> 01:18:22.688
institute at the american
tobacco campus.

01:18:24.625 --> 01:18:26.922
We have been here for 2.5 years.
It has been a wonderful

01:18:27.156 --> 01:18:28.922
experience for us.
Durham is a fantastic location

01:18:29.859 --> 01:18:32.453
for an applied arts college.
We couldn't be happier with the

01:18:32.766 --> 01:18:35.940
response that we have gotten
from the community.

01:18:36.266 --> 01:18:38.266
We currently have over 650

01:18:39.234 --> 01:18:41.234
students enrolled in our school.

01:18:41.375 --> 01:18:43.375
95% plus coming right here from

01:18:44.375 --> 01:18:46.375
the triangle over 100 employees

01:18:47.000 --> 01:18:49.141
and a little-known fact, about
200 students that actually live

01:18:51.938 --> 01:18:53.672
in durham in various apartment
complexes throughout the city

01:18:55.470 --> 01:18:57.470
and on the edges of the tea.

01:18:58.891 --> 01:19:01.547
It -- edges of the city.
It has been a good ride.

01:19:02.156 --> 01:19:04.156
I'm happy to support green

01:19:04.297 --> 01:19:06.953
fire's efforts here with this
high-end hotel.

01:19:08.562 --> 01:19:10.562
Certainly, at the college that

01:19:12.531 --> 01:19:15.531
teaches and offers academic
degree programs in culinary arts

01:19:17.141 --> 01:19:20.109
and culinary arts management,
this project seems to be a good

01:19:20.578 --> 01:19:22.578
fit for current students as well

01:19:22.703 --> 01:19:24.703
as students who are on the verge

01:19:26.470 --> 01:19:29.470
of graduating and seeking
positions in hospitality and

01:19:30.719 --> 01:19:32.719
culinary arts field.

01:19:34.188 --> 01:19:36.188
We see this project as a night

01:19:36.359 --> 01:19:38.359
alignment with those goals.

01:19:39.125 --> 01:19:41.125
So thank you for your time and

01:19:44.469 --> 01:19:46.469
listening to my support.

01:19:46.906 --> 01:19:48.641
[Beep]
[Beep].

01:19:51.310 --> 01:19:52.562
>> good evening, Mr. Mayor and
council.

01:19:55.469 --> 01:19:57.469
I am seth gross.

01:19:57.906 --> 01:20:00.780
currently an owner of a wine
business in durham.

01:20:01.219 --> 01:20:03.219
I have always had a passion of

01:20:03.281 --> 01:20:05.891
be a part of durham rising.
I wanted to open a business in

01:20:05.891 --> 01:20:07.891
downtown.

01:20:08.422 --> 01:20:11.250
When I saw it present itself, I
reached out to green fire

01:20:11.516 --> 01:20:13.531
development, came to them with
my idea.

01:20:14.891 --> 01:20:17.391
They met me with absolute
professionalism, courtesy,
respect.

01:20:18.469 --> 01:20:20.469
they approached the entire thing

01:20:20.500 --> 01:20:22.500
as business partners, much more

01:20:24.469 --> 01:20:27.203
than sort of landlord and tenant
negotiation.
Every challenge we had, we

01:20:27.609 --> 01:20:29.609
worked together to overcome.

01:20:30.470 --> 01:20:32.470
As a result, I'm very happy to

01:20:33.160 --> 01:20:35.160
say I have signed a lease to

01:20:37.453 --> 01:20:38.812
open bull city burger on parish
street.

01:20:40.250 --> 01:20:42.953
I'm here as a character
reference for the organization

01:20:44.156 --> 01:20:46.125
and they're great to deal with.
Second I want to offer my

01:20:46.953 --> 01:20:48.953
support to the hotel.

01:20:51.125 --> 01:20:53.969
I'm a big believer in the whole
expression when the tide rises

01:20:54.500 --> 01:20:57.203
all the boats go up.
This is a really big boat.

01:20:58.375 --> 01:21:00.375
When this goes in the water,

01:21:00.469 --> 01:21:02.469
restaurants like mine, I'm just

01:21:02.578 --> 01:21:04.578
one small piece of durham

01:21:06.281 --> 01:21:07.578
rising, we're all going to go
up.

01:21:08.844 --> 01:21:10.250
I think the hotel is great for
the city.

01:21:11.141 --> 01:21:13.516
For all the businesses that
currently exist and what is

01:21:15.859 --> 01:21:18.453
coming, it will have an enormous
impact.
Thank you council.

01:21:24.766 --> 01:21:26.766
>> good evening, I am john

01:21:27.328 --> 01:21:29.734
compton.
Executive director of durham.

01:21:31.234 --> 01:21:33.469
I want to bring back a most
visible landmark in downtown to

01:21:34.203 --> 01:21:36.906
the former glory.
It will provide a great

01:21:37.266 --> 01:21:39.266
incentive for things needed to

01:21:39.484 --> 01:21:41.547
be done downtown, especially in
the center city.

01:21:42.375 --> 01:21:44.375
I want to point out it will

01:21:45.578 --> 01:21:47.656
provide a real impetus to the
surrounding neighborhood.

01:21:48.422 --> 01:21:51.312
Durham is working a lot these
days, especially in northeast
central durham.

01:21:53.156 --> 01:21:55.156
The jobs that this project will

01:21:58.500 --> 01:22:00.500
provide is going to be a real

01:22:02.594 --> 01:22:04.594
boon to those in the surrounding
neighborhood where people can

01:22:06.310 --> 01:22:08.203
get to work and back home.
Providing stable jobs and

01:22:08.906 --> 01:22:11.172
provide an incentive and
increased opportunities to get

01:22:11.578 --> 01:22:14.250
properties rehabbed to the level
they need to be rehabbed in the

01:22:17.719 --> 01:22:19.484
surrounding neighborhoods as
well.

01:22:22.281 --> 01:22:24.281
so people can get the loans they

01:22:24.781 --> 01:22:27.484
need to purchase homes.
Thank you.

01:22:31.500 --> 01:22:33.500
>> you're welcome.

01:22:34.531 --> 01:22:36.531
>> yes, Mr. Mayor.

01:22:36.891 --> 01:22:39.641
I really see this as another
good opportunity.
>> just for the record, could

01:22:41.000 --> 01:22:43.000
you state your name, please.

01:22:45.470 --> 01:22:47.469
>> yes, my name is Ms. Peterson,
victoria peterson.

01:22:49.281 --> 01:22:51.281
I am here wearing two hats.

01:22:52.688 --> 01:22:54.406
I run a nonprofit called tri
triangle services.

01:22:56.250 --> 01:22:58.156
And we launched our own company
called fiber to the world.

01:22:59.156 --> 01:23:00.625
I feel this is a good
opportunity.

01:23:02.516 --> 01:23:05.219
I'm hoping green fire will put
cable or either fiber optic in

01:23:06.891 --> 01:23:08.891
that building to bring

01:23:10.703 --> 01:23:13.310
high-speed internet in that
building for that client.

01:23:13.641 --> 01:23:15.438
If you do that, that will
generate jobs.

01:23:16.109 --> 01:23:18.109
A program that this city council

01:23:19.310 --> 01:23:21.310
supports and has supported since

01:23:21.203 --> 01:23:24.109
our workforce development grant
as well as Mr. Kevin digs.

01:23:25.406 --> 01:23:26.875
these are the kind of
practicals,

01:23:28.470 --> 01:23:29.578
practical
ojects

01:23:30.688 --> 01:23:33.688
we need, Mr. Mayor, in this
community to help our young men

01:23:34.484 --> 01:23:37.281
and women after they get the job
training that the tack payers

01:23:38.484 --> 01:23:40.484
are paying -- taxpayers are

01:23:41.940 --> 01:23:43.940
paying for year and in year out,

01:23:43.594 --> 01:23:45.594
to put the skills to practice to

01:23:45.703 --> 01:23:47.203
bring about ongoing jobs for
this community.

01:23:48.875 --> 01:23:50.875
Mr. Mayor, as we continue -- 

01:23:54.547 --> 01:23:56.547
excuse me, to look at businesses

01:23:58.344 --> 01:24:00.516
to bring fiber to each business
in this community downtown

01:24:01.641 --> 01:24:03.641
durham, I hope that we will also

01:24:04.953 --> 01:24:06.953
branch out and look at bringing

01:24:08.484 --> 01:24:09.922
fiber to every home in this
community.

01:24:10.562 --> 01:24:12.562
I think time is out.

01:24:13.328 --> 01:24:16.266
I think durham needs to truly
move into the 21st century.

01:24:17.156 --> 01:24:19.156
Fiber optic is one of the

01:24:20.469 --> 01:24:22.469
biggest things going on in this

01:24:23.266 --> 01:24:24.797
community, excuse me, in this
country.

01:24:25.562 --> 01:24:27.562
High-speed internet.

01:24:28.844 --> 01:24:30.844
i'm hoping, carl, that green

01:24:31.406 --> 01:24:34.109
fire will also consider making
sure that our local young men

01:24:35.953 --> 01:24:38.719
and women really are going to
get those jobs and whoever you

01:24:40.219 --> 01:24:42.219
are going to subcontract out,

01:24:42.719 --> 01:24:45.250
maybe they cannot be the general
contractor, but you still have

01:24:47.359 --> 01:24:49.359
your second and your third tier.

01:24:52.156 --> 01:24:54.156
I'm sure Mr. Ali will make sure

01:24:56.703 --> 01:24:58.703
that durham residents, our small
minority businesses as well as

01:24:59.734 --> 01:25:02.266
cora will be able to tap into
some of the small jobs that will

01:25:02.766 --> 01:25:05.672
be offered here.
Durham has to move to the next

01:25:06.160 --> 01:25:08.516
level in this community.
the only way that we are really

01:25:09.375 --> 01:25:12.312
going to be able to help our
young men and women is to take

01:25:14.470 --> 01:25:16.188
the tax dollars that many
homeowners have in this

01:25:16.625 --> 01:25:18.422
community and really start
investing back.

01:25:20.160 --> 01:25:22.160
Not just in the city but all

01:25:22.188 --> 01:25:24.188
through -- excuse me, not just

01:25:24.766 --> 01:25:27.703
downtown durham but all through
this city to try to help our

01:25:28.000 --> 01:25:30.000
young men and women get

01:25:30.172 --> 01:25:32.172
employment in this community.

01:25:34.234 --> 01:25:37.109
So I say fiber once, fiber
twice, fiber now, fiber to the

01:25:38.547 --> 01:25:40.781
businesses as well as Mr. Mayor,
fiber to the home in durham,

01:25:40.781 --> 01:25:42.781
north carolina.

01:25:43.172 --> 01:25:46.109
Thank you very much.
[Beep].
>> you're welcome.
>> this is a public hearing.

01:25:46.922 --> 01:25:49.484
I know people are signed up.
is there anyone else that has

01:25:50.391 --> 01:25:52.391
not had an opportunity to speak,

01:25:52.422 --> 01:25:54.422
this being a public hearing that

01:25:55.125 --> 01:25:56.531
would like to speak?
Anyone?

01:25:58.734 --> 01:26:01.422
If you don't mind, come to the
podium.
While he's coming, is there

01:26:02.297 --> 01:26:04.969
anyone else in the public
present that would like to speak

01:26:05.797 --> 01:26:07.641
on this item that has not had an
opportunity to?

01:26:08.310 --> 01:26:10.609
Again, would you come to the
podium, if you don't mind, if

01:26:10.906 --> 01:26:13.875
you plan to speak.
State your name and address.

01:26:16.547 --> 01:26:18.547
And if you would sign a card.

01:26:24.281 --> 01:26:26.391
>> I am mark winski.
Thank you, Mr. Mayor for the

01:26:26.391 --> 01:26:29.156
opportunity to speak.
I would like to raise a couple

01:26:29.484 --> 01:26:31.484
of questions and comments.

01:26:31.531 --> 01:26:33.531
i'm not opposed to this project,

01:26:34.828 --> 01:26:37.359
by any means, I think it is
quite an excellent idea.

01:26:38.234 --> 01:26:40.469
The first one, I heard about
living wage being provided for

01:26:40.875 --> 01:26:42.875
the employees.

01:26:42.938 --> 01:26:44.938
I would hope that it is a high

01:26:45.547 --> 01:26:47.547
percentage of the employees.

01:26:50.344 --> 01:26:52.344
Because we don't need a mall

01:26:54.160 --> 01:26:56.160
percentage making a living wage

01:26:58.812 --> 01:27:01.656
and the rest struggling with a
low wage that doesn't add to the

01:27:03.188 --> 01:27:05.125
people in the durham city itself
or the local area.

01:27:05.734 --> 01:27:08.125
The other thing is that I
commend the taking of this

01:27:08.703 --> 01:27:10.703
building and the practicals that

01:27:10.938 --> 01:27:13.797
you have worked with this in
past.
you are taking the building, not

01:27:15.375 --> 01:27:16.766
destroying it, reusing this
building.

01:27:18.310 --> 01:27:20.266
It has historic value.
That is a great thing.

01:27:21.781 --> 01:27:23.781
I hope the historic fabric of

01:27:25.453 --> 01:27:27.844
the interior of the building
will be maintained.

01:27:29.484 --> 01:27:32.312
As a local
artist, I hope when

01:27:33.891 --> 01:27:35.891
it comes time to decorate the

01:27:38.391 --> 01:27:40.391
building, you will approach

01:27:41.359 --> 01:27:44.203
north carolina artists' work
decorating, rooms, prints,

01:27:45.266 --> 01:27:47.266
photographs, paintings,

01:27:47.938 --> 01:27:49.938
sculptures, whatever you have.

01:27:54.469 --> 01:27:56.469
lastly, with regard to the way

01:27:57.312 --> 01:27:59.470
the building will be
refurbishes, what about green

01:27:59.453 --> 01:28:01.688
energy programs, any
conservation efforts taken with

01:28:02.578 --> 01:28:05.578
regard to how the building is
going to be refurbishes, what

01:28:06.281 --> 01:28:08.281
steps will be taken in terms of

01:28:08.391 --> 01:28:11.328
energy conservation in terms of
water, electricity, heat.

01:28:12.125 --> 01:28:15.940
I think in this time, day and
age in terms of saving money,

01:28:15.969 --> 01:28:17.969
but also in terms of the impact

01:28:18.000 --> 01:28:20.562
in terms of our environment,
that this is pretty important

01:28:20.734 --> 01:28:22.734
stuff to be considered.

01:28:22.875 --> 01:28:25.344
Thank you very much.
Thank you city council.

01:28:37.953 --> 01:28:39.953
>> you're quite welcome.

01:28:42.594 --> 01:28:45.620
>> I am hillary hon ig.
I wasn't planning to speak, but

01:28:46.219 --> 01:28:48.625
I have a question.
I am an advocate.

01:28:50.469 --> 01:28:53.469
What is the backup plan should
the project fail.

01:28:58.620 --> 01:28:59.531
i want to hear that there is an
en

01:29:00.906 --> 01:29:03.703
ensur an to the taxpayer that
the city is protected.

01:29:04.516 --> 01:29:07.281
I put my children through the
school system is struggling.

01:29:08.109 --> 01:29:09.484
Duke is a nonprofit and money is
tight.

01:29:10.609 --> 01:29:13.484
So the project is great.
I just haven't heard how the

01:29:14.391 --> 01:29:16.312
city is protected.
That's it.

01:29:16.453 --> 01:29:18.453
thank you very much.

01:29:18.797 --> 01:29:20.797
>> you're quite welcome.

01:29:21.891 --> 01:29:23.891
Before we get back to the

01:29:26.203 --> 01:29:28.859
council, that might come up
again.
>> I am chuck watts.

01:29:29.500 --> 01:29:31.500
I will be brief.

01:29:34.469 --> 01:29:36.469
I am here representing the

01:29:42.109 --> 01:29:43.812
embassy -- the parish street
advocacy group.

01:29:45.250 --> 01:29:48.160
We have been supporting of this
project since it first began, as

01:29:48.160 --> 01:29:50.160
we discussed.

01:29:50.219 --> 01:29:52.891
Our support with respect that to
continues.
And we look forward to this

01:29:53.922 --> 01:29:56.297
project moving forward.
Thank you.

01:29:56.328 --> 01:29:58.328
>> you're welcome.

01:29:58.656 --> 01:30:01.620
>> let me ask one more time, is
there anyone else that wants to

01:30:01.859 --> 01:30:03.859
speak on this item that has not

01:30:04.172 --> 01:30:07.172
had an opportunity to speak?
That being the case, let the

01:30:08.297 --> 01:30:10.310
record reflect that no one else
asked to speak.

01:30:10.406 --> 01:30:12.750
I will close the public hearing.
The matter is back before the

01:30:12.750 --> 01:30:14.750
council.

01:30:15.219 --> 01:30:17.219
I would like to ask just a few

01:30:18.422 --> 01:30:20.422
questions, then some of them

01:30:23.391 --> 01:30:25.781
might be heresy depending on
what it touches.

01:30:26.594 --> 01:30:29.562
First of all, I don't have any
question in my mind that we need

01:30:30.594 --> 01:30:31.953
more hotel rooms in downtown
durham.

01:30:33.620 --> 01:30:35.859
I support the convention center
and make it more attractive for

01:30:37.620 --> 01:30:39.234
persons who want to come into
the downtown area.

01:30:44.969 --> 01:30:47.969
i don't have a question about
that I want to and the question

01:30:49.160 --> 01:30:51.160
of develop thors.

01:30:52.780 --> 01:30:54.281
It might seem left field, but I
like to have those questions

01:30:54.281 --> 01:30:56.281
asked.

01:31:03.859 --> 01:31:05.859
whatever the developer is.

01:31:07.656 --> 01:31:09.656
Typically for the hotel that you

01:31:09.969 --> 01:31:12.766
are contemplating, what
typically is the cost for a

01:31:12.938 --> 01:31:15.500
hotel like that?
>> cost?
>> yeah.

01:31:16.780 --> 01:31:18.780
>> very market-driven.

01:31:18.844 --> 01:31:21.470
Hotel like that, based on the
competitive set is generally

01:31:21.547 --> 01:31:23.609
where we're at, generally a
little higher.

01:31:27.750 --> 01:31:29.891
But generally, somewhere around
$190, in this market.

01:31:30.484 --> 01:31:32.359
>> I didn't ask the right
question.
To construct.

01:31:32.781 --> 01:31:35.766
If you are talking about a
luxury hotel of what you are

01:31:36.125 --> 01:31:39.940
speaking about, typically what
are you talking about?

01:31:39.391 --> 01:31:42.328
>> it ranges.
it is hard to give an exact
number.

01:31:42.328 --> 01:31:44.328
You have the context.

01:31:45.406 --> 01:31:47.406
This being a historic asset in a

01:31:47.766 --> 01:31:49.766
city center environment, so you

01:31:50.844 --> 01:31:52.844
typically, it is probably going

01:31:54.672 --> 01:31:56.672
to be around 208,000 a key,

01:31:57.470 --> 01:31:58.984
maybe 300,000 a key.
It varies.

01:32:00.219 --> 01:32:02.281
It obviously depends on the
condition of the building, what

01:32:02.891 --> 01:32:04.891
you are doing with it.

01:32:05.160 --> 01:32:07.922
Not to sidetrack too much, but
we are obviously keeping the

01:32:09.391 --> 01:32:11.391
historic elements of the

01:32:12.266 --> 01:32:14.266
property, not only externally

01:32:14.328 --> 01:32:16.938
but painstakingly internally,
that helps drive up cost when

01:32:17.940 --> 01:32:19.940
you do that.

01:32:19.797 --> 01:32:21.797
>> you're saying if we were to

01:32:26.780 --> 01:32:28.780
construct from new, a hotel of

01:32:30.780 --> 01:32:32.780
this size, we're talking about

01:32:33.406 --> 01:32:35.750
200 $300,000 per room?
>> contextual.

01:32:37.470 --> 01:32:39.281
It is hard to answer that.
But there is a big range,

01:32:39.281 --> 01:32:41.281
really.

01:32:42.281 --> 01:32:43.719
It depends on amenities and what
features.

01:32:45.625 --> 01:32:48.219
i mean so many things that go
into that..

01:32:50.125 --> 01:32:52.125
You could have a limited service

01:32:53.859 --> 01:32:55.859
in a boutique hotel with no

01:32:56.266 --> 01:32:59.310
amenities to speak of as far as
spa restaurant and come in much

01:32:59.297 --> 01:33:02.109
lower in the spectrum.
>> I know what makes the deal

01:33:02.781 --> 01:33:05.672
work for you is the fact you are
working for incentives from the

01:33:06.641 --> 01:33:08.641
city and county.

01:33:09.984 --> 01:33:11.984
I understand that.

01:33:13.188 --> 01:33:15.188
And the historic tax breaks you

01:33:16.470 --> 01:33:18.470
get all this goes into your

01:33:21.688 --> 01:33:23.531
formula that you have here for
$52 million project.

01:33:25.620 --> 01:33:28.620
i just look at the rooms, the
room rate, construction, that is

01:33:33.906 --> 01:33:36.547
about $320,000 per room for
165-room luxury hotel you have

01:33:38.406 --> 01:33:40.312
here plus swimming pool and that
you got.

01:33:43.141 --> 01:33:45.141
That is what it equates to.

01:33:46.422 --> 01:33:48.578
have you been to the jack tar
hotel?
>> I have seen pictures.

01:33:50.470 --> 01:33:51.891
>> do you know where it was?
>> next-door.

01:33:52.940 --> 01:33:53.750
>> do you know what they did
with it?

01:33:56.359 --> 01:33:58.594
>> they took it down.
Tragically.
>> they took it down.

01:34:00.940 --> 01:34:02.859
They blew it up.
Blew it up.

01:34:04.328 --> 01:34:06.328
This is where the heresy comes

01:34:06.766 --> 01:34:08.766
in for all those historic tax

01:34:10.141 --> 01:34:12.703
lovers and preservationists, I
understand that.

01:34:15.219 --> 01:34:18.219
Was any consideration given to
taking it down and building it
new.

01:34:18.609 --> 01:34:20.688
>> designed by the same
architect of the empire state

01:34:20.688 --> 01:34:22.984
building.
You know the history.

01:34:23.859 --> 01:34:25.859
Even if we contemplated I am

01:34:26.750 --> 01:34:28.188
sure the council and the
citizens -- 

01:34:29.922 --> 01:34:32.828
>> I'm asking the question.
Because obviously what we have

01:34:36.328 --> 01:34:38.672
been told footwork -- told, if
this doesn't happen, there is no

01:34:38.672 --> 01:34:40.906
other use.
Though other takers.

01:34:42.203 --> 01:34:44.203
It seems like this is almost the

01:34:44.641 --> 01:34:47.160
last straw if we don't go with
this project that we're going to

01:34:47.906 --> 01:34:50.547
have a big white elephant
sitting there, as historic as it

01:34:50.547 --> 01:34:53.141
May be.
That is why I ask the question.

01:34:53.453 --> 01:34:55.984
I think it is a fair question
because you are coming to the

01:34:56.250 --> 01:34:58.281
public asking for dollars.
>> absolutely.

01:34:58.281 --> 01:35:00.281
>> I don't think anybody

01:35:01.359 --> 01:35:04.310
questions whether we need more
rooms.
It might be some question

01:35:05.828 --> 01:35:07.828
whether we need a boutique

01:35:08.500 --> 01:35:09.859
hotelor not, but we need the
rooms.

01:35:11.141 --> 01:35:13.141
Was it ever contemplated tearing

01:35:16.703 --> 01:35:18.703
it down and starting anew given

01:35:18.844 --> 01:35:21.281
the course you're talking about.
>> it was not for the reasons

01:35:21.609 --> 01:35:23.844
that we didn't say it was
possible.
>> it was possible because

01:35:24.641 --> 01:35:26.875
people didn't want it torn down,
you couldn't do it?

01:35:27.375 --> 01:35:30.125
>> one, that doesn't fit with
our value system.

01:35:30.812 --> 01:35:32.891
Two, I think people would
prevent that from happening.

01:35:34.125 --> 01:35:36.125
I think it is an exercise, but

01:35:36.859 --> 01:35:39.359
we know that taking a small
building down costs several

01:35:41.620 --> 01:35:43.594
hundred thousand.
Logistically we're going to deal

01:35:44.594 --> 01:35:47.406
with a building of that size and
replace it in that footprint, we

01:35:47.406 --> 01:35:49.406
have knowledge and understanding

01:35:49.875 --> 01:35:51.875
of it on a much smaller scale,

01:35:52.172 --> 01:35:53.641
that cost is pretty
considerable.

01:35:54.547 --> 01:35:56.547
>> well, I know and I think you

01:35:57.406 --> 01:35:59.719
know that when you get into
renovations you don't know what

01:35:59.984 --> 01:36:02.578
you're going to get into.
We have a price here and I'm

01:36:02.984 --> 01:36:04.984
sure you have gone through all

01:36:05.470 --> 01:36:07.940
the details, typically a
renovation project tend to be

01:36:08.359 --> 01:36:10.359
higher than what you expect them

01:36:10.531 --> 01:36:12.484
whether you renovate streets or
renovating buildings.

01:36:15.469 --> 01:36:18.328
Certainly this building, in my
opinion, poses a lot of tasks in

01:36:19.766 --> 01:36:22.172
terms of what you are proposing.
I had the ask the question.

01:36:23.375 --> 01:36:26.203
You are using public dollars and
my question is what other

01:36:26.438 --> 01:36:29.406
alternatives have you
considered, other than trying to

01:36:30.516 --> 01:36:32.516
restore the hotel?

01:36:33.141 --> 01:36:35.141
>> what alternatives we consider

01:36:36.156 --> 01:36:38.156
from keeping the building intact

01:36:38.625 --> 01:36:40.219
is what are the other uses for
it.

01:36:41.470 --> 01:36:43.656
From the potential of office,
residential, what is the full

01:36:44.620 --> 01:36:46.620
spectrum of uses for the

01:36:46.859 --> 01:36:48.859
building as-is.

01:36:49.734 --> 01:36:51.620
One of the potential around
that?

01:36:52.859 --> 01:36:55.703
each one has their own inherent
problems, costs and challenges.

01:36:56.203 --> 01:36:58.203
When you deal with an asset of

01:36:59.780 --> 01:37:01.969
that type, you have life safety
issues, obviously code changes,

01:37:03.781 --> 01:37:06.250
which is why most of the
building is vacant today.

01:37:06.406 --> 01:37:08.641
It is a challenge in building
for all of those types.

01:37:10.656 --> 01:37:11.984
What makes it work so well as a
hotel.

01:37:12.812 --> 01:37:15.484
one is the parking issue can be
dealt with in a different way as

01:37:18.620 --> 01:37:20.620
far as utilizing valet parking,

01:37:21.188 --> 01:37:23.156
which help its be a higher end
hotel.

01:37:24.422 --> 01:37:27.297
Certain things that drove us to
that.
It is really what the building

01:37:28.969 --> 01:37:31.531
spoke to, what the highest and
best use was of the building.

01:37:33.703 --> 01:37:35.703
we had multiple people look at

01:37:35.938 --> 01:37:37.578
this, multiple experts in the
business.

01:37:38.812 --> 01:37:41.516
We had multiple feasibility
studies and challenge from the

01:37:42.780 --> 01:37:44.470
luxury-end hotel and what other
uses can there be.

01:37:46.812 --> 01:37:48.812
We have owned the building in a

01:37:49.281 --> 01:37:51.281
number of years and move forward

01:37:51.453 --> 01:37:54.188
in an appropriate way to respect
the heritage and what is
important for the city.

01:37:55.594 --> 01:37:58.422
This is the highest and best use
to generate the most tax

01:37:59.000 --> 01:38:01.000
dollars, biggest impact to the

01:38:01.438 --> 01:38:02.859
city as opposed to any other
alternative.

01:38:03.500 --> 01:38:05.500
Maybe those alternatives can

01:38:13.484 --> 01:38:16.109
work in some form, but they're a
lot riskier.

01:38:16.641 --> 01:38:18.641
>> someone raised the question

01:38:19.219 --> 01:38:20.984
of have we done the cash flow
appropriately and consideration

01:38:21.578 --> 01:38:24.160
of the tax dollars.
Talking about net new tax

01:38:26.594 --> 01:38:28.859
dollars with this project; is
that correct?

01:38:29.297 --> 01:38:31.297
I wanted to clarify that.

01:38:31.688 --> 01:38:33.688
>> yes, mayor, that's correct.

01:38:33.969 --> 01:38:35.297
>> I will turn to councilman
ali.

01:38:38.500 --> 01:38:41.234
He had questions.
Councilman Catotti then
Councilman Brown.

01:38:41.844 --> 01:38:43.844
>> thank you, Mr. Mayor.

01:38:44.578 --> 01:38:46.578
Mr. Boyd, I want to come back to

01:38:48.641 --> 01:38:51.250
the cash flows on this project.
We're not having the complete

01:38:51.641 --> 01:38:53.641
benefit of the recovery zone

01:38:53.953 --> 01:38:56.780
bonds that were done by the
obama administration for the

01:38:56.625 --> 01:38:58.953
build america bonds, that is
something this group will have

01:39:00.922 --> 01:39:02.922
to go back and get done by the

01:39:03.940 --> 01:39:05.940
government commission?

01:39:05.562 --> 01:39:08.234
>> technically they're making
use of recovery zone facility

01:39:08.828 --> 01:39:10.828
bonds, which are different than

01:39:12.620 --> 01:39:14.797
build america bonds.
They're tax-exempt debt that the

01:39:15.703 --> 01:39:17.734
developer will have access to,
but they're fully responsible

01:39:20.578 --> 01:39:22.578
for repayment of the debt.

01:39:23.780 --> 01:39:25.312
And they have one additional
approval from the local

01:39:25.312 --> 01:39:28.109
government commission before
they'll be authorized to issue
that debt.

01:39:29.312 --> 01:39:31.484
>> and that approval from the
local government commission we

01:39:32.453 --> 01:39:34.453
heard tonight, does that put the

01:39:34.859 --> 01:39:36.250
city at any risk about this
project?

01:39:37.656 --> 01:39:40.656
>> no, the city does not have
any connection to the issuance
of the debt at all.

01:39:41.969 --> 01:39:43.969
>> you are saying the debt on

01:39:44.625 --> 01:39:46.625
the recoveries facilities bonds

01:39:48.172 --> 01:39:51.310
are -- how long, 20 years?
>> the current financing is 22

01:39:51.375 --> 01:39:54.266
years with final maturity.
>> what is the annual payment or

01:39:56.281 --> 01:39:58.281
bond payment on this 20-year

01:40:01.781 --> 01:40:03.109
annual -- the annuity payment on
it?

01:40:06.188 --> 01:40:08.125
>> they're estimates at 8.5
repayment rate.

01:40:12.422 --> 01:40:14.422
It is 2.5, 2.6 million a year.

01:40:14.531 --> 01:40:17.359
>> year 20 or 22 would be paid
out, our debt would be due and

01:40:20.438 --> 01:40:22.875
that would be 1.8 million
$1.8 million.

01:40:23.500 --> 01:40:26.438
They won't have the recovery
bond and can use the proceeds to

01:40:27.609 --> 01:40:28.938
pay us back and get out of the
deal?

01:40:32.172 --> 01:40:33.641
>> that is the construct we
created, yes.

01:40:34.719 --> 01:40:36.719
>> recognize the city manager.

01:40:36.812 --> 01:40:38.656
>> if I could, I want to follow
up on the comments.

01:40:40.250 --> 01:40:41.625
i think it is an important
point.

01:40:43.594 --> 01:40:46.359
Not only the city is not
securing those bonds, the county

01:40:47.266 --> 01:40:49.266
is not, state is not, the

01:40:49.656 --> 01:40:51.891
federal government is not.
So any reference that somehow

01:40:52.969 --> 01:40:54.969
the utilization of the recovery

01:40:55.438 --> 01:40:57.438
zone $25 million bond was

01:40:57.766 --> 01:41:00.531
somehow an incentive or subsidy,
i don't think would be an
accurate statement.

01:41:00.531 --> 01:41:02.531
>> that is correct.

01:41:02.906 --> 01:41:04.906
The federal government has just

01:41:05.609 --> 01:41:08.250
allowed private developers in
these particular instance access

01:41:08.250 --> 01:41:10.250
to the market.

01:41:11.719 --> 01:41:13.688
>> they have to secure private
investors to buy the bonds.

01:41:15.940 --> 01:41:18.940
There is no government-backing
at any level on those bonds.

01:41:18.891 --> 01:41:20.891
>> just to follow up.

01:41:21.562 --> 01:41:23.500
so those bonds when they go to
local government commission the

01:41:24.203 --> 01:41:26.969
support of the council and other
works they're doing, they have

01:41:28.641 --> 01:41:30.641
to present the entire budget to

01:41:31.609 --> 01:41:33.310
get the approval.
>> correct.

01:41:34.310 --> 01:41:36.344
The commission wants to see the
capital stack of where all the

01:41:37.172 --> 01:41:39.172
funding is coming from for
construction of the project and

01:41:39.609 --> 01:41:41.609
they have an additional hurdle

01:41:42.160 --> 01:41:44.160
in that they have to sell the

01:41:44.547 --> 01:41:47.312
bond to the investor market.
>> hour exposure doesn't come

01:41:47.750 --> 01:41:50.547
until after we get a certificate
of occupancy?
>> correct.

01:41:50.547 --> 01:41:52.547
>> no payments from the city

01:41:53.391 --> 01:41:55.797
until there is a co.
That is independent of the

01:41:56.594 --> 01:41:58.594
facility bond issues.

01:41:59.469 --> 01:42:02.940
>> so really, on the risk chart,
we're low to moderate risk

01:42:02.328 --> 01:42:04.328
because the project would have

01:42:04.938 --> 01:42:06.938
to be moved ahead and ready for

01:42:07.780 --> 01:42:09.780
occupancy to see a patron before

01:42:09.906 --> 01:42:11.672
our money would go into the pot?
>> correct.

01:42:12.469 --> 01:42:14.609
If they did not get the
approvals for the debt or

01:42:14.938 --> 01:42:17.688
weren't able to sell the debt,
there would be no obligation to

01:42:18.109 --> 01:42:20.750
the city.
>> and so meaning there would be

01:42:22.516 --> 01:42:25.281
no risk, no money, no project,
that is how it works?
>> right.

01:42:29.562 --> 01:42:31.562
>> thank you very much.

01:42:35.328 --> 01:42:36.859
>> Councilwoman Catotti and then
Councilman Brown.

01:42:38.141 --> 01:42:39.734
>> the question was raised about
liveable wage.

01:42:40.875 --> 01:42:42.875
What is your commitment to

01:42:43.578 --> 01:42:45.578
provide liveable wage,

01:42:46.281 --> 01:42:49.109
particularly on the permit wage
you plan, perhaps by category.

01:42:53.780 --> 01:42:55.780
>> we don't have it by category.

01:42:55.156 --> 01:42:57.156
We have communicated our goals

01:42:57.219 --> 01:42:59.984
there and have a significant
portion about above liveable
wage.

01:43:00.516 --> 01:43:02.516
You know, throughout the

01:43:03.219 --> 01:43:05.219
process, we will have some

01:43:05.266 --> 01:43:07.266
higher skill positions in

01:43:08.469 --> 01:43:10.469
management, supervisory roles.

01:43:10.859 --> 01:43:13.940
Front-desk related roles.
Spa, things like that.

01:43:15.266 --> 01:43:17.906
While it is a hotel project that
traditionally has

01:43:18.000 --> 01:43:20.000
entry-level-type jobs, because

01:43:20.547 --> 01:43:23.406
of the nature of the project
being more of a luxury property,

01:43:24.780 --> 01:43:26.422
we will have opportunities
throughout the property to have

01:43:27.812 --> 01:43:29.922
a higher percentage of liveable
wages than a standard hotel

01:43:29.922 --> 01:43:31.922
would.

01:43:33.125 --> 01:43:35.125
We need trained employees that

01:43:35.953 --> 01:43:38.625
have the higher commitment of
service and obviously you have

01:43:40.703 --> 01:43:43.469
to pay for that.
>> are you finished?

01:43:45.000 --> 01:43:47.000
>> recognize Councilman Brown.

01:43:50.310 --> 01:43:52.310
>> thank you, Mr. Mayor.

01:44:02.656 --> 01:44:04.750
Mr. Boyd, david, I have another
question.

01:44:06.594 --> 01:44:09.516
similar to my colleague, farad
ali.
It is a basic question.

01:44:10.625 --> 01:44:12.625
I'm looking at the spreadsheet

01:44:15.234 --> 01:44:18.310
here, which ends fiscal year
2031, according to the analysis

01:44:19.734 --> 01:44:21.734
that we -- that you have

01:44:23.844 --> 01:44:25.844
presented this evening this loan

01:44:26.781 --> 01:44:28.781
would be made in 2013 and go for

01:44:30.781 --> 01:44:32.781
22 years with no payment.

01:44:33.984 --> 01:44:35.984
Where are the numbers that

01:44:36.281 --> 01:44:38.281
demonstrate green fire in the

01:44:38.422 --> 01:44:40.422
year 2035 would be able to come

01:44:44.310 --> 01:44:45.453
up with the $1.8 million loan
repayment?

01:44:47.000 --> 01:44:49.000
>> I think as I was attempting

01:44:50.422 --> 01:44:53.000
it explain to councilmember ali,
during each of the years leading

01:44:54.797 --> 01:44:56.797
up to that point, they would be

01:44:58.609 --> 01:45:00.609
making debt payments of roughly

01:45:00.734 --> 01:45:03.703
2.5 million a year.
At the time that their

01:45:04.470 --> 01:45:06.938
obligation to those debt
payments ended, they would

01:45:08.578 --> 01:45:10.578
replace that with a debt payment

01:45:11.922 --> 01:45:14.625
of 1.8 roughly million dollars
to the city.

01:45:14.750 --> 01:45:17.156
Ostensibly if they're cash
flowing the debt payments in the

01:45:18.940 --> 01:45:20.453
final year of maturity on the
debt, they can make the payment

01:45:21.156 --> 01:45:23.156
to us at a lower amount.

01:45:24.625 --> 01:45:26.625
There is not -- to your point -- 

01:45:27.000 --> 01:45:29.000
any of the cash flow for the

01:45:30.531 --> 01:45:32.000
developer presented on this
spreadsheet.

01:45:38.906 --> 01:45:41.375
>> right.
>> just the assumption if they

01:45:41.781 --> 01:45:44.484
had been making their debt
payment for the past 22 years,

01:45:45.844 --> 01:45:47.844
that is greater than the amount

01:45:48.453 --> 01:45:50.656
of the repayment of our loan,
they had sufficient cash flow to

01:45:52.156 --> 01:45:54.156
make the debt payment and the

01:45:56.940 --> 01:45:58.940
subsequent year they would have

01:45:58.562 --> 01:45:59.969
cash flow to make that last
payment.

01:46:01.266 --> 01:46:04.940
>> that is an assumption, I
asked the question because it is

01:46:06.109 --> 01:46:08.766
not on the spread shoot
sheet before
us.

01:46:14.438 --> 01:46:16.438
it only going to 2031.

01:46:18.484 --> 01:46:20.470
>> we have numbers to 2033, not
sure what happened.

01:46:20.609 --> 01:46:23.281
>> the second question is
regarding transferrable rights,

01:46:25.160 --> 01:46:27.594
that is to say if there is an
unfortunate foreclosure here, I

01:46:28.953 --> 01:46:30.953
think someone in the public

01:46:36.000 --> 01:46:38.000
raised this issue, what happens

01:46:39.266 --> 01:46:41.406
to the city deal that is in
process now?

01:46:43.406 --> 01:46:45.609
Would they be -- if a new
company would take it over,

01:46:47.141 --> 01:46:49.781
would they be allowed to assume
and receive the same deal that

01:46:52.281 --> 01:46:53.641
green fire is receiving at this
point?

01:46:55.484 --> 01:46:58.484
>> generally and I May need to
ask the city attorney to help
draft the document.

01:46:59.422 --> 01:47:01.422
I believe the agreement, as it

01:47:02.859 --> 01:47:05.859
is, is a signable -- 
>> there is issues relating to

01:47:06.531 --> 01:47:08.531
the signability and separate

01:47:09.594 --> 01:47:11.906
issue if there were any kind of
foreclosure or bankruptcy.

01:47:12.620 --> 01:47:14.620
>> fred lamar with the city
attorney's office.

01:47:16.203 --> 01:47:18.609
There are provisions in the
contract by which a lender could

01:47:20.906 --> 01:47:22.906
step in the shoes of green fire

01:47:23.938 --> 01:47:25.938
and the payments would continue

01:47:28.312 --> 01:47:31.156
so long as green fire did in
fact perform, performance being

01:47:32.188 --> 01:47:34.984
they constructed the hotel.
I think it has been stated

01:47:35.688 --> 01:47:37.688
previously that the hotel

01:47:38.620 --> 01:47:40.620
continues to operate annually.

01:47:41.766 --> 01:47:43.766
A majority of the year as high

01:47:44.562 --> 01:47:46.562
end hotel and as long as that is

01:47:46.672 --> 01:47:49.500
the case, then the payments
would continue.

01:47:49.797 --> 01:47:51.797
>> thank you.

01:47:53.844 --> 01:47:55.844
>> the final point ands from

01:47:56.875 --> 01:47:58.875
several constituents that I have

01:48:00.688 --> 01:48:02.688
received correspondence from.

01:48:04.391 --> 01:48:06.781
And because there is negativity
to this project.

01:48:06.781 --> 01:48:08.125
I don't know if you understand
that.

01:48:08.953 --> 01:48:10.625
I'm sure you received some as
well.

01:48:11.797 --> 01:48:14.797
I'm a strong believer in
public-private partnerships.

01:48:17.203 --> 01:48:19.203
We hope this works.

01:48:21.297 --> 01:48:23.938
But some of the citizens that I
have spoken with are concerned

01:48:25.641 --> 01:48:27.641
about the fact that if you look

01:48:28.469 --> 01:48:31.344
at the durham athletic park, the
old park, the city of durham

01:48:34.812 --> 01:48:36.812
spent close to $5 million

01:48:38.312 --> 01:48:40.312
renovating, which is a beautiful

01:48:41.250 --> 01:48:43.250
facility, one in which we can

01:48:43.922 --> 01:48:45.922
all be proud.

01:48:47.656 --> 01:48:50.188
Yet there is one in the
right-hand and center field.

01:48:51.620 --> 01:48:53.297
There are several buildings,
warehouse buildings behind that

01:48:55.203 --> 01:48:57.203
building that are owned by the

01:48:59.172 --> 01:49:01.172
proposed developer, green fire,

01:49:01.312 --> 01:49:03.312
that objectively, all you have

01:49:04.344 --> 01:49:05.703
to do is drive by and look at
that.

01:49:07.484 --> 01:49:09.484
Really -- this is a positive

01:49:12.516 --> 01:49:15.470
spin on it, do not enhance the
investment that the city of

01:49:16.516 --> 01:49:18.516
durham has made into that

01:49:18.797 --> 01:49:20.797
historic ballpark.

01:49:22.359 --> 01:49:24.359
That is to say, the walls on

01:49:24.500 --> 01:49:26.500
those warehouses need to be

01:49:28.940 --> 01:49:30.940
power washed and painted.

01:49:30.906 --> 01:49:32.906
And from what I understand, the

01:49:33.266 --> 01:49:35.266
estimates for this are anywhere

01:49:39.109 --> 01:49:41.344
from eight, 10 and perhaps
$12,000.

01:49:44.984 --> 01:49:46.984
So the question I am receiving

01:49:48.391 --> 01:49:50.391
from constituent is why should

01:49:53.156 --> 01:49:55.156
the city of durham give

01:49:58.234 --> 01:50:00.234
$4.2 million to a company that

01:50:02.328 --> 01:50:04.766
refuses to help enhance a city
investment of close to

01:50:04.766 --> 01:50:06.766
$5 million?

01:50:07.203 --> 01:50:09.203
The fact that they will not

01:50:09.531 --> 01:50:11.969
spend a rather small amount for
the good of the community and

01:50:13.438 --> 01:50:15.172
for the good of their own
private buildings?

01:50:15.844 --> 01:50:17.844
So I would like to have an

01:50:18.470 --> 01:50:20.470
answer to these questions that

01:50:27.797 --> 01:50:29.297
have been raised by
constituents.

01:50:33.156 --> 01:50:35.531
>> my make is michael laman ski
with green fire development.

01:50:39.531 --> 01:50:41.531
those properties are included in

01:50:41.609 --> 01:50:43.609
the original deal-point
documents with the city.

01:50:44.578 --> 01:50:46.734
The city considered acquiring
those from us.

01:50:48.469 --> 01:50:50.469
That was to occur after we move

01:50:51.780 --> 01:50:53.780
to the next step after the hotel

01:50:53.453 --> 01:50:55.453
in the hill building as we work

01:50:55.609 --> 01:50:58.484
on the property on parish street
and some of the subsequent
properties.

01:51:00.470 --> 01:51:02.470
so we have sort of seen those

01:51:02.297 --> 01:51:04.297
properties as being in hold,

01:51:04.719 --> 01:51:07.125
limbo, not sure bhat city wanted
to do with the properties and

01:51:07.125 --> 01:51:09.125
whether or not they were going

01:51:10.125 --> 01:51:12.125
to be part of a new museum going
forward with minor league

01:51:12.172 --> 01:51:14.328
baseball, whether they were
going to be taken down, that

01:51:14.328 --> 01:51:16.328
sort of thing.

01:51:16.797 --> 01:51:19.312
We have been waiting for more
clarity before we spend time on

01:51:19.312 --> 01:51:21.312
the properties.

01:51:21.672 --> 01:51:23.780
>> well, thank you for your
response.

01:51:24.984 --> 01:51:27.875
I can suggest to you that the
taxpayers of durham have their

01:51:28.922 --> 01:51:31.750
own clarity and they want the
damn buildings cleaned up.

01:51:34.328 --> 01:51:36.719
It is an embarrassment to drive
by and look at those.

01:51:37.625 --> 01:51:40.562
It has already been two years
sitting there looking that way

01:51:42.859 --> 01:51:45.940
and really detracting from the
beautiful historic park.

01:51:46.969 --> 01:51:48.641
Would you intend to do anything
about that?

01:51:49.938 --> 01:51:52.719
>> I would suppose, too, that,
you know instead of putting the

01:51:54.266 --> 01:51:56.266
burden back on the city, that

01:51:56.375 --> 01:51:58.375
the city itself would prefer

01:51:58.812 --> 01:52:00.812
that the walls of those

01:52:02.188 --> 01:52:03.547
warehouses be power washed and
painted.

01:52:07.125 --> 01:52:09.125
And that is pretty simple.

01:52:09.984 --> 01:52:12.859
>> is that a question, I'm
sorry.
>> yeah, that is a question.

01:52:13.719 --> 01:52:15.310
What do you intend to do about
it.

01:52:16.391 --> 01:52:18.969
>> we intend to maintain those.
We're in the process, I don't

01:52:19.500 --> 01:52:22.234
know if you noticed, we're in
the process of renovating the

01:52:22.234 --> 01:52:24.234
rain building now.

01:52:24.297 --> 01:52:26.297
We have a new tenant going in.

01:52:26.406 --> 01:52:28.406
We'll be painting, changing the

01:52:28.875 --> 01:52:30.875
windows and power washing them.

01:52:31.750 --> 01:52:34.516
And part of the fact that once
we understood that we were going

01:52:35.453 --> 01:52:38.188
to be moving forward differently
instead of holding the buildings

01:52:40.281 --> 01:52:42.750
empty and not signing up new
tenants, we recently signed a

01:52:42.953 --> 01:52:44.953
new tenant.

01:52:45.453 --> 01:52:48.422
A green building renovator
company that is really kind of

01:52:48.859 --> 01:52:50.859
focused on helping buildings

01:52:50.922 --> 01:52:53.703
become more environmentally
sustainable.
They just recently announced

01:52:53.703 --> 01:52:55.469
they're moving their
headquarters into the property

01:52:56.203 --> 01:52:57.734
and in the process of fixing it
up now.

01:53:00.438 --> 01:53:03.203
>> so what is your time frame,
michael for power washing and

01:53:07.141 --> 01:53:09.188
paining the exterior walls?
>> I'm not sure of the project

01:53:09.188 --> 01:53:11.719
schedule.
I know it is the first couple of

01:53:13.281 --> 01:53:14.656
months before the hotel breaks
ground.

01:53:16.828 --> 01:53:18.828
>> so that would be all the

01:53:19.160 --> 01:53:21.484
warehouses, the entire wall,
right and center field?

01:53:22.000 --> 01:53:24.000
>> they're specifically only

01:53:24.625 --> 01:53:26.620
working on the one in center
field.

01:53:29.703 --> 01:53:31.703
We have the other property, um,

01:53:32.703 --> 01:53:34.703
is green fire can do it as a

01:53:35.234 --> 01:53:37.281
part of its own ambition, but
there is no work going on in the

01:53:37.281 --> 01:53:39.969
building now.
There is an existing tenant that

01:53:41.844 --> 01:53:44.250
had the space, committed to it
and has.
>> final question.

01:53:47.250 --> 01:53:49.250
I don't want to belabor this.

01:53:49.422 --> 01:53:50.781
But it is really important for
durham.

01:53:54.719 --> 01:53:57.688
You don't use $4.5 million of
taxpayer monies and have the

01:53:59.620 --> 01:54:01.620
walls of the exterior building

01:54:06.172 --> 01:54:07.641
cast a -- appall over all entire
development.

01:54:08.266 --> 01:54:10.641
What you are telling us is the
one building wall will be power

01:54:11.641 --> 01:54:13.547
washed and painted and the other
ones will not.

01:54:15.719 --> 01:54:17.781
>> no, that is not what I'm
saying.
>> good.

01:54:19.844 --> 01:54:21.844
>> the one building is being

01:54:23.547 --> 01:54:25.547
done because of the new tenant.

01:54:27.688 --> 01:54:29.828
green fire is doing one, a
tenant will do another.

01:54:31.297 --> 01:54:33.922
>> when will the walls be
complete?
>> the walls will be done in the

01:54:34.203 --> 01:54:36.500
next couple of months.
We dependent on the project

01:54:38.641 --> 01:54:41.438
schedule of the tenant moving
into the building on center
field.

01:54:41.797 --> 01:54:43.844
>> what you're telling us is
this is good news?

01:54:44.344 --> 01:54:46.875
>> yes, very good news.
>> thank you.

01:54:50.344 --> 01:54:52.344
>> you're welcome.

01:54:53.688 --> 01:54:55.688
>> recognize Councilman Clement.

01:54:58.516 --> 01:55:01.484
Are you financial
ished Councilman
Brown?

01:55:03.797 --> 01:55:05.188
>> Mr. Clement, do you have
comments?

01:55:06.766 --> 01:55:08.766
>> mayor, members of council, I

01:55:10.940 --> 01:55:12.940
have read and digested a lot of

01:55:14.562 --> 01:55:17.469
information about this proposal.
I appreciate the number of

01:55:18.375 --> 01:55:21.344
individuals who came to us
tonight to speak pro and conwith

01:55:26.641 --> 01:55:28.547
respect to what is being
proposed.

01:55:29.891 --> 01:55:31.891
Mr. Mayor, I have been impressed

01:55:33.359 --> 01:55:35.359
by what I have heard.

01:55:37.453 --> 01:55:39.453
And I'm really impressed with

01:55:42.000 --> 01:55:44.969
the concept of momentum.
A lot of good things happening

01:55:47.469 --> 01:55:49.844
in downtown durham for the past
several years.

01:55:51.766 --> 01:55:54.312
It has been a bridge for us as
members -- it has been a

01:55:55.160 --> 01:55:57.172
privilege for us as members of
council to be a part of that

01:55:57.172 --> 01:55:59.172
process.

01:55:59.281 --> 01:56:01.688
I think what is being proposed
is certainly consistent with

01:56:04.625 --> 01:56:06.953
what we call momentum.
Big mo.

01:56:08.281 --> 01:56:10.594
with that in mind, Mr. Mayor, I
move the item.

01:56:10.594 --> 01:56:12.594
>> second.

01:56:14.828 --> 01:56:16.594
>> properly moved and seconded.
Further discussion on the item?

01:56:16.859 --> 01:56:18.859
Further questions?

01:56:19.734 --> 01:56:21.734
Hearing none, Madam Clerk, open

01:56:22.609 --> 01:56:24.609
the vote.

01:56:27.281 --> 01:56:29.641
Close the vote.
>> passes 7-0.

01:56:32.172 --> 01:56:34.781
>> I move to the consent agenda
item.
Is she still here?

01:56:37.609 --> 01:56:40.125
I guess she's not.
Ok.

01:57:05.109 --> 01:57:07.109
you want to come up?

01:57:08.281 --> 01:57:10.641
>> oh, yes, I hope we stay on
the case.

01:57:11.470 --> 01:57:13.953
A commitment from them, two
months.
I expect you to ask that

01:57:14.312 --> 01:57:16.312
question two months from now,

01:57:17.328 --> 01:57:19.328
has the work been completed.

01:57:59.234 --> 01:58:01.234
power washing.

01:58:01.828 --> 01:58:03.828
>> let me again, for the record,

01:58:04.641 --> 01:58:07.109
you're at item 21 change in
authority membership city code?

01:58:07.109 --> 01:58:09.375
>> yes, sir.
>> state your name and address.

01:58:10.812 --> 01:58:13.141
you have three minutes.
>> well appreciate the

01:58:13.141 --> 01:58:15.516
opportunity.
>> you understand council has

01:58:16.875 --> 01:58:19.109
already taken action on that?
>> I saw that.

01:58:20.750 --> 01:58:22.125
>> my name is reggie jackson
jones.

01:58:25.156 --> 01:58:27.594
I live at 203 commerce boulevard
here in durham, north carolina.

01:58:30.594 --> 01:58:32.594
I was watching the process of

01:58:33.594 --> 01:58:35.940
government and I was really
impressed.

01:58:36.906 --> 01:58:39.672
Only thing I'm really
disappointmented in is this did

01:58:41.780 --> 01:58:43.780
not go forward with the triangle

01:58:43.266 --> 01:58:45.266
transit data contract.

01:58:45.812 --> 01:58:47.812
That is one of the things I'm

01:58:47.906 --> 01:58:49.906
really speaking on as I would

01:58:53.547 --> 01:58:55.547
have liked that appreciation.

01:58:55.625 --> 01:58:57.625
We could have had a public

01:58:57.859 --> 01:58:59.188
hearing and discuss the pros and
cons.

01:59:01.310 --> 01:59:03.310
I came forward to bring you guys

01:59:05.469 --> 01:59:07.391
history, that in 1991 when the
government -- federal

01:59:08.734 --> 01:59:11.531
government, city, local and
state governments started

01:59:12.500 --> 01:59:14.500
funding public transportation,

01:59:14.969 --> 01:59:16.969
they provided the funding,

01:59:17.172 --> 01:59:19.172
transportation at that time was

01:59:20.281 --> 01:59:22.281
no longer run by corporate

01:59:22.844 --> 01:59:24.844
entity such as duke power back

01:59:26.484 --> 01:59:28.484
in the day before 1991, whose

01:59:29.781 --> 01:59:31.219
main concern was to make it
profitable.

01:59:32.828 --> 01:59:35.160
They didn't -- one of the
reasons for the public running

01:59:37.125 --> 01:59:40.940
the transportation was to
relieve traffic congestion, have

01:59:40.656 --> 01:59:43.562
a large number of people leave
cars at home, thereby depending

01:59:43.672 --> 01:59:45.672
on mass transportation.

01:59:47.203 --> 01:59:49.906
It takes a large sum of money to
accomplish these goals.

01:59:50.266 --> 01:59:52.266
Congressmen, senators, council

01:59:53.470 --> 01:59:55.470
people, trustees are elected and

01:59:55.703 --> 01:59:57.812
appointed to be caretakers of
this money.

01:59:59.406 --> 02:00:01.406
To make sure that the value is

02:00:01.719 --> 02:00:03.922
good, the service is good.
That is one of the functions of

02:00:03.922 --> 02:00:05.922
the trustee.

02:00:07.953 --> 02:00:09.953
I think it is a very injustice

02:00:10.797 --> 02:00:12.797
to rescind authority.

02:00:12.828 --> 02:00:14.828
Going forward, I would like to

02:00:15.969 --> 02:00:17.969
mention a couple of their names.

02:00:18.797 --> 02:00:20.797
The current members of the

02:00:21.375 --> 02:00:23.375
durham area transit authority,

02:00:24.703 --> 02:00:26.703
susan brooks, rita gregory,

02:00:27.780 --> 02:00:29.780
christopher hardin, har injones,

02:00:29.672 --> 02:00:32.641
robert olson, michelle wilson.
I think that as caretakers of

02:00:34.188 --> 02:00:36.188
our money and make sure the

02:00:37.812 --> 02:00:39.812
public transportation is showing

02:00:40.625 --> 02:00:42.625
what will really disagree and

02:00:43.516 --> 02:00:45.516
not see this authority extended.

02:00:45.766 --> 02:00:48.310
I continue is already done.
I am speaking as it is already

02:00:48.310 --> 02:00:50.310
done.

02:00:50.891 --> 02:00:53.594
Going forward, if you look into
it, if howard clement, mayor

02:00:56.172 --> 02:00:58.172
bell are going to be our new

02:00:59.938 --> 02:01:01.938
caretakers of our money, I'm

02:01:02.470 --> 02:01:04.470
just wondering, if we look

02:01:04.141 --> 02:01:05.547
forward to adding a couple other
members.

02:01:06.750 --> 02:01:09.750
We look forward to you guys
making sure everything is taken

02:01:09.812 --> 02:01:11.281
care of in this.
Thank you.

02:01:12.780 --> 02:01:14.780
>> thank you for your time.

02:01:14.250 --> 02:01:15.625
>> you're quite welcome.
[Beep].

02:01:16.828 --> 02:01:18.828
>> I would like to ask for an

02:01:19.562 --> 02:01:21.562
excused absence from the

02:01:22.620 --> 02:01:23.500
worksession meeting this
thursday.

02:01:25.531 --> 02:01:27.594
I will not be able to attend.
>> so moved.

02:01:29.938 --> 02:01:31.938
>> properly moved and seconded.

02:01:33.844 --> 02:01:36.406
Madam Clerk, open the vote.
Close the vote.

02:01:39.781 --> 02:01:41.781
>> it passes 7-0.

02:01:41.875 --> 02:01:43.922
>> any other items to come
before the council tonight?

02:01:46.344 --> 02:01:48.719
If not, the meeting is adjourned
at 9:01 P.M.