City Council - Regular Meeting

late 5:30. We would go ahead and call this meeting to order and we will do a roll call. Here, Alex here. Hazelton here. Joe here. Camper here. Lester here. Michael here. Me here. Thomas here. Young present. Perfect.

Public comment. Is there anyone here for public comment? I don't see anyone on the list. So, we will go to item four, conference center, project updates. I just want to make a general comment to start us off. I appreciate everybody taking time out of what I know are very busy schedules. Luke, I know you were in Washington last last week, so I'm sure you solved all of our problems. I left a few for you there. Just

Well, we'll take them all. Brian and I are going over there next week, so we we'll see where you sign up for what's left. Thank you very much. But I appreciate everybody being here. This, as you know, is a signature project for our community. Diane can proudly attest, Miss Gillespie can attest that we have been working on this for a couple years, couple decades.

But that's a really exciting. So, I'm going to turn to you, Luke. I know you have a number of folks here with you and we'll go through the agenda items but I'm going to turn to you and thank you very much. you. Thank you, mayor, and u thank you council. Um full attendance, so good turnout. Um know it's been challenging to get calendars to align, but appreciate the opportunity to kind of give a status update of where things stand on the conference center development and um appreciate Dan being here as well. And I'll probably turn to him first to introduce himself and um kind of give everybody a status update on the garage demolition. Um I think the mayor kind of referenced it's coming down coming down quick. Um, and so I think uh now be a great time to before we kind of get into the the what happens after demolition, uh, maybe get an update from Dan on progress with demolition.

Can I just make comment for Yes, sir. My office is right across the street, so every once in a while I jump in my chair and there's things that hit the ground and things that hit. I know you guys are busy working, so thank you very much. I appreciate it. Well, we want you to know that we're there, but we want you to know we're there all the time. We are very aware that you're there and we're appreciative.

Not a problem. So, um, my name is Dan Haney. I'm with Macau Gordon. Um, I'm the senior superintendent on the garage demolition. A lot of y'all I've met. Um, I do appreciate the opportunity to be here to represent Macau Gordon and work with the city. Um, kind of had uh made some notes and stuff as far as how we um how we approached this and everything. Uh I brought up my this is my site logistics map. So it's here for anybody to see, but this is basically how um we I started out the relationship with the business owners and all the neighbors and everything. Most everybody at the city has seen this. It's basically just a footprint of the site. Um where we're going to lay stuff down, where we're going to work out of, the building area, where the trailers and storage are at, the perimeter fencing, um all that kind of stuff. I basically took this and I went to all the all the neighbors and the local businesses and everything and met with them one on one. Um, I give each of them a business card and told them that my numbers on there for a reason to please use it if there was an issue. I've had a couple small calls mostly uh curiosity stuff. Um, I have not had a call with a complaint um or anything of that nature. Um, we did we did talk with them. I did personally talk with them one- on-one and everything and it seemed to kind of put everybody at ease. I do this on all my jobs because anymore you're not going to go out and you're not going to build much in cornfields anymore. So, you're going to have neighbors, you're going to have traffic issues, you're going to have logistics and all that. And it sure seems to me that when you put it in a picture, um it really helps people to understand it. So, this is how things are going to come. This is how things are going to go. this is what will be this is what will be affected and everything and so far I think it's went over pretty big um you know the the communication and everything not only with the businesses um with the

neighbors and everything but the city's been great um if there's ever an issue depending on the issue I've got a number that I can call and I'm going to go I'm going to go right to the horse that'll answer the question for me so um the working relationship with the city has been fantastic we definitely appreciate that so um moving into how demos was progressing and everything. Um, it's progressing along as you can see pretty quick. Um, the the newest half and when I talk about this, I'll talk about the new part and then the older part. So, the newest half came down pretty quick. It was more concrete than steel. Um, and with how we're going through it, uh, we can process concrete faster than we can process steel beams. Now, we're into that older part, the original part, and it's more beams than it is concrete. the the new part was pan deck. Um um and that just that accumulates a lot more concrete than it does actual reinforcing. So there's a lot of there's tons and tons and tons of rebar, a lot of PT cable, which is post tension cable. Um and those kind of structures, you'll always kind of have that. Um ongoing communications with all the neighbors and everything has been good. I see them all, you know, I mean, let's be honest, I'm not hard to miss, so Um, you know, and then they put me in high viz, so I'm really easy. So, I don't wear the hat during the day. I I do have a hard hat on. So, I'll see people, I'll visit with them on the street. I, you know, we go we go have lunch at Madison's. We go have lunch at Bones. We I interact with with all the neighbors and everything. They all know who I am. I know who they all are and everything. And I just think that makes for a really good relationship. There's nothing about this. It's simple. It's difficult right out of the gate, but we've tried to do everything and all our due diligence to try and make that as less complicated or at least complicated as it possibly can be. So

far as I've known, nothing's come to me that was a major issue. So um um moving into um the shoring uh aspect of it. Um and I do want I want to back up real quick. I want to go through when we talked about how we went into this. I want to talk a little bit about commercial way and the extensive potholeing and utility discovery that was done there. I had a vac truck in there uh 13 times, 13 separate times um trying to find things. There were things that were marked out on the ground that wasn't there. There were things that weren't marked out and was there. Um, this is why we do pothole and this is why we do scuba because when we use water, you know, it it it lets us know it's there before we hit it with something else. We did have an instance when we were doing the gas line relocate. It was a freak accident. We were hydrovacing. The hydrovac had left the site to go dump. While he was gone, there was a rod that fell that came dislodged and fell off due to the hydrovacing. And I mean literally by an eighth of an inch, it clipped a one inch gas line. A quarter of an inch. We could have missed it, but it just fell kind of right on the edge of it. Cameron was alerted immediately. Um I know I had talked to Kyle and let him know about it. Um everybody knew. I talked to Ryan Lock. He knew about it. Um it was fixed. It was fixed that that day. So so far so good on that. Um, you know, and I do want to say I mentioned Ryan Lockach, Pat McCutchen, um, Missouri American Water has been great. All the guys, you know, at the city, Kyle, David, Steven Fiser, Alex, Dylan, um, Molly, all them guys have just been, everybody's been fantastic to work with. So, moving on into the shoring operations. And if I need to condense this, let me know. I don't know what the time slot really is

for it. So, um I do have a tendency to maybe go overboard, but this is how you guys find out what a day in my life is. So, um shoring operation we started uh last Monday on the 16th. Um started mostly with layout and everything. We got the drill on site that afternoon and everything. We actually started drilling u Tuesday morning. So um we started at the upper end what would be the east end of commercial way working our way to the west. Those are the higher numbers. So we started at pier 63. So we have 63 um auger piles that are going in with beams in them that'll hold actually reinforce the shoring. So um just to hit on it real quick um at Pier 57 we did hit some unsuitable soils. We don't have a lot of information on it yet. We are gathering it um as we speak. My whole team's working on it, but I would rather you guys hear it from me than hear it from from someone else. So, but it is an ongoing thing. It's causing us uh uh to have to case these things. So, when we augur down and we pull the augur out, it wants to undermine. It's uh it's some type of granular fill. It's nothing like I've ever used and I've been on this 43 years. I don't know what it was like when it went in. Um, but I can tell you that it is it is non-compactable. So, every time we pull the augur out, it wants to suck everything out from underneath the roadway. That's an immediate stop right there. And we fell. We can't run the risk of losing the road or anything like that. My drill rig actually sets on the inside of what is the uh the shoring wall. So, he was safe. He wasn't burying anything on the street or anything, but we are working through it. and I'm sure there'll be some conversation about it. So, um, going into, uh, upcoming and any

anticipated changes. So, we have had the ongoing conversation about the intersection at Capitol and Madison and and temporarily taken that to a four-way stop. What we've done is we've we've I've talked with Steven Fischer, talked with Alex, and we're going to remove that head right there at that corner. It's less than 7 ft from the demo wall. We can't run that risk of having something fall, which should still be inside the fence. That's why we have the fence up to keep everybody in back cuz we can't control everything that falls. What we've done is we've gone in and resequenced our demo um sequence. And instead of heading in the direction we are now and then just basically coming down Madison and then coming along Capitol and coming out, we're going to turn around and we're going to go in where we left off with the old section and we'll demo our way back to that which will allow that traffic signal to stay in place longer. We'll take it down. Alex is going to remove the head. We're going to put a steel enclosure around it to protect it. As soon as we're done demoing, the light will go back up. So, what we thought that would do is minimize the confusion for a four-way stop and we can get the light back up and operational. Everybody does seem to have gotten used to it, I will say. And that's usually all it takes. It takes time for everybody to get used to the new way of everything moves around around the site. Um, I'm sure there's some frustrated people with the parking and stuff like that. We're doing our best, but can't give them what I don't have. So, um, but everybody's been pretty pleasant. So, um, the demo is on schedule. Um, it it actually is looking real well that we bring it down fast. And I just want to explain to everybody the days that you don't see us actually wrecking doesn't mean that we're not demoing. What it

means is I don't have 100 acres of lay down to store all this material on. So, I have to pull it down. We have to sort it. rebar, PT cable, um, steel beams, pan deck, all that stuff has to come out of it and then we have to load it, have it hauled off. Right now, we're doing two trucks every day, either steel beams or rebar. Um, so like I said, when you see us and we're not actually wrecking or pulling down on the building, we're what we're doing has to happen or we're going to run out. We would have been out of room a week ago. So, um, the weather we had weather impacts today. My main concern on the weather impacts is water to control the dust. And I've worked with Bob over at Missouri American Water and basically we've come across a a guideline to where we can flow water and where we can't. Um this morning we could not flow water. It was 13°. Um so we had to wait till noon till it warmed up a little bit and then we can flow water. We don't want to damage the underground system or anything like that. Um, back in January, we did have a few days and I, you know, when it was, we had that really cold stretch. Um, but I believe I'll be honest, I think we've already recouped those, um, going along. I, um, with the late start today, we were actually down in the capital and commercial way corner and we would have had the only thing standing down there right now is just the exterior structural walls. Um, and if it wouldn't have been for the delay, those would all be on the ground tonight. So, but we'll go after those tomorrow morning. So, it's not supposed to get quite as cold tonight. So, um um one I wasn't sure if I should save this for last or not, but I would rather again I would rather you all hear it from me. We had we found a Mediacom cable this afternoon. It was 8 ft in the ground.

It's not on anybody's plans anywhere. It wasn't located and no one potholes 8 foot deep. So, we would have never found it. We're working with the media folks right now to get them in there tomorrow. It's my understanding from them that it affects about 20 people. It does affect the state patrol, but I've also been told the state patrol has a backup system. So, um bad news is not wine and it does not get better with time. And I'm not going to come sit here in front of y'all knowing this and walk out of here not telling you. So, it's best y'all hear it from me. We'll get we'll stay diligently on it and we'll work with the media con boys and we'll get it back up as quick as we can. Um, other than that, uh, that pretty much completes my update. If is everybody that's supposed to be on Procore, is everybody got good access and everything? I don't know who's all on that.

I haven't heard. I think it it might you're on it, right, Brian? Yeah. Yeah. So, um, and I know Kyle's using it, Dylan's using it. So, I just want to make sure there's no issues there. It's pretty easy to navigate. Um, and I mean, at that point, if anybody's got any questions for me, I'll be glad to answer them. Thomas, thank you so much. Um, I I toured the project over at Lincoln University and you guys are spot on from what I can tell, your methods, etc. Um what is pandemic?

Okay, so uh pand deck is it's it's all concrete and it actually has a deep flute in it. Okay, that's all concrete that runs um runs long ways of the pore. And basically what that is that's full of rebar and it's full of post tension cable. So that all gets poured at one time with the with the actual garage floor and then they'll put a tensioner on that and they'll pull them PT cables together. they'll pull them to sometimes they'll pull them 120 130,000 PSI and that basically holds it up. So that's kind of we do a lot of pan deck now I I'll say in these times versus how we used to do parking garages back then. So it's, you know, it's like anything else. The technologies come a long way. Um, how it can be done, how it can be done more economically, and of course everything is faster.

Now that you describe it, I remember seeing a YouTube or something about that some time ago. Um, and then you were asking if everyone was able to get on Procore, Porcore, whatever was what is that? Basically, that's how that's that's how we handle all the information for the job. It's all stored in one place. It's a basically a work app and we can give permissions uh to people and then they can actually get on there and see the progress photos. We fly drone um I just flew drone this morning. We fly drone every Monday morning. Um so you'll constantly be able you would constantly be able to see the update. Now obviously we can't give everybody in the city of Jefferson City access to Procore but all the city folks have got it and everything. So

is that something we need or want an in excess for? Just a question. Okay. Thank you very much. You mentioned unfavorable soil. Yes, sir. What are the what are the implications of that? Is that going to is that something that's going to more affect the construction phase more than anything else?

Well, that's that impact is really yet to be realized. We're working with our trade partners right now to try and all I can all I have to tell you right now is that we hit it. I can't really I don't have any details on it. We are currently casing because of the schedule. We had to move we've got to move forward. I can't I can't take a delay like that. Um I can't make all that work on that. So we are casing and to be honest with you that is the only path and how all that shakes out. That's that's above my pay grade. But again, I'm not going to walk in here to this meeting knowing this and not and not tell you because you'll some some people will know about it probably as early as tomorrow and then they're going to say, "Well, Dan knew about it." That's not how it worked.

So, I'm 100% transparent. Not nothing to fear. Yeah. No, it was it was you put you on the spot. It was a Any idea what that means just yet as far as good, bad, or ugly? No, sir. All right. Well, thank you. Yep. Council Young,

thank you. Thank you, Mr. Mayor. Uh, I first want to thank you for your work and everything you've done in giving us this update today. You said something about old and new, brick versus PT and what was the difference? Um, and um I was concerned. I was waiting to hear about the time frame and if we were on that and you say we're still on schedule um with being completed in the time frame anticipated. We're still in that window. Yes, ma'am. Okay. Yes, ma'am. Thank you. Thank you. I'm an underpromis and overd deliver guy, so we'll see how it all works out. Good deal. Appreciate it. Thank you, Council Lester.

Uh yes, thank you. Uh what does uh what does casing mean? What what what does that what do you do? Say that again, sir. What is casing? What what do you do?

So, basically, we've got so we have a 36 inch augur. Okay. So, we take and we put a 42 inch piece of casing in the ground, piece of pipe. Okay. We drive that down. We spin it and drive it down onto the footer that's there for the uh for the retaining wall. And then we take the 36 in augur, put down inside the casing, and augur out the hole. That way, nothing can undermine and fall into the hole. So, in a structural situation like that, that's key. you get anything falling down in there, it'll compromise the structural integrity of the retaining wall and it'll lead to way more problems that that we want to deal with. No. Thank you.

All right. Any other questions? Any anything else? No, not unless there, you know, I tried to cover everything I could. So, I appreciate all the work. No, not a problem. We're glad your team is doing over there and keep it up. We just want to try and live up to our promises. So, like I said, the entire city of Government City has been really good to work with. So, we really appreciate that. You don't find that all the time. So, I was asking Mr. Crane, I know there's a plaque on the outside of the structure that you've been able to retrieve. I don't know if the folks that are interested in that are listening tonight, but thank you for doing that. It's very important. Absolutely. And I will history of the community. So, thank you very much.

I keep saying I'm going to get it to you, but I will. I'll get some time. I'll just run it down here. So, I've got it in the safe for you. So, all right, Mr. Olson, we'll turn back to you then. Thanks again, man. We good? Okay. Thanks. I'm going to go ahead and get out here and let you all do your business. If anybody needs anything, everybody has my number. I'll be glad to answer anything. Excellent. I always look for the cowboy hat on site, so that

Well, I might as well see the real me. That way, when you see me on the street, you'll recognize me. So, thank you all. Thanks. thinker stuck again. Okay. All right. Now, we got our construction lesson for the day, huh? Um, so just a a brief preview of what we want to discuss this evening. So, we've already gotten the the demo update on the garage. Um do have a fair amount of topics do want to go over. So, u recent activity on the design development package. Um an update to the market study. Um updates on the preliminary cost estimate and the plan of finance. Um kind of the bond summary. Um where we stand currently based on the bond models and then to talk through some of the next steps coming up. So, um I'll try and run through it pretty pretty quickly in the sense that um some of these topics it'd be best to kind of get through the full topic before going into questions especially when we when we get into the uh plan of finance um joining virtually um we have quite a few partners on the call um this evening. So, we've got the the partners with Garfield Public Private. So, we've got um Walters, Steve Galbreth, and Mark Bullard. Uh we've got Mark Spikerman and Mark Grim uh with Gilmore and Bell and we've got Martin and Laura. I believe Laura is probably the phone number from Stiffel. So they can help address any questions or um add any context any uh parts of the presentation. So I'll kind of dive in.

Good. Okay.

Well, wanted to start with some of the recent activity and one of the most recent deliverables. So um you know at the at the last work session we were finalizing the schematic design and producing that um design document and package um which then led into design development. So we went from schematic to design development and and design development really is um a lot of plan and worksheets that take the schematic design and add further detail um as kind of listed out here. So it it takes the the configuration and starts to add a lot more details as far as the architectural, structural, civil um and many of the other traits um that go into the development. So um we sent out to the council um little excerpt of the design development package, drawing package, but in totality I think it's you know a couple thousand pages and um might be on the next slide. Uh yeah, 587 plan sheets and about 2600 pages. And so those aren't necessarily the pretty pictures and the architectural renderings. Um these are getting more towards the point of building towards construction documents. So how do you actually accomplish this development from a construction standpoint? So that level of ambiguity and uncertainty that we had with conceptual design, we then further built the detail with schematic and then we took the schematic design and have worked through design development. So um the clarity and understanding of what exactly this project is becomes more and more real through design development. So um early Janu or mid January um account Gordon and DLR architects submitted the um through Garfield submitted design development drawing package

um which again is much more um intensive onto the architectural and or much more into the engineering and uh structural systems within u the project. So, um, if there's any questions as to, uh, the design development package, um, happy to answer any of those as well, we have some of the partners on the phone with, uh, Garfield that can help elaborate. Thomas, did you have a question? I did. Thank you, sir. Y, um, looking through all the drawing stuff, which is hard to do on a little iPad. Yeah.

What's changed? just a it's kind of quick summary and Mark I see you kind of came on camera there um you know from the standpoint of change um not a lot of um change Mark you might talk about the mezzanine level um changes or enhancements but a lot of it's just further building out the concepts that were there so it's less about change is more uh providing additional detail to each of those components. So a lot of the a lot of the materials that we were talking about the you know Missouri stone art so forth that that's all pretty much still there.

Correct. Mark any additional detail you want to provide into the design development package.

I think for the most part what you said is accurate. I mean obviously through design it is constant refinement and we we we make informed choices as we we work through the project and the architects and the design team make selections. Um I think that one of the things that we ended up doing was we actually I think increased the size of the ballroom from where we currently have it in SD in order to accommodate the thousand person um event that that the city has has asked for. you guys have it at least once a year. Maybe maybe you have an event like that twice a year. Um so we have attempted to essentially refine the needs and react to um basically make the project better and also make more efficient. You know, as as um Luke had indicated, we we had a mezzanine essentially that was that we found to be unnecessary. So we ended up removing that. We were able to basically relocate the program on that in order to reduce some costs but still realize that program in other areas and make that those areas uh better use and and more efficient. So there's been a handful of those types of things. We can go through we could probably spend hours going through minutia of every single change, but for the most part you don't you're not going to recognize it all that much on the plans. Um, we're going to try and we're attempting to keep all the materials in place the way that we have have promised to make them. Um, but that, you know, no promises on every single thing. It's going to be dependent and driven based on cost, right? So, when we get that in, we're going to make every effort to keep what we have. And we have to also be able to afford the project. And so those those kinds of conversations will be the back and forth as we continue to go through refine design and uh get the feedback from the from the market.

Thank you very much. Yeah. Many times a lot of the design development um if changes and what it produces are things that you you don't see. It's even you know it's what's behind the wall. what's um you know the interior systems in place that um are part of the the construction of this versus the design of it. um the design is um what they're continuing to build out as far as okay, we had a plan of what we wanted, now how do you actually build it? And so that's what they're working through, design development.

And I I would just add to that, we've been pretty adamant from the start that we want to build something that has never been in this community before, not replicate something that has been and no longer is in existence. So, they've done a very good job of balancing the cost and what we need in this community. And I see Diane shaking her head that absolutely we want this to be revolutionary and attract new people to the community. It's economic development. We've got to do something different to do that. Correct. Yeah. You bet.

Okay. Well and so along with design development um you know to again further understand and um add additional detail to the project where we started initially on this was a market study. You know we were went to third party experts to understand what does the market demand and uh what does the market feel is best positioned for this community and it was in July of 24 that we had the initial market study. We had an update in January of 25 and then we've got um you know that time period that we wanted to ensure that you know the initial projections and forecast of the um CBRE market study still play true. So what were the changes in the environment um that they might recognize that we need to take into account at this point in time you know in order to um go out and solicit and sell bonds eventually on this project. Um there will very likely be another complete market study produced um prior to the um sale of the bonds. Uh but for kind of an interim period, we felt it was best to get a status check just to make sure the the market conditions were still playing true. So, um, in early January, we got an updated market study, uh, from CBRE, which was, um, not a complete, um, on-site review, as more of a desktop review, um, looking at any trends or conditions that may have changed, uh, since the last market study. Um, no real changes. I think it more or less reinforced um, the earlier analysis that was provided. Um it did um have a little bit of additional information um in regards to the expenses um that were um both from their analysis as well as ongoing engagements with potential operating

entities um that better helped educate and um provide the information for the performer with the market study. So um you know it continued to reinforce you know the number of rooms occupancy rate as far as where it would start and what it would be at stabilization. Um the average daily rate um pretty consistent with where we were at on the previous market study. It did see a slight increase and some of that was due to um the period of opening uh of which is being forecasted right now. Um but still the same type of product, still a full service um you know upscale headquarter type hotel facility um consistent on the meeting space and the the meeting demand that exists in Jefferson City. So um you know we wanted to ensure that we were still tracking with um the way the economy was still looking from third party market provider. Any questions on Mark's? Yes.

Um, first of all, I wanted to say,

um, I wanted to say thanks for the market study. I really enjoyed reading it. this time, you know, the first time I read the market study was a little rougher because we were I was new to it and I know Councilman uh Lester and myself and a couple of others of us spent a lot of time with you Diane and Luke on that initial market study, but I really appreciated reading about the um occupancy rate. it was much more specific in this one um in a way that we had come to that conclusion from your all's help that the occupancy rate projections were very reasonable but this I think fleshes it out for a regular reader you know if they decide to read through it

and um shows how reasonable those things are that on the surface if you just take a blurb or you read something that somebody reports it seems sensational or something. So, I just want to point that out. It's a very I thought very reasonable and I wanted to let our residents know that some of us have spent significant time looking at that market study. You all much more so than us, but some of us, you know, we I know we sort of drove you crazy for a while, but um really appreciate it. I thought it was very I really liked the information in here. not a lot of different, but some of those things will help um a casual reader if they get to that part understand it better.

And and so much of it is again, you know, going back a year, year and a half ago, um you know, the direction we were going, you know, we had a goal in mind, but you know, what that product was going to be and then just the clarity of how we get there was was still to be determined. And the further we go through the process, the more we understand the product and how to get there. And um it takes going through that process to to realize that clarity. It's the steps throughout the way. And um having the the partners and the third party experts that help guide us um in the right direction is is instrumental. So appreciate the comments.

Thank you. um reading through this that um I was just curious the client for the market study is Garfield. Um and there's a lot of legal ease in here about who is authorized to rely on see this this data this study. And needless to say, it's pretty important that the city be able to rely on that as well. Now according to this in the agreement we need to have intended users identified. Do we know if that's in place? And I

this is Laura Radcliffe. I'd be happy to address that. Um, as we get closer to the issuance of bonds, um, we will ensure that the prospective investors are named as intended users so that when we put an offering document together and attach the market study, um, it's a it's a bonafideed use of that market study at that point for anybody reading that offering document to rely on it. So, that letter will be drafted by our council. We'll go through the market study. Um the the final version of the market study that's done prior to bondishment will be reviewed with that in mind.

Okay. So at this point in time that's not in place. That is not yet in place. Okay. Thank you. Certainly.

Okay. And and as mentioned, you know, it's not the final market study. there will be one um closer to um when they go out and sell the bonds and um you know that they would require I can't remember if it's 30 or 45 or 60 days um within the bond sale the market study has to be produced so there will either be a completely new one or an updated uh market study before bond sale transaction happens so the the market study and and even design development help to inform inform us on um you know both the the cost of the development and then the plan of finance for the project. And so wanted to to begin with um you know where we've left off in previous discussions which is the the total project costs. Um you know this cost estimate is still based on the schematic design um phase of the project. As mentioned, we've completed the design development um which adds many additional layers of understanding of the design of the actual project and the engineering. Um the challenge is that when going out for cost estimates, it's a bidding exercise that doesn't have a construction project tied to it yet. So, um, where Macau Gordon has had, um, some challenges in getting some responses, uh, when going out and soliciting for, uh, price estimates when there's not an actual project, there's there's a lot of detail to review, a lot of information to go to when it's a bidding exercise. Um and so in talking with them earlier and without having all the feedback from design development on a cost estimate, we're still basing the total project cost off of the schematic design. Uh that was both a combination of their current project activity, um them going to the trades and getting bids, but also

just their in-house estimating. And so, um, they still feel pretty confident that that's, um, you know, in and around the the project range. That would still be the the appropriate target to be going for from a a total project cost estimate. So, um, you know, the big number on there, the construction portion of the project, uh, about $96.6 million. Um, and many of the other, um, costs associated, um, outside of furniture, fixture, and equipment. So the FFN um you have professional fees associated with the total project costs that are also included. So this is consistent and the the same target number um that we've been um uh targeting for 6 months now from the completion of schematic design. So before we kind of get into the the capital stack thought we'd start with the the total cost of construction. So any questions before moving on? Okay. familiar number. Okay. 128. So, um in in July of 25 um at the financing um work session that we held um which Steve and Gilmore and Bell joined us at, we had a a capital stack projection of roughly $108.5 million. Um we were still looking at $128.6 $.6 million um total cost of construction um with roughly a $20 million um remaining uh funding that we were still pursuing. Um you know, again, since that point in time, we've we've continued to progress the project and our understanding from both a cost side, but also a revenue and um capital stack standpoint. So you can see where we are today based on an updated uh bond model run from Stifel that again takes into account those market study projections and utilizes that information as well as

ongoing discussions about uh qualified management uh companies that would be thirdparty operators of this site of this development and what their anticipated cost of operation would be to help us better inform the true um revenue venue and expenses that we'll walk through moving forward. So, um you can see some changes in each of the bond run models u both the hotel and incentive um revenue model. That's the one following this. We'll we'll walk through that um entire bond run model uh step by step. Uh the other two are a little more straightforward. The lodging tax revenue bond as well as the parking revenue bond. Um we did see some uh minor increases in those. Um the other fund balances and uh fund contributions stayed pretty consistent. Uh the MDFB tax credits um at the last conversation we had, you know, we anticipated applying and then we had applied for 4 million in contribution tax credits to the Missouri Development Finance Board. Um the project was awarded um those credits in late November of 25. I believe the city council will have action soon on a tax credit agreement um in order to receive those credits towards the project. Um but the reason of the increase is the 3.6 million was at the time if we were awarded um an authorized 4 million in tax credits and we just went and sold those tax credits. So basically went to the open market and the market would you know bring in roughly 90% of the value of selling those credits. So, if we went to banks and CPAs and said, "We have state of Missouri income tax credits. Would you buy them?" You know, that's what the $3.6 million basically represents is just selling the credits. The intention of the credits is they're contribution tax credits. So, what they're meant to do is to assist

projects in leveraging those credits to solicit private contributions towards projects. So, it's a credit that you would go to a contributor and say, "Based on your donation, your contribution to a project, we can offset your contribution at 50% of your contributed amount." So, you know, rough math, if they give you $1,000, they are then awarded a $500 tax credit that they would apply to their state of Missouri income tax. Um it's a it's a program to encourage and solicit and um private contributions towards uh towards projects. The United Capital City Soccer um project was another one that received uh was a million dollar tax credit contribution project. Um Special Olympics Missouri training facility at one point had received contribution tax credits. Um and so that 8 million represents uh full utilization of that 4 million tax credit. So we would go out and um which we are in the process of initiating and soliciting for private contributions and the total of $8 million in which we would be able to um offset those contributors the 4 million in tax credits. Um and the last slide on this has a little more information I can walk you through on those tax credits if you'd like. So on the bond increases in that time period too. So what

what's driving that increase or can is something systematic uh county and Laura I think you were going to jump in on that one. I'm happy to but could you restate the question? I couldn't hear. So yes, the the increase in the bond from uh uh July to to now uh what's is there something systematic driving that increase or what accounts for that?

The the increase is due to a variety of um factors. So some of them include um for example just homing in a little bit more on the schedule. Well, I think we were pretty conservative first time around um in building in lags between the time the first guest stays at the hotel and the time we would collect revenues and have them available to pay bonds. So, um with Paul's help, we really um cleaned that up. The as as you saw, there are some new figures that came from the market study. Um so, that helped us. We've updated interest rates. So, um, no one single factor really, but just a variety of things that contributed. Um, and at this point, you know, the numbers we've run are still numbers that we hope and believe are conservative. So, you know, we've used a a nice coverage factor of 1.75 time. Um, we have not lowered the interest rate estimate on the on the non-rated hotel and incentive revenue bonds. So, um I think it's it's just the more we know the the the better our numbers get.

Okay. Thank you, Council. And you're probably going to point this out, but as we go along, really until we come to the point that we lock everything in, it depends on interest rates. um of course as they go down it will help us with our cost

um and also just the economy in general cost of products and all those kind of things. So just a reminder to especially anybody who might be watching this I'm sure we have a audience of some some folks um that that it's natural for our costs will change as we move toward that even with especially with those items in in mind. Yeah, we hope it moves um both in our favor on the the cost of the project that um you know from a material standpoint um cost of goods you know stabilizes or um yeah stabilizes and you know from the the cost of money you know any improvements that we see on interest or coverage um you know those are drastic um to a project like this.

Okay.

Okay. Um and so kind of where I wanted to spend some time tonight um to walk through it because there's more complexity to it and to me I'm a very simple person so I think simplifying the the hotel and incentive revenue bond and kind of walking through that one um because I think it comes with more uh comments, questions and curiosity. Um I think the the other two uh bond revenue bonds a little more straightforward and uh simplistic. So I did want to just kind of walk through step by step. I know we did that uh from a very high level at the last um uh financial work session on the conference center. Uh but I want to take it and and walk you completely through um a single year bond run model run for the hotel and incentive revenue side. So, um, keep going back to the market study and that being a, you know, kind of a a pointing direction on where we begin the project as far as the anticipated revenue and expenses uh, for the development. And so when we're looking solely at the hotel and incentive revenue bonds, um like most businesses, you know, you look at what are the anticipated, you know, operating revenues of this development. And much of that information is being informed through this market study. And so that's based off of, you know, how many hotel rooms, what's the occupancy, what's the average daily rate. So you have room revenues, you have then food and beverage revenues, and then you have other departmental revenues. and some miscellaneous income. And so for this example and just kind of walking through a a single year of the debt service on the hotel incentive revenue bond, um I picked in the bond run model a year of stabilization. Um so either year three or four of the

bond run uh model run uh to represent where we stand today and just the cash flow of that model run on the hotel and incentive revenue box. So, um, based on those projections of both the room revenue, food and beverage, and other departmental revenue, um, you know, it's forecasted at about $18.1 million of operating revenue. So, obviously, you're going to have a lot of expenses. So, this facility doesn't operate without a fair amount of overhead and, you know, personnel and like expenses and equipment. So you have departmental expenses that are taken from those operating revenues. Uh within that you have really an expense for each of these revenue streams of you know what are the room expenses, what are the food and beverage expenses, what are those other departmental expenses that need to be deducted from that operating revenue because at the goal of this we're trying to understand what is available for debt service. So how much money does it generate? How much does it cost to operate it? what's remaining in order for us to get a loan or a bond to support this development. And so what I wanted to kind of walk through is the structure of this uh fund source right now. So, you know, with this assumption based on, you know, a stabilized year of the hotel, um you're looking at about 18.1 million in total revenue uh departmental expenses um at 6.3 giving a departmental profit of 11.8 million. So then um in this waterfall approach that 11.8 million which is the departmental profit you then have to reduce it by the operating expenses. So you had the the cost of rooms and food and beverage. So you know the purchasing of of food you know the um you know the case goods and other things that would be part of the ongoing costs of rooms

and food. Um but then you have the operating side of it. So it's the administrative IT uh sales and marketing uh property operations and maintenance utilities. You have a lot of additional operating u expenses that you then have to uh pay for before you have what's available for debt service. So um in this projected model that's about $5.2 million that year. So then you're taking that $1.8 million reducing it by that operating expense of 5.2 getting you to a gross operating profit of 6.6 $600.

So from that gross operating profit, you then have to, you know, back out your nonoperating expenses and income. This is where this series has been called the hotel and incentive revenue bond. So the incentive revenues that are being calculated that would be part of this bond repayment. So sources that would be available for the debt service are those community improvement district, the transportation development district, the um downtown revitalization preservation program, the um port improvement district. So these additional onsite uh self-imposed taxes that are the incentive revenues. So those then come into this model as income because then they would then be available to support you know the expenses and the operation of the facility as well that is ultimately available for the debt service. So that um the non-operating income and expenses actually shows a positive even though it's in brackets of of $800,000. So you're at a net income at this point of 7.4 million. So again, you started at your total operating revenue. Then you started removing all these expenses to get to your net income of $7.4 million. Again, what additional fees are there? So understanding that before you get to debt service, before you identify the funds available for debt service, which is what Sephil and the other partners are looking at when trying to size a bond issue that they could go out and sell, you have to look at what are all of the costs to operate and maintain a facility like this. And so backing out of senior asset management and administrative expenses get you to the net cash for bond payments and 7.2 2 million in that year. So that's 7.2. Sorry, it gets a little small on the screen here, but then that is what

you're looking at as far as what's available for debt service in this equation. That doesn't mean that we have and are utilizing $7.2 million for debt service. when Laura at Stiffel and others and us included have mentioned that this coverage rate so this 1.75 coverage that means when we get to what's the net cash available for bond payments basically I have to divide that number by 1.75 and that that indicates what we are um able to borrow and is uh afforded to us for debt service payments. So of that 7.2 to about 60% is what we can use towards debt service. So, we're basically getting a loan at this point where they're capturing and they're valuing our project and what they're allowing for the bonding size at about 60% of what's available at the point of net cash for bond payments. And to me, I I may not be explaining this well, but what that's saying is that once you get to that net cash, if you had $175,000 at that point is basically saying you're getting a loan for only 100. And those additional funds, that coverage, that's that backs stop. That's the for the bond buyers the certainty that if the project doesn't hit projections if the expenses are way higher and the revenues are way lower there's a coverage that ensures repayment to those bond buyers. So this nonbacked non-rated bond that coverage is a big piece to ensuring that it still hits you know that 7.2 2 million is what's available. The bond payment is 4.1. So even if you know the net cash for bond payments was drastically less, you

still have paid all the operating expenses, all the departmental expense, all the expenses of the facility and still have enough for bond payment because that that bond payment is sized accordingly based on the coverage. Um it then presents the the coverage which what's remaining which is the net cash for subordinated cash flow is then put into additional reserve accounts that allow um utilization of those funds to fund supplemental and subordinated reserves for um you know as listed on there capital reserve a bond debt service reserve uh development manager fee subordinated um and senior uh bond debt service reserve fund number two that um it allows us to kind of fund a lot of additional subordinated and supplemental reserves but even after that there's still some net cash available that um uh is excess revenue so those are those are funds that don't have an identity on where they go yet um I have it circled and I'll go back to that here in a little bit of you know how do we put those dollars to work to get our capital stack 100%. Um because that seems like some opportunities right there that we're looking to explore. Um any questions as we've kind of rolled through that council. So just to make sure I understand if I recall right the 1.75 that's um you called them non nonbacked right

non-rated non-rated and that that essentially we we have different options but this uh is the rate where the city's not backing these bonds. So the city doesn't have the liability for the bonds and that means um uh that that's where that 1.75 comes from.

Correct. So on the screen here is the a bond summary of the the three different bond series. The hotel incentive, the lodging tax, and the parking. And you know the the coverage rate on the hotel incentive 1.75. On the lodging tax and the parking it's 1.0. the um interest rate or the yield on those three different series of bonds, the hotel incentive bond is 7%. The other two is 4.7. That's a reflection of um a backing of a municipal body on those other two versus this one um has u no fund source backing it other than the pledged revenues of the project. because the other two were using the his history of the lodging tax and the history of the parking as really to show that we have a depth um there to be able to pay the the debt service back. But the actual hotel incentive we're choosing for, you know, the city to not to say we're not going to back this. Correct. But it's a a I'm going to say a fiscally conservative type of approach for for the city. And then do you mind going forward to that last one? Um the other thing is these supplemental or these subordinate.

These are almost like um these are like backup I'm going to say backup funds. These are like, okay, if this doesn't collect what we, you know, if we have a problem, we still have this money sitting here. If we have a that specifically could be used for this. If we have a problem, we still have this money sitting here that could specifically be used for this. Correct. And we can go to it once we get into this summary slide where you'll see um how many different deposits are made at the time of bond issuance that we um early on

um fund a lot of these reserves initially with bond proceeds and then we also build up supplemental and subordinated reserve accounts as a kind of a round two of that right that um I think there's so going into ensuring that there's um you know adequate reserves both in a primary reserve and a secondary reserve. Um, and we're we're trying to mobilize the the revenues that are anticipated to be generated, but um, you know, where there's opportunity to improve, you can kind of see it there, what's highlighted.

And I know I'm certainly not a bond expert, but I know when I when I looked at this earlier, I was um, pretty impressed with the way that we came up with those different areas and how we um, loaded them up front and then um, contribute to them. So, I just wanted to point that out. And we've got some bond experts on the call, so they they can jump in and Thank you. that council like Thank you, Mayor. Thank you, Mayor. Couple questions.

Would you say in reference to your revenue projections that they they're conservative or robust? These revenue projections are based off of the both CBRE from, you know, their market analysis, but then also um as we get into the expense side, we're getting more clarity and certainty on that based off of engaging um partner entities such as, you know, operating groups. So we're we're getting more certainty which is giving some higher confidence and it's helping on the expense side a little bit. And then um I think the revenues have been pretty consistent.

On those revenue do you if you were to label them would you consider it conservative or robust or another word that you'd rather use?

Yeah. I don't know that I could label it other than you know that's kind of what the CBRE has anticipated to be. I it's numbers that are reliant that Stiffel and you know that are going out there and um soliciting for these bonds rely upon um and so I think that they have to feel that there's a high degree of accuracy in those numbers. The reason I asked that question to everyone in this room is probably obvious, but to folks that may be listening or or reading about this conversation is is that they're just not numbers fix brought from fiction. There's sound

experience and knowledge and factors brought into it that that yeah, they are projections, but they're service. Yeah. They're not my projections. I you know, and they're not anybody in this room's projections. They're professionals that that that do this for a living that understand where they're trying to get, right? Yeah. And provide model that's realistic as possible. Okay.

And I I feel on on here wanted to demonstrate as well that you know success and failure are not if it hits 100% a projection. you know there where this is showing is that um you know when there's been concern that what if it doesn't hit that projection this thing's very successful even without hitting that projection um and I think the way it's being structured um to ultimately provide that level of assurance to bond holders is something that there there's a lot of wiggle room in this as far as its ability to u perform at the level that's being indicated and financially be a very um strong performing development.

Yeah. And I think it's also extremely relative to our citizens of Jefferson that that folks that are directly investing in this project to use your word are assured Mhm. through those asurances of return on investment for them and that they don't do that lightly either. Correct. And that they feel very comfortable with the assertions that are being made. And with your 6040 split that you referred to with that 40% laying there that that is if needed there was a a pot to draw that from if if projections aren't met. I think that's

critically important. Y people understand. Thank you Thomas. For those of us that didn't graduate from the Wharton School of Business, can you define a little bit what supplemental and subordinated mean?

I'm going to turn that over to Steve and Mark. Hi guys, this is Steve Galbrath. Um, so supplemental just means it's an extra, right? It's it's an additional piece. Um, subordinate means it's after debt service. So that that means the, you know, it's it's going to pay uh the mortgage and then we can put those uh funds into that subordinated piece. So it's after afterwards it's that's where it is in the in the waterfall so to speak is that help. Yep. Thank you.

Okay. All right.

So and some of that was to better understanding I I think the level of confidence of you know the success of the project and it also kind of points to the areas of opportunity. um you know as from a capital stack perspective based on a $128 million project and the $121ish million dollar in sources that have been identified that you know roughly 95% of the capital stack being identified and in place that you know finalizing 100% of the project funding is is you know the the task ahead and um how we go about that is is really these kind of um kind of key areas that we see some abilities to improve on the current uh structure of the financing. Um so as mentioned on the previous slide on the one and a half million on this example of you know all that excess revenue um so funds unidentified after you know all expenses debt service and the subordinated or supplemental uh fund accounts are are fully um in place. um is there a market for those funds? How can we leverage those to have um to put us in a position to have a fully financed project? You know, other examples, um, you know, when looking at the hotel and incentive revenue bond, you know, there's there's different, um, uh, as you can see, uses of those bond proceeds beyond, um, what you see on the other two, which are, you know, funding, you know, out of the gate, a working capital reserve fund, um, the deposit to the capitalized interest fund, which it that is the ability to make, um, interest payments on the project during construction. So you'll see that on each three of the components. Um you know

then there's the deposit to the debt service reserve fund. Um that is a um an ongoing fund source that um we anticipate as part of the project that um currently in this structure is being sourced through bond proceeds. Um so again, you know, using those those bond sources not towards the cost of construction, uh but to fund a a debt service reserve account. Is there a more efficient, more effective way of funding that same account, but not doing with bond proceeds? So looking at pathways to achieve that um cheaper way of doing it, I mean it's at the end of the day, you know, having sufficient reserves is core to the success of this. We want to ensure that there's sufficient funds both in day one and day or in year five. Um but if there's a financially more efficient effective way to do it, we want to pursue that. So looking at that as um an area of pursuit. Um two of the other items kind of highlighted circled there is the interest rate and um in and the yield or the uh coverage rate. you know, the interest rate, you know, we can't dictate that. And a lot of that goes off of what, you know, Stifel feels that this type of bond in this market, um, you know, this global market, what they can sell for, you know, so what is that what do those buyers demand, you know, from a coverage and an interest standpoint. Um but if as an example if you took that that coverage rate if we were able to you know have a buyer in some way um that we were able to get that to a 1.6 coverage just for you know kind of order of magnitude and understanding um in this one scenario what you would then be able to use towards um that 4.1 million what is uh available for senior bond payment in the same

scenario. So, you still had 7.2 million in uh net cash for bond payments. If you had a 1.6 coverage, that would allow 4.5 million for bond debt service. So, another $400,000 in that single year for towards debt service. Um, you know, over the span of a, you know, 30-year bond, what is that coverage of a 1.6 versus 1.75 change as far as total uses of bond proceeds towards the construction? you know, would ask Laura and them if they have a thought on that, but you know, if it's $5 million worth of additional bond proceeds towards the project in a slight change of the coverage, revenues are still the same, expenses are still the same, but it's more efficient use of the money. Um, so those are things we're looking at. um the the interest or the yield um you know I think there was a a comment and I won't even put him on the spot but you know that if if the project was ready to go to the market right now um the the bond market would probably um better perform on the interest than 7%. You know in a couple months where we're at hopefully you know that still plays true but um I think seven and Laura kind of mentioned was a fairly conservative amount that hopefully there's some improvement there. uh I couldn't begin to guess what the order of magnitude would be on that bond if it went from seven to six and three/4er or you know 6.5 something but um it definitely makes a big dent in um the the the remaining um capital stack that we're looking to put in place. So um those are kind of four areas that we're looking to um pursue to finalize the the capital stack for the project. Um, we had been in conversations with um the state on a potential appropriation. We've all kind of seen the uh the way that the state budget's been going from

an appropriation standpoint and um you know, so they're supporters of the project. It just doesn't seem that it's going to be in a appropriation um kind of approach this year, but um continue to work with them on any additional possibilities that they have to support the project as well. Anything on the capital stack? Proceed.

Um so next couple steps um it's been talked about for a while that um you know kind of the the first couple amendments of the design build agreement. So the first amendment was the uh demolition of the existing parking garage. Uh the second amendment was the construction of a model room. Um not sure when that will come in front of council, but to have a look ahead um and awareness um you know that cost um which is associated with the um hotel model room is something that was part of the overall project cost. So, as we went back to the the total cost of construction, the 96 million, it incorporated, you know, demolition of the existing parking garage, it it contemplated the cost of the uh hotel model room as well. So, um this would be a decision item coming to council um hopefully pretty soon. Um any questions on that? Okay. And the next would be the U contribution tax credit. So did u mention that towards the beginning of the meeting that um we were authorized the credits um in late 2025 and then I think the formalizing accepting of that agreement between the city and um Missouri Development Finance Board for the contribution tax credits I believe will come to council it'll be next week or um

let me close. Okay, might be the following. Okay, we have a second uh meeting in March. But um that would you know basically execute the agreement um on the receipt of those tax credits to be utilized towards this project. Um and what that allows is you know the contributor actually makes their contribution to the Missouri Development Finance Board. So the city is not um in direct receipt of the the contribution and the city does not administer the credit. So the contribution is made to the Missouri Development Finance Board and it'll basically there will be a form with it that'll say on behalf of this project. So this project will have a project number that they'll they'll associate that contribution to this project. Then um the finance board uh will then issue the tax credit to that contributor. So it'll go directly to um the the contributor who will then utilize that towards their state income tax and the project will then be able to draw down that contributor's funds to the project account based on eligible expenses. So the eligible expenses will be the construction of this project. So um as costs are incurred um the the project would be able to draw down those contributors funds to the project. So, um, outside of a maybe 2 and 12% tax credit fee that the finance board charges on the administration of the tax credits, we would be in receipt and be able to draw down u 100% of those contributions um uh to use towards the project. So, that's our goal is to um generate contributions and total of hopefully $8 million. Okay. Well, I think that's all I got for the show.

Good job. Anything else? No, you know, I think as more talk is going on about this conference center, um the meeting planners and associations are getting excited. U I've received several phone calls from them that are looking at booking 2028 and 2029. they want to go. And um I I I feel that's exciting and I want to say yes, we want you, but we're taking the information down and hope to be able to pass it on to the hotel sales staff once they come on board. But there's there's a lot of interest out there and people wanting us to move forward with this project. I was going to bet this weekend in Springfield. They want to come here.

They need to be here. They would like probably going to be 29 for their time. be a great group. There's groups that want to be here. Yes. And I I probably I don't say it enough, but you know, kind of where we get to all this,

the activity, the economics that happened because of a development like this is what we're hungry for. Um, you know, the the life, the activity, the economic impact beyond just the facility itself. So what I want to try and do is explain, you know, how a project like this can support itself from, you know, the revenues it generates and its ability to pay for the expenses and then service the debt on it. That those are funds that are non-existent today. So these are funds that the project generates that go to pay for itself and pay for the construction of it. That is great. that at the end of the day creates activity and more opportunities for small businesses, large businesses, service industries um and many other things um in this community that um I think so much of the community is thriving for and striving for and you know how do we grow our economic base um you know many times developments like this will help do that and so um you know we're focused on the site the project itself um but kind of going back to the why for me many times is what it what it allows and what it produces for the community and so um close I you know one of our partners you know on the line had said you know recently you know just in spinning distance up like it's it's right there somebody that's probably the ultra conservative so like to me it's um we're really really close and there's some final pieces put to place but um it's exciting times I think partners like Macau Gordon is Uh, Councilman Thomas mentioned, you know, they're very healthy. They're doing a bam job with the work that they're doing right now, both on the new development projects as well as the demolition and, uh, managing that relationship. So, um, you know, stars are aligning. I think there's some great opportunities here. So, we appreciate the time and happy to engage afterwards as well. Um, not just

tonight, but beyond if there's any questions, comments, thoughts. Um, we appreciate that. All right, I don't see any other questions. I'm just going to take one minute just to bring the council up to speed on the project and it's not really on your agenda tonight, but you are aware aware that we had a breach of one of our critical access roads last Wednesday, the high street viuguct. City has been very aggressively working on where do we go from here. Our police department shut it down. Wednesday evening worked with the streets department. Thursday Mr. Crane had department of west out there. They did an extensive review of the project and we're waiting for their report. Where do we go from here? viuctuct is closed. I think chief has been a part of those discussions and we're ready to reroute around that if you hadn't already rerouted. We had a meeting with MDOT this morning just to make sure that MDOT was up to speed. I know Miss Senzy's here. She's been finalizing a build grant to look for some financing for that project. It's a very expensive project. I think Miss Brian did an excellent job of working with the media, kind of taking them back to remind the community this wasn't something that just happened that we weren't aware of. We've been working on this project for about three and a half years and looking at what our options are. council was very generous back in 22 and utilize some of our ARPA funding so that we could start the process to get this project to shovel ready. So I think Mr. Crane indicated this morning at the meeting we're about

95% of the way because of the action of council at that time in using those funds. We've got the design. The community has had their input. They've selected the design that they like. Council has approved it. Congressman Ander was in the capital on Thursday, so I had a chance to brief him. As you know, he he was able to get a million dollars in funding in the most recent package for the project. We've got about a million from the city, a million from the county to put toward that. Problem is the project's about a 15 $18 million project. So, we're still looking for funding, but I compliment our staff. They've done a great job. They've jumped on the program. I think the community has understood that that is a critical piece of infrastructure, but from a safety perspective, we cannot allow traffic across that until we understand what the structure is like. back in 22 when we were making the decisions and we were told at that time we probably had about four to five years and seems like that is playing out. So council will have the opportunity to see the reports from Bartland and West once they come in. We'll have to make what looks like may be a very difficult decision, but our team has jumped on it very aggressively. We were not caught off guard. The council has been actively involved in this for about four years, going on four years, and I think we've done everything we can to protect this community, but it is a an important asset. Mod understands that. We've had discussions with office of administration so they're aware of the situation. I mean, we were working on the conveyance so that we have the property

underneath the structure when we get the opportunity to replace hopefully. I mean, that's our goal to meet what the community has said we would like to see in that area. So, we're working on the conveyance. Our staff has been working with the core of engineers because we have to relocate part of the creek. So, those discussions are underway. We still need to work with the railroads and that will be a complicated process and it's just time but our team has done a good job of trying to position this to be ready when funding comes. So I just want to make sure the council is aware that we are working on it. We've had meetings with the appropriate organizations and partner organizations just to bring them up to speed. I mean they understand what what's going on and we will keep you informed as we get additional information. Councilman Thomas.

So that the existing value duct is going to be closed or do we expect possibly it will reopen? I'll let Mr. Crane answer that. I mean I don't know that we know an answer to it but we're just anticipating. I I'll let Mr. Cran respond. Yes. Short-term. Yes. Until we have that report back from Bartlet West.

We had and I'll get to you just a second, Mr. We had a significant breach as they were looking at it that this coloring on the bottom of it appears like there may be other opportunities in the not tooistant future. The last opportunity we had in 22 when we kind of put this emergency process in place was 100 to $125,000. This one's probably going to be a little bit more just because of cost. If we have another 6 to 10 opportunities like that, then I think council has to decide, do we invest a million and a half to$2 million in patching a structure that we know is on its last legs. But I don't think our team is going to make is going to recommend to council make any decisions if we're putting this community at risk. The other thing they're taking a look at and we talked to OA about is as you where the boulevard goes underneath it and two sidewalks with a lot of state employees. So, we're they are paying attention to what's going on on that section of it and we've talked about do we need to build structures under we're just waiting for the professionals to tell us what the next steps are, but they are monitoring it very closely to make sure that there's nothing coming off that bridge that would harm the citizen.

Councilman, thank you. Mayor, do we expect Barla's report this week? I don't know the I don't know there's been a time frame on that but Mr. I hope by the end of the week, but I don't know that for sure.

I I think they're expediting. I mean, they were on site and you know, I was to show the councilman or the the congressman with them out there working. So, everybody is aware. I think they they have taken it serious, but we want them to do it right. There's a lot of pieces in play not only for the again we're fortunate this dropped into the creek but it could have dropped someplace else. So we will get it to council as quickly as we can get at get get the report back. Councilman Ozelton,

question for Chief Scog. Um, the closure of the bioduct, has that had a significant impact on station one's response times? So, there is an impact, but I think what we've tried to do is our CAD system, which dispatches units based on their proximity and the priority of the call. It has the ability to add in detours based on temporary closures. And so with the help of the city's GIS team, we did that last week. And so that's the way we're we're dealing with it in that short run. Um but yeah, there will be but we have other ways we can get around and and that's what we're doing now.

Council L. Thank you, Mayor. If it comes back that we could do the band-aid solution, whatever that cost would be, what time of frame would you even be looking at? You talking June? You talking August? You talking next? I mean, how quick? And the reason I asked that is I'm not even going to say it, but I just asked that question because spring's right around the corner.

Question. Yeah, it's it's going to depend on the scope of work that's involved in patch. Uh may maybe it doesn't take that much uh time. We have the ability through emergency procurement policies to to to get something lined up quick if we needed to, but if we go through a full bid process and uh design the improvements that are needed to be made, it's going to take it's going to take a few months just to get to bidding.

That's what we're Thank you. The council about 30 years ago made the decision to do an overlay, which was the right decision. They were told at the time it's probably a 25 to 30 year fix. It's starting to trap moisture in there, which is deteriorating the rebar and some of the steel. So, it's it's going to take them a while to figure out what they recommend to the city, but I don't have a lot of high high hopes for it. We certainly don't want our city employees and fire trucks and other equipment going across that. Even if we were to open it, then you start looking at, well, we don't want our folks going across it. You want citizens going across it. So, we're going to have to do a lot of work on it. But again, I would just emphasize our team did not catch them off guard. They were ready for it. They responded very quickly and accurately and did a nice job. And partly rust is they understand the significance of it. I believe our application has been filed. I think we think Miss Cindy was able to retool the application a little bit that this is no longer a project. This is a we got troubles. I don't know if that pops us up the list, but our team has done a great job of trying to respond.

Absolutely. And just refresh everybody's memory of how important that bindup was during the floods. So we emphasize that as well through my today and they were very aware of it because a lot of people need to get into the den. Are they aware enough to add some that would that would be a no. Not because they don't want to. I mean, they're restricted in funding just like everybody else. But they did give us a couple hints on some maybe some grant opportunities, not direct funding opportunity, but things we might be able to at least pursue. So, with that, Council Me.

Yeah. I just thought I'd mention in a meeting earlier today that uh his son says he's done a lot of work on uh that grant application and has put on the website uh I think it'll be on tomorrow or today. Uh really great description of it. So if you're interested Yeah. It's good good stuff. Good. Yeah, we appreciate her work on that. Councilwoman Young, did you have a motion or something that you would like to move? Second. All in favor? Any oppose? Thank you.