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Ms. Michelotti indicated that in October 2000 it was discussed and the city attorney had said there was reasonable assurance that the construction would be done without the necessity of a bond. Mayor Pico invited public testimony. Jim McKeehan, Executive Vice President of Signature Properties, recalled that it was always the intent of Wente and Signature to restore the winery. Alameda County recognized that you can't force people to go into business. The conditions of approval required that 414 acres be dedicated to viticulture and a minimum of 300 acres had to be planted with grapes. There was no maximum and all the property could have been planted, which would have been much cheaper. The condition further stated that if the winery were rebuilt, credit would be given for that toward the 414 acres. That has always been the goal and what is believed to be best for the Valley. He explained that it will cost $40,000 to purchase a bond for $2 million. If the building is not completed, the City goes to the bonding company and, if all goes well, it gets the money. Is the city then going to build the building and go into the winery business? He did not think so. The goal is to get this facility built. He believed Wente was the most motivated to build this. In 1986, the Wente family represented viticulture in this valley. He described the history of development of viticulture in the Livermore Valley and believed Wente is the founder of this wine country. Mr. McKeehan felt $40,000 could better be spent on the building. Mr. McKeehan indicated Signature Property is nearing completion of its projects in Pleasanton. There are a few more lots to sell and a school to build. It has been a wonderful experience and he appreciated all the Councilmembers he has worked with over the years. He believed Signature's projects are assets to the city and they have worked to provide not only housing, but also other amenities that make the quality of life better for the town. Even when there were disagreements, all parties were able to work toward resolutions that were better for everyone. He expressed his appreciation for the work of the City Manager and city staffover the past ten to twelve years. Big projects have lots of issues to be addressed on a daily basis and very few of them ever reach the level of requiring Council action. Philip Wente, 5565 Tesla Road, Livermore, indicated he would like to get on with constructing the building and asked Council to waive the bond requirement. He has been ready to start construction for over a year. Although there is a commitment to have this be a winery in the future, he did not want to include a tasting room at this point. As this project was being processed in the late eighties, all the concepts about wine country, houses, etc. were fairly new and quite confusing to many people. At that time, Wente was concerned about maintaining the zoning for a winery, not about whether a specific winery would be operating there. He felt it makes no sense to build a tasting room now. What brand, what product, what marketing strategy or business plan would be developed? All that must be known before opening a public retail operation. Wente does not want to be the operator of 70-80% of the wineries in the Valley. It is important to Pleasanton City Council 9 02/06/01 Minutes