01 9-02-2008 - Laserfiche WebLink

Councilmember Sullivan said the Council is responsible for managing the public's resources, and the need to understand the cash flow analysis through discussions and further negotiations. In addition to capital improvements, the City needs to look at the potential revenue stream for the City to include maintenance for the park, said there is a clause at the end of the 30 years that assumes the City can take over the building, and he confirmed with Mr. Bocian that ownership of the development can be transferred with approval of the City, if it is determined that the operation cannot be maintained and the Sharks want to dissolve, the City would develop a mechanism to be in place for the development to be removed, and all details would be included in the ground lease. Councilmember Sullivan questioned the community park and confirmed with Mr. Bocian that the developers would, on a pro-rata basis, purchase the 3.5 acre neighborhood park and improve the detention basin. The 1.7 acres of property would be purchased by the City and CLC has agreed to develop it based on previous agreements. The City's contribution comes in primarily related to purchasing the 1.7 acres and making a contribution to the detention basin itself because the City will have run-off from the park. He said the Hendricks' share is capped and the City would also provide funds for this, as well. Councilmember Sullivan asked that the commitments for the holiday ice rink downtown and the contribution to the Firehouse Art Center also be part of the discussions. He questioned the 1992 resolution regarding public/private partnerships, and City Attorney Roush said he would review it and provide information to the Council. Councilmember Sullivan said one major disappointment he had in the process is that the neighbors could have come down and supported the facility, combined with the Fremont Land commercial site concept, and no one objected to this concept except for the City Council. Vice Mayor Thorne said he thinks one of the reasons people want this moved forward is due to continuing excitement for the facility, suggested a business pro forma be obtained but he was not interested in over-burdening the core objectives with things that might break the deal, as they are already very comprehensive and aggressive. Councilmember Cook-Kallio agreed the core objectives were comprehensive, questioned how the free ice would work with the school district and whether there was a model like this. Pat Kernan, Attorney representing the San Jose Sharks, introduced Jim Goddard, Executive Vice President of the Sharks and John Gustafson, General Manager, said Mr. Goddard has worked with Kevin Johnson and Glenn Sparks at the District, and Mr. Gustafson has been working with all three agencies to develop programs. He said there are two different components of programming; a field trip for classes and actual instruction coordinated with the district, and all bodies have voiced overwhelming support for the two programs. Councilmember Cook-Kallio asked to make sure the City pursue a reduced rate to residential children, as it is an expensive sport, and that the facility be made accessible to children. Mr. Kernan commended City staff, said the process is very complex, and he is very optimistic about needing the full 90 days. Councilmember McGovern agreed the process was complex, feels the Council is trying to do its due-diligence; thinks Pleasanton is a great spot for the Sharks and vice versa and felt that a good negotiated outcome and agreement will hopefully be made. She asked for a lease review process to be included in the deal points, wanted the financial pro forma to occur and believed it would show this is a good deal for the City, said when the ground lease returns it will be specific City Council Minutes 7 September 2, 2008