2025 Special Meeting - City Council / Lincoln Redevelopment Successor Agency / Lincoln Public Financing Authority - Work Session

LOGITECH: CITY COUNCIL, LINCOLN REDEVELOPMENT SUCCESSOR AGENCY, LINCOLN. PUBLIC FINANCING, AUTHORITY, WORK, SESSION, AND A JOINT MEETING WITH LEXON. PASTOR UNIFIED SCHOOL DISTRICT LOGITECH: WELCOME EVERYBODY. GOOD EVENING ROLL CALL, PLEASE. LOGITECH: MEMBER REEDY. HERE, COUNCIL, MEMBER CURL HERE, MAYOR PRO TEM. BROWN, HERE, COUNCIL, MEMBER EKLUND, HERE MAYOR ANDREATA, HERE LOGITECH: ABSOLUTELY MEMBER PRICE. SHE IS IN FLORIDA WITH HER DAUGHTER DYKSTRA HERE, AND MEMBER FREMA HERE. THANK YOU. OKAY. LOGITECH: YEAH. THERE YOU GO. LOGITECH: I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA AND TO THE REPUBLIC FOR WHICH IT STANDS. ONE NATION, UNDER GOD, INDIVISIBLE WITH LIBERTY AND JUSTICE FOR ALL. LOGITECH: ALL RIGHT, WE'RE GOING TO TAKE A MOMENT FOR PUBLIC COMMENT ON NON AGENDA ITEMS WITHIN THE SUBJECT MATTER. JURISDICTION OF THE COUNCIL. IS THERE ANYONE IN THE ROOM THAT WOULD LIKE TO MAKE A PUBLIC COMMENT, THAT'S NOT ON THE AGENDA. LOGITECH: OKAY, THAT'S MAYOR. AND I PUT A CARD IN LOGITECH: SAYING, FUNNY, ARE WE ALLOWING THAT PUBLIC COMMENT? NO, WE'RE WAITING FOR THE POLICE DEPARTMENT. LOGITECH: NO, WE'RE GONNA WE'RE GONNA MOVE ON, STELLA. THANK YOU. ARE WE ON ZOOM, OR IS IT JUST IN HERE? IS THERE ANYBODY ONLINE THAT WISH TO MAKE A PUBLIC COMMENT. NO, OKAY, THEN WE'LL CLOSE PUBLIC COMMENT. I CHALLENGE THE CITY ATTORNEY ON THE INFORMATION THAT SHE'S PROVIDING. I'M SORRY THAT IT'S THAT WAY. BUT I KNOW THAT WAS ON MY TRESPASSING NOTICE, AND I KNOW THAT I'M NOT OUTSIDE OF THAT. OKAY? WELL, FOR FOR THE RECORD I CONTACTED. LOGITECH: MATT WILLIAMSON AND HE CONTACTED DISPATCH, REVIEWED ROOMS, SAID THE EXCLUSION ORDER IS NOT UP UNTIL TOMORROW. THE 30.TH I HAVE POLITELY ASKED MISS GREENHOUSE TO LEAVE. SHE'S REFUSED TO LEAVE, AND THE LINCOLN POLICE DEPARTMENT IS ON THEIR WAY. LOGITECH: AND I APPRECIATE THAT. LOGITECH: BUT I WILL TELL YOU THAT THE NOTICE SAYS SO. WE'RE NOT GOING TO DO THIS HERE IN THIS MEETING. WE'RE NOT DOING THIS IN HERE, BUT YOU'RE TRYING TO INSTALL SOMETHING WITHOUT FACTS, AND WE'RE GOING TO GO ON WITH OUR MEETING. OKAY? WELL, THEN, WE CAN WORK THAT OUT LATER. AND I HAVE A 15 YEAR OLD BIRTHDAY PARTY. THANK YOU. LOGITECH: OKAY, WE'RE GOING TO MOVE ON TO SCHOOL FACILITIES, AGREEMENT DISCUSSION, AND WE'RE TURNING IT OVER TO MR. SCULLY. LOGITECH: THANK YOU VERY MUCH. IF IT'S OKAY. IF EVERYBODY MUST STAND UP OVER HERE THAT'D BE GREAT. THANK YOU LOGITECH: ALRIGHT. LOGITECH: ANY OTHER PUBLIC COMMENTS. LOGITECH: SO MY NAME IS SHAWN SCULLY. IF YOU DON'T KNOW ME, I'M A CITY MANAGER HERE IN LINCOLN AND FOR LOGITECH: WAS ACTUALLY JUST LOOKING THROUGH REALLY OLD EMAILS TODAY. AND FOR THE BETTER PART OF WHAT 2 YEARS. LOGITECH: 2 YEARS, MAYBE 3 YEARS LOGITECH: AT LEAST 2 YEARS WE'VE BEEN WORKING WITH BUSTER PLASTER UNIFIED SCHOOL DISTRICT, AND LEWIS PLANNED COMMUNITIES TO TRY TO FIGURE OUT A REALLY TOUGH PUZZLE. LOGITECH: WHICH IS HOW TO GET A SCHOOL BUILT AT VILLAGE 7, NOT IN 25 YEARS AFTER. IT'S LONG NEEDED. BUT NOW, ISH. LOGITECH: AND IT SEEMED LIKE A LOGITECH: AN EASY NUT TO CRACK EARLY ON. AND THEN WHAT I THINK WE'VE ALL LEARNED THROUGHOUT THIS ODYSSEY IS THAT IT'S ACTUALLY VERY COMPLEX. IT'S DIFFICULT. THERE ARE ALL KINDS OF LEGAL CONSTRAINTS THAT THE SCHOOL DISTRICT IS BURDENED WITH, THAT THE CITY IS BURDENED WITH, AND THAT THAT PHIL AND LEWIS ARE ARE BURDENED WITH. SO IT'S TAKEN A LONG TIME, AND THERE'S BEEN A COUPLE STEPS FORWARD A STEP OR 2 BACK EVERY SO OFTEN. AND WHAT WE'RE HERE TO DO THIS EVENING. JUST ADDRESS A COUPLE LITTLE ADMINISTRATIVE MATTERS. LOGITECH: THE SCHOOL BOARD'S AGENDA ALLOWS ACTION THIS EVENING. THE CITY COUNCIL'S AGENDA DOES NOT ALLOW ACTION THIS EVENING, ALTHOUGH THEY'RE GOING TO BE ABLE TO PROVIDE PLENTY OF LOGITECH: FEEDBACK, AND WE'LL GET A REAL SENSE OF WHERE EVERYBODY'S AT, AS IT RELATES TO THE AGREEMENT. AND THE IDEA WOULD BE THAT IF WE COME OUT OF THIS WITH SORT OF A COMMON UNDERSTANDING AND GENERAL THOUGHT FOR APPROVAL, WE WILL EVENTUALLY WE WILL IMMEDIATELY REGENDIZE IT ON A CITY COUNCIL AGENDA LOGITECH: NEXT MEETING, AND AND THE COUNCIL BE ABLE TO VOTE ON IT. INTEREST? LOGITECH: SO LET ME GO THROUGH A LITTLE BIT OF BACKGROUND. HERE, AT 23, WE BEGAN HAVING THIS DISCUSSION. IT STARTED OFF AS A REALLY SIMPLE DISCUSSION, BECAUSE IT WAS JUST ABOUT THE K THROUGH 6, AND THE IDEA WE HAD IS LOGITECH: SCHOOL DISTRICT DIDN'T HAVE RESOURCES TO FRONT LOAD ANY SORT OF SCHOOL BUILD AT THAT TIME. AND SO IT WAS, HOW CAN WE CREATE SOMETHING THAT LOGITECH: COLLABORATES WITH THE SCHOOL DISTRICT AND GETS US ACROSS THE FINISH LINE. SO THE 1ST IDEA, AS FAR AS I REMEMBER, IT, WAS, WHAT ABOUT A JOINT USE PARK AT SCHOOL. PHILOSOPHICALLY. WE LIKE THE IDEA OF JOINT USE BECAUSE THE TAXPAYERS ARE PAYING FOR 2 EQUIVALENT OR SIMILAR FACILITIES LOGITECH: THAT YOU KNOW THEY DON'T NEED TO. SO, AND WE HAVE MODELS THAT EXIST HERE IN OTHER PLACES OF JOINT USE, PARK AND SCHOOLS THAT HAVE WORKED OUT MOSTLY PRETTY WELL. SO THAT'S HOW IT STARTED. AND THEN, AS WE STARTED TO DISCUSS IT MORE. LOGITECH: AND THE SCHOOL DISTRICT WAS THINKING ABOUT THE EFFICIENCIES OF A K THROUGH 8 MODEL. IT'S SORT OF IT'S SORT OF MATURED INTO THAT. AND THEN LOGITECH: THE QUESTION WAS, WELL, THAT'S A LOT MORE EXPENSIVE THAN A K. 6. SO HOW DO WE GET THE DELTA FUNDED THROUGH THIS AGREEMENT? AND THIS IS EVEN POSSIBLE. SO WHAT CARRIE, I'M SURE, HAS SHARED WITH EVERYBODY IN THIS ROOM AT SOME POINT OR ANOTHER IS, IT'S REALLY DIFFICULT FOR THE SCHOOLS LOGITECH: SCHOOL DISTRICT TO TO PLAN NEW FACILITIES BECAUSE IT'S STILL ATTEMPTING TO KIND OF CATCH UP ON OLD FACILITIES. AND SO THAT'S A VERY DIFFICULT THING TO DO, ESPECIALLY WHEN YOU HAVE NEW STUDENTS THAT ARE STARTING TO IMPACT ALL OF YOUR SCHOOLS. SO WE THOUGHT, HEY? MAYBE THIS IS A CONCEPT THAT WE COULD COME UP WITH THAT MIGHT BE REPLICATED ELSEWHERE IN LINCOLN, WHERE WE HAVE SIMILAR PROBLEMS, AND I'LL GET TO THAT IN A LITTLE BIT. LOGITECH: SO WE WORK THROUGH SORT OF THE VERY BASICS OF THE DEAL. AND THEN IN 20, EARLY, 2024 THE CITY COUNCIL HELD A WORKSHOP IN THIS ROOM TO KIND OF JUST GENERALLY TALK ABOUT THE IDEA. IS IT LOGITECH: AN IDEA WE'RE WILLING TO ENTERTAIN? IS IT SOMETHING THAT IS JUST A NO GO, AND AT THAT TIME THERE WAS SORT OF A TACIT HEY? WE THINK THIS COULD BE A GOOD THING, ALTHOUGH WE WANT TO SEE YOU IRON OUT SOME DETAILS, AS IT RELATES TO HOW JOINT USE WORKS AND WHAT'S THE VALUE FOR THE CITY VERSUS THE VALUE FOR THE SCHOOL DISTRICT, AND ALL THOSE LITTLE DETAILS. SO REALLY FOR THE LAST YEAR AND CHANGE, THAT'S WHAT WE'VE DONE. LOGITECH: AND I THINK CARRIE PROBABLY TELL YOU THERE HAVE BEEN TIMES WHERE WE'VE BEEN SUPER FRUSTRATED WITH ONE ANOTHER. AND YOU KNOW I LOGITECH: PROBABLY IN MY OWN PRIVACY OF MY OWN OFFICE, HAVE SAID TO MYSELF, I'D LOVE TO JUST WALK AWAY AND GO DO SOMETHING ELSE. BUT ANYTHING THAT'S NEW AND NOVEL IS HARD, I THINK, IN THE BEGINNING. AND SO I REALLY DO THINK THAT IF THE DETAILS ARE CORRECT, DEPENDING ON THE FEEDBACK WE GET TONIGHT, THIS IS SOMETHING THAT WE COULD REPLICATE ELSEWHERE, AND I'M NOT SURE THAT IT EXISTS IN THIS KIND OF FORM ELSEWHERE IN CALIFORNIA. SO LOGITECH: IF IT WORKS, IT COULD BE SOMETHING, I THINK WE CAN ALL BE VERY PROUD OF THE LAST THING I'LL SAY ON BACKGROUND BEFORE I GET INTO THE DETAILS, IS PART OF THIS HAS BEEN AN EFFORT THAT CARRIE AND I HAVE TRIED FOR A LITTLE WHILE NOW TO TRY TO REALLY REDEFINE THE RELATIONSHIP BETWEEN THE SCHOOL DISTRICT AND CITY. SO LOGITECH: WE DON'T NEED TO TALK ABOUT. YOU KNOW THE DIFFERENT HISTORIES OF BOTH ORGANIZATIONS, BUT WE, AT LEAST FROM MY PERSPECTIVE, WE ACKNOWLEDGE THAT OUR COMMUNITIES ARE ONLY REALLY AS GREAT AS OUR SCHOOL DISTRICT IS, AND A HUGE PART OF THAT IS, HAVING FACILITIES THAT ARE DELIVERED ON TIME SO THAT THEY CAN PROVIDE THOSE SERVICES. LOGITECH: THE REASON WHY A GUY LIKE PHIL AND HIS HIS COMPANY WANT TO BUILD IN LINCOLN, AT LEAST PARTIALLY, IS BECAUSE WE HAVE A GREAT SCHOOL DISTRICT, AND THAT HELPS HELPS HIM SELL HOMES. LOGITECH: AND I WOULD ASSUME THAT PEOPLE PAY MORE FOR THOSE HOMES WHEN THEY'RE IN A SCHOOL DISTRICT THAT THEY'RE PROUD OF. SO WE WE AT THE CITY SIDE HAVE TRIED TO TAKE A LITTLE BIT MORE BROADER VIEW OF JUST LIKE, HEY, WE JUST GOT TO GET THE STUFF WE NEED TO GET TO MINIMALLY SERVE AND THINK ABOUT IT. AS YOU KNOW SCHOOL DISTRICT IS ANOTHER NATURAL EXTENSION OF PUBLIC SERVICE WHICH IT IS SO ALL RIGHT. YOU ALREADY DOING ANY QUESTIONS ON BACKGROUND BEFORE I START GOING INTO DETAIL HERE. LOGITECH: NO, OKAY, PROBABLY SHOULD SKIP FORWARD ON THIS THAT I HAVEN'T BEEN USING. LOGITECH: OKAY, SO LOGITECH: I'M GONNA JUST STEP THROUGH KIND OF SEQUENTIALLY. NOT EVERY SECTION OF THE DOCUMENT, BUT SOME SECTIONS THAT I THINK ARE REALLY IMPORTANT, AT LEAST FROM A CITY PERSPECTIVE. HARRY MAY JUMP IN WITH SOME DETAIL FROM LOGITECH: THE SCHOOL DISTRICT AND THEN CALL IT 8 MIN FROM NOW WE'RE GONNA JUST RELEASE THIS FOR DISCUSSION. AMONGST THE BOARD AND COUNCIL AND TAKE NOTES ON ANY KIND OF DETAIL THAT YOU MAY WANT TO HEAR MORE ABOUT. WE HAVE EXPERTS ON THE SCHOOL DISTRICT SIDE HERE. WE HAVE A BUNCH OF OURS PRESENT, SO THERE SHOULD BE SOMEBODY THAT CAN ANSWER YOUR QUESTIONS IF YOU HAVE ANY. LOGITECH: AND THE RECITALS RECITALS ARE SUPER IMPORTANT IN THIS AGREEMENT, BECAUSE THEY SET FORTH WHY WE'RE DOING IT. WHY ARE WE HERE? AND INITIALLY THEY WEREN'T AS DETAILED AS THEY ARE NOW. WHEN YOU READ IT, THE TONE YOU SHOULD COME AWAY WITH THIS AGREEMENT IS FOR IS TO FUND FULLY FUND A TK, 8. SCHOOL IN VILLAGE 7. LOGITECH: IT ALSO GOES THROUGH THE HISTORY OF THE PROJECT. WHAT KIND OF UNIT TOTALS, YOU KNOW, DEPENDING ON VARIOUS LAND USE, THINGS COULD SHIFT AND CHANGE. WE'RE THINKING ABOUT ROUGHLY 3,000 TO 3,300 UNITS AND VILLAGE 7. LOGITECH: WHAT THE IMPACTS ARE TO THE SCHOOL SYSTEM AND OTHER BASE INFORMATION LOGITECH: RECITALS. G THROUGH L DETAIL, THE INTENT OF THE AGREEMENT. SO TO MY POINT EARLIER, AND THEN M THROUGH OUR QUITE A BIT OF LEGALESE, AS IT RELATES TO MANY OF THE LAWS THAT WE HAVE TO FOLLOW THAT ARE SET FORTH BY THE STATE OF CALIFORNIA FOR FORMING AND RUNNING SPECIAL TAXES AND LOGITECH: COMMUNITY FACILITIES. DIFFERENT DISTRICTS. LOGITECH: OKAY? SO ONCE, THOSE ARE KIND OF DEFINED. THE NEXT SECTION OF THE AGREEMENT. LOGITECH: ARE KEY TERMS THAT DEF THAT ARE DEFINED. AND THERE'S A LOT OF THEM. LOGITECH: SO I'M NOT GOING TO GO THROUGH ALL 80, SOME ODD ONES, BUT THE ONE THAT IS REALLY IMPORTANT BECAUSE IT'S A VAGUE TERM. BUT IT'S VERY SPECIFIC IN THE DOCUMENT IS NUMBER 67, WHICH IS SCHOOL FACILITIES. LOGITECH: I THINK A SCHOOL FACILITY IS ANYTHING HIGH SCHOOL POOL FOOTBALL FIELD. LOGITECH: WE DON'T TALK ABOUT POOL. CAN'T AFFORD A MATE. LOGITECH: BY THE WAY, IF WE HAD A POOL IN THIS, THIS DEAL WOULD BE DEAD RIGHT? YOU'LL JUST GO HOME EARLY, BUT IT'S DEFINED VERY, VERY SPECIFICALLY IN AGREEMENT AS A TK, THROUGH 8 FACILITY. WHY? BECAUSE LOGITECH: A TK FACILITY, I THINK KERRY WOULD TELL YOU, IS NOT THE ONLY THING THAT THE SCHOOL DISTRICT NEEDS. IT'S 1 IMPORTANT THING, BUT FOR THE PURPOSES OF WHAT WE'RE TRYING TO ACCOMPLISH IN VILLAGE 7. WE WANTED TO MAKE SURE THAT IT WAS REALLY CRYSTAL CLEAR THAT THIS IS FOR THIS LOGITECH: TK FACILITIES. THAT'S THE VALUE. ADD LOGITECH: ARTICLE 2, ARTICLE 2 IDENTIFIES THE FACILITY TO BE CONSTRUCTED. LOGITECH: ESTIMATED ABOUT 108 MILLION DOLLARS. WE'RE GOING TO GET INTO SOME DETAIL ABOUT THAT LOGITECH: AND THERE ARE DETAILS OF LEWIS'S DIFFERENT TYPES OF CONTRIBUTIONS TO THE PROJECT WHICH WE'LL ALSO GET INTO HERE IN A MOMENT. LOGITECH: ARTICLE 3 DETAILS RELATED TO THE SORRY CARRIE DID SEND ME SOME TYPOS, AND I DIDN'T GET A CHANCE TO DETAILS RELATED TO RESIDENTIAL, COMMERCIAL, INDUSTRIAL, ACTIVE ADULT SCHOOL FEES THAT ARE ANTICIPATED TO BE ASSESSED ON THIS PROJECT. SO IT TRIES TO FORECAST WHAT WE THINK. LOGITECH: LEWIS IS GOING TO BE STATUTORILY REQUIRED TO PAY ON LEVEL 2 FEES, AND WHAT KIND OF MONEY THAT GENERATES TOWARDS THE PROJECT? LOGITECH: THE NEXT SECTION IDENTIFIES THE MECHANISM PERFORMING THE CFD. AND THE ALLOWANCE TO LEVY SPECIAL TAXES. LOGITECH: IS NOTED IN THE DOCUMENT THAT THE POTENTIAL AMOUNT TO BE RECEIVED THROUGH THIS PORTION OF THE FUNDING IS ROUGHLY 40 MILLION DOLLARS OR 11% OF LOGITECH: SECTIONS 4.1 THROUGH 4.6 ARE REALLY IMPORTANT. SO THESE GIVE BOTH THE CITY AND SCHOOL DISTRICT AND LEWIS, ALTHOUGH LEWIS WOULD HAVE DONE THIS ANYWAY, THE RIGHT TO REVIEW, PROVIDE FEEDBACK ON THE RATE AND APPORTION METHOD. SO HOW ARE YOU DIVVYING UP THE COSTS AMONGST ALL OF THE UNITS IN THE SUBDIVISION. AND IS IT ESSENTIALLY IS IT FAIR OR CLOSE TO FAIR LOGITECH: VILLAGE? SECTION 4.4 VILLAGE 7 WILL HAVE AS MANY AS MANY AS 7 IMPROVEMENT AREAS. AND SO THINK ABOUT LOGITECH: VILLAGE 7 ANNEXED PHIL IN 2013, 13. SO FAST FORWARD, 10 YEARS LOGITECH: AROUND 10 YEARS AGO PHIL CAME TO SEE ME, OR WE HAD LUNCH OR SOMETHING, HE SAID. HEY, I THINK WE'RE ABOUT TO GET STARTED ON LOGITECH: THOSE 7 FOR REAL. THE MARKET IS RIGHT. WE'RE PREPARED. PLANS ARE APPROVED. LOGITECH: AND SO AROUND THAT TIME LEWIS INVESTS A LOT OF MONEY IN THE 1ST PHASE OF BACKBONE INFRASTRUCTURE INTO VILLAGE TO GET JUST TO THE PART WHERE THEY CAN JUST START TO SELL 1ST HOMES OF MANY DIFFERENT SUBDIVISIONS IN. LOGITECH: SO A LOT OF UPFRONT COST. LOGITECH: AND THAT 1ST AREA, WHICH IS MOSTLY WHAT WE'RE DISCUSSING TONIGHT, ALTHOUGH APPLIES TO ALL OF THEM IS IMPROVEMENT AREA ONE. SO AFTER THAT EACH PHASE, 2, 3, 4 WILL MOVE SOUTHBOUND THROUGH VILLAGE 7 FOR THE MOST PART, AND IT WILL EVENTUALLY END WITH 7 DIFFERENT IMPROVEMENT AREAS THAT ARE ALL HOUSED. KIND OF UNDER THIS THIS CFD LOGITECH: SECTION 4.6 6 DISCUSSIONS TERM 45 YEARS, MAX. LOGITECH: WE'RE GONNA TALK ABOUT THAT A LITTLE BIT MORE DETAIL LATER, BECAUSE YOU MIGHT BE THINKING, WELL, WHY, 45 YEARS? WE'RE NOT 30 YEARS LOGITECH: 30 YEARS OF STANDARD. LOGITECH: ONE OF THE REASONS IS THAT THAT IMPROVEMENT AREA EACH ONE OF THOSE AREAS WILL ANNEX SOMETIMES YEARS LATER, INTO THE CFD, AND SO WE HAVE TO GIVE ROOM FOR PHIL TO GET THROUGH 7 IMPROVEMENT OR SOMETHING ABOUT RIGHT GOOD IN ADDITION. THERE'S ESCALATION CAPS LOGITECH: AND AN ASSUMED MAX EFFECTIVE TAX OF 1.8% WHEN COMBINED WITH ALL OTHER TAXES. SO YOU KNOW, IF YOU LIVE IN CALIFORNIA, WE'LL ASSUME EVERYBODY DOES YOU. LOGITECH: THE BASE AMOUNT IS 1% LOGITECH: ABOVE THAT. WHAT DEVELOPERS WILL TELL YOU IS THAT THEY HAVE A REALLY TOUGH TIME GETTING PEOPLE TO BUY HOMES, EVEN AT THE INFLATED COSTS WE HAVE AT THE MOMENT WHEN TAXES EXCEED 1.8%. BUYERS LOOK AT IT AND THEY GO, JEESH. LOGITECH: I CAN AFFORD THE MORTGAGE, BUT CAN'T AFFORD PROPERTY TAXES AND HOAS AND CFDS. AND YOU KNOW HOUSE POOR NOW. SO IT'S A REALLY SENSITIVE POINT, AND IT'S PRETTY UNIFORM IN THE INDUSTRY. EVERY SINGLE BUILDER I'VE EVER WORKED WITH WANTS TO BE IN THAT 1.8 OR LOWER LOGITECH: CATEGORY. SO WE TRIED TO DESIGN ALL OF THIS TO TRY TO KEEP THAT LEAST OUTSET AT 1.8 LOGITECH: SECTION 4.9 ALLOWS FOR REFINANCING OF BOND FUNDS. 7 YEARS AFTER THE INITIAL SALE OF BONDS FOR EACH PROVEN AREA. THE EXPERTS IN THE BOND WORLD CAN EXPLAIN THIS TO YOU BETTER THAN I CAN, BUT ESSENTIALLY. SOMETIMES THERE'S BUSINESS SENSE THAT WHEN YOU TAKE A BOND OUT AT A CERTAIN INTEREST RATE LOGITECH: AND EVERYBODY IN THAT CFD IS PAYING THAT DEBT OFF RATES DROP. LOGITECH: IT MAY BE THAT IT JUST MAKES A LOT OF SENSE FOR THE SCHOOL OR SCHOOL DISTRICT OR CITY IN THIS CASE, TO REFINANCE THOSE THEREBY SAVING THE TAXPAYER MONEY. LOGITECH: SO 7 YEARS AFTER THESE INITIAL BONDS ARE SOLD, THAT IS, IN PLAY IF NEEDED. LOGITECH: SECTION 4.1 0 IS IN THE EVENT THAT EXCESS BOND PROCEEDS ARE REALIZED. LOGITECH: THIS SECTION ESTABLISHES A SERIES OF PRIORITIES FOR THOSE FUNDS. AND THEN THERE'S THIS COMMITTEE THAT'S CONCEIVED, WHICH IS CALLED THE LIBERTY SCHOOL FUNDING ADVISORY COMMITTEE. LOGITECH: NOT OUR FAVORITE ACRONYM, BUT IT'S THE BEST ONE WE'VE COME UP WITH. YOU COULD CHANGE IT IF YOU WANT. THAT'S A COMMITTEE THAT WE CAME UP WITH. IT WAS ONE THAT, AS WE'RE NEGOTIATING IT, THIS SECTION, I SUSPECT, TO THE EXTENT WE HAVE DISCUSSION TONIGHT, YOU'RE GOING TO WANT TO TALK ABOUT THE MOST. THIS IS WHERE THE MAGICAL TERM PAYGO COMES IN. AND THINK OF THAT, JUST TO MAKE THIS SIMPLE FOR EVERYONE LOGITECH: AS EXCESS BOND DOLLARS THAT YOU OTHERWISE HADN'T NECESSARILY COUNTED ON, BUT WE KIND OF ARE COUNTING ON THEM. SO LOGITECH: THE QUESTION WAS VERY EARLY ON WAS, WE KNOW THERE'S ALWAYS AN EXCESS BOND DOLLAR. SO IT JUST IS. EITHER YOU SAVE MONEY ON A PROJECT AND YOU DIDN'T NEED EVERYTHING YOU PULLED DOWN OR YOU REFINANCED. THERE'S A VARIETY OF REASONS FOR IT. LOGITECH: THE QUESTION WAS, IS, WHAT DO YOU DO WITH THAT MONEY? AND WHO HAS RIGHTS TO IT? AND SO ONE IDEA THAT YOU'LL SEE IN THE DOCUMENT IS THAT A COMMITTEE IS FORMED OF A COUNCIL MEMBER. I'M SIMPLIFYING ALL OF THIS BUT A COUNCIL MEMBER, A SCHOOL BOARD MEMBER, A MEMBER FROM LEWIS, AND THEY FORM THIS LITTLE COMMITTEE, AND THIS COMMITTEE MEETS INTERMITTENTLY TO REVIEW LOGITECH: HOW THE PROJECT IS MOVING ALONG, AND THE SCHOOL DISTRICT MAY BE READY TO MOVE FORWARD ON PULLING SUPPLIES TO START BUILDING SCHOOL, AND THEY'LL BE KIND OF MAKING SURE IT'S SORT OF THE IDEA IS THAT WE ALL ARE WATCHING ONE ANOTHER. LOGITECH: SO WE MAKE SURE THAT WE'RE GETTING THE MOST EFFICIENT USE OF THE TAXPAYER DOLLAR LOGITECH: WE CAN GO INTO SOME DETAIL IF YOU WANT AT THE MOMENT ABOUT HOW THE COMMITTEE IS STRUCTURED, IN CASE IN CASE YOU'RE WONDERING LIKE, WHAT IF THEY DISAGREE? WELL, THERE'S PROVISIONS IN THE AGREEMENT ABOUT HOW YOU WORK THROUGH THAT LOGITECH: WANNA MAKE SURE BEFORE I GO BACKWARDS. I WANNA MAKE SURE I GET THROUGH ALL THIS. LOGITECH: THE REMAINDER OF THE DOCUMENT. THERE'S A COUPLE OF REALLY IMPORTANT COMPONENTS. HERE. LOGITECH: ARTICLE 5 IDENTIFIES FUNDING STREAMS. LOGISTIC MAY RECEIVE OR USE IN ORDER TO COMPLETE THE PROJECT, INCLUDING STATE FUNDING AND BRIDGE FINANCING. ONE OF THE REASONS WHY THIS IS A REALLY COMPLICATED DOCUMENT IS, THE SCHOOL DISTRICT HAS TO SHOW THE STATE THAT THEY HAVE CREATED ENOUGH LOGITECH: REVENUE ESSENTIALLY TO BUILD THE THING THEY WANT TO BUILD, AND THEREFORE GET SOME AMOUNT OF UNDETERMINED REIMBURSEMENT BACK LOGITECH: RIGHT AND SO AND SO. A LOT OF THE LANGUAGE IN THERE IS DESIGNED TO SORT OF SHOW, HEY? YOU KNOW. FOR EXAMPLE, PHIL IS GOING TO DELIVER US A PORTION OF THE SITE AT X DOLLARS. WHY IS THAT IN THERE? WHY DOES IT MATTER? WELL, IT MATTERS BECAUSE THIS STATE WANTS TO SEE THAT YOU HAVE SITE CONTROL WHAT IT COSTS. YOU KNOW ALL OF THOSE THINGS. LOGITECH: THE SECOND PART, AS WE WERE WORKING THROUGH EVERYTHING WE NEED TO MAKE THIS WORK IS LOGITECH: WHERE WE KIND OF GO BACK TO THE VERY BEGINNING OF HOW WE STARTED THIS WHOLE DISCUSSION. LOGITECH: FROM MY PERSPECTIVE, WHAT I THOUGHT ABOUT WHEN I WAS ASKED THE QUESTION IS, WELL, YOU KNOW YOU HAVE THIS JOINT PARK? WHAT WHAT VALUE IS THERE TO THE CITY? HOW DO I SELL THIS? LOGITECH: WELL? SCHOOLS GENERALLY BUILD TO A HIGHER LEVEL OF AMENITY THAN WE DO IN AN AVERAGE PARK. THEY JUST DO FOR A VARIETY OF REASONS. LOGITECH: SO DIFFERENT KINDS OF SPORTS AMENITIES LIKE WE'VE TALKED ABOUT TRACK OUT THERE THINGS THAT YOU DON'T SEE IN A NORMAL CITY PARK, OR AT LEAST FAIRLY RARELY. SO THERE'S VALUE THERE. THE OTHER VALUE THAT CARRIE CAME UP WITH WAS, HEY? WE'LL TAKE ON MAINTENANCE RESPONSIBILITIES. LOGITECH: IN A VACUUM. IF THIS DEAL HAD NEVER HAPPENED, WHAT YOU'D HAVE IS THAT LITERALLY, YOU WOULD HAVE A SCHOOL LOGITECH: RIGHT NORTH OF THAT YOU WOULD HAVE A PARK. LOGITECH: SO YOU HAVE 2 SEPARATE FACILITIES. THAT'S SIMILAR IN NATURE THAT THE TAXPAYERS PAYING FOR BOTH OF THEM FULL BOAT. WE ESTIMATE THAT THE CITY SPENDS ABOUT 40,000 BUCKS A YEAR PER ACRE TO MAINTAIN PARKS, SO THAT $200,000 NUMBER IS ESSENTIALLY WHAT IT WOULD HAVE COST, GIVE, OR TAKE TO MAINTAIN THE PARK WE WOULD HAVE BUILT AND ARE NOT GOING TO. IF THIS DEAL IS APPROVED LOGITECH: SO ESSENTIALLY, INSTEAD OF US COLLECTING THAT MONEY FROM OUR CITYWIDE PARK, CFD. LIKE WE DO, AND SENDING THAT OFF TO EITHER DEPARTMENTS THAT MAINTAIN, OR MOST CASES IN LINCOLN. IN OUR PARKS DEPARTMENT, WE GENERALLY OUTSOURCE MAINTENANCE TO A LANDSCAPING COMPANY INSTEAD OF THOSE DOLLARS GOING TO DOMINGUEZ LANDSCAPING, FOR EXAMPLE, IT WILL INSTEAD GO TO THE SCHOOL DISTRICTS WHO ARE GOING TO USE IT, NOT NECESSARILY FOR MAINTENANCE, BUT TO BORROW AGAINST AS PART OF THE OVERALL FUNDING STRATEGY. LOGITECH: SO IT'S NO DIFFERENCE TO IT SHOULD BE GENERALLY NO DIFFERENCE TO THE INDIVIDUAL TAXPAYER INTO THE CFD. THEY WOULD HAVE BEEN PAYING THAT FOR MAINTENANCE. EITHER WAY. IT'S JUST NOT GOING. WE ARE NOT TAKING ON MAINTENANCE RESPONSIBILITY. THE SCHOOL DISTRICT IS GOING TO AFFORD THAT, I THINK, INTO THEIR GENERAL FUND. LOGITECH: NEXT TO WE'RE ON THE DOWNSLOPE, I PROMISE. LOGITECH: NEXT, 2 SECTIONS. TALK A LOT ABOUT THE SITE DETAILS HOW THE PROPERTY IS ACQUIRED AND RECEIVED BY THE SCHOOL DISTRICT, A REGULAR MEET AND CONFER PROCESS. SO WE'RE ALL KIND OF KEEPING EACH OTHER HONEST. WE'RE STAYING UP ON THIS PROJECT LOGITECH: MAKING SURE DOLLARS ARE BEING USED APPROPRIATELY. LOGITECH: INTERESTING PROVISION IN SECTION 9. THE SCHOOL DISTRICT AGREES FOR A PERIOD OF 10 YEARS FROM THE 1ST ISSUANCE OF BONDS, NOT TO PLACE A NEW MEASURE ON THE BALLOT FOR GEO. BONDS THAT INCLUDES AREAS OF VILLAGE 7 WITHOUT THE APPROVAL OF DEVELOPER. OKAY? WHY? LOGITECH: WELL, I WANNA SPEAK FOR PHIL. BUT FROM LIKELY FROM HIS PERSPECTIVE, LOGITECH: A PORTION OF THE CFD. IS BEING GIVEN UP IN ORDER TO FACILITATE THE BUILD OF THIS SCHOOL, AND SO IT WOULD BE DIFFICULT FOR HIS NEW HOMEOWNERS COMING IN THAT ARE GOING TO BE PAYING THAT BOAT TO ALSO HAVE A GEO. BOND PASS WITHIN A COUPLE OF YEARS OF MOVING IN, AND YOU ALL TALK TO YOUR CONSTITUENTS. WHAT IS ALL THIS ON MY BILL? AND WHY ARE THERE SO MANY CHARGES? LOGITECH: IMAGINE IF IT WAS THAT PLUS A GEO. ONE? NOW, WHAT'S THE REALITY OF THAT. WELL, YOU KNOW, I'D LOVE IT IF PHIL WAS DONE WITH THIS PROJECT IN 8 YEARS. LOGITECH: NOT GONNA HAPPEN. PROBABLY. SO BY THE TIME THAT VILLAGE 7 HAS PROBABLY MATURED INTO 50% DONE OR 75% DONE. THIS PROVISION WILL GO AWAY, AND IF THE POLITICAL CLIMATE IS RIGHT AT THE TIME, THE THE LOGITECH: SCHOOL DISTRICT WILL HAVE ANOTHER SHOT AT IT. LOGITECH: AND THEN ARTICLE 10 ESTABLISHED JOINT USE DETAILS, REQUIRES A JOINT USE. AGREEMENT CITY RETAINS SOME NAMING RIGHTS TO THE PARK, BUT THERE IS A PROVISION, AND THEN IT TALKS ABOUT THAT. IT NEEDS TO COMPLY WITH BOARD POLICY ABOUT HOW YOU, HOW YOU NAME THINGS. WE WON'T NAME IT SOMETHING CRAZY LIKE CALLAHAN PARK. LOGITECH: IN FACT, I THINK WE NAME THINGS AFTER SUPERINTENDENTS IN THIS DISTRICT. SO THAT'S ACTUALLY NOT A BAD IDEA. I DON'T WANT IT. THANK YOU. SO THOSE ARE THE HIGHLIGHTS OF OF THE AGREEMENT. LOGITECH: WHAT HAS BEEN SO DIFFICULT ABOUT THIS IS THAT ALL OF US HAVE. WE'RE SERVING MULTIPLE MASTERS AT THE SAME TIME TRYING TO GET A FACILITY BUILT TRYING TO REDEFINE A RELATIONSHIP WITH THE SCHOOL DISTRICT WHERE WE GO TOGETHER WITH LOCKED ARMS VERSUS SORT OF BEING COMPETITORS. LOGITECH: ON THE CITY SIDE WAS REALLY DIFFICULT. JUST SO YOU KIND OF UNDERSTAND? OUR PERSPECTIVE IS WE HAVE, WE GET BEAT UP ABOUT CFDS A LOT LOGITECH: WE JUST DO. PEOPLE DON'T LIKE ADDED TAXES, AND THEY REALLY WANT TO FEEL AND SEE VALUE FOR THOSE TAXES. AND SO A LOT OF OUR DISCUSSION AND THE BACK AND FORTH OF SOME OF THE DISAGREEMENTS HAS BEEN RELATED TO HOW DO WE CREATE PROTECTIONS WITHIN THIS AGREEMENT, SO THAT THE TAXPAYER, HIM OR HERSELF LOGITECH: GET OUT OF THIS ONE DAY, PAY IT OFF AND MOVE ON. AND THERE ARE EXAMPLES, UNFORTUNATELY, IN LINCOLN OF KIND OF FOREVER CFDS, THAT JUST SORT OF NEVER FALL OFF. LOGITECH: AND THE CITY COUNCIL, AT LEAST DURING MY TIME, HAS BEEN PRETTY COMMITTED TO MAKING SURE THAT WE DON'T DO THAT ANYMORE. WE DEFINE WHAT THE COST IS FOR THE NEW DEVELOPMENT. SO IT'S NOT SUBSIDIZED BY ANYONE ELSE. LOGITECH: THEY PAY THAT. AND EVENTUALLY THOSE GO AWAY, OR ALTERNATIVELY, THEY WANT NEW THINGS IN THEIR SUBDIVISION, AND THEY BORROW AND THEY BUILD THEM SO LOGITECH: IN A NUTSHELL. THAT'S 1 OF THE REASONS WHY THIS HAS BEEN KIND OF A DIFFICULT AGREEMENT TO WORK THROUGH. AND THEN THERE'S THE OTHER COMPONENT WHICH I'M SURE IS GONNA GET ASKED. AS SOON AS I STOP TALKING. LOGITECH: WHICH IS, HOW DO WE KNOW WHAT THIS IS GONNA COST? HOW DO WE REALLY KNOW? LOGITECH: AND THIS IS MY PERSPECTIVE? WE DON'T. LOGITECH: WE JUST DON'T KNOW. WE KIND OF KNOW. BUT AS YOU'VE SEEN IN THE LAST 6 MONTHS, THINGS HAVE CHANGED SIGNIFICANTLY ONE WAY OR THE OTHER IN TERMS OF COST FOR BUILD. AND IT'S SUPER POSSIBLE THAT PROJECTIONS HERE ARE LOGITECH: HAVING MORE OF THEIR LIFE. LOGITECH: BUT ONE OF THE THINGS THAT I THINK WE'RE GOING TO WANT TO DISCUSS TONIGHT IS, HOW DO YOU PIVOT? AND ONE OF THE REASONS THIS COMMITTEE EXISTS, FOR YOU KNOW, THIS INTERNAL COMMITTEE WITH COUNCIL MEMBERS BOARD MEMBERS LOGITECH: IS TO PIVOT IF THE CIRCUMSTANCES CHANGE DOWN THE ROAD BECAUSE WE JUST CAN'T. IT'S VERY, VERY DIFFICULT TO MODEL IT ABSOLUTELY PERFECTLY. WHEN, IF I ASK HARRY TO SIGN IN BLOOD RIGHT NOW, WHEN ARE YOU BUILDING THE SCHOOL? IF WE APPROVE THIS TONIGHT? SHE COULD SHE DO IT, BUT SHE WOULD BE LYING. SHE DOESN'T, YOU KNOW, WE DON'T REALLY KNOW. SO LOGITECH: THE IDEA IS THAT WE KEEP RETURNING TO THE SAME GROUP, THE LOCALLY SMALLER AND REFINE, REFINE, REFINE. LOGITECH: THE LAST COMPONENT JUST TO KIND OF THROW THE ELEPHANT OUT IS THE SCHOOL DISTRICT HAS NOT JUST MIDDLE AND ELEMENTARY SCHOOL PROBLEMS. THEY HAVE A NEED FOR HIGH SCHOOLS, AND THERE WAS A LOT OF DISCUSSION ABOUT WHETHER OR NOT HIGH SCHOOL SHOULD BE A PART OF THIS LOGITECH: AGREEMENT, AND GIVEN THE FACT THAT. LOGITECH: AS DESIGNED, THIS SHOULD DELIVER A K THROUGH 8 SCHOOL FULLY FUNDED. LOGITECH: OUR PERSPECTIVE, AT LEAST ON THE CITY SIDE, WAS, THAT'S ABOUT AS FAR AS WE'RE WILLING TO GO, UNLESS EXCESS BONDS PROCEEDS EXIST, IN WHICH CASE IT SHOULD BE A DISCUSSION. THIS HAS JUST BEEN OUR INTERNAL DISCUSSION. A DISCUSSION AMONGST THE ELECTED OFFICIALS ON THAT COMMITTEE ABOUT THE BEST USE FOR THOSE LOGITECH: THOSE DOLLARS. SO LOGITECH: THAT'S THE BROAD STROKES OF IT. I CAN ANSWER QUESTIONS BACK AND FORTH THROUGH THE DOCUMENT. DO YOU HAVE LAWYERS ON THE FRONT HERE, TOO? NO, OKAY, CHRISTINE'S BEEN THROUGH IT. JUST QUICK, THANK YOU. TO MY TEAM. CHRISTINE AND NITA HAVE REALLY HELPED, STEPPED UP AND HELPED ME LOGITECH: MAKE SENSE OF A LOT OF STUFF I SOMETIMES DON'T UNDERSTAND. SO THANK YOU FOR BEING MY TRANSLATORS. BUT I'M HAPPY TO ANSWER ANY QUESTIONS AS IT RELATES TO THE AGREEMENT. BUT REALLY, WHAT WE'RE HERE TO DO IS HAVE THE BOARD AND COUNCIL HAVE A DISCUSSION THE EXTENT YOU HAVE ANY KIND OF ART BURN OR CONCERNS. NOW TALK ABOUT IT, BECAUSE THE GOAL HERE IS TO TRY TO LEAVE WITH ENOUGH. LOGITECH: YOU KNOW, CLARITY, THAT WE CAN CLOSE THE DEAL. PHIL CAN FINISH HIS FORMATION OF CFDS AND THEN LOGITECH: SOMEBODY'S GONNA MOVE INTO A HOUSE SOONER OR LATER OVER THERE. I'M GUESSING. OKAY. LOGITECH: ANY QUESTIONS FOR ME BEFORE I SIT DOWN. LOGITECH: YEAH. SO WE TALKED ABOUT ESCALATING COST ESCALATING COSTS. WHAT HAPPENS IF COSTS MATERIALLY INCREASE. AND DOES THAT IMPACT THE EQUATION AND THE FLEXIBILITY THAT WE HAVE GOING FORWARD. I MEAN, ALL OF US HAVE BEEN AROUND GOVERNMENT LONG ENOUGH TO KNOW THAT LOGITECH: STUFF HAPPENS. SO YOU MEAN IF THEY EXCEED WHAT WE'VE MODELED? EXACTLY. IT'S FUNNY I WAS PREPPING ELECTEDS BEFORE THIS MEETING, AND THAT ISSUE ACTUALLY CAME UP. WHAT IF WE DON'T HAVE ENOUGH, BECAUSE I'LL GIVE. I'LL BE HONEST IF YOU LOOK AT THE MODEL THAT KATHY HAS DEVELOPED. LOGITECH: IT'S CONSERVATIVE IN THE SENSE THAT IT REALLY CREATES A ROOM FOR THE SCHOOL DISTRICT TO HAVE A SCHOOL BUILT, WHETHER IT BE AT 60 MILLION BUCKS OR A HUNDRED 1 MILLION BUCKS DON'T KNOW IF IT'S OVER A HUNDRED 1 MILLION BUCKS. LOGITECH: WE HAVE A PROBLEM. AND MAYBE YOU CAN ADDRESS THAT. YEAH, I MEAN, THE REALITY IS WE HAVE TO. WE CAN ONLY BUILD WHAT WE CAN WITH THE MONEY WE HAVE. LOGITECH: BUT THERE WAS SOME PRECEDENT FOR PHASING IN THE CONSTRUCTION, BECAUSE SOME OF THIS MIGHT BE A CASH FLOW CHALLENGE. WHERE IN THE LONG RUN THERE'D BE FUNDING AVAILABLE. SO WHAT WE HAVE INCLUDED IN THE DOCUMENT IS THAT THE SCHOOL WOULD BE PHASED LOGITECH: AND LIKELY IT WOULD BE A K 5 FACILITY THAT COMES IN 1ST WITH THE MIDDLE SCHOOL, ADDED LATER. HOWEVER, THE JOINT USE FACILITY, THE JOINT USE PARKS WOULD BE CONSTRUCTED UPFRONT, SO THAT THAT JOINT USE FACILITY WAS STILL AVAILABLE FOR USE LOGITECH: IN THE COMMUNITY, SO THAT THE PARK SLASH FIELDS WOULD STILL BE IN THE 1ST PHASE OF CONSTRUCTION, BECAUSE I DO THINK THAT'S A POSSIBILITY. BUT THERE ALSO ARE SOME CUSHIONS IN THERE, AND WE'RE TRYING TO WORK IT OUT. SO ON A CASH FLOW BASIS. WE'RE ABLE TO TO BUILD THAT SCHOOL WHEN WE NEED TO. LOGITECH: BUT WE MAY HAVE TO DELAY IT A YEAR OR 2. IF IF SOMETHING HAPPENS THAT DOES INCREASE THE COST, BUT COULD HELP US WITH THE CASH FLOW AS MORE UNITS COME ONLINE. SO THERE IS SOME FLEX ROOM, AND THIS ISN'T UNUSUAL WHEN WE'RE PLANNING SCHOOL CONSTRUCTION. IT'S WE'RE ALWAYS TRYING TO HIT A MOVING TARGET. AND WE'RE DOING THE BEST WE CAN. LOGITECH: AND OUR ONE OF THE THE THINGS THAT WE'VE FOCUSED ON A LOT IN TERMS OF LOGITECH: TIMING IS LIKE WE REALLY COULD USE ANOTHER ELEMENTARY SCHOOL TODAY. SO LOGITECH: FOR US, LIKE THE SOONER THE BETTER AND OUR BIGGEST CAPACITY ISSUE IS AT MIDDLE SCHOOL, WHICH IS WHY THE TK. 8 WAS SO ENTICING FROM THE STANDPOINT OF LIKE, HOW DO WE ADDRESS THE FACT THAT WE'RE PRETTY MUCH OUT OF CAPACITY AT OUR MIDDLE SCHOOLS CURRENTLY AND KNOWING THAT THAT'S GONNA BE A NEED AND SO WE WE'RE COMMITTED, AND I THINK THERE'S INCENTIVE JUST IN THE WAY THE AGREEMENT IS DEVELOPED AS WELL LOGITECH: FOR US TO DO IT AS FINANCIALLY, EFFICIENTLY AS WE POSSIBLY CAN. AND I FEEL LIKE AS A DISTRICT WE'VE PROVEN OURSELVES IN THAT REGARD IN THE LAST 10 YEARS, FOR SURE, IN TERMS OF HOW WE HAVE BUILT FACILITIES. WE'RE NOT INTERESTED IN BUILDING THE TAJ MAHAL. LOGITECH: 12 BRIDGES HIGH SCHOOL MIGHT LOOK LIKE THE TAJ MAHAL TO SOME PEOPLE, BECAUSE IT IS A BEAUTIFUL FACILITY, BUT IT IS SO UNDER THE COST OF WHAT OTHER DISTRICTS AROUND US ARE BUILDING SCHOOLS FOR, YEAH, BASICALLY ABOUT THAT. YEAH, SO WE WE HAVE, WE HAVE THE INCENTIVE TO TO DO MORE WITH LESS. BECAUSE I THINK WE WILL BENEFIT, BECAUSE IT'S JUST EXTRA DOLLARS THAT WE HAVE TO PUT TO OTHER FACILITIES THAT QUITE FRANKLY, WE'RE LOGITECH: WE'RE GOING TO NEED, BECAUSE THE THE WAY IN WHICH SCHOOL FUNDING WORKS I MEAN THOSE OF YOU THAT HAVE HEARD ME SPEAK A BAZILLION TIMES ABOUT OUR FUNDING FORMULAS. THERE ISN'T ENOUGH. AND SO WE ARE. AND IN ORDER TO ACCESS THE STATE FUNDING, YOU HAVE TO HAVE LOCAL FUNDING. SO THEN. SO YOU KNOW, AT SOME POINT WE'RE GOING TO. LOGITECH: WE'RE GOING TO HAVE TO PROBABLY LOOK AT A GEO BOND FOR HIGH SCHOOL FACILITIES, BECAUSE THE THE FUNDING ITSELF. LOGITECH: AND YOUR ABILITY TO ACCESS IS ONLY GOOD FOR AN ELEMENTARY, AND IN THIS CASE, BECAUSE OF THE PARTNERSHIP. AND REALLY, I MEAN, SHAWN, YOUR PRESENTATION WAS LOGITECH: SPOT ON. I COULDN'T HAVE DONE IT BETTER AT ALL, AND THAT WAS AWESOME. I THINK ONE OF THE THINGS THAT I'VE REALLY APPRECIATED IN THIS WHOLE PROCESS IS THE TRUE JOINT COMMITMENT TO NOT ONLY ENSURE THAT THE FAMILIES THAT WE SERVE IN THE EDUCATION COMMUNITY IN LINCOLN ARE SUPPORTED, BUT TRULY THAT THE ENTIRE COMMUNITY OF LINCOLN IS BENEFITING FROM US, WORKING TOGETHER AND NOT LOGITECH: SPENDING A DOLLAR TWICE BECAUSE HE'S BILLING FACILITIES. WE'RE BUILDING FACILITIES. HOW DO WE COME TOGETHER AND DO THIS WELL. AND I REALLY APPRECIATE PHIL'S CREATIVE TACTICS, TOO, AND AND KATHY, AND AND THEN OUR LEGAL LEGAL TEAM AS WELL. SO LOGITECH: CARRIE, FOLLOWING UP THERE FOR A SECOND LOGITECH: ON 12 BRIDGES. AREN'T YOU GONNA HAVE TO COME BACK AT SOME POINT TO COMPLETE, I'M GONNA SAY, COMPLETE. LOGITECH: YOU KNOW THE PROJECT. AND SO THAT'S MY AREA OF CONCERN IS THAT IT'S A HUNDRED 8. WE'VE WE GO THROUGH. AND WE WE DO 70% OF IT. WE'RE GONNA HAVE TO COME BACK THROUGH WITH THAT AFTER THAT FOR ANOTHER 30%. SO LOGITECH: I MEAN THE 12 WHICH IS HIGH SCHOOL AND AND OR ADDING TO LINCOLN HIGH SCHOOL TO SERVE KIDS THAT ARE GOING TO COME UP. BECAUSE I MEAN, ULTIMATELY, IN VILLAGE 7, THERE'S NOT JUST GOING TO BE TK, 8 STUDENTS RIGHT LIKE, THERE'S GOING TO BE HIGH SCHOOL AGE KIDS THAT ARE GOING TO COME OUT OF THAT FACILITY. AND WHAT DOES THAT LOOK LIKE? AND THAT'S BEEN PART OF THE HIGH SCHOOL. CONVERSATION IS IF THERE'S ADDITIONAL REVENUES AFTER WE'RE FOCUSING ON THE TK 8, LOGITECH: COULD THAT POTENTIALLY BE USED TO HELP BUILD CAPACITY AT OUR EXISTING FACILITIES, WHETHER IT'S IN AT 12 BRIDGES OR LINCOLN HIGH SCHOOL, OR IF WE'RE ABLE TO GET A VILLAGE 5 HIGH SCHOOL BUILT, WHICH, QUITE FRANKLY, WOULD PROBABLY BE THE CLOSEST HIGH SCHOOL, FOR WHERE VILLAGE 7 STUDENTS ARE THAT THAT PERHAPS THERE COULD BE SOME CAPACITY. AND AGAIN, IT'S THAT'S A THAT'S A DECISION THAT'S GOING TO BE COLLECTIVELY MADE AFTER THE FACT. SO BUT FOR RIGHT NOW IT'S THE IT'S THE TK 8, AND LOGITECH: AND THE MORE EFFICIENTLY WE BUILD IT, THE MORE POSSIBILITY THAT THERE'S ADDITIONAL REVENUES AT THE END THAT HAVEN'T BEEN ASSIGNED, THAT WE CAN THEN HAVE CONVERSATION ABOUT, HOW DO WE? HOW DO WE USE THAT TO POTENTIALLY HELP BUILD CAPACITY AT OUR SCHOOLS AND OR ADDRESS LOGITECH: JUST OUT OF CURIOSITY? OBVIOUSLY, PHIL IS NOT GOING TO LIMIT THE HOME PURCHASES TO PEOPLE WHO ONLY HAVE KIDS IN UP TO 8. SO YOU KNOW, WHAT'S THE WHAT'S THE GAME PLAN FOR THE FOR THE SCHOOL DISTRICT TO HANDLE ALL THOSE PEOPLE COMING IN FROM NEED HIGH SCHOOL FACILITIES. LOGITECH: THROUGH OTHER DEVELOPER FEES AND OR POTENTIAL BOND, THAT WOULDN'T INCLUDE THOSE 7 AT LEAST FOR 10 YEARS. IS POTENTIAL CAPACITY STUFF. WE AT LINCOLN HIGH SCHOOL, THERE'S SPACE. SO, AND WE'RE AT A POINT RIGHT NOW IN THE 12 BRIDGES AREA THAT THERE'S NOT ROOM, AND KIDS ARE STARTING TO BE OVERFLOWED TO SOME OF OUR OTHER SCHOOLS. SO WE, WE ADD PORTABLES UNTIL WE CAN GET A FACILITY. LOGITECH: BUT RIGHT NOW THE TK IS IS THE NUMBER ONE PRIORITY FOR OKAY? SO THE NEXT QUESTION IS. LOGITECH: HOW DO WE GUARANTEE THAT CITY RESIDENTS GONNA BE ABLE TO USE THIS EX. I'M GONNA CALL IT EXPANDED AMOUNT OF OF FACILITIES BECAUSE WE'RE PAYING $200,000 A YEAR. BUT IF OUR IF LOGITECH: IF YOU. IF THE SCHOOL USES IT AT 40%, THEN IN THEORY, YOU SHOULD BE PAYING 40, WE SHOULD ONLY BE PAYING 60% OF THAT. YOU SHOULD BE PAYING 40. WHAT I HEARD, SEAN, IS THAT THE SCHOOL? THE FACILITY ITSELF, WILL HAVE ADDITIONAL CAPABILITIES THAT WE WOULDN'T HAVE IT IF WE, IF WE BUILT THE PARK OURSELVES. BUT THEN IT GETS DOWN TO HOW DO WE ACTUALLY GUARANTEE LOGITECH: THE FACT THAT OUR RESIDENTS CAN GO THROUGH AND USE THE FACILITY? AND THEN EVERYTHING WHO'S CHARGED SCHEDULING, AND ALL OF A SUDDEN SAYING, I'M SORRY YOU JUST CAN'T DO IT, BECAUSE WE'VE SUCKED UP 95%. SO I MEAN, HOW DO WE? HOW DO WE WRITE SOMETHING LIKE THAT INTO PIECE? YEAH, THAT IS A GREAT QUESTION. I WOULD SAY THAT FIRST, ST IT'S A TK, 8. SO IT'S NOT HIGH SCHOOL. SO THE POSITIVE IS THAT THE AFTER SCHOOL ACTIVITIES ARE A LOT MORE LIMITED LOGITECH: AT ELEMENTARY AND MIDDLE SCHOOL LEVEL VERSUS A HIGH SCHOOL WHERE THE GYMS OR FIELDS ARE BEING USED ALL THE TIME IN TERMS OF THE THE DESIGN OF THE SCHOOL, WE, OUR INTENTION IS TO DESIGN THE AREAS THAT WOULD BE MULTI USE IN A WAY THAT IN THEORY, LIKE SOME OF THE FIELD LOGITECH: AND AND THE THE AMENITIES ARE NOT GOING TO BE THE TYPE OF AMENITIES THAT LOGITECH: TODDLERS WOULD BE ATTRACTED TO. RIGHT. IT'S NOT GONNA HAVE THE LITTLE PLAYGROUNDS, I MEAN THE ELEMENTARY PORTION OF IT WOULD FOR THE AFTER HOURS WHICH COMMUNITY WOULD BE ABLE TO ACCESS WHEN IT'S NOT SCHOOL TIME. BUT THERE WOULD POTENTIALLY BE AREAS. AND THEN, OUTSIDE OF THE SCHOOL DAY AND ALL SUMMER LONG THE CITY WOULD HAVE WOULD HAVE RIGHTS TO IT. LOGITECH: AND WE WOULD WORK THROUGH THE SCHEDULE. AND SO THAT'S PART OF THE CONVERSATION IN TERMS OF SOME OF THE FOLLOW UP THAT WE HAVE TO COUNCIL MEMBER. THIS AGREEMENT THAT WE'RE TALKING ABOUT TONIGHT CONTEMPLATES AN AUXILIARY AGREEMENT THAT ACTUALLY LAYS OUT THE OBLIGATIONS. WHO GETS WHAT, WHEN, WHERE, HOW, AND HOW THAT IS ALL STRUCTURED. SO THAT WOULD BE SOMETHING THAT WE WOULD BE SEPARATELY NEGOTIATING AS A SIDE AGREEMENT. OKAY, THANK YOU, BECAUSE THE DIFFERENCE IN THIS SCENARIO VERSUS JUST SORT OF MORE BROAD JOINT USE AS WE'VE HAD. LOGITECH: YOU KNOW, OVER THE PAST IS, THIS IS LOGITECH: LIKE A FACILITY WE'RE BOTH GETTING IN ON CONTRIBUTING TOWARDS. AND SO, AT LEAST FROM MY PERSPECTIVE JOINT USE CAN SIMPLY BE, YOU KNOW. HEY, WE'RE GONNA COLLABORATE ON LETTING YOU USE OUR STUFF. LOGITECH: BUT IN THIS PARTICULAR INSTANCE I THINK IT NEEDS TO BE A LITTLE BIT MORE SPECIFIC WHERE IT NEEDS TO BE LITERAL RIGHTS TO USE WHERE WE COULD PROGRAM IT IF WE WANT TO PROGRAM IT, OR HAVE OPEN GYM, OR WHATEVER THE HECK THEY FIX IS THE RIGHT THING TO DO VERSUS, YOU KNOW. HEY, WE WE HAVE A SOFTBALL TOURNAMENT THIS WEEKEND, AND CAN WE RENT YOUR FIELD? SO YOU KNOW. LOGITECH: FOR A PRICE? LOGITECH: WELL, WE'VE EVEN CAUGHT THE CONTENT LIKE LOGITECH: NOT HAVING IT A CLOSED DOWN FACILITY OUTSIDE OF THE SCHOOL DAY, BECAUSE IF SOMEBODY IN THE COMMUNITY WANTS TO COME AND WALK THE TRACK ON THE WEEKEND RIGHT? OR OR HAVE A PICNIC WITH THEIR FAMILY LIKE IN THE PARK. WE HAVE TO MAKE SURE THAT THAT TRULY, TRULY IS A JOINT USE. IT'S NOT US. AND THEN WE HAVE A JOINT USE AGREEMENT, WHICH IS A LOT OF WHAT OUR FACILITIES ARE NOW, AND THAT'S DIFFERENT THAN WHAT THIS WILL LOOK LIKE LOGITECH: AND REALLY SPELLING OUT. BECAUSE I AND AS YOU ALLUDED TO IS THAT THE AMENITIES ARE A LOT DIFFERENT, TOO. RIGHT? YOU'RE GONNA HAVE A GYM, A MULTI PURPOSE ROOM. THERE'S HARD COURTS, THERE'S ALL THE FIELD ACCESS AND AND MAKING SURE THAT YOU, YOU HAVE LOGITECH: MORE PROBABLY MORE THAN 50% OF THE USE QUITE FRANKLY, BECAUSE LOGITECH: WE'RE NOT USING IT OUTSIDE OF SCHOOL DAY, REALLY, ESPECIALLY IN A TK, 8, LOGITECH: HOW DOES LIABILITY WORK FOR SOMETHING LIKE THAT. IF LOGITECH: THE CITY I WOULD ASSUME YOU PLUG IT INTO YOUR PARKS AND REC PROCESS, AND THEN EACH OF US JUST CARRY THE LIABILITY COMPONENT. WHEN OUR PEOPLE WERE IN THERE. THERE'S NO GRAY THERE. LOGITECH: IT'S SIMILAR TO LIKE OUR LIBRARY STUFF, THE LIBRARY JOINT USE AND OTHER JOINT USE FACILITIES. WHAT ABOUT THERE'S GONNA BE SOME DEDICATED SPACE FOR THE STUDENTS. CORRECT. THAT'LL BE SORT OF YOU CAN CLOSE OFF DURING THE SCHOOL DAY. THE PARK STILL REMAINS OPEN IF THOSE PARTS AREN'T BEING USED BUT I GUESS JUST TO SAY THAT LOGITECH: WE'D BE ABLE TO SORT OF STILL FUNCTION AS A SCHOOL AND NOT PRECLUDE PEOPLE, MEMBERS OF THE PUBLIC FROM USING THE REST OF THE FACILITY. IT SOUNDS LIKE, YEAH. LOGITECH: WE EVEN KIND OF TALKED ABOUT HOW LIKE THERE MAY BE KIND OF ADDITIONAL FENCING, THAT IS, YOU KNOW, OPENABLE AND CLOSABLE, SO THAT PORTIONS OF SECTIONS CAN BE OPEN FOR ANYBODY. AND THEN, YOU KNOW, LIKE AFTERNOON STUFF, YOU KNOW THE KIDDOS STILL ARE IN A PROTECTED AREA. LOGITECH: THIS WOULD BE HELPFUL TO ME. I GOT A LITTLE BIT OF THIS FROM FACILITY I REALLY APPRECIATE BUT A LITTLE BIT OF A PRIMER ON HOW A SCHOOL GETS BUILT. LOGITECH: WHAT ARE THE FUNDING SOURCES? WHAT ARE THE RELATIVE PERCENTAGE OF THOSE SOURCES LIKE, HOW HOW DOES THAT ACTUALLY WORK? LOGITECH: WHERE DOES THE MONEY COME FROM? WELL, IT DOESN'T WORK, JOHN. IT'S RIDICULOUS, AND IT'S A DAILY SOURCE OF FRUSTRATION. BUT GO AHEAD, KATHY, BEHIND YOU, JOHN, SO HE CAN. HE CAN ALSO KIND OF STAND. AND LOGITECH: JASON, THAT'S CORRECT. YEAH, IT IS A NIGHTMARE THAT I DEAL WITH ON A DAY TO DAY BASIS. SO TRADITIONALLY, YOU THINK OF IT. AND THIS IS WHAT EVERYBODY SAYS IN THE STATE, IT'S A 3 LEGGED STOOL. OKAY, SO THIS IS NEW CONSTRUCTION, NOT MODERNIZATION, DIFFERENT QUESTION. SO TYPICALLY, IT'S A THREE-LEGGED STOOL WHERE IT'S THE STATE LOGITECH: DEVELOPMENT AND THE LOCAL COMMUNITY ALL CHIPPING, IN A 3, RD A 3, RD A 3RD TO FUND THE CONSTRUCTION OF THE SCHOOL. IT DOESN'T REALLY WORK OUT THAT WAY. KEEP IN MIND THE STATE PROGRAM IS NOT A CASH FUNDED PROGRAM. IT'S A REIMBURSEMENT PROGRAM. SO THE MONEY COMES IN 5 YEARS OR SO AFTER YOU ACTUALLY BUILD THE FACILITY. SO THERE'S A CASH FLOW PROBLEM THERE. DEVELOPMENT IMPACT FEES ARE CAPPED FOR SCHOOL FACILITIES BY THE STATE. LOGITECH: SO PART OF THE THING THAT'S GREAT ABOUT THIS AGREEMENT IS FRANKLY, LEWIS. COMMUNITIES IS CONTRIBUTING THAT DEVELOPMENT IS CONTRIBUTING MORE THAN THEY ARE LEGALLY REQUIRED TO CONTRIBUTE AS PART OF THAT THREE-LEGGED STOOL. AND THEN LOCAL COMMUNITY IS THE OTHER SHARE. AND THAT TYPICALLY COMES IN THE FORM OF GENERAL OBLIGATION BONDS. LOGITECH: ONE OF THE CHALLENGES IN THE LINCOLN COMMUNITY IS THAT THERE ARE NEEDS AT THE EXISTING FACILITIES. I THINK CARLA AND C. KOPPEN, IF ANY OF YOU HAVE BEEN THERE, IT'S KIND OF NEEDS A LOT OF ATTENTION. AND IT'S THAT SAME FUNDING SOURCE. THOSE GENERAL OBLIGATION BONDS ARE THE SAME FUNDING SOURCE FOR EXISTING FACILITIES VERSUS NEW FACILITIES. AND WHAT WE FOUND NOT JUST IN OUR PAST EXPERIENCE WITH GENERAL OBLIGATION BONDS, BUT IN OUR RESEARCH IS THAT THE LINCOLN COMMUNITY DOESN'T WANT TO. LOGITECH: DOESN'T SUPPORT FUNDING NEW SCHOOL CONSTRUCTION THROUGH GENERAL OBLIGATION BONDS. WE WERE ABLE TO GET FUNDING FOR PARTIAL FUNDING FOR 12 BRIDGES HIGH AND LEHMAN ELEMENTARY. BUT WE'RE HAVING SOME CHALLENGES ON A NEW CONSTRUCTION. SO THERE'S THAT TRADITIONAL. HOW'S IT? FUNDED STATEWIDE? WHAT ENDS UP BEING THE CASE IS A LOT OF THOSE NEW SCHOOLS YOU'RE SEEING IN ROSEVILLE THE DEVELOPMENT LOGITECH: THE NEW DEVELOPMENT HAS CONTRIBUTED MORE THAN THEY ARE LEGALLY REQUIRED TO, BECAUSE THE LOCAL COMMUNITY, ESPECIALLY IN CONSERVATIVE COMMUNITIES, WILL NOT PAY ADDITIONAL TAXES TO FUND THAT LOCAL SHARE. LOGITECH: SO THAT'S KIND OF THE SHORT ANSWER. AND WE SAY PERCENTAGES, IT'S ALL OVER THE BOARD, BUT IT'S SUPPOSED TO BE A 3, RD A 3, RD A 3.RD RIGHT? OKAY? BECAUSE I HAD HEARD 60, 40, ABOUT 60, 40 IS DIFFERENT. SO THAT IS THE STATE PROGRAM. LOGITECH: THE STATE PROGRAM IS LIKE ALICE IN WONDERLAND. SO IF I TALK TO YOU ABOUT THE STATE PROGRAM, IT'S NOT IN REALITY THE STATE CALCULATES AN ELIGIBILITY AMOUNT THAT ELIGIBILITY AMOUNT HAS NOTHING TO DO WITH WHAT IT ACTUALLY COSTS TO BUILD A SCHOOL. IT'S BASED ON THEIR FORMULA. SO IN A MODERNIZATION PROGRAM, NOT NEW CONSTRUCTION. THE STATE CONTRIBUTES 60% OF WHAT YOU'RE ELIGIBLE FOR. AND THE DISTRICT HAS TO MATCH AT 40% LOGITECH: IN NEW CONSTRUCTION WORLD. IT'S 50 50. BUT THAT IS BASED ON LIKE, THEY'RE 50%. LOGITECH: THAT'S THAT'S WHAT IT IS BASED ON CLASSROOMS. YEAH. AND IT DOESN'T REALLY FUND GYMNASIUMS. IT DOESN'T REALLY FUND IT. FUNDS, CLASSROOMS, BASICALLY 50%. SO I WONDER, LIKE, IT'S NOT THAT. SO YOU TALKED ABOUT, WE'RE LOGITECH: ABOUT HOW LIKE, HOW. SO IT'S WHAT, HOW MANY SQUARE FEET IS A TK. THROUGH 8 SCHOOL, 80,000 SQUARE FEET. LOGITECH: 50 TO 56,000 SQUARE FEET. LOGITECH: BUT THAT'S WHAT WE'D BE LOOKING AT. PROBABLY ABOUT 80,000 SQUARE FEET. FOR THIS. LOGITECH: YOU KNOW, IT ALL KIND OF COMES DOWN TO HOW WE PROGRAM IT. SO, MIKE, THAT'S JUST COVERED SPACE RIGHT? LOGITECH: LIKE-LIKE ACTUAL. IT'S NOT INCLUDING ALL THE OTHER STUFF. LOGITECH: SO IN IN DOING A LITTLE RESEARCH ON THIS IN THE LAST FEW MONTHS, THERE'S I'VE SEEN A YOU KNOW, RANGE RIGHT? IN CALIFORNIA. WHAT I MEAN THERE'S OBVIOUSLY COSTS THAT WE CAN'T CONTROL INFLATION AND ALL SORTS OF TARIFFS AND OTHER THINGS LIKE HERE. BUT WHAT? WHY IS SOME, YOU KNOW. WHY ARE SOME. LOGITECH: YOU KNOW, TK, THROUGH 5 SCHOOLS, 32 MILLION, AND OTHERS MIGHT BE 41, EVEN IN THE SAME GEOGRAPHIC REGION LIKE, WHAT? WHAT DRIVES LOGITECH: THAT? SAY, 2025% DON'T. A LOT OF IT, I THINK, HAS TO DO WITH HOW YOU PROGRAM. OBVIOUSLY, YOUR BUDGET WHAT YOU'RE WORKING WITH, HOW YOU PROGRAM IT. LOGITECH: SOME DISTRICTS HAVE HIGHER STANDARDS AND OTHERS. SO, FOR EXAMPLE, YOU KNOW. BUT THEIR NEWEST ELEMENTARY SCHOOL WITH, YOU KNOW. LOGITECH: CONTRACTOR THAT DID IT. IT WAS A LITTLE OVER DESIGN 66 MILLION DOLLARS LOGITECH: JUST AFTER WE SPENT 30 MILLION DOLLARS ON. BUT YOU KNOW, THEY-THEY DID OVER DESIGN IT. AND AT THAT POINT, YOU KNOW, TALKING TO THE CONTRACTOR. IF THEY DIDN'T, IF THEY DIDN'T GET THERE WITH IT, YOU KNOW HOW MUCH PROBABLY WOULD HAVE COST. HE WAS THINKING, 55 TO 60. SO LOGITECH: IT'S KIND OF THE DISTRICT, AND YOU KNOW WHAT WHAT THE EXPECTATIONS ARE FOR PARENTS. LOGITECH: SO FORTH. LOGITECH: THERE'S-THERE'S, YOU KNOW, REGIONAL COSTS, OBVIOUSLY BARELY MORE THAN 10% FOR, BUT IT-IT HAS A LOT TO DO WITH WHEN YOU BID IT. LOGITECH: YOU KNOW WHO-WHO THE CONTRACTORS THAT ARE AVAILABLE? I MEAN, IF YOU'VE BEEN LATE. SO YOU'RE NOT GONNA HAVE THAT POOL. THE LABOR POOL HAS A HUGE IMPACT ON HOW LOGITECH: IT'S SHRINKING RIGHT NOW. IT'S AND IT'S EVEN WORSE FOR US BECAUSE WE HAVE TO PAY PREVAILING WAGE. BUT ON TOP OF THAT WE HAVE TO PAY SKILLED WORK. SO THERE HAS TO BE A CERTAIN PERCENTAGE OF JOURNEYMEN, CERTAIN PERCENTAGE OF APPRENTICES, CERTAIN PERCENTAGE THAT ARE BOTH THAT HAVE GONE THROUGH THE PROGRAM AND HAVE THE YEAR. SO THAT IS WHAT'S REALLY DRIVING US RIGHT NOW. LOGITECH: MATERIALS BEEN ALL OVER THE PLACE AT 1 POINT. YOU COULDN'T GET CONCRETE. IF YOU WANTED CONCRETE, WE'RE PAYING A LOT ASPHALT. IT DEPENDS ON OIL PRICES. LOGITECH: THERE'S KIND OF A FLUCTUATION WITH STEEL, AND AND WOULD, YOU KNOW, KIND OF PICK YOUR PICK, YOUR POISON AT THE TIME, AND THEN LOGITECH: OBVIOUSLY WITH WITH LEHMAN AND 12 BRIDGES. I I HAD A BUDGET, AND THERE WAS A DIRECT UNDERSTANDING WITH THE ARCHITECT AND THE CONTRACTOR WE BROUGHT ON BOARD. THIS IS IT I DON'T HAVE. I DON'T HAVE, YOU KNOW KATHY WAS ON ME EVERY DAY, NOT ONE CENT ONE RED SENT OVER. AND WE WORKED WITHIN THAT BUDGET. AND YOU KNOW, WE WORKED TOGETHER TO MAXIMIZE THE DOLLARS. WE HAD GOT A LOT AT 12 BRIDGES HIGH SCHOOL AS WELL AS LEHMAN LOGITECH: LEHMAN. WE STILL NEED TO FIX. LOGITECH: WE REALLY DID. AT THE SAME TIME, I THINK ROSEVILLE WAS BUILDING THEIR ELEMENTARY SCHOOL FOR ALMOST 40. WE WERE BUILDING OUR TROOPS. LOGITECH: AND I HAD ONE OTHER PIECE. IT'S ALSO HOW DISTRICTS FRAME WITH THE COST OF A SPLITS. SO I WORK IN A LOT OF SCHOOL DISTRICTS, AND I CAN TALK TO ONE FACILITIES DIRECTOR, AND HE'S TELLING ME THE HARD COST OF THE SCHOOL TALK TO ANOTHER. THEY'RE TELLING YOU THE COST OF HARD COSTS AND SOFT COSTS LOGITECH: WHICH CAN ADD ANOTHER 25%. SOME ARE TELLING YOU ABOUT HARD COSTS, SOFT COSTS AND LAND. THERE IS NO COMMON VERNACULAR WHEN IT COMES TO WHAT A SCHOOL COSTS. SO A LOT OF TIMES SOME OF THOSE DISCREPANCIES ARE JUST HARD COSTS VERSUS ALL IN COST, AND IT REALLY VARIES FROM ONE DISTRICT TO THE NEXT, EVEN WHAT THEY'RE PRESENTING THE BOARD. SO I THINK SOME OF THAT IS JUST HOW THEY FRAME IT. LOGITECH: I WAS GONNA SAY SOMETHING ABOUT THE K THROUGH 8 CONCEPT, BECAUSE THAT'S NEW FOR THIS COMMUNITY. WE DON'T HAVE ANY OF THOSE. AND LOGITECH: THAT WASN'T, I MEAN, THAT WAS LOGITECH: REALLY IS A COST SAVING MODEL TO TRY AND DELIVER THE BEST POSSIBLE VALUE TO THE TAXPAYER, BUT ALSO WENT THROUGH A VERY RIGOROUS MASTER PLANNING PROCESS WHERE WE WORKED WITH A HUGE SWATH OF PEOPLE, EVERYONE FROM STAFF AND TEACHERS LOGITECH: INTO COMMUNITY MEMBERS TO FIND OUT, LIKE CULTURALLY HOW THEY WOULD VIEW THAT. AND I THINK THAT THAT'S WORTH MENTIONING, BECAUSE SOMETIMES DOING IT CHEAP DOESN'T NECESSARILY MEAN YOU'VE DONE IT BETTER. YOU'VE JUST DONE IT LOGITECH: CHEAPER, AND IF IT ENDS UP BEING THE COMMUNITY ATTACKS AS A YOU KNOW, AS A CHANGE TO LIFESTYLE OR WHATEVER. AND I JUST THERE WAS A LOT OF THOUGHT. CARRIE PUT A LOT OF THOUGHT IN AND TEAM AROUND, YOU KNOW. IS THIS A CONCEPT THAT WE CAN MAKE WORK, OR, YOU KNOW, WOULD IT BE? WE'D SAVE MONEY, BUT LOSE, YOU KNOW, LOSE POPULARITY. AND I THINK I THINK WHAT WE LEARNED WAS THAT THE DISTRICT HAS BUILT A RELATIONSHIP LOGITECH: BY WHICH THE COMMUNITY TRUSTS THAT, HOWEVER, THE MECHANISM THAT THE KIDS WILL BE CARED FOR, AND THE STAFF WILL BE HAPPY TO BE THERE. SO I JUST I FEEL LIKE THAT'S IF THERE'S ANY DISCUSSION TO BE HAD THERE. IT'S IT'S WORTH MENTIONING. THOSE LOGITECH: UP TO PROCESS. LOGITECH: SO WAS IT. DID IT SEEM LIKE THE FEEDBACK WAS PRETTY POSITIVE AND OPTIMISTIC. YEAH, AND THERE'S A AND THERE'S A LOT OF RESEARCH THAT I MEAN LOGITECH: AS A FORMER MIDDLE SCHOOL TEACHER, I QUITE HONESTLY THINK THAT WE SHOULD TEACH KIDS THE FOUNDATIONS IN ELEMENTARY AND THEN SPEND 3 YEARS TEACHING THEM HOW TO BE HUMANS AND THEN HIGH SCHOOL. YOU TEACH THEM HOW TO BE EFFECTIVE IN LIFE, BECAUSE MIDDLE SCHOOL IS JUST AND HOW YOU TAUGHT AT THAT LEVEL. LOGITECH: THEY'RE NOTHING. BUT WHEN YOU, WHEN YOU CREATE A COMMUNITY WHERE KIDS CAN STAY FOR A LONGER PERIOD OF TIME THAT HAS A BIG IMPACT LIKE UP AND DOWN THE STATE AND ACROSS THE COUNTRY. THE BIGGEST DIP THAT OCCURS IS EITHER AT 6TH OR 7TH OR 5, TH DEPENDING ON WHETHER IT'S A IT'S A K 4. AND THEN THEY MOVE TO MIDDLE SCHOOL, RIGHT? BECAUSE THERE'S DIFFERENT MODELS. THERE'S ALWAYS A DIP IN STUDENT ACHIEVEMENT LOGITECH: WHEN KIDS ENTER A JUNIOR HIGH OR MIDDLE SCHOOL SIGNIFICANTLY, AND I THINK IT HAS A LOT TO DO WITH LOGITECH: A CHANGE IN ENVIRONMENT AND JUST WHAT THEY'RE GOING THROUGH HORMONALLY FOR A LONG TIME. YEAH, IT WAS. AND IT WAS. IT WORKED GREAT. AND IT WASN'T UNTIL THE RECENT MODERNIZATION THAT WE DID, THAT WE GOT RID OF THE KINDERGARTEN TOILETS THAT PEOPLE WERE USING, EVEN THOUGH IT WAS. AND THEN WHERE WE DON'T LOGITECH: ARE ANY OF THE OTHER VILLAGES GOING TO BE UTILIZING THIS SCHOOL? AND IF SO, I MEAN, WE CAN'T REALLY PREDICT TOO FAR IN THE FUTURE. IF WE'RE GONNA HAVE A NEED. WILL IT BE PROVISIONS WITHIN THIS OR SOMETHING ELSE WHERE THEY DON'T HAVE TO CONTRIBUTE, ESPECIALLY FOR OVER? SO IT'S THAT'S A GOOD QUESTION SO SIMILAR TO OUR SOME OF OUR EXISTING FACILITIES. THERE IS LAW THAT LOGITECH: PROTECTS LOGITECH: FAMILIES THAT LIVE AND PAY WITHIN THE COMMUNITY TO HAVE RIGHTS. SO WHEN LINCOLN CROSSING, FOR EXAMPLE, WAS OVERLOADED BEFORE SCOTT LEHMAN OPENED AND WE HAD THE CAMP OUTS, SOME OF YOU MIGHT REMEMBER THE CAMP OUTS. YEP, I THINK, JOHN, WE HAD TALKED ABOUT YOU ACTUALLY, YES, AND BECAUSE WE CANNOT ALLOW STUDENTS TO ATTEND LOGITECH: SCHOOL. IN CERTAIN. IN SOME OF OUR SCHOOLS, UNLESS THERE IS ACTUAL ACTUALLY SPACE, IF THEY RESIDE OUTSIDE OF THAT AREA IN TERMS OF THEM, OFFICIALLY CONTRIBUTING? NO, BECAUSE THEY ARE CONTRIBUTING IN THEIR OWN DEVELOPMENTS IN DIFFERENT WAYS. BUT BUT THERE ARE PROTECTIONS THAT ENSURE THAT THAT VILLAGE. 7 STUDENTS GET ACCESS TO THE SCHOOL BEFORE ANYBODY ELSE DOES. LOGITECH: OKAY. LOGITECH: OKAY, THEY'RE PROJECTED TO FILL UP THIS SCHOOL. YEAH, THEY'RE PROJECTED TO FILL UP. YES, EXACTLY. SO. THEY THERE WON'T BE A WHOLE LOT OF SPACE. SO THIS HAS BEEN ON OUR MINDS FOR QUITE SOME TIME MORE THAN A COUPLE OF YEARS. I REMEMBER WHEN I GOT TOGETHER WITH YOU 2 YEARS AGO. LOGITECH: AND BEING EXTREMELY IN FAVOR OF THIS SUPPORTING IT. YOU HAD ALREADY THINK ABOUT IT WAY BEFORE THAT, AND SO LOGITECH: I THINK THAT WE'RE ALL HERE TO TO MAKE SURE THAT WE DO OUR BEST TO APPRECIATE THAT. LOGITECH: AND CERTAINLY OUR HOPE AND SHAWN AND I HAVE TALKED ABOUT THIS A LITTLE BIT IS IS THAT THIS COULD BE LOGITECH: REPLICATED RIGHT. AND WHAT DOES THAT LOOK LIKE? BECAUSE WE VILLAGE 7 ISN'T THE ONLY VILLAGE THAT'S IN DEVELOPMENT. WE'VE GOT VILLAGE ONE AND AND VILLAGE 5, AND AND WE'VE HAD HAD SUCCESS THUS FAR WITH VILLAGE 5 IN TERMS OF GETTING MITIGATION AGREEMENTS. BUT THINGS HAVE SHIFTED IN THE TIME THAT WE LOGITECH: CREATED THE MITIGATION AGREEMENTS. AND THEY'RE OPEN TO HAVING CONVERSATION ABOUT HOW THAT COULD POTENTIALLY SHIFT AND AND CHANGE OR VILLAGE ONE HAS BEEN OUR MORE DIFFICULT AREA, JUST BECAUSE THERE'S A LOT OF PLAYERS IN ONE AREA. SO IT'S EASIER WHEN YOU'RE WORKING WITH WORKING WITH JUST LEWIS, RIGHT? AND SO IT WAS EASIER WHEN YOU'RE WORKING WITH JUST YEAH. AND SO, AND THEN, SIMILARLY, IN VILLAGE 5 WITH WITH RICHLAND, IT'S BEEN ONE LOGITECH: ONE DEVELOPER FOR THE MOST PART. AND SO YOU KNOW OUR WE-WE ARE GONNA HAVE WITH VILLAGE ONE AND VILLAGE 5. SO IT'S OUR HOPE THAT WE'LL BE ABLE TO UTILIZE THIS LOGITECH: ON A BIGGER SCALE. LOGITECH: YEAH. OH, I WELL, FIRST, ST I JUST WANT TO GIVE COMPLIMENTS TO THE SUPERINTENDENT, OUR CITY MANAGER. LOGITECH: THAT SCHOOLS ARE JUST FROM A KIND OF FOUNDATIONAL OR KEY COMPONENT OF MAKING GOOD NEIGHBORHOODS. IT'S PART OF THE MIX ON THE CITY COUNCIL SIDE. IT'S A BIG COMPONENT OF IT, ALONG WITH PUBLIC SAFETY AND PARKS AND TRAILS, AND ALL THE OTHER THINGS THAT WE DO. AND I I HAVE THE SAYING THAT I'VE USED BEFORE, AND I APOLOGIZE IF YOU HEARD IT. I WISH WE HAD DONE THIS 25 YEARS AGO. THE NEXT BEST TIME IS TODAY. LOGITECH: SO I'M REALLY OPTIMISTIC ABOUT THE POTENTIAL OF THE PARTNERSHIP. I THINK IT IS THE FOUNDATION FOR HOW YOU SOLVE ISSUES GOING ON IN VILLAGE. ONE PART OF THAT FOR ME, IS WHAT LOGITECH: REALLY IMPORTANT THAT THIS 1ST DEAL GETS ALL OF THE LOGITECH: FACTORS. RIGHT? I I HAVE A A NUMBER OF LIKE DETAILING THINGS ABOUT THE DOCUMENT THAT ARE THAT LOGITECH: GIVE ME PAUSE AND CONCERN ABOUT THE WAY IT'S STRUCTURED, NOT FROM A HIGH LEVEL OF DELIVERING A TK, THROUGH 8, BECAUSE I'M 100% ON BOARD MAKING SURE THAT'S HAPPENED. BUT THERE'S A NUMBER OF LAWYERLY THINGS IN THERE LOGITECH: THAT I FRANKLY HAVE SOME CONCERNS ABOUT AND COULDN'T SUPPORT. BUT I'LL TRY. THERE'S LIKE 5 5 SORT OF BIG THINGS. I JUST WANT TO KIND OF ON THE TABLE FOR DISCUSSION. ONE. I JUST WANT TO MAKE IT VERY CLEAR AS TAXPAYERS. THESE FOLKS HAPPEN TO BE IN MY DISTRICT. SO I'M GONNA HAVE TO ANSWER FOR THIS. THAT THEY'RE NOT PAYING MORE THAN 30 YEARS WORTH OF THIS LIKE AFTER 3 YEARS. IT'S DONE BY IT OUT. THAT'S VERY CLEARLY SPELLED OUT. LOGITECH: SECOND, I THINK THE COMMITTEE IS A GREAT IDEA. I THINK WE SHOULD JUST CLARIFY THE FACT THAT THE VOTING MEMBERS. IT'S A LITTLE CONFUSING ABOUT WHO VOTES IN THE MEMBERSHIP. IT'S SELECTED FROM SCHOOL BOARD, THE ELECTED CITY COUNCIL, LEWIS, DURING THE VOTING, AND I THINK ALL DECISIONS THAT COMMITTEE MAKES NEED TO BE UNANIMOUS. STOP NONE OF US TRYING TO DISTINGUISH BETWEEN THE 2 CATEGORIES. IT'S JUST ALL DEPENDS. LOGITECH: THE OTHER THING IS IS THAT WE KNOW THAT THE SCHOOL DISTRICT HAS THIS VERY. BUT WE DON'T KNOW WHAT WE DON'T KNOW. WHICH IS, HOW MUCH IS THIS GONNA COST? WHAT DOES THE STATE MODEL LOOK LIKE WHAT IS AVAILABLE IN THE STATE FUND FOR MATCHING? WHAT PERCENTAGE WILL THAT BE? WHAT WILL COST BE? I THINK WE'VE ALL BEEN ON THE ROLLER COASTER ABOUT WHAT OUR NEXT IPHONE WILL OR ANDROID PHONE WILL COST THIS SUMMER. LOGITECH: BUT THERE'S A RANGE RIGHT? AND AND THAT RANGE COULD BE, YOU COULD MAYBE BUILD IT WITH LEVEL 2 FEES AND THE 11% REDIRECT, AND THE OTHER YOU MIGHT NEED THE SURPLUS WITH REFUNDING AND PAY. GO. SO FOR ME THE DEAL NEEDS TO BE CLEAR THAT THAT COMMITTEE HAS DISCRETION OVER THE SURPLUS LOGITECH: TO THE EXTENT TO WHICH IT IS NEEDED TO DELIVER A TK THROUGH 8. LOGITECH: THEN WHAT I WOULD WANT TO MAKE CLEAR IN THE AGREEMENT IS THAT AT SOME POINT AFTER THE SCHOOL IS BUILT, I THINK IN THE PERFORMA. IT'S 3, 4 YEARS, MAYBE 5. LOGITECH: THE COMMITTEE IS DISSOLVED BECAUSE THE SCHOOL WAS BUILT. LOGITECH: AND AFTER THAT ANY ADDITIONAL PAYGO OR SURPLUS IS AT THE DISCRETION OF THE CITY COUNCIL, SO THAT WE CAN DECIDE ON BEHALF OF TAXPAYERS WHETHER OR NOT WE WANT TO DO SOME DEBT REPAYMENT, OR WE NEED TO BUILD A PUBLIC SAFETY FACILITY, BECAUSE THOSE FOLKS AT VILLAGE 7 AND ONE FIRE STATION. LOGITECH: WHICH CURRENTLY IS LOCATED IN VILLAGE 5, WE WANT TO MAKE SURE THAT WE CAN FILL THAT. AND THEN AT SOME POINT, IF WE DON'T. IF WE DON'T FEEL LIKE THERE'S A NEED FOR THOSE EXCESS FUNDS AFTER THE LAST BONDS ARE PULLED IN IMPROVEMENT AREA. 7 CITY COUNCIL HAS THE ABILITY TO REMOVE THE ESCALATOR. SO WE'RE NOT EXTRACTING EXCESS TAX PROCEEDS FROM THESE TAXPAYERS WHO THE SIZE OF THE CFD. JUST TO GIVE YOU SOME IDEA, IS APPROXIMATELY THE SIZE OF YOUR 12 HIGH SCHOOL BOND. LOGITECH: THAT DEBT LEVEL IS BEING HELD BY 3,040 HOMEOWNERS AS OPPOSED TO THE WHOLE CITY. SO I'M REALLY SENSITIVE TO THE TAX BURDEN OF THAT. AND I WANT TO MAKE SURE THAT WE HAVE SOME REALLY STRONG TAXPAYER PROTECTION, WHICH IS KIND OF WHAT THOSE THINGS ARE TALKING ABOUT. I THINK THAT THE PFP STREAM IS IN THERE. IT'S NOT THAT MUCH MONEY. LOGITECH: WE NEED TO TAKE THAT OUT AND MOVE IT TO THE SURPLUS TO SIMPLIFY THE DEAL. AND THEN THE LAST THING I WOULD SAY IS THAT WE NEED TO BE VERY CLEAR IN THE AGREEMENT. I THINK YOU HAVE SOME THINGS THAT YOU HAVE TO HAVE TO MAKE SURE YOU CAN GET YOUR FUNDING FROM THE STATE. FROM OUR POINT OF VIEW. THE FLOW COMING FROM OUR 2018 0, 1 LOGITECH: CFD. IS CONTINGENT UPON THE JOINT USE AGREEMENT NOT GUARANTEED UNTIL JUST GUARANTEED OUTRIGHT IN THIS AGREEMENT, BUT REQUIRES THAT OTHER AGREEMENT TO GET. LOGITECH: SO I THINK IF WE CAN GET SOMEWHERE CLOSE ON THOSE KIND OF 5 AREAS, I'M A HUNDRED PERCENT SUPPORT OF THE PREMISE. I JUST THINK WE NEED TO BE A LITTLE CAREFUL ABOUT THE TAXPAYER PROTECTIONS. MAKE SURE THAT YOU KNOW WE CAN TURN TO THOSE NEW LINCOLN CITIZENS AND TELL THEM YOU'RE GETTING A REALLY GOOD DEAL FOR WHAT WE'RE DOING. AND WE'RE SAYING THE THE GROUNDWORK FOR REALLY GOOD AND SUCCESSFUL LONG TERM PARTNERSHIP WITH THE SCHOOL DISTRICT LOGITECH: TO DELIVER ON WHAT I THINK OUR COMMUNITY EXPECTS LOGITECH: SO JUST REAL QUICKLY TO, AND IT'LL BE QUICK. JOHN AND I DID TALK IN DEPTH ABOUT THIS AS WELL. LOGITECH: AND I I'M IN ALIGNMENT WITH JOHN ON THIS. LOGITECH: BUT THAT'S NOT TO SAY THAT LOGITECH: THE PARTNERSHIP THAT WE'VE CREATED ISN'T GOING TO BE VERY COHESIVE. RIGHT? LOGITECH: THAT'S WHY THE ALIGNMENT WITH WITH LOGITECH: HI, MAYOR, YEAH. YEAH. SO RIGHT AHEAD. PLEASE DO. LOGITECH: PHIL RODRIGUEZ WITH THE LEWIS GROUP OF COMPANIES. I'M NOT THE ARCHITECT OF THIS. I JUST ASKED MY CONSULTANT IN 2022, AND WOULD BE VERY CREATIVE LOGITECH: ON TRYING TO FIND OUT WHERE ALL THESE FUNDING BUCKETS ARE, HOW WE CAN ASSEMBLE THIS SO REAL QUICK COUNCIL MEMBER TO YOUR, TO YOUR CONCERNS, YOUR QUESTIONS. WE FULLY UNDERSTAND LOGITECH: THE THE COMMITTEE IDEA OF THE COMMUNITY. AT LEAST. LOGITECH: SO I THINK IF IF YOU GET INTO THE WEEDS OF THIS, YOU'RE GONNA FIND LOGITECH: THAT THE LAST PARTY THAT'S PAID AS FAR AS CONSTRUCTION OF THE SCHOOL IS LEWIS FOR THE LAND. LOGITECH: SO WE WE WOULD ALL COLLECTIVELY NEED TO BE AT THE TABLE IN THAT COMMITTEE UP UNTIL OUR BUILD OUT OF OUR PROJECT TO ENSURE THAT WE WERE AT THE TABLE LOGITECH: WITH ANY SURPLUS TAXES THAT ARE NEED TO MAKE US WHOLE. LOGITECH: SO KEEP THAT UNDER CONSIDERATION, AND WE DON'T KNOW WHEN THAT IS, IT COULD BE 15 YEARS. IT COULD BE 20 YEARS. NOT GONNA BE 8 LIKE SHAWN SUGGESTED. IF IT WAS, YOU KNOW EVERYBODY DOING THIS. BUT YOU HAVE TO REACT TO THE MARKETPLACE. LOGITECH: I I THINK WHAT ALL OF YOU NEED TO UNDERSTAND IS. THIS IS VERY COMPLICATED, AND WHAT'S BEEN ASSEMBLED IN THE AGREEMENT, AND WHAT'S BEEN ASSEMBLED IN THE FUNDING PLAN IS ATTACHED TO THAT IS THE FRAMEWORK LOGITECH: AND THE THE MEET AND CONFER COMMITTEES THAT ARE, YOU KNOW, THE COMMITTEE THAT'S THE MEET LOGITECH: EVERY YEAR, NOT 4 TIMES A YEAR, IS TO INFORM THE HIGHER COMMITTEE AS TO WHAT'S GOING ON, AND LET THAT HIGHER COMMITTEE MAKE DECISIONS, HOW THINGS WILL BE FUNDED AND BE ABLE TO INFORM THAT HIGHER COMMITTEE WHAT'S GOING ON? WHAT'S THE TIMING OF CONSTRUCTION AND WHATNOT? ONE ELEMENT TO CONSIDER? AND BECAUSE THE CITY IS BEING ASKED TO DELIVER A LOT OF FUNDING. LOGITECH: AND AND THE ITEM WITH RESPECT TO THE PFE FUNDING LEVEL, WHICH IS THAT ROUGHLY, $500 A UNIT PER DOOR UNIT TO FUND RECREATIONAL FACILITIES WITHIN THE CITY SOMEWHERE. WHAT THAT'S BEING DONE IS IT'S BEING ALLOCATED. LET'S PUT IT INTO THE MULTI-PURPOSE ROOM OF THE TK. 8 SCHOOL. LOGITECH: AND BY REMOVING THAT, WHAT HAPPENS IS PROBABLY EFFECTIVELY, WE? WE PUSH OUT THE CONSTRUCTION TIMING OF THE SCHOOL, AND PERHAPS IF THERE'S A CONCERN WITH THOSE DOLLARS BEING ISOLATED AT THE TK. 8 SCHOOL LOGITECH: THERE CAN ALLOW. AND I'LL FRAME THIS VERY SIMPLY THE BORROWING OF THOSE DOLLARS TO PUT TOWARDS THE START OF CONSTRUCTING THE SCHOOL AND BEING PAID BACK WITH SURPLUS SPECIAL TAXES. SO YOU BASICALLY REPLENISH THAT FUND BUCKET LOGITECH: AFTER THE SCHOOL IS BUILT, AFTER THE LAND IS PAID FOR AND AFTER ANYTHING ELSE, THE COMMITTEE DECIDES THAT BECAUSE ALL WE'RE TRYING TO DO, AND WHAT AND WHAT LOGITECH: BUT OUR DEFERMENT OF THE THE LAND PURCHASED. YOU KNOW THOSE DOLLARS IS TO GET THE SCHOOL CONSTRUCTED SOONER. LOGITECH: AND RIGHT NOW IN THAT FUNDING FORM FOR ME. IF YOU TAKE A PEEK AT IT, IT'S 12 MILLION DOLLARS IN LAND COST, AS WE KNOW TODAY. LOGITECH: AND SO WE'RE PUSHING THAT OUT INTO THE END. AND THAT'S IN OUR PRO FORMA AND OUR DEVELOPMENT PLAN. THAT'S COMPLICATED AND PAINFUL. BUT THE GOAL OUR GOAL IS TO GET THE SCHOOL STARTED SOONER RATHER THAN LATER. AND ONE THING THAT'S NOT MENTIONED IN THIS AGREEMENT, AND I CAN'