Video index

1. Call Meeting to Order

2. Roll Call

Roll call (10 Present, 0 Absent, 0 Excused)

3. Public Participation [Per Town Council Rules, this segment of the meeting shall not exceed thirty (30) minutes unless extended by the Mayor, with the consent of the majority of the Town Council.]

4. Communications

5. Town Manager's Report [Per Town Council Rules, this segment of the meeting shall not exceed ten (10) minutes unless extended by the Mayor, with the consent of the majority of the Council.]

Dan Marsh - in your packages - Matt and I have been going through a lot of information. thre are three pieces of information that will be talking about. CT Stuydios - Project Comonents - (reviewed first sheet first) - 2 sound stages in first phase, do not have time table for the project but felt the TC should review McCann - solar - persona property taxes Dan - although you will see increase year to year McCann - depreciated value Dan - yes and assumes no new investment. we will be providing a break down for everything.

Budget to studio, solar and public improvements page 2 - solar and studios being done as one limited liability. - condition is that we need both thepublic infrastructure and private construction will be at a certain cost. total budget is 11M. Mayor - requested that it be shown the taxes coming to the town. Yagaloff - there are two major changes to the old plan, solar and not doing TIF financings. we are doing bonds - Matt - this is a lease financings and do not give up good faith of the town. we are hoping , 5013C will float the bonds and then as the bonds become due, taxes will go into fund to pay that portion. this will not effect the towns rating. Yagaloff - not using full faith of the town. and then town would be obligated to pay for the bonds. - talking bout purchase option. Dan - 5013C is the way the financing would happen. bond is backed only by the revenues provided by the lease ----------- and the twon. Matt has asked us to identify revenues that we are sure is gong to be there. Yagaloff - we are going to have lease option - solar farm is going to produce tax stream tht the bond buyers would feel more comfortable with. Dan - also the town to be comfortible. - Yagaloff - concerns - what would happen if business entity changed - what would happen to obligation. is revenue stream guaranteed. - on lease purchase proposal what is the risk to the town - could the town be held responsible. Dan - there are a lot of ifs and buts - important to know that as opposed ot having district you have normal taxing relationship. could take them as tax liends - Yagaloff - the whole deal has changed in a positie way - without revenue from solar farm this would not be possible. without the solar component 0 this deal has the potential to work. new model is feaible.

McCann - this is the first time we have seen these figures. under budget - studio and solar and th estudio there is about 16.4M which is about - are these fees going to the developer under public infrastructure - easement purchase by the town? Dan - yes McCann - town has to purchase easement for infrastructure? Matt - town can not make profit - Mcann - why does the town have to pay the developer for the easement Matt - we will own all of the public improvements. McCann - do not think we shoudl have to pay for the easements.

Dan - Lease revenue bond coverage - page 3 - there is revenue coming into the town then the devt service on the bonds. Delnicki - drop in solar net cash flow? Dan - operating capital reduction - that is why the number goes down. There are more expenses- the actual tax will have to be worked on withthe Assessor for review.

Beaulieu - what is the interest rate anticipate? Dan - we used 2.8% Cindy - the ratings assigned Dan - full grade below Cindy - financing -

Bazzano - Matt - lease arrangements - taxes generated from solar farm will pay lease - anything above and beyond will be put into general fund Bazzano - town is paying back bond Dan - improvements will go back to the town Bazzano - town lessee - dependin gon the taxes from the developer to pay the lessor Dan -

Yagaloff - revenue from solar, studio property taxes, hotel - - net anticipated revenue Dan - want the council to know things ar emoving - when we do final report will be much more detailed then what was received tongiht. Yagaloff - low expense - Matt - 14.8 originally fo rpublic improvements now only 11M Yagaloff - town taking out lease, 5013C will owns infrastructure on easements that are owned by when infrastructure paid off will be owned by the town.

Dan - the money is coming fromDECD loan is in place (5M), (5M) from - capital lease 515 - bridge loan 4M - preliminary letters of interest - analysis on developer equity - revenue to build would be in place - do not have final commitments on a portion of these we are comfortable these will go forard,

Prague - DECD committed to 5M loan - Dan - it is comitted - we have a letter Cary - can we see it? Matt - will get you a copy Cary - why developer so slow on getting you information? Dan - would have to ask them. they have been working to tie up loose ends, they have been working very hard. Prague - will mortgage be released Galligan - party that they are negotiating with is - very hard - that has been a problem. Cary - how close is Anthony - as soon as ppa is finalized. Cary - when will that be? Anthony - could be the end of this week or go into next week. prgue - 26 cents a kilowatt when Anthony - that number may be a flat fee for 25 years prgue - why low 20's when cost if 11 right now? Dan - it is a 25 year contract - Prague - solar farm in Mass operating or being built? Anthony just completely 22M project Prague - when will you be coming to Council to have the Concil act on resolution Anthon - as soon as PPA is done. and that will become public Pragu e- will there be work for SW residents? Anthony - will be local Prague - Anthony - economy has taken a role in this project taking so long. Prague - would like risk assessment on this project. Dan - in order to get to bond closing, we are behind the eight ball now. will be very difficiult to get to construction by October Mayor - TC need to see something happen here. Something is going to have to come together. Dan - we concur Matt - wanted the council to see the different concept -

6. Items for Discussion

A. The Connecticut Studios Project

adjourn Yagaloff, Anwar, 9:15 p.m.

7. Executive Session

Jul 30, 2012 Town Council Special Work Session

Full agenda
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1. Call Meeting to Order

2. Roll Call

Roll call (10 Present, 0 Absent, 0 Excused)

3. Public Participation [Per Town Council Rules, this segment of the meeting shall not exceed thirty (30) minutes unless extended by the Mayor, with the consent of the majority of the Town Council.]

4. Communications

5. Town Manager's Report [Per Town Council Rules, this segment of the meeting shall not exceed ten (10) minutes unless extended by the Mayor, with the consent of the majority of the Council.]

Dan Marsh - in your packages - Matt and I have been going through a lot of information. thre are three pieces of information that will be talking about. CT Stuydios - Project Comonents - (reviewed first sheet first) - 2 sound stages in first phase, do not have time table for the project but felt the TC should review McCann - solar - persona property taxes Dan - although you will see increase year to year McCann - depreciated value Dan - yes and assumes no new investment. we will be providing a break down for everything.

Budget to studio, solar and public improvements page 2 - solar and studios being done as one limited liability. - condition is that we need both thepublic infrastructure and private construction will be at a certain cost. total budget is 11M. Mayor - requested that it be shown the taxes coming to the town. Yagaloff - there are two major changes to the old plan, solar and not doing TIF financings. we are doing bonds - Matt - this is a lease financings and do not give up good faith of the town. we are hoping , 5013C will float the bonds and then as the bonds become due, taxes will go into fund to pay that portion. this will not effect the towns rating. Yagaloff - not using full faith of the town. and then town would be obligated to pay for the bonds. - talking bout purchase option. Dan - 5013C is the way the financing would happen. bond is backed only by the revenues provided by the lease ----------- and the twon. Matt has asked us to identify revenues that we are sure is gong to be there. Yagaloff - we are going to have lease option - solar farm is going to produce tax stream tht the bond buyers would feel more comfortable with. Dan - also the town to be comfortible. - Yagaloff - concerns - what would happen if business entity changed - what would happen to obligation. is revenue stream guaranteed. - on lease purchase proposal what is the risk to the town - could the town be held responsible. Dan - there are a lot of ifs and buts - important to know that as opposed ot having district you have normal taxing relationship. could take them as tax liends - Yagaloff - the whole deal has changed in a positie way - without revenue from solar farm this would not be possible. without the solar component 0 this deal has the potential to work. new model is feaible.

McCann - this is the first time we have seen these figures. under budget - studio and solar and th estudio there is about 16.4M which is about - are these fees going to the developer under public infrastructure - easement purchase by the town? Dan - yes McCann - town has to purchase easement for infrastructure? Matt - town can not make profit - Mcann - why does the town have to pay the developer for the easement Matt - we will own all of the public improvements. McCann - do not think we shoudl have to pay for the easements.

Dan - Lease revenue bond coverage - page 3 - there is revenue coming into the town then the devt service on the bonds. Delnicki - drop in solar net cash flow? Dan - operating capital reduction - that is why the number goes down. There are more expenses- the actual tax will have to be worked on withthe Assessor for review.

Beaulieu - what is the interest rate anticipate? Dan - we used 2.8% Cindy - the ratings assigned Dan - full grade below Cindy - financing -

Bazzano - Matt - lease arrangements - taxes generated from solar farm will pay lease - anything above and beyond will be put into general fund Bazzano - town is paying back bond Dan - improvements will go back to the town Bazzano - town lessee - dependin gon the taxes from the developer to pay the lessor Dan -

Yagaloff - revenue from solar, studio property taxes, hotel - - net anticipated revenue Dan - want the council to know things ar emoving - when we do final report will be much more detailed then what was received tongiht. Yagaloff - low expense - Matt - 14.8 originally fo rpublic improvements now only 11M Yagaloff - town taking out lease, 5013C will owns infrastructure on easements that are owned by when infrastructure paid off will be owned by the town.

Dan - the money is coming fromDECD loan is in place (5M), (5M) from - capital lease 515 - bridge loan 4M - preliminary letters of interest - analysis on developer equity - revenue to build would be in place - do not have final commitments on a portion of these we are comfortable these will go forard,

Prague - DECD committed to 5M loan - Dan - it is comitted - we have a letter Cary - can we see it? Matt - will get you a copy Cary - why developer so slow on getting you information? Dan - would have to ask them. they have been working to tie up loose ends, they have been working very hard. Prague - will mortgage be released Galligan - party that they are negotiating with is - very hard - that has been a problem. Cary - how close is Anthony - as soon as ppa is finalized. Cary - when will that be? Anthony - could be the end of this week or go into next week. prgue - 26 cents a kilowatt when Anthony - that number may be a flat fee for 25 years prgue - why low 20's when cost if 11 right now? Dan - it is a 25 year contract - Prague - solar farm in Mass operating or being built? Anthony just completely 22M project Prague - when will you be coming to Council to have the Concil act on resolution Anthon - as soon as PPA is done. and that will become public Pragu e- will there be work for SW residents? Anthony - will be local Prague - Anthony - economy has taken a role in this project taking so long. Prague - would like risk assessment on this project. Dan - in order to get to bond closing, we are behind the eight ball now. will be very difficiult to get to construction by October Mayor - TC need to see something happen here. Something is going to have to come together. Dan - we concur Matt - wanted the council to see the different concept -

6. Items for Discussion

A. The Connecticut Studios Project

adjourn Yagaloff, Anwar, 9:15 p.m.

7. Executive Session

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