Video index

1. Call Meeting to Order

7:06

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.]

Ralph Palumbo, talk about one of th eprimary developments of the CT Studios. Outline of where we stand right not.

Tom ---- Lot of time and energy has been given toward CT Studios. Everyone wants a conclusion soon. There are still 20 more megawatts to be given out for solar. There is a different process. The good news is that we should have understanding with company as early as the end of the week or next week. Once we get an agreement - not talking about a lot of time. utility could be done in the next week and then the legislative body will be done.

Yagaloff - Tom how heavily dependent is the project on the solar? Are there back up plans? Ralph - heavily on solar. federal tax attributes so it is very importants. Yagaloff - the solar farm has federal tax credits available for doing the solar project and there are also state credits? Ralph - yes it is not a tax credit. the project is eligible for tax credit is an election you can make. Yagaloff - so there is infusion of cash available into the project that would help the project happen. so the solar component would produce cash which would make the project happen. Ralph - the electric contribution in paying ground lease and property taxes will provide the credit enhancement which is equally important. Yagaloff -TIF financing would stillb e in place but may be structured differently Ralph - correct. Yagaloff - solar farm opportuntiy would provide renveue with the TIF - without the solar compoennt somehting else would have to be looked at. Ralph - correct Yagaloff - need a little bit more time to see if solar component could be an option. Ralph - the negotiations with electgric company structure is similar - Yagaloff - solar farm is similar to the Town but may be different for you. Ralph - correct

Bazzano - public would like to know what happened Ralph - primary component is studio. the studio is 40,000 sq ft. 2 buildings plus the storage building. close to 300,000 sq. ft. The dynamics have changed. solar is not box development. investment standpoint the studio is twice as much as the solar. the economy has changed significantly and we needed to react and restructure. Bazzano - solar farm idea, where did that come from? Rlaph - we haved solar farms in Massachusetts right now. Bazzano - where those awarded dollars? Ralph - Mass is diffeent then CT. we negotiate with land owners and munciipaliites. basic modeling is similar. Bazzanoo - is much more difficult in CT then Mass Ralph - Mass is more difficult because of the open market system provides a very risk type effort. you don't have an answer. Bazzano - at what point are they in Mass Ralph - 30% done fully funded and second one which is approved and funded and third one that just won competitive process and in negoationats. Bazzano - process took 2 years in Mass. How long in CT will it take to do Ralph - in Mass took 18 months. the process in Ct is different. Tom - last year legislature - still going after 20,000 megawatts. hoping that will happen shortly. once the sate focuses on it getting it out it will happen real fast. Bazzano - who approves it Tom - DPUC, old name. - we are at the end of the process. Anwar - the people in SW are very excited about this project. A lot of people want to know how soon. There are a lot of people in the community that need jobs. We are hoping that when construction compoentnet comes into picutre hoping that SW residents can be considered. Ralph - we have had to adapt to a lot of changes. we feel the pain just as they do. we have produced 110% effort. really want the citizens to know that. When is dictated by the solar cycle - giving preference to rsidents of SW we have all union construction - we have agreement - union came in - very committed to that.

Anwar - status of mortgage on property? Ralph - status is when we close it will be paid off.

Beaulieu - where does the TIF bonding stand at this point? Rlaph - Jeff Hymann is here - TIF bonds is still very critical part of the project. the current bond size is 15M. we will be able to size down by 10%. timing would be when we close Beaulieu - TIF going to be smaller but wil pay off lien - solar allowing you to have reduction in TIF Ralph - reduction in cost savings. solar going into Cindy - TIF being marketed Jeff Hyman - the process is not being actively marketed now. First CT studios needs to get solar. we at googanhym - go get the solar done. once that is in place we have all of the other aspects done. thre is complexity to this. we have good sense of what that looks like now. finishing thrid party work or updating that. Appraiser is ready to go. Active marketing of ths project starts everything else will need to be done first. investors are interested in this. For a transaction like this the market is much more intensive. CIndy - does the fact of having solar farm improve the ratings? Jeff - it will probably not impact the rating but will ijmpact the credit rating. non-rated does not mean not good. Invetors apply their own internatl rating. Cindy - interest rate that you think these bonds could achieve? Jeff - the non-rated tax exempt rule is 7-9% world. we like what we are seeing. would like to peform on better half

McCann - T of SW has a lot invested into this project. we have agreed to TIF financing which is based on dedicating the property taxes to finance the bonds for the infrastructure. that was based on footprint and certtain areas of development including the CT studios, hotel, office space. the retail and office space would be replaced by solar. one of the benefits to the town is the spin offs from the development of the property around it. if the solar farm is going t be expanded beyond original footprint and that expansion calls for solar farm dedicated for property. will the solar farm be constructed on the retail office space? Ralph - it will not. what we have done is parcel adjacent ot sound stages and surrounded by Ellington Road and itty cornered by storage and access raod. the parcel that we originally planned for hotel and retial still exist. McCann - 22 acre parcel be put into TIF financing Rallph - tht was not part of the TIF financing McCann - that is changs that would need to be implemented.

Havens - the Town Council is behind you. this community wants this project. I think you have a gold mine. this will bring business and is a great business. have worked hard for this. Rallph - we are working as hard as we can.

Delnicki - the ball is in your court and the sooner we get building permits and start construction will be better. there is a degree of doubt in the community.

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.]

6. Items for Discussion

A. Funding for Debris Management

Matt - funding for debris management. VMP is now closed down and todya they put in new stone and gravel to regrade that whole area. debris from the stie should be out of there. the numbers that we are looking at is 8M just shy of that. all of ht einformation has to be in Friday, January 6th to FEMA. Congress has issued code 23 - talks about disaster. found out SW has Town roads that are connected roads that go from one town to another and those may be for 100%. What we are proposing to do is do a note so we can keep bond costs down. notes are 1/2% - under program can only be done for 2 years and then have to take bond on the note but we are hoping that FEMA will have paid by then. One thing we are looking at is 10M. we have a lot of debt coming off in 2 yerars from now so do not think resident will feel it. do need bond resolution by bond counsel on the 17th - in resolution any payments from FEMA or anything related to storm be used to pay debt. Tom - you talked about having a note sale for 2 years and then talked about bond resolution coming to council. Matt - note resolution moving into a bond - resolution only bond what Tom - we have low interest rates Matt - our advisor 8M bond for 2% and lock it in and then when we get money from FEMA - financial advisor felt that Town may lose low interest rate.

McCann - what time frame? when do we expect to get paid from FEMA - Matt - we received bill now. do not know when FEMA will be reimbursing. I would hope not more than 2 years. Title 23 could take a while which is the 100%. McCann - if our payments are due and we don't know when we will be reimbursed by FEMA - would it make sense to float 10year bond for the 25% that is the Town's section to pay. then use the 1/2% for the remainder. Galligan - there are so many different ways to do that. if Council agrees wil have to write resolution. McCann - also need to make determination if we need to go to referendum for long term amount. Galligna - Dave Panico said you do not need referendum. there was legislative Mayor recessed the Work Session at 8:01 p.m.

called back to order at 8:04 p.m.

Yagaloff - short term notes, bonding options - support Councillor McCann's - bond and then do short term notes. Things that we don't have is final costs and emergency costs, shelter operations costs, etc. need these costs. do not know if we can bond out those costs. Galligan - those are operating costs. Fred Shaw has asked for all final costs. Yagaloff - one of th eproblem with going ahead with bonding instead of notes. always wanted some portions paid out by operating costs. Galligan - will have those numbers on the 6th Yagaloff - the public needs to know projects that we wanted to do are going to get deferred like senior center space, etc. Galligan - the ADA did do that. Yagaloff - elementary school upgrades. - projects that we wanted to put into place will not be able to be done. the bonding that will need to be done will eliminate the projects that the Town wanted to get done previously and will push them off. Yagaloff - if we can get all of the costs.

Cindy - in tersm of financing woudl like to see different ideas laid out. given the rates are so low could it be structures with a call. Galligan - do that will all of our bonds. normally go 10 years.

B. Civil Preparedness Committee

7. Executive Session

A. Discussion of documents containing financial information provided in confidence and exempt from disclosure pursuant to C.G.S. § 1-200(6) and 1-210(b)(5)(B) regarding The Connecticut Studios project

8. Adjournment

Bazzano, Prague, 8:12 p.m.

Jan 03, 2012 Town Council Work Session

Full agenda
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1. Call Meeting to Order

7:06

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.]

Ralph Palumbo, talk about one of th eprimary developments of the CT Studios. Outline of where we stand right not.

Tom ---- Lot of time and energy has been given toward CT Studios. Everyone wants a conclusion soon. There are still 20 more megawatts to be given out for solar. There is a different process. The good news is that we should have understanding with company as early as the end of the week or next week. Once we get an agreement - not talking about a lot of time. utility could be done in the next week and then the legislative body will be done.

Yagaloff - Tom how heavily dependent is the project on the solar? Are there back up plans? Ralph - heavily on solar. federal tax attributes so it is very importants. Yagaloff - the solar farm has federal tax credits available for doing the solar project and there are also state credits? Ralph - yes it is not a tax credit. the project is eligible for tax credit is an election you can make. Yagaloff - so there is infusion of cash available into the project that would help the project happen. so the solar component would produce cash which would make the project happen. Ralph - the electric contribution in paying ground lease and property taxes will provide the credit enhancement which is equally important. Yagaloff -TIF financing would stillb e in place but may be structured differently Ralph - correct. Yagaloff - solar farm opportuntiy would provide renveue with the TIF - without the solar compoennt somehting else would have to be looked at. Ralph - correct Yagaloff - need a little bit more time to see if solar component could be an option. Ralph - the negotiations with electgric company structure is similar - Yagaloff - solar farm is similar to the Town but may be different for you. Ralph - correct

Bazzano - public would like to know what happened Ralph - primary component is studio. the studio is 40,000 sq ft. 2 buildings plus the storage building. close to 300,000 sq. ft. The dynamics have changed. solar is not box development. investment standpoint the studio is twice as much as the solar. the economy has changed significantly and we needed to react and restructure. Bazzano - solar farm idea, where did that come from? Rlaph - we haved solar farms in Massachusetts right now. Bazzano - where those awarded dollars? Ralph - Mass is diffeent then CT. we negotiate with land owners and munciipaliites. basic modeling is similar. Bazzanoo - is much more difficult in CT then Mass Ralph - Mass is more difficult because of the open market system provides a very risk type effort. you don't have an answer. Bazzano - at what point are they in Mass Ralph - 30% done fully funded and second one which is approved and funded and third one that just won competitive process and in negoationats. Bazzano - process took 2 years in Mass. How long in CT will it take to do Ralph - in Mass took 18 months. the process in Ct is different. Tom - last year legislature - still going after 20,000 megawatts. hoping that will happen shortly. once the sate focuses on it getting it out it will happen real fast. Bazzano - who approves it Tom - DPUC, old name. - we are at the end of the process. Anwar - the people in SW are very excited about this project. A lot of people want to know how soon. There are a lot of people in the community that need jobs. We are hoping that when construction compoentnet comes into picutre hoping that SW residents can be considered. Ralph - we have had to adapt to a lot of changes. we feel the pain just as they do. we have produced 110% effort. really want the citizens to know that. When is dictated by the solar cycle - giving preference to rsidents of SW we have all union construction - we have agreement - union came in - very committed to that.

Anwar - status of mortgage on property? Ralph - status is when we close it will be paid off.

Beaulieu - where does the TIF bonding stand at this point? Rlaph - Jeff Hymann is here - TIF bonds is still very critical part of the project. the current bond size is 15M. we will be able to size down by 10%. timing would be when we close Beaulieu - TIF going to be smaller but wil pay off lien - solar allowing you to have reduction in TIF Ralph - reduction in cost savings. solar going into Cindy - TIF being marketed Jeff Hyman - the process is not being actively marketed now. First CT studios needs to get solar. we at googanhym - go get the solar done. once that is in place we have all of the other aspects done. thre is complexity to this. we have good sense of what that looks like now. finishing thrid party work or updating that. Appraiser is ready to go. Active marketing of ths project starts everything else will need to be done first. investors are interested in this. For a transaction like this the market is much more intensive. CIndy - does the fact of having solar farm improve the ratings? Jeff - it will probably not impact the rating but will ijmpact the credit rating. non-rated does not mean not good. Invetors apply their own internatl rating. Cindy - interest rate that you think these bonds could achieve? Jeff - the non-rated tax exempt rule is 7-9% world. we like what we are seeing. would like to peform on better half

McCann - T of SW has a lot invested into this project. we have agreed to TIF financing which is based on dedicating the property taxes to finance the bonds for the infrastructure. that was based on footprint and certtain areas of development including the CT studios, hotel, office space. the retail and office space would be replaced by solar. one of the benefits to the town is the spin offs from the development of the property around it. if the solar farm is going t be expanded beyond original footprint and that expansion calls for solar farm dedicated for property. will the solar farm be constructed on the retail office space? Ralph - it will not. what we have done is parcel adjacent ot sound stages and surrounded by Ellington Road and itty cornered by storage and access raod. the parcel that we originally planned for hotel and retial still exist. McCann - 22 acre parcel be put into TIF financing Rallph - tht was not part of the TIF financing McCann - that is changs that would need to be implemented.

Havens - the Town Council is behind you. this community wants this project. I think you have a gold mine. this will bring business and is a great business. have worked hard for this. Rallph - we are working as hard as we can.

Delnicki - the ball is in your court and the sooner we get building permits and start construction will be better. there is a degree of doubt in the community.

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.]

6. Items for Discussion

A. Funding for Debris Management

Matt - funding for debris management. VMP is now closed down and todya they put in new stone and gravel to regrade that whole area. debris from the stie should be out of there. the numbers that we are looking at is 8M just shy of that. all of ht einformation has to be in Friday, January 6th to FEMA. Congress has issued code 23 - talks about disaster. found out SW has Town roads that are connected roads that go from one town to another and those may be for 100%. What we are proposing to do is do a note so we can keep bond costs down. notes are 1/2% - under program can only be done for 2 years and then have to take bond on the note but we are hoping that FEMA will have paid by then. One thing we are looking at is 10M. we have a lot of debt coming off in 2 yerars from now so do not think resident will feel it. do need bond resolution by bond counsel on the 17th - in resolution any payments from FEMA or anything related to storm be used to pay debt. Tom - you talked about having a note sale for 2 years and then talked about bond resolution coming to council. Matt - note resolution moving into a bond - resolution only bond what Tom - we have low interest rates Matt - our advisor 8M bond for 2% and lock it in and then when we get money from FEMA - financial advisor felt that Town may lose low interest rate.

McCann - what time frame? when do we expect to get paid from FEMA - Matt - we received bill now. do not know when FEMA will be reimbursing. I would hope not more than 2 years. Title 23 could take a while which is the 100%. McCann - if our payments are due and we don't know when we will be reimbursed by FEMA - would it make sense to float 10year bond for the 25% that is the Town's section to pay. then use the 1/2% for the remainder. Galligan - there are so many different ways to do that. if Council agrees wil have to write resolution. McCann - also need to make determination if we need to go to referendum for long term amount. Galligna - Dave Panico said you do not need referendum. there was legislative Mayor recessed the Work Session at 8:01 p.m.

called back to order at 8:04 p.m.

Yagaloff - short term notes, bonding options - support Councillor McCann's - bond and then do short term notes. Things that we don't have is final costs and emergency costs, shelter operations costs, etc. need these costs. do not know if we can bond out those costs. Galligan - those are operating costs. Fred Shaw has asked for all final costs. Yagaloff - one of th eproblem with going ahead with bonding instead of notes. always wanted some portions paid out by operating costs. Galligan - will have those numbers on the 6th Yagaloff - the public needs to know projects that we wanted to do are going to get deferred like senior center space, etc. Galligan - the ADA did do that. Yagaloff - elementary school upgrades. - projects that we wanted to put into place will not be able to be done. the bonding that will need to be done will eliminate the projects that the Town wanted to get done previously and will push them off. Yagaloff - if we can get all of the costs.

Cindy - in tersm of financing woudl like to see different ideas laid out. given the rates are so low could it be structures with a call. Galligan - do that will all of our bonds. normally go 10 years.

B. Civil Preparedness Committee

7. Executive Session

A. Discussion of documents containing financial information provided in confidence and exempt from disclosure pursuant to C.G.S. § 1-200(6) and 1-210(b)(5)(B) regarding The Connecticut Studios project

8. Adjournment

Bazzano, Prague, 8:12 p.m.

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