Courthouse Square Internal Staff Team Minutes

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The number used for land value inflates the total construction costs. This represents a worst case ~ scenario and a very conservative approach. After discussion it was decided that since county owned a majority of the block to begin with, only the purchase costs of the rest of the block and demolition costs would be shown in the total construction costs. Dan Petrusich will provide Don Palmer this information. The agenda has only scheduled a 15 minute presentation by Don Palmer to SPOC. The biggest concem was being able provide him with ample time to present this key information. Billy Wasson and John Whittington will adjust the schedule to allow 30-45 minutes for this presentation. Several philosophical questions were raised by Michael Hansen and how they would be answered by this lease study. One dealt with leasing office space other than the downtown area. Mark Wieprecht added that the Coldwell Ba.nker Commercial presentation on real estate covered this area. Don Palmer has a copy of that presentation for reference material. Randy Franke stated that there is no official board action on centralization, but it has been an unofficial practice as far back as 1974 when the Senator Building was first purchased. Don Palmer will adjust the study based on new assumptions that resulted from today's discussions. The interest rate will stay at 6.34%, the land value will be changed to information provided by Melvin Mark to reflect purchase costs on remaining parcels and demolition costs; and the chart graphic requested by staff to show operational costs generated from contract rents vs. market rents. The fmal draft will be ready by Tuesday morning or sooner. Staff decided that charts and visuals ~ are an essential part to the presentation, especially for the public and the press. 2. SPOC Agenda The agenda for the February 24`~ SPOC meeting was handed out. This draft was sent to the chair and Jerry Vessello, who made the latest changes. The agenda items and presenters were reviewed so staff would be informed of any responsibilities/assignments. The response to the Chamber report will be covered by both Randy Franke and Mark Wieprecht as the letter was jointly signed by both boards. The transit boazd report on current policy positions as they relate to the project will be presented by Mark Wieprecht. City of Salem report on transit access will be presented by city staff. This issue was raised by J. Vessello regarding orienting retail on High Street rather than on Chemeketa. Salem Transit space plan will be presented by John Whittington. The transit space programming will be the same format as county space programming. Update on Courthouse Squaze contracts will be verbally done by John Whittington and Billy Wasson to keep the committee awaze of recent contract negotiations and answer any questions surrounding Melvin Mark contract. Courthouse Square Budget will be handled by Billy Wasson. At this point, Billy discussed Agenda Item #3 Budget Conclusion. There was concern that the budget was $2-3 million out of balance, and this concern was resolved this morning. Assumptions had been reassessed and determined that some items were double counted in the proforma versus the budget. The amount they show ~ borrowing is about $2 million more than what the assumption was in the budget revenue sheet. Page 3 of 5