Liang on Civic Center - bank will own City Hall? recurring expenses? any future projects?

From: Peggy Griffin
Date: Tue, Nov 17, 2015 at 5:04 PM
Subject: Study Session on Civic Center master Plan - Affordability Analysis
To: City Council <citycouncil@cupertino.org>, David Brandt <Davidb@cupertino.org>, TimmB@cupertino.org
Cc: Grace Schmidt cityclerk@cupertino.org

Dear City Council, David Brandt and Timm Borden,

 

This email is being sent on behalf of Liang-Fang Chao.

 

In regard to the Lease-Financing plan mentioned in the Study Session material:

1.      In the event that the City cannot afford to pay the annual fee anymore, what happens?

a.      Does the bank then own City Hall?

b.      What would the City do to make up the difference to make the payment?

2.      We have been told that our City relies on Apple and its success for our city’s financing.  If for some unknown reason, Apple is no longer successful, how would this impact the City’s ability to make these payments?

a.      What would the City do to make up the difference to make the payment?

b.      What would happen if they don’t make the payment?

3.      The analysis discusses revenue and the expenses are mentioned in terms of the surplus amounts (more than $11million/year of the next 5 years).

a.      What are the actual recurring expenses – the amounts?

b.      How much are they projected to increase over the next 30 years?

c.      What about other projects other than City Hall?  Are they factored into this projection?  If not, what are the upcoming projects over the next 30 years that our City needs to address?  Will we have money for them?  If so, where will that money come from?

4.      Surplus of $90 million – I believe this includes the $30 million from the sale of Pruneridge Avenue, which is a one-time income.

a.      Can you provide a 10-year chart of our revenue and expenses and the net surplus?

 

Sincerely,

Liang-Fang Chao