CITY OF TOLEDO D. Micuary, Coins Counciman ~ District 2 (ne Govesoet Ger Sse 2120 Toledo, Obi 434604 USA Phone 419.245.1050 aa 419.265.1072 cet: a193923091 Resdeace 223s Hasermoed Dave “eed, Oo 3614 Phone 419.281.2408 tictcclioetoedost gov April 18, 2011 ‘To: Michael P, Bell, Mayor From: D. Michiel Collins, City Councilman - District 2 Ref: Proposed Sale of the Marina District In view of your public statements of both April 10, 2011 and April 15, 2011 concerning the proposed sale of the Marina District (majority of the property) to the investment entity Dashing Pacific, [respectfully offer the following thoughts on the subject matter. [believe a mistake on the part of City Council in this transaction has the potential to compromise Toledo well info the future. We are not conducting a private business transaction, characteristic to the private transfer of property. The only reason this property exists in the condition it is found today is because of purchases and environmental remediation, all of which were paid for by the taxpayers. The fact is the taxpayers have over $43 million, and what appears to be another $2 plus million, committed to this project, I believe my role and the role of City Council is to represent the actual owners of this municipal asset and see that it holds a future on which we can ail look back and say wemade the right decision L will provide you with specifics om this issue, but before I do, let me briefly address the sale of the Docks. In this sale there was an outstanding obligation of over $120,000.00 in back rent. ‘This obligation was folded into the deal and Dashing Pacific accepted the obligation thus removing a legitimate obligation to the Toledo taxpayers; monies they will never recover. In addition, you committed to a professional appraisal for the property and this was never done, as ‘you later stated it was not necessary as well as it would have taken too long. will now move to the proposed sale of the Marina Distrit, City Council first became aware of this offer to purchase on March 25, 2011. On April 8, 2011, Council received the legislation defining the terms and conditions of the proposed sale. This provided us with our first collective opportunity to be notified of the deal, At our Council Agenda meeting of April 12, 2011, we received a briefing on the deal from Deputy Mayor Crothers and on some of the legal issues from Law Director Loukx. The questioning as to the components of the sale was presented first by Councilwoman Webb, followed by my questions and concerns. It was af that point you proceeded to challenge our actions, implying we were killing the deal, You supported yout position by referring to past efforts for this development and the failure of them to materialize. ‘would offer for your consideration that the deals failed to materialize as the parameters of the deals struck by each Administration were subsequently changed by each succeeding Administration, causing the impossibility of any deal to be completed.Iwill now offer to you my response to your Press Conference of Friday, April 15, 2011: © During my term on City Council Mr. Dillin appeared before Council and presented his vision of the Marina District. He accepted questions from members of Council and he and his team attempted to answer the issues which were presented. © The issue of the public use of the river was never in question as well as open space for public recreation. + In August of 2008, Mr, Dillin, pursuant to attorney/client privilege, met with a lawyer hired by the City fo review his financial position and determine if he had the fiseal ability to give a “personal guarantes” for $3.5 million. Mayor Bell, I call this to your attention in the event you were unaware of previous attempts to demonstrate City Council’s efforts at Due Diligence In the present matter before us, [will state to you unequivocally that I want the development to bea success and these are issues I hope can be addressed: ‘© There should be a presentation to City Council from the buyers/developers that would serve to explain their vision and time lines. ‘© The public’s ability to use the property for recreation must be defined; the explanation given at Council Agenda Meeting was insufficient in that regard. ‘© Commitment of the buyers/investors to use local general contractors and skilled trades is critical as part of the taxpayers return on their investment. In terms of my suggestions at Couneil Agenda, the 24 months and 51% vertical development ‘were offered simply as a starting point for negotiation. Surly one would not expect the buyers/investors to offer this as part of the agreement to purchase the property. I might also suggest that in trath this valuable municipal assist has never been properly marketed nor have you or any of the previous Administration’s tested the domestic and international markets. Iwill close by saying attitude is critical in this as well as other relationships in public, governance. In my opinion, the discussions broke down last Tuesday when your Administration ‘used a sales approach as opposed to giving Council a thorough briefing on the critical issues of what constituents the strengths, weaikesses, opportunities and threats to the sale of the property to Dashing Pacific. The lesson we could all learn from this is constructive dialog is absolutely necessary. ce: Steve Herwat, Deputy Mayor of Operations ‘Tom Crothers, Deputy Mayor of External Operations Adam Loukic, Law Director ‘Wilma D. Brown, President of Council All Members of Council