Date 11072018 11:31:47 AM From "Nicole Kustok" To "Robin Rue Simmons" Subject : MOU vote Attachment : ELDP One Pager (1).pafy (hod Moming Robin, "hope you are having a good star to 2018. We have had some more people on our group t advocate fora faancaly responsible answer to the Harley Cake Propety.ouroption serves the most people and woull cost the ety nothing Im advance ofthe January 22nd MOU vote-we put together short summary page of isks most conceming to ourgroup. You will fad it attached below. Ourhope ' that once you see the MOU terns this document will make it easier to vet those ss. you are abs, hope we can havea bie meeting. Our goals to speak wth alloftheaklemen,Pessonaly,Tamstil very concemed about the low renovation estimates and the group's perpetual lance on fundraising to operate "elev the ety has bigger fiscal hurdles than saving this butling and many important need-based prograns that rely on charitable giving. I don think Evanston can sk having anyofthose sue. ‘Thank you again or yourtins, NicoleEvanston Lighthouse Dunes Proj ec t- MOU Analysis and Concerns ‘There is significant financial risk and exposure to Evanston should the Lakehouse Gardens project move forward. While the ELHG project is well intentioned, the long-term financial viability is highly questionable. The MOU must contain necessary safeguards and controls so risk to the city is completely mitigated Such risks include but are not limited to the following: Fundraising Concerns Risk Unspecified time window for reising hard cash Lisbility and risk remains with city in interim Reguited proof of cesh-in-hand to start construction industry standard is 70% of vetted total project cost) Potential for on-going construction zone in public park ‘Money invested fails to result in finished product Leck of clear claw-back provision Fundkaising shortfall yields structure in limbo Any money reised could legelly stall future naturalization effort Unclear wording prevents city from seteining seid funds Construction Cost Concerns Construction cost are unrealistically low Current estimated cost of $149/sq, ft is fer below comparable senovations range (which range from $500/sq ft to $1000/sq ft) IDNR bid for mein-house only was $270/ sq, ft Using direct comps yields a totel spend that exceeds $10M Insurance/Indemnification Concerns Leck of required inswance Claims arising out of construction and ongoing operations represent potentiel for significant self insured losses to the city Failure to obtain builders risk, environmental Lsbility, construction lability and general lsbility with liquor Kebility vumecessasily exposes city funds to new loss exposes Operating Cost Concerns ‘Two yeer operating spend not cwrently included in capital reise Revenue raised from operations falls short of projection Reliance on $220K in ongoing ennuel donor contribution for operstion Perpetual competition with Evanston-based charitable giving City could be celled upon to fund any operating shortfalls Programmatic Concerns Duplication of Evanston E cology Center Cannibelizes current environmental education demand Siphons current city programming revenue ‘We believe that our Evanston Lighthouse Dunes Proposal is a more responsible altemative for our community — both financially and ecologically. Our proposal can be done for $20 10,000 and provides green space for future generations of Evanstonians to enjoy. We are prepared to provide the City of Evanston a successful Plan B ws ey LIGHTHOUSEDUNES.cOM