9. Resolution: Receive a Report, Hold a Discussion and Take Action on Approving a Resolution of Support for OPG Cypress Partners LLC Supporting their Proposed Project on 301 Cypress St.

[9. Resolution: Receive a Report, Hold a Discussion and Take Action on Approving a Resolution of Support for OPG Cypress Partners LLC Supporting their Proposed Project on 301 Cypress St.]

>> WE MOVED TO ITEM 9. COUNCILMAN REGAN, DID YOU NEED THE PRESENTATION? DID YOU HAVE QUESTIONS?

>> IS THERE A PRESENTATION PREPARED? YES SIR.

>> THANK YOU. FOR YOUR CONSIDERATION IS A RESOLUTION OF SUPPORT FOR 301 CYPRESS STREET. IT IS LOCATED AT 301 CYPRESS STREET. IT WILL BE IN A COMMUNITY COMPRISED OF 60 UNITS, OF WHICH 60 UNITS WILL BE RESERVED FOR 60%.

[00:35:19]

INAUDIBLE ] I WOULD BE HAPPY TO ANSWER ANY QUESTIONS.

>> WHAT IS THE MAXIMUM ONE INDIVIDUAL CAN EARN TO QUALIFY AND LIVE IN THIS PROJECT IF IT IS APPROVED?

>> ACCORDING TO THE 2024 HOME INCOME LIMITS BY H.U.D., IT

WOULD BE $32,840. >> SO SOMEONE MAKING $10,000 A YEAR WOULD QUALIFY. SOMEWHAT MAKING $35,000 PER YEAR WOULD

NOT QUALIFY. >> CORRECT.

>> WHAT WOULD BE THE TIMELINE ON THIS PROJECT? DO WE HAVE AN IDEA? IS IT TWO YEARS DOWN THE ROAD? FIVE?

>> FROM WHAT I UNDERSTAND, THE PROCESS IS QUITE LENGTHY THIS IS ONE OF THE FIRST STEPS OF THAT PROCESS. THERE IS NO GUARANTEE THAT THEY WILL GET ACCEPTED FOR THE LOAN THAT

THEY'RE GOING FOR. >> AND THIS IS FOR A HOUSING ADMINISTRATION ADMINISTERED BY H.U.D.. IT IS IT APPROPRIATE TO REFER TO THIS AS H.U.D. HOUSING?

>> IT IS H.U.D. SUPPORTIVE. THIS IS FOR AFFORDABLE LIVING.

SOME GOVERNMENT ASSISTANCE. IT IS A LOWER CLASS OF THAT.

>> I THINK THOSE MAYBE ALL THE QUESTIONS I HAVE FOR YOU, TIM.

I HAVE THOUGHTS ON THIS. BUT I THINK THOSE ARE ALL THE

QUESTIONS. >> THANK YOU, TIM.

>> ARE THERE ANY OTHER FACILITIES SIMILAR TO THIS IN ABILENE -- IN DOWNTOWN OR IN ABILENE?

>> THERE IS ANOTHER FACILITY OUT THERE. YOU MAY HAVE TO HELP

ME REMEMBER THE NAME OF IT. >> THERE ARE A COUPLE OF TAX CREDIT HOUSING PRODUCTS OUT THERE. YOU KNOW, WE HAVE -- NOT THAT I CAN CALL THEM TO MY HEAD. I DON'T REMEMBER. THERE IS ONE ON SOUTH 27TH STREET. THERE'S A COUPLE OUT THERE.

THAT IS A HISTORICAL PRODUCT AS WELL THAT IS GOING TO BE DONE AS WELL. HOW THIS PROCESS WORKS IS THE APPLICANTS THAT ARE GOING TO BE PUTTING THEIR APPLICATIONS IN, IT IS A COMPETITIVE PROCESS AT THE STATE LEVEL. THEY GET EXTRA POINTS IF THE CITY HAS A RESOLUTION OF SUPPORT FROM A GOVERNING BODY, SO THERE IS AT LEAST ANOTHER PROJECT THAT I'M AWARE OF THAT WILL LIKELY BE COMING TO COUNSEL FOR SUPPORT.

HISTORICALLY, WE HAVE OUR SUPPORT IF COUNSEL SUPPORTED THE PRODUCT AND THE ZONING WAS IN PLACE. IF IT WAS NOT IN PLACE, WE WOULD HELP THAT SUPPORT BECAUSE WE DIDN'T WANT THE FOREGONE CONCLUSION THAT THE ZONING WOULD BE APPROVED.

IN THIS CASE, MULTIFAMILY IS ALLOWED BY RIGHT.

>> WE USUALLY GET SEVERAL OF THESE PER YEAR.

>> CORRECT. YES SIR. >> I HAVE SOME QUESTIONS IN TERMS OF, CAN YOU EXPLAIN A LITTLE BIT OF THE PROCESS AND HOW YOU ENGAGED OTHER STAKEHOLDERS DOWNTOWN? WHAT WAS THAT PROCESS LIKE? WHO WAS ENGAGED IN THAT PROCESS?

>> I PERSONALLY DID NOT ENGAGE THE DOWNTOWN ASSOCIATION. THIS WAS A PROJECT THAT WAS BROUGHT TO MY ATTENTION TO DRAW SUPPORT. AS FAR AS THE ENGAGEMENT, IT IS TYPICALLY ON A REQUEST LIKE THIS. THERE IS NO GUARANTEE THAT IT'S GOING TO GO THROUGH. THERE ARE A LOT OF THESE THAT NEVER GET FUNDING. THIS IS VERY EARLY ON IN THE PROCESS. THEY CAN MAKE THIS APPLICATIONS. IT IS ALLOW -- ALLOWED BY RIGHT. IT IS ALREADY ALLOWED. THERE'S ALREADY MULTIFAMILY THERE. IF IT WAS GOING TO BE A ZONE CHANGE, THEN WE WOULD ENGAGE.

>> IN TERMS OF THE USE, FOR SURE, I'M JUST TRYING TO PROCESS. SO HYPOTHETICALLY IF WE WERE TO APPROVE IT AND IF IT

[00:40:03]

WERE TO GO THROUGH THE APPLICATION PROCESS, IT IS NOT AS IF IT COMES BACK TO US AND WE CAN REVOKE WHAT IS ALREADY SET IN PLACE, AND THERE IS NO OTHER ENTITY IN TERMS OF THIS TYPE OF HOUSING DOWNTOWN, WHERE OTHER LOCAL STAKEHOLDERS WOULD BE IMPACTED, SO I'M JUST TRYING TO WRAP MY MIND AROUND IT. I AGREE -- ALTHOUGH IT IS VERY EARLY IN THE PROCESS TO ENGAGE WITH THE POTENTIAL IMPLICATIONS -- THEY AREN'T SOMETHING THAT WE CAN PULL BACK AND SQUASH IN TERMS OF THE PROCESS, WOULD IT CAN LOOK LIKE IF THE APPLICATION WAS.

>> THAT IS CORRECT. THERE IS NO CONSIDERATION FOR THE COUNCIL.

IF YOU CHOOSE TO SUPPORT THIS PROJECT OR NOT. IT IS TOTALLY UP TO Y'ALL. STAFF DOESN'T HAVE A DOG IN THE FIGHT ON THIS. FROM A STANDPOINT OF THE APPROVAL PROCESS, BECAUSE IT IS ALLOWED BY RIGHT, LET'S SAY THAT THEY GO THROUGH THE PROCESS AND THEY ARE AWARDED THIS, EVEN WITHOUT THE EXTRA POINTS, HOWEVER MANY EXTRA POINTS THEY GET -- WE HAVE NO INVOLVEMENT ON IT OTHER THAN THIS. THEY GET THE AWARD.

THEY'RE NOT GOING TO COME BACK TO THE COUNCIL. THEY ARE GOING TO GET A FULL PERMIT AND GO TO TOWN BECAUSE THEY CAN PRINT INTO YOUR POINT, IT IS CORRECT. THIS IS YOUR OPPORTUNITY TO HAVE SOME SAY IN THIS PROJECT. MR. LITTLEJOHN IS ALSO CORRECT.

THIS IS A COMMUNITY AWARENESS OPPORTUNITY FOR THIS PROJECT.

>> AND IF THEY WERE NOT SEEKING THIS H.U.D. APPROVAL AND THEY WANTED TO BUILD A FACILITY -- THE PARAMETERS THAT THEY ARE SETTING -- THEY COULD DO THAT TODAY.

>> THEY COULD BUILD A MULTIFAMILY STRUCTURE TODAY.

THEY COULD LIMIT THE AMOUNT OF INCOME THAT WAS AVAILABLE TO LIVE THERE TODAY IF THEY WANTED TO. OBVIOUSLY, IF YOU ARE BUILDING A PRIVATE PRODUCT, YOU'RE GOING TO MAXIMIZE YOUR RETURN. THE BEAUTY OF THIS PARTICULAR PROGRAM IS THAT PRIVATE INVESTMENT IS ABLE TO GET TAX CREDITS BY BUILDING AFFORDABLE HOUSING. TIM, I'M NOT SURE IF THIS IS AGE RESTRICTED HOUSING OR IF IT IS INCOME RESTRICTED ONLY, BUT THEY ARE DIFFERENT FLAVORS OF THIS PROGRAM. I'M JUST NOT SURE IF IT IS AGE RESTRICTED OR INCOME RESTRICTED. BASED ON THIS, IT APPEARS LIKE IT IS INCOME RESTRICTED. THEY ALSO SAY THAT YOU HAVE TO BE A CERTAIN AGE TO LIVE THERE, TOO.

BUT ABILENE NEEDS AFFORDABLE HOUSING, SEE YOU CAN MAKE AN ARGUMENT THIS IS A GOOD PRODUCT BECAUSE OF THAT. YOU CAN ALSO MAKE ANOTHER ARGUMENT THAT IT MAY NOT BE THE BEST LOCATION BECAUSE IT DOESN'T HAVE ADEQUATE RESOURCES TO SUPPORT FOLKS. THIS IS NOT A HOUSING ENVIRONMENT. ALL THOSE THINGS ARE LEGITIMATE ARGUMENTS AND SOMETHING FOR COUNSEL TO

CONSIDER. >> ANY FURTHER QUESTIONS? THANK

YOU, TIM. >> AT THIS TIME, I WILL OPEN THE PUBLIC HEARING. IS THERE ANYONE THAT WOULD LIKE TO SPEAK FOR OR AGAINST ITEM 9. PLEASE COME FORWARD AND GIVE YOUR NAME

FOR THE RECORD. >> GOOD MORNING. I'M REBECCA BRIDGES. I WORK DOWNTOWN. I AM SERVING AS THE PRESIDENT OF THE ABILENE DOWNTOWN ASSOCIATION, WHICH I KNOW MANY OF YOU ARE AWARE OF THAT GROUP, BUT WHAT I WILL SAY IS THAT WHEN SPEAKING PUBLICLY ON BEHALF OF THAT GROUP, IT IS A CHALLENGE BECAUSE WE ARE SUCH A DIVERSE GROUP. WE HAVE NONPROFITS. WE HAVE THANKS. WE HAVE RETAIL. WE HAVE SMALL RESTAURANTS. WE HAVE RESIDENTS. WE HAVE ALL KINDS OF THINGS. IT IS NOT A GROUP THAT YOU CAN EVER SPEAK ON BEHALF OF OF ENTIRELY. IT IS JUST NOT POSSIBLE. AND I WOULD NEVER TRY TO DO THAT. BUT, TODAY, I'M VERY HAPPY TO BE SPEAKING EARLY IN THE PROCESS BECAUSE SOMETHING THAT I THINK I HAVE SPOKEN TO, I HAVEN'T BEEN ABLE TO DO A CONFERENCE OF POLL ABOUT THIS PROJECT. WHERE PEOPLE ONLINE IS THAT WE ALL WANT OUR BUILDINGS FULL COME AND WE DEFINITELY NEED MORE HOUSING DOWNTOWN TO SUPPORT THE VISION THAT HAS BEEN CAST FOR SOME TIME. THAT IS WHAT I WANTED TO HIGHLIGHT TODAY IS THAT, WHILE IT IS NOT A CITY DRIVEN PLAN, THERE IS AN EXISTING PLAN AND VISION FOR DOWNTOWN THAT WAS CREATED WITH OVER 1200 STAKEHOLDERS THROUGH THE ABILENE REGIONAL GROWTH ALLIANCE, WHICH IS WHAT IT IS CALLED NOW THAT LIVES UNDERNEATH THE CHAMBER UMBRELLA, OF WHICH I AM ALSO A PART. THAT PROCESS WAS LONG AND INVOLVED. SO MANY PEOPLE HELPED WITH THAT VISION. AND MY CONCERN IS THAT THIS PROJECT AS IT STANDS RIGHT NOW FOR THAT

[00:45:04]

PARTICULAR PARAMETERS DOESN'T SEEM TO ALIGN WITH THE VISION THAT HAS BEEN CAST, AND SO, I THINK THAT THERE'S PROBABLY WAYS FOR THE DEVELOPERS TO CHANGE THAT. I AM NOT A DEVELOPER. I DON'T KNOW ABOUT ALL OF THE PROGRAMS, BUT TO ME, BASED ON MY UNDERSTANDING OF IT AND THE CONVERSATIONS I HAD, THAT PARTICULAR, VERY SPECIFIC TYPE OF HOUSING DOESN'T ALIGN WITH THE STAKEHOLDER DRIVEN PLAN AND VISION THAT HAS BEEN CREATED. THERE ARE OTHER, SIMILAR PROJECTS SERVING THE NEED THAT THIS WOULD FILL NEAR DOWNTOWN. I KNOW THAT THERE ARE TWO OF THOSE THAT ARE HAPPENING. I KNOW EVERYTHING IS SO SPECIFIC AND WHEN YOU ARE APPLYING FOR THAT TYPE OF HOUSING, YOU HAVE TO MEET THE SPECIFIC THINGS. ABILENE NEEDS SO MANY TYPES OF HOUSING THAT WILL ADDRESS ALL THOSE NEEDS. I NEVER WANT TO BE RESTRICTIVE OF THAT. WE NEED TO PROVIDE AFFORDABLE THINGS, AND DOWNTOWN DOES NOT ONLY NEED LUXURY HOUSING BUT WE NEED AFFORDABLE HOUSING FOR OUR PEOPLE THAT WORK DOWNTOWN. AS WELL. SO THAT HELPS RESOLVE PARKING, AS WELL.

IF THERE'S ONLY ONE PARKING SPOT THAT THEY ARE TAKING UP, THAT IS GREAT. WE LOVE TO REDUCE THE PARKING GRID. THANK

YOU. THAT IS REALLY IT. >> STILL IN THE PUBLIC COMMENT PERIOD. IS THERE ANYONE THAT WOULD LIKE TO SPEAK ON ITEM 9? PLEASE GIVE YOUR NAME AND COME FORWARD.

>> HELLO. I AM HERE TO SPEAK AGAINST THIS. I HAVE THE PERSONAL EXPERIENCE OF LIVING IN H.U.D. HOUSING AND I KNOW IT CAN COME ALONGSIDE THAT. I DID HAVE THE EXPERIENCE -- I HAD SOME REALLY BAD EXPERIENCES LIVING IN H.U.D. HOUSING. I WENT THERE WHEN MY FAMILY WAS HAPPY TO HAVE HOUSING WE COULD AFFORD. I DID SACRIFICE SAFETY WITH MY KIDS. I EXPERIENCED ARSON. I EXPERIENCED THE BEHEADING OF A NEIGHBOR. SAFETY IS MY BIGGEST CONCERN IN THIS AREA. H.U.D. HOUSING IS IMPORTANT, BUT WE HAVE ENTERTAINMENT FOR FAMILIES DOWNTOWN. WE HAVE ARCADES. FAMILIES ARE NOT GOING TO WANT TO COME DOWNTOWN BECAUSE THEY ARE CONCERNED ABOUT SAFETY AND PARKING AND WALKING THEIR KIDS. IT IMPACTS OUR BUSINESSES AND THE BUSINESSES AROUND. I WANTED TO VOICE THAT CONCERN AS SOMEONE THAT HAS LIVED IN THAT AND COME OUT OF THAT. THANK

YOU. >> IS THERE ANYONE ELSE THAT

WOULD LIKE TO SPEAK ON ITEM 9? >> GOOD MORNING. I MET 250 CYPRUS. WHEN I WAS OUT OF THE MILITARY, I LIVED IN A SIMILAR HOUSING ARRANGEMENT FOR ABOUT A YEAR AND HAD SOME CONCERNS, AS WELL, WITH SAFETY, AND THINGS LIKE THAT. I'M NOT SURE THAT THIS DOES ALIGN WITH THE DOWNTOWN REVITALIZATION THAT IS ONGOING. I CAN'T SPEAK IN DETAIL ABOUT THAT. I DON'T KNOW ENOUGH ABOUT IT, BUT THAT WAS MY PRIMARY CONCERN, AS WELL, THAT IT DOESN'T EXACTLY VIBE WITH WHAT IS GOING ON IN THAT AREA. AND THAT IS REALLY ALL I HAD TO SAY ABOUT IT.

>> IS THERE ANYONE ELSE THAT WOULD LIKE TO SPEAK ON ITEM 9? SEEING NO ONE, I WILL CLOSE THE PUBLIC HEARING. IS THERE ANY

FURTHER DISCUSSION? >> I THINK ONE THINGS I'M LEANING TOWARDS -- DID I INTERRUPT YOU? I'M SO SORRY.

ONE THING I'M LEANING TOWARDS IS, WHAT WOULD IT LOOK LIKE TO TABLE IT TO GAIN A MORE CLEAR UNDERSTANDING OF THE FISCAL, THE LOGISTICAL, THE SOCIAL IMPACT OF SUCH A PROJECT? IT DOESN'T MEAN NO, BUT IT ALLOWS US TO GATHER A LITTLE BIT MORE INFORMATION FROM POTENTIAL ENTITIES AND STAKEHOLDERS THAT WOULD BE IMPACTED BY SUCH A PROJECT.

>> I DON'T KNOW THE APPLICANT'S TIMELINE. IN THE PROCESS OF THIS. WE HAVE NOT SEEN OTHER REQUESTS, SO MY HUNCH IS THAT THERE IS STILL MORE TIME IN THE PROCESS. TIM,

DO YOU KNOW? >> QUAD WORKOUT DAY.

>> NO SIR. THEY HAVE NOT SHARED ANY TIMELINE.

>> I MEAN, IF I WAS THE APPLICANT, A SLOW YES IS BETTER

[00:50:06]

THAN A FAST NO. I DON'T KNOW IF THE APPLICANTS HERE -- IF YOU ARE THE APPLICANT, RAISE YOUR HAND. I DON'T SEE THAT THEY ARE HERE. AND SO, I CAN'T SPEAK FOR THEM, BUT IF THAT IS SOMETHING THAT YOU WANTED TO PUT FORWARD, I WOULD ENCOURAGE THE APPLICANT TO ENGAGE THE NEIGHBORHOOD AND THE COMMUNITY TO HAVE THAT DISCUSSION WITH THEM. REALLY, THE CITY DOESN'T HAVE A DOG IN THE FIGHT FROM THAT STANDPOINT, BUT THE APPLICANT DOES. THEY NEED TO MEET WITH THE COMMUNITY.

>> I'M GLAD YOU SAID WE DON'T HAVE ANY OTHERS THIS ROUND.

THESE COME UP EVERY COUPLE OF YEARS. IT'S A ONE OFF YEAR.

HISTORICALLY, WE HAVE APPROVED MOST EVERY ONE THAT HAS COME TO US. THE POINT OF THE APPROVAL PROCESS IS THERE MAY BE SOMETHING THAT WE SAY, THIS MAY NOT BE THE BEST PLACE FOR THAT PROJECT. THE I'M UNCOMFORTABLE VOTING FOR IT. I THINK THERE ARE OTHER PLACES IN TOWN TO DO THAT. WE HAD THE WINDSOR HOTEL THAT WE COMMITTED FUNDS TO TO BRING IN LOW INCOME HOUSING. IT TIED UP THOSE FUNDS FOR MANY YEARS. I KNOW THERE WAS A SENSE OF REGRET THAT WAS DONE BECAUSE OF HOW IT IMPACTED THE CITY AS A WHOLE. I THINK THERE ARE OPPORTUNITIES TO PURSUE SIMILAR PROJECTS CLOSE TO DOWNTOWN BUT NOT AT THE HEART OF DOWNTOWN.

IF THEY WANT TO DO THAT ON THEIR OWN, THAT IS ONE THIS IS ONE OPPORTUNITY TO VOTE ON THIS. THAT IS WHERE I AM PERSONALLY. I'M UNCOMFORTABLE WITH SAYING YES TO AN OFFICIAL STANCE IN FAVOR OF THE LOW INCOME HOUSING AT THIS POINT OF

DOWNTOWN. >> MY CONCERN IS THE AMENITIES THAT ARE AVAILABLE. HAVING NOT A LOT OF GROCERY STORES, THINGS LIKE THAT DOWNTOWN, JUST AMENITIES, THAT GIVES ME SOME PAUSE. IF THIS IS THE RIGHT PLACE. DO WE NEED AFFORDABLE HOUSING? YES. BUT IN THIS PARTICULAR PLACE, I DON'T KNOW

IF THAT IS THE FIT. >> I JUST WANT TO SAY, THERE IS A DIFFERENCE BETWEEN H.U.D. AND THIS TYPE OF HOUSING. I'M IN AGREEMENT WITH THE WORK WE HAVE DONE ON CYPRUS RIGHT NOW. THE VISION WE HAD. I DON'T KNOW IF I'M ON BOARD WITH THE TAX CREDIT PROPERTY RIGHT THERE IN THAT AREA.

>> MY CONCERN IS WE ARE SURRENDERING PRETTY DESIRABLE OFFICE SPACE. WE HAVE A TRACK RECORD WITH THE WINDSOR. I'M QUESTIONING THE SUCCESS THERE.

>> I WOULD AGREE. I HAVE A LOT OF REASONS.

>> WAIT A MINUTE. HOLD ON. STOP FOR A SECOND. CAN YOU PUT THAT

IN THE MINUTES, PLEASE? >> IS THAT A MOTION TO DENY

THIS REQUEST? >> YES. MOTION TO DENY.

>> I HAVE A MOTION TO DENY THIS REQUEST ON NUMBER 9. I HAVE A

SECOND BY COUNCILMAN PRICE. >> SO, DO WE VOTE YES -- IF WE WANT TO DENY, AND WE VOTE YES OR NO?

>> THE MOTION IS TO DENY. >> I'M JUST READING IT.

>> WHAT IS ON OUR SCREEN IS TO APPROVE THE RESOLUTION.

>> IT'S IS TO APPROVE HERE ON THIS.

>> THE MOTION IS HERE TO DENY.

>> DO YOU HAVE TO DO A VOICE VOTE?

>> I CAN RECORDED IN THE MINUTES WHENEVER I TYPE IT UP.

>> OKAY.

>> I GOT YOU. >> ALL YESES WITH THE EXCEPTION

OF COUNCILMAN YATES. >> SO THE MOTION TO DENY IS

[14. Resolution: Receive a Report, Hold a Discussion and Public Hearing, and Take Action on Approving Collateral Assignment of Lancium, LLC and Abilene DC 1, LLC Tax Abatement Agreements to JP Morgan Chase Bank]

AFFIRMED. WE WILL NOW MOVE TO THE REGULAR AGENDA. THIS WILL BE ITEM NUMBER 14, AND I WILL ASK FOR ROBERT HANNA TO PRESENT

THIS. >> THANK YOU , MAYOR. THIS ITEM IS BEFORE YOU AT THE REQUEST OF LANCIUM, LLC AND ABILENE DC 1,

[00:55:03]

LLC. WHAT IS BEING REQUESTED IS THAT THE COUNCIL APPROVE COLLATERAL AGREEMENT WITH J.P. MORGAN CHASE. AS I UNDERSTAND THE SITUATION, J.P. MORGAN CHASE IS LOANING MONEY TO THE COMPANY FOR THEIR PROJECTS. AND THEY ARE MAKING SURE THAT A PAPER TRAIL, THAT IF THERE IS A DEFAULT ON THE LOAN, AND THEY OBTAINED OWNERSHIP OF THE INVESTMENTS , THAT THEY WOULD BE ELIGIBLE FOR THE TAX ABATEMENT. THAT IS BASICALLY WHAT THIS COLLATERAL AGREEMENT MENTIONS. IT DOESN'T CHANGE OUR TECHS AGREEMENT IN ANY WAY. IT DOES ALLOW FOR ASSIGNMENT.

THEY NEEDED THIS PARTICULAR THING TO MEET SOME LOAN REQUIREMENTS DEADLINES. SO, WE HAVE TOLD THEM -- WE PROVIDE A SIGNED COPY THAT WAS DATED FOR TODAY. WE WERE TOLD IT WAS DEPENDENT ON COUNSEL'S DECISION. IF COUNSEL DENIES IT, IT IS NOT A VALID INSTRUMENT. WE ACCOMMODATED THE ACCELERATED TIMELINE THEY NEEDED. I WANT TO REITERATE THE FACT THAT IF YOU DECIDE TO NOT APPROVE THIS, THEN IT IS NOT APPROVED.

STANLEY, DO YOU WANT TO ADD ANYTHING ELSE?

>> THAT IS ALL CORRECT, YES SIR.

>> QUESTIONS? >> THEY ALREADY APPROVED THIS.

>> THAT'S RIGHT. >> SO THIS AGREEMENT -- WE HAVE TO APPROVE ASSIGNMENTS. SO THIS ASSIGNMENT -- IT IS APPROVAL REQUIREMENT. IF THEY WERE TO ASSIGN IT TO SOMEBODY ELSE.

>> HE ASPIRATE >> SO IT DOESN'T CHANGE

ANYTHING. >> FURTHER QUESTIONS?

>> ROBERT, WE TALKED A LITTLE BIT ABOUT THIS FROM A LEGAL STANDPOINT. STANLEY, IS THERE ANY NEGATIVE TO THE CITY BY APPROVING THIS? IS THERE ANY POSSIBLE -- THIS PREVENTS SOMETHING FROM BEING ENFORCED IF THIS HAPPENS?