METROPOLITAN COUNCIL Member of Council, MEMORANDUM, TO: TALIA LOMAX-O'DNEAL, FINANCE DEPARTMENT FROM: COUNCILMEMBER TANAKA VERCHER DATE: OCTOBER 5, 2017 RE: QUESTIONS SUBMITTED ON BEHALF OF METRO COUNCIL BUDGET AND. EGARDIN Talia, On behalf of the Metro Council Budget & Finance Committe, I submit the following nineteen (19) questions for your department's review regarding the proposed Major League Soocer (MIS) stadium. With consideration ofthe related Resolution scheduled for October 17, 2017, our committee members would be grateful if your responses could be submitted by no later ‘than October 10, 2017 to assure sufficient time for review and consideration. ‘And please note that these questions were developed before Council members hed the chance to review the recently fled Resolution. Undoubtedly, you can expect more questions, and ‘more precise questions, as we move forward, AAs always, thank you for the enormous assistance you provide to Couneil members and tw the city of Nashville Sincerely, Soroba Virehe ‘Tanaka Vercher Member of Council (Chair, Budget and Finance Committee QUESTION 1. Does the thirteen million dollar ($13,000,000) estimated debt service payment cover only the two hundred million dollars ($200,000,000) in newly issued revenue bonds, or does that debt service also include the payments for the projected additional twenty-five million dollars ($25,000,000) in GO bonds as well? (One Public Square, Suite 204 Nashville, Tennessee 37219 Office: 615/862-6780 Fax: 616/862-6784October 5,2017 Page 2 2. How is the four million, five hundred thousand dollars ($4,500,000) in tax revenue — ‘proposed to goto the total debt service for the soecer stadium ~ calculated? From what estimated sources? ‘Is any of this payment stream estimated to increase overtime? * Canit decline? 3. What will our total amount of revenue bond indebiedness be after this project? ‘© Whats that amount per capita? ‘How does that amount compare to revenue indebtedness for the 50 largest municipal (This revenue bond indebtedness should include all sources of revenue bond indebtedness.) 4. What will our city’s total GO indebtedness be -- currently and after funding the authorized backlog of projects? ‘© What is that amount per capita? ‘+ How does that amount compare tothe 50 largest municipal areas? (This GO indebtedness should include all county and educational obligations from those municipal area in order to provide an apples-fo-apples comparison.) 5. What is our subsidy ~ for the past I year,3 years, 5 years, and 10 years — for ) Nissan Stadium; 6) What is our estimated capital obligation ~ over the next 1 year, 3 years, S years, and 10 years ~ at ) Nissan Stadium? ') Bridgestone? ©) First Tennessee park?? 7) What i the rent paid by th professional teams at @) Nissan Stadium; ») Bridgestone; and ©) First Tennessee Park? ‘© What other revenue does the city collect from these properties? 8) What is the rent being paid by the current minor league soccer team at First Tennessee ark? How long is our lease obligation with them? 9) Does the rent for tis proposed new MLS soccer facility increase over time, ori it fixed? * For what period is the lease? ‘© What are the renewal terms? ‘© What are the future capital obligations the city ha as landlord? 10) What is the scope of work for the twenty-five million ($25,000,000) in proposed GO indebiedness? ‘= Does any ofthis money goto repair or replace buildings currently tthe Fairgrounds? ‘© Does any of this money go to facilitate the development of the 10 acres being awarded to the soccer team asa separate incentive?October 5,2017 Page 3 11) What other taxable municipal bonds have been issued by Metro? “Ate all these bonds backed by the pledge of non-tax GSD/USD revenues? ‘Are any other bonds backed by these pledges? Are any tax exempt bonds backed by the non-tax GSD/USD revene pledge? ‘What i our non-tax GSDYUSD revenue collection? Do these ‘non-tax’ revenues have to be replaced by regular tax revenues if any of these ‘non-tax’ revenues are needed fr det service for these taxable or tax-exempt bonds? ‘© When would Metro taxpayer be required to cover the payments or the principal of tse bonds? (Isn't there ultimately a Mewo guarantee?) 12)Is there any net worth in any of the “Team over” guarantees for ether the stadium construction or rent payments? 13) Will the “Team owner" guarantees consist only of guarantees provided by limited libily entities (eg, corporation, LLC, partnership, joint venture, tus, et) Or, will the guarantee be backed by the individual owners (letters of ered, net worth, .)? 14)How many parking places will be required for the stadium? How many are being constructed? 15) What is the estimated storm water fee Meteo willbe obligated to pay forthe stadium and the parking? 16) How will the 10 acres of land incentive forthe sports team be selected? ‘What zoning promises will be made? 4 Whatkind of development is projected fr these ares? + How many square feet of development are projected? 17) The informal appraisal for the 10 acres of land appeared to average the total valve over the entire site. Are these acres more valuable or less valuable than the average? 18)Can an independent appraisal be performed assessing the 10-acre land valuation, as well as the value of the proposed development, prior to fnlizaton of this incentive? + Any such appraisal should include the land value before and flr the entitlements ate changed o accommodate the intended development. 19)As preceded development of the Nissan Stadium, could a public referendum be conducted prior Council authorization ofa MLS soccer stadium? + not, why not? + If 0, why was such referendum not proposed here?