August 13, 2013 That was Gnarls Barkley with his hit song Crazy The lyrics include: I remember when I lost my mind Does that make me CRAZY Hopefully

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Slide 2 August 13, 2013 Slide 3 That was Gnarls Barkley with his hit song Crazy The lyrics include: I remember when I lost my mind Does that make me CRAZY Hopefully after tonights presentation you wont think that he wrote this song about me Slide 4 If youre not moving forward, youre losing ground. ~ attributed to many While change is not always welcome or viewed as positive initially, I hope to prove that if it is done properly, it will benefit the community Heres a local example: Slide 5 Thats their interpretation of beautifying the lakefront. Ive told a lot of people I dont understand how you take a baseball field with grass and make it a parking lot and that beautifies the area. ~ WHS Baseball Coach Kevin Lenz NWI Times That of course was before he had a chance to see or play at Oil City Stadium The quote obviously still serves as inspiration for me. Slide 6 One way to keep momentum going is to have constantly greater goals ~ Michael Korda, author I feel we have momentum, now we need to continue to push the envelope Slide 7 It doesnt matter how slowly you go so long as you do not stop. ~ Confucius I had hoped by sharing that quote with you today, that you would forgive me for how long it takes to actually institute change! Slide 8 Insanity: doing the same thing over and over again and expecting different results. ~ Albert Einstein As youll hear today, I may not have all of the answers or be 100% correct in every one of my assumptions, but its time to take some risks and change how we do certain things Slide 9 Mayor Joes Definition of Controversial (the word will appear several times in the presentation) Something can be viewed as controversial if it can impact a persons: Employment Salary or Income (Cost $$) Home or property Quality of Life Philosophical believes Or any Change that does not have unanimous support Slide 10 Full Slate of Interesting Controversial Topics I usually thoroughly enjoy these Forums But this will be a tough presentation for me I am in the process of making several difficult decisions that impact a lot of peopleand thats not easy For those of you who have not attended one of my past Forums, heres a quick overview: Ill run through my presentation as quickly as possible to stay on schedule probably 45 minutes or so Id ask that you please hold your questions to the end At the end of the presentation, Ill stay as long as needed to answer your questions Slide 11 Funding Plan Overview WCC YMCA Project Stadium District Plan New Hotel Concept Water & Sewer rates Residential Matching Assistance (Grants) Quiet Zone (Whistle Ban) Miscellaneous Projects Slide 12 Important background info for todays presentation Extremely unusual & complex financial situation Our Assessed Valuation (Taxable Property) is expected to grow significantly in coming years The growth will be short lived and then drop back down to slightly more than it is today Goal Capture the maximum opportunity for City Slide 13 New growth will be captured in our TIF District: Allows us to borrow to fund capital improvement projects While there is not enough time to discuss the specifics at a Public Forum, this is the strategy that provides the biggest bang for our buck Important Factors: We dont yet know all the financial details Money must be spent on Projects All debt will be repaid with Industrial tax revenue Slide 14 With that said, we are hoping that many of the projects in our plan can be funded in the short term, versus waiting to pay as we go Because the Funds are limited, my hardest task is to identify the projects that provide the biggest benefit to the community Slide 15 I thought a brief review of the Funding Plan would clarify: That there will be Capital Funds available Why we will take on new debt (NWI Times) That none of the debt repayment will be paid by the residents I was expecting to formally announce a few of these new projects today, but our final Financial Analysis was not completed in time. So until the money is in the bank, its prudent for me to take the cautious approach Slide 16 History I know many of us Old-timers grew up in this building It is an important part of our community and our past history Ive fought hard to maintain the building and invest in improvements over the years But, its a huge financial drain on the Citys budget Slide 17 Background $750,000 in (WCC only) annual operating expenses $250,000 in (WCC only) annual revenue $500,000 annual loss or subsidy None of the expected Capital $$ can be used to offset these operating costs This loss was much worse in previous years, but improvements made have reduced the burden New windows Energy efficiency improvements Staffing changes Increased revenue Slide 18 Background Why is the subsidy so large? Inherited building but no budget to support it Laws prevent or limit us from making a profit Always more difficult for a public entity to increase costs or reduce the workforce Always had surplus funds to funnel to operation Tax Caps have changed that dynamic Maximus Good Government Study (2005/2006) Recommended the sale of the building Slide 19 Decided to explore all options before divesting property City Actions to Date Internal Task Force reviews Commissioned an IU-SPEA Study to review the operation and make recommendations Study indicated the best Financial solution was to privatize the building as a Full-Service Heath Club Makes sense Gyms, Pool, Track, Fitness area, etc. Issues with this solution included: Displaced Youth/Seniors - Cost associated with the displacement Difficult to return to current operation if project failed Reviewed and studied other options including: Streamlined City Operation Privatization non-Health Club operation Sale of Building Slide 20 Ideal Solution would: Continue to provide community minded programming similar to todays operation Continue to serve all age groups of the community Allow the City to maintain ownership of the building Reduce or eliminate the Citys $500K subsidy Allow for a workable Exit Strategy The only option that provided all of these benefits was the YMCA Slide 21 Lease the building for $1 per year YMCA to pay all operating costs associated with their operation including: Staffing Utilities Maintenance YMCA to have complete control of the operation Set their own rates Slide 22 Benefits include: Immediate savings of the $500K annual subsidy Continued and Improved Community Minded Programming and Facilities for all ages New operation will be much improved over today YMCA Expertise Renovations New equipment Additional Programming Childcare Slide 23 Benefits include: Continued availability of facility for: Emergency Shelter Public Events Building remains under City Control and Ownership We will essentially act as the landlord and maintain the primary structural components of the building Only people who choose to use the Facility will pay Slide 24 Important Factors: Displaced employees will have multiple options Bid/Transfer into open positions Early retirement Interview with the YMCA Severance to all, including part-time employees City will invest to renovate the lower level and complete the lobby restoration as planned This would have occurred regardless of the option chosen All donations to the lobby renovation will be used as intended Slide 25 Important Factors: At least 4 of the 12 bowling lanes will be removed Option to remove all 12 lanes is being reviewed Cost Funding dependent Bowling League options for this season limited Slide 26 Important Factors: YMCA is an extremely reputable organization They have funding avenues simply not available to the City They already have a proven track record in NWI Slide 27 Timetable Signed MOU in place Finalize YMCA Lease ASAP Employee bidding and transfers by year end Close building on January 1, 2014 for construction Estimated savings of closing the building for construction ranges between $100,000 - $200,000 Construction January June Reopen under YMCA control in June-July If we cannot agree to terms with the YMCA by the end of construction, we will operate the renovated facility Slide 28 This is simply the best business decision Not everyone will agree with it, but we cant continue operating in the deep red Slide 29 Now for controversial project #2 I hope you had a chance to review the graphic to get a feel for what I am proposing Slide 30 This project will: Provide the needed infrastructure for new BP investment Provide the needed attractions to create a destination place Provide new diverse residential opportunities Provide multiple new commercial opportunities Serve as the Gateway into the Lakefront Park Slide 31 While there are still some moving parts in the Plan, here are some of the highlights: The project area includes all properties east of the Schrage Avenue east alley and north of 121 st All of Old Standard Avenue All of Old Center Street All of 119 th Street All of Front Street Over 75 properties will need to be acquired (Additional comments on this topic later) Slide 32 The Proposed Plan (market driven) includes: A variety of New Residential units New commercial/multi-use buildings Senior Citizen market-rate apartments Multiple new restaurants and eateries Entertainment venues Museums Sports Facilities An allotted area for new BP development Road closures and new roadways Oil City Stadium additions 100s of new parking spaces Slide 33 Moving Parts - Entertainment Venues Museums Whiting-Robertsdale Museum (Refinery Component) Chicago Baseball Museum Strong commitment to lease the 2 nd wing if we build our museum National Mascot Hall of Fame Picking up momentum Moved from a Pipe Dream to a reasonable chance Flying their Team to Whiting in September to present a proposal Sports Venues Expansion of Oil City Stadium to accommodate Minor League Team Currently reviewing a proposal to include an Ice Arena to accommodate a Minor League Hockey Team Childrens Activity Center o