LBReport.com

First (Again) on LBREPORT.com

Contract For New Civic Center Is Supposed To Include A "Financial Model." Its Version Visible On City Website Doesn't.


If LBREPORT.com didn't tell you,
who would?
No one in LBREPORT.com's ownership, reporting or editorial decision-making has ties to development interests, advocacy groups or other special interests; or is seeking or receiving benefits of City development-related decisions; or holds a City Hall appointive position; or has contributed sums to political campaigns for Long Beach incumbents or challengers. LBREPORT.com isn't part of an out of town corporate cluster and no one its ownership, editorial or publishing decisionmaking has been part of the governing board of any City government body or other entity on whose policies we report.

LBREPORT.com is reader and advertiser supported. Support independent news in LB similar to the way people support NPR and PBS stations. We're not non-profit so it's not tax deductible but $49.95 (less than an annual dollar a week) helps keep us online.
(August 9, 2019) -- A contract committing Long Beach taxpayers to spend over a half billion dollars for a new Civic Center, applauded by Long Beach Mayor Robert Garcia and approved by voted action of the City Council on December 15, 2015, is supposed to include a "Financial Model."

But its version visible on the City of Long Beach website (as of Aug. 8) doesn't do so.

The signed/executed "Project Agreement" is supposed to "Appendix 16, Financial Model"...but the page is basically blank.


Project Agreement, p. A 16-1

Three inquiries to city management by LBREPORT.com since July 25 as to the whereabouts of "Appendix 16: Financial Model" have (uncommonly) produced no response(s) to date from the City of Long Beach.

The 876 page Project Agreement details the terms on which LB taxpayers are now obligated to pay an annual increasing "service fee" for the next 40 years to an outside firm to operate and maintain LB's Civic Center.

Page 160 of the Project Agreement states:

[Scroll down for further.]








SECTION 19.1. FINANCIAL MODEL.

A) Copy Attached. A copy of the Financial Model is attached hereto as Appendix 16 Financial Model).

B) Risk of Errors or Omissions. The Project Company shall bear the entire risk of any errors in or omissions from the Financial Model and shall not be entitled to any compensation from or other redress against the City or the Port in relation to any loss or damage that it suffers in consequence of such error or omission.

C) No Guaranteed Return. In no event shall the agreement of the parties to establish and maintain the Financial Model for certain purposes hereunder be construed to mean that the Project Company is entitled to receive a guaranteed rate of return on equity invested in connection with the Project.

SECTION 19.2. FINANCIAL MODEL UPDATES.

A) Updates. The Financial Model shall be updated from time to time to reflect changes as required by this Project Agreement. The Financial Model update shall become the Financial Model and shall be attached to this Project Agreement.

B) Project Company Preparation. The Project Company shall prepare the Financial Model updates and shall provide the City and the Port with all Financial Model updates and a complete set of the updated and revised assumptions and other data that form a part of the Financial Model as updated, including updated and revised projections and calculations with respect to revenues, expenses, the repayment of the applicable Senior Debt and Distributions.

C) Access and Challenges. The City and the Port shall have the right at all times to gain access, on an open book basis, to the Financial Model and all Financial Model updates and the set of updated and revised assumptions and other data that form part of each such model. The City and the Port shall have the right to challenge the validity, accuracy or reasonableness of any Financial Model update or the related updated and revised assumptions and data. In the event of a challenge, the immediately preceding Financial Model update that has not been challenged ( or, if there has been no unchallenged Financial Model update, the Financial Model) shall remain in effect pending the outcome or the challenge or until a new Financial Model update is issued and unchallenged.

D) Changes to Financial Model Formulas. In no event shall the Financial Model formulas be changed except with the prior written agreement of the City and the Port.

E) City and Port Audit. Prior to making any use of the output of the Financial Model, the City or the Port may, at its own expense, review and audit the revised Financial Model and all amendments and updates thereto prepared by the Project Company. The Project Company shall provide such information as is reasonably required by the City and the Port to conduct the audits described in this Section.

Sponsor

Sponsor

On July 29, 2019, Mayor Garcia, joined by immediate past Mayor Bob Foster, various past and present City and Port officials, staff and members of the public, held a dedication ceremony for the new City Hall and adjacent Port HQ building. A new LB Main library (roughly 30% smaller than LB's former Main Library and recently named by the Council to honor LB native Billie Jean King) is slated to open Sept. 21.

As part of the Civic Center transaction, the Council voted to permanently give away a portion of the public's Civic Center land to the new Civic Center's private developer (which a new high rise with residences above and commercial/retail spaces below.)

Sponsor

Sponsor

Sponsor




Support really independent news in Long Beach. No one in LBREPORT.com's ownership, reporting or editorial decision-making has ties to development interests, advocacy groups or other special interests; or is seeking or receiving benefits of City development-related decisions; or holds a City Hall appointive position; or has contributed sums to political campaigns for Long Beach incumbents or challengers. LBREPORT.com isn't part of an out of town corporate cluster and no one its ownership, editorial or publishing decisionmaking has been part of the governing board of any City government body or other entity on whose policies we report. LBREPORT.com is reader and advertiser supported. You can help keep really independent news in LB similar to the way people support NPR and PBS stations. We're not non-profit so it's not tax deductible but $49.95 (less than an annual dollar a week) helps keep us online.


blog comments powered by Disqus

Recommend LBREPORT.com to your Facebook friends:


Follow LBReport.com with:

Twitter

Facebook

RSS

Return To Front Page

Contact us: mail@LBReport.com



Adoptable pet of the week:



Carter Wood Floors
Hardwood Floor Specialists
Call (562) 422-2800 or (714) 836-7050


Copyright © 2019 LBReport.com, LLC. All rights reserved. Terms of Use/Legal policy, click here. Privacy Policy, click here