Kisela reminds everyone this is only one of three sites the city wants to acquire.
Weidenhamer: He would like to see a financial analysis. Even if the lease is half the price of payments, “it’s still cash flow. If we’re spending half of the money we’re spending otherwise, the other half might go to another parking location … There’s only so much cash flow.”
Kisela: We have a financial advisor, we can have him go over the lease. “I hadn’t wanted to spend that money unless there was a policy direction.”
Jim Bagby: “if that was a motion, I will second it, but I will tell you what it’s going to tell us … it’s going to tell us to lease” subject to a couple of technical points.
Kisela: Parking garage costs will be the same on either site. He can bring back an analysis on the parking-lot price in a couple of weeks.
Craig: He doesn’t think the lease is the clear winner when you consider that 30 years down the line, one would still have us owning property.
Trammell: We’ve discussed building condos on a parking garage–would the church be OK with that? Kisela: We would have that right.
Weidenhamer: We need to consider the residual value, but cash flow will be important. “I don’t care what the residual value will be 50 years from now, it won’t buy you more parking spaces today.”
Dewey: 50 years ago, his grandfather sold a harbor parcel for $5,000; today it’s worth $50 million. In the harbor district, residual value can count for a lot.
Seevers: Do we have a closing date for the Clancys?
Miller: No. My position is that you have in your hands the enforcement of the contract.
Seevers: There is a huge value in owning the parcel, and the value is going to go way up when redevelompent starts. How will the analsysis figure that in?
Greg: “I will defer to the financial advisors. This is not the first time someone’s been asked to evaluate lease versus purchase.” The advisor will make the call.

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