STATEMENT ON THE BOCA GRANDE SIGNING

Today, at the direction of the Ripon Common Council, I, and City Administrator Steve Barg, signed a development agreement with the investment firm of Boca Grande. The agreement comes after several months of discussions and negotiations. Boca Grande has proposed a $30 million redevelopment of downtown Ripon, to be highlighted by an inn and spa, several new storefronts and restaurants, and a Republican Presidential Museum. Construction is set to begin shortly and run through 2013.

There has been a delay in the actual signing of the document over the past several weeks in order to finalize several pieces of the agreement. One component, a completion performance bond, was requested to insure the project could be completed if Boca Grande were to stop their project or run into difficulties. At this time, there is nothing to suggest in the background of Boca Grande or Jim Connelly, the lead developer, that such a scenario would play out. The tightening of the credit and bond market over the past year has made it increasingly difficult to find a company which would write the bond. Therefore, Boca and the city have agreed to withhold nearly $2 million of the city's $5.5 million investment in the Inn and Spa in an escrow account until actual construction on the new building begins. A second component, a life insurance policy on Frank Cumberbatch, one of the investors in Boca Grande and a resident of the city of Ripon, had to be altered as well. The initial policy request was for $4.3 million. Roughly one half of that policy has been approved. Boca Grande, in the most recent negotiations, agreed to contractual language which obligates them to continue pursuing the construction completion bond and the remaining life insurance coverage as the project moves forward.

As mayor, I would like to thank our staff and advisors for their diligent and thorough work on this project. An endeavor of this size does not come to pass without teamwork on both sides of the table. In the end, the city and Boca Grande went through 14 versions of the final developers agreement, before reaching the finish line. I am proud of the work we have done, and excited about the future. As has been my policy since we announced this agreement in August, the public is invited and encouraged to ask questions about the project and the city's involvement. No one who has asked questions about this project has been denied access to the public records and deliberations. The city and Boca Grande have held three informational meetings on the project, and additional public meetings may be held in the future as the numerous construction and redevelopment projects are launched.

On a personal note, I realize there will never be unanimous public consent on this project. It has never been my goal to seek 100 percent approval. It has been my goal to provide as much information as is legally permissible to allow everyone to form their own opinion, whether it is for or against. I believe in this project because I have always believed Ripon's best days are yet to come, and this project is a solid belief in the future of the downtown, the city of Ripon, and the region.