Fiscal Note
Based on the terms of this Substitute Alternate resolution (originally presented to the Common Council on December 14, 2010 and commonly referred to as "Version 5") the City would acknowledge transfer of ownership of the Overture Center facility to a private nonprofit organization and would commit to an annual subsidy of $2,000,000 beginning in 2012, contingent upon the satisfaction of all past debt obligations associated with the facility's construction and refinancing. The subsidy would be for both operating and capital costs associated with the facility. This annual support level represents an increase of approximately $700,000 per year when compared to the $1,297,473 budgeted in 2011 for Overture. In future years, the amount of financial support would be adjusted for inflation.
Additional costs associated with the payout of accrued employee benefits to current City employees working at Overture Center would be incurred by the City in 2011, 2012 and future years, as employees move from City positions to positions with the new Overture Center owner. Based on the agreement, at least $163,000 of costs associated with prior pension liability, accrued vacation and comp time benefits would be incurred by the City in 2012. The amount and timing of any additional costs related to the payout of accrued sick leave and future pensions would be determined as a result of required negotiations between the City and Local 60. Additional costs associated with those negotiations cannot be predicted at this time.
The proposed agreement also acknowledges that the new owner of Overture Center may request the City to provide a loan to assist in the financing of future capital maintenance costs. It is anticipated that, if the City agrees to such an arrangement, the loan repayment terms could be structured so that the City's cost of funds could be fully recovered.
Title
SUBSTITUTE ALTERNATE WITH FRIENDLY AMENDMENT Acknowledging private ownership and operation o...
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