Updated Response, p 12

• TCC, LLC finalizes LLC Operating Agreement and Corporate Resolution.
• TCC, LLC acquires firm commitments for all funding necessary to complete Phases 1 through 4.
o TCC, LLC expands search for and secures necessary venture capital.
o TCC, LLC negotiates leases for tenants, contingent on closing.
o TCC, LLC negotiates commercial financing necessary to complete Phase 3 (occupancy of Daniels/ Mack First Floor)
• Completion of sale.
See Financial Plan for additional information.
Compensation for the City of Chelsea
The Chelsea Connection, LLC proposes to pay the DDA $200,000 for the entire property, in AS-IS condition, with no encumbrances.
We understand the DDA paid significantly more than that for the property. Based on discussion with realtors and developers, the property value (AS-IS) in today’s market may be closer to $100k.
While the TCC still believes the DDA and City can maximize return on their investment by partnering with us, as previously proposed in February 2010, there appears to be no appetite for such an arrangement.
Other Benefits for the Residents of the City of Chelsea
Key Benefits:
• Reduced liability to the DDA, the City of Chelsea and its taxpayers.
• The Chelsea Connection will be pay property tax, increasing Chelsea’s tax base, and reducing pressure on City of Chelsea budgets.
• The Chelsea Connection includes public restrooms (in the first floor of the Livery Building) accessible directly from outside, which will be available during regular business hours and special events.
• The adaptive reuse redevelop of the site offers positive, stabilizing contributions to the social and economic fabric of Chelsea as discussed below.
Chelsea is a unique and extremely attractive community. The human scale, historic downtown, charming neighborhoods, excellent schools, and other amenities are attracting new residents. When the economy recovers from the present recession, Chelsea will again attract new businesses as well.