Dave Rose and I met with representatives from Nova and the City on Tuesday, February 1, 2011. I have also prepared and made comments on the initial draft of a document that the City had prepared. This is an early draft form and there are still inputs and discussions to be had with regard to many of the terms.

The discussion on Tuesday focused on the concept that the City had supported previously at our prior meetings, whereby there would be a carve out of the operation of Rooms 108 and 109 with rights to the use of the kitchen and adjoining gallery for Community events, meeting rooms and programs not otherwise provided by Nova. Nova flatly rejected that and does not want to proceed on that basis. They were willing to agree to “performance levels”, which may effectively accomplish the same objective. If that is true, and that is merely form over substance, we will be working on those modifications for inclusion in the agreement. I will be drafting those consistent with the position previously taken by the Board in that regard.

Meetings are continuing with regard to architectural designs. There is much detail in those items that notwithstanding the hopes and dreams of the prospective new Operator to the contrary, that it will take longer and cost more to accomplish. Once those details are ironed out, we will be able to gather a cost estimate for those modifications and would include commitments for those capital renovations and improvements and a time schedule for completion by the Operator in the Agreement. This would also effect the term of the Agreement.

Since we are now going to be drafting “performance levels” requirements for the agreement, instead of addressing the market at the time in which it may occur, we may now need put minimum general standards in a format. When I have that drafted, I will have it circulated for additional comments (Nova wants them by Monday). You may want to, in contemplation thereof, pull whatever records or note you may have as to items that you know we need to include based upon that which we have in the past addressed and/or have received Community input with regard to their desired uses of the facility.