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HomeMy WebLinkAbout2010 08 10 Consent 201 Approval Of The July 28, 2010 Special Meeting Minutes CITY OF WINTER SPRINGS, FLORIDA MINUTES BOARD OF TRUSTEES G� SPECIAL MEETING JULY 28, 2010 Q CZ �3••a CALL TO ORDER The Special Meeting of Wednesday, July 28, 2010 of the Board of Trustees was called to Order by Chairperson Maria Fair at 6:03 p.m. in the Commission Chambers of the Municipal Building (City Hall, 1126 East State Road 434, Winter Springs, Florida 32708). Roll Call: Chairperson Maria Fair, present Vice Chairman Ben McMahan, present Board Member Vernon Rozelle, Jr., present Board Member Max Swaim, present Board Member Barbara Watkins, present A moment of silence was followed by the Pledge of Allegiance led by Chairperson Fair. Next, Chairperson Fair asked if there were any Agenda changes and there were none noted. PUBLIC INPUT No one spoke. Mr. Dave West, The Bogdahn Group, 4901 Vineland Road, Suite 600, Orlando, Florida: referred to the last Board of Trustees Meeting held on May 26, 2010 and stated, "We had addressed the recommendation to move to the maximum real estate allocation, number one (1) and number (2) we were directed to come back with suitable Managers for consideration for the possibility of either looking at a) diversifying out into additional strategies for diversification sake and in funding that; and number two (2), we were also looking at the performance of American Realty (Advisors)." Next, Mr. West explained that the original Memorandum listed UBS Global Asset Management, and who could not be present for the Meeting. Mr. West added that the current presenters would be: American Realty Advisors, Intercontinental Real Estate Corporation, and Cornerstone Real Estate Advisers, LLC. CITY OF WINTER SPRINGS, FLORIDA MINUTES BOARD OF TRUSTEES SPECIAL MEETING - JULY 28, 2010 PAGE 2 OF 12 Continuing, Mr. West reported, "As a result of the review or triggered Investment Policy lirar= review, if you will, of American Realty (Advisors), our real estate group came back with a recommendation, it's actually an Index recommendation." Additionally, Mr. West •- referred to The Bogdahn Group's Report entitled, "Real Estate Current Market Conditions & Core Manager Review, Second Quarter 2010 "; and described the beginning of the Report being what was presented at the last Meeting, the middle section providing a matrix and comparison of the products, and that the last part of the Report contained the "Core Fund Manager Review." Mr. West referenced page 21 of the Report and remarked, "Our real estate group — came out with a recommendation, that we should consider utilizing, or recommend utilizing the ODCE (Open End Diversified Core Equity) Fund Index ". Discussion continued on Index comparisons. Furthermore, Mr. West noted, "Our group is recommending that we move the Managers performance benchmark at a minimum to a secondary index consideration, but we are suggesting we should evolve that as the primary index to use." Next, Mr. West mentioned, "As a Consultant trying to present performance standards and we are setting measurement standards, it may be suitable, in our opinion to also adjust the master policy index." Summarizing, Mr. West remarked, "Tonight as you look at all of the presentation Reports, that you are hearing, that you are looking at both benchmarks represented. In the matrix that we provided in this handout, we provided both benchmarks for comparison purposes. What I would like to recommend is that we consider shifting the primary core Real Estate Manager benchmark in the `Investment Policy Statement' to the ODCE (Open End Diversified Core Equity) benchmark, with a secondary consideration being given to shifting the master Policy investment guideline to that same Index as well." No objections were voiced. Mr. West then noted, "I'll go ahead and amend the Policy accordingly and present that in advance and for Approval for the Meeting." REGULAR AGENDA REGULAR 600. Office Of The City Manager And Finance And Administrative Services Department Interviews And Discussion With Prospective Real Estate Investment Managers. Mr. Scott Darling, President /Executive Managing Director Portfolio Management, American Realty Advisors, 801 North Brand Boulevard, Suite 800, Glendale, California: addressed the Board. CITY OF WINTER SPRINGS, FLORIDA MINUTES BOARD OF TRUSTEES SPECIAL MEETING - JULY 28, 2010 PAGE 3 OF 12 Mr. West then introduced American Realty Advisors as the incumbent core Real Estate Manager and mentioned that Mr. Darling and Ms. Richelle Hayes, Senior Manager, Marketing and Client Service were present. Chairperson Fair informed the presenter, "There is twenty (20) minutes on the clock. So 4:==* what we are going to do is give them twenty (20) minutes and ten (10) minutes for Q &A (Questions and Answers)." Mr. Darling began his presentation and stated, "I know the primary concern has been our performance. It is a reasonable concern. We are going to address that." Mr. Darling then provided the Board a brief history of the company and noted, "Our only business is Real Estate Investment Management." Mr. Darling added, "We have now been in business for about twenty —two (22) years, but we have never been involved in any litigation with our clients concerning our investment management activities." A booklet entitled "Winter Springs General Employee Retirement System" was reviewed. Discussion regarding the section labeled "Market Overview" proceeded and Mr. Darling commented, "Let me remind you if I may, of our framework for evaluating commercial real estate performance. Remember that the performance of commercial real estate is driven by two (2) factors. The first I am going to call real estate fundamentals." Mr. Darling then noted, "To put things into perspective, our industry Index, the NPI (NACRIEF [National Council of Real Estate Investment Fiduciaries] Property Index) has been tracked for thirty -two (32) years. The average annual return over that thirty -two (32) year period is eight point eight percent (8.8 %), seven point seven percent (7.7 %) of that comes from income, one point one percent (1.1 %) from appreciation. But the second factor that drives performance is what we call capital market factors." Following, Mr. Darling summarized the current real estate market and then commented, "The transaction volumes have stabilized somewhat as shown on page 10 of our presentation book and we are actually seeing a little increase now in transaction pricing - as a result, we certainly expect our industry Indexes and our core fund to report positive returns again this quarter as they did last quarter." Mr. Darling then reported, "When I was here last year, I advised that there should be no rush to re- balance back into our asset class, but now, you can buy good assets at about a six (6) to six and a half (6 '''A) current yield; in some instances at a twenty -five to thirty percent (25 - 30 %) discount to replacement cost, which is the cost it would take to build new competition. That reflects a probably historically high discount to replacement cost and probably represents a good time to start rebalancing into the asset class." CITY OF WINTER SPRINGS, FLORIDA MINUTES BOARD OF TRUSTEES SPECIAL MEETING - JULY 28, 2010 PAGE 4 OF 12 Mr. Darling then explained, "As a result, for most investors, we continued to encourage a iriaQ primary focus on a lower risk strategy where the focus is more on the quality and the consistency of the income return and a little bit less on value add strategies that require V stronger demand to create value appreciation." •� Q-aI Continuing, Mr. Darling then directed the Board's attention to American Realty Q., Advisors' product beginning on page 29 of the presentation booklet and mentioned, "The product is offered as an open -end Fund, which actually would make it appealing to a Fund like yours because it will be large, it will be broadly diversified, you will have some challenges if you try to get your diversification in the value add space through closed end value add investment products. If there is one (1) important point I would make about our product it is simply that it is new." The remainder or Mr. Darling's presentation focused on American Core Realty Fund and he then specified, "The primary focus of the Fund is quite simply to produce stable income in the opportunity for long term appreciation and we do this by providing you with a broad base exposure to the private market commercial real estate asset class through a single highly diversified and conservatively managed investment product." Mr. Darling pointed out, "We maintain and will always maintain meaningful exposure to each of the four (4) core property types, office, industrial, retail and multi — family. We will also always maintain meaningful exposure to each of the four (4) primary geographic regions of the country; the east, the west, the south, and the midwest." Discussion ensued on economic diversification. Continuing, Mr. Darling reviewed the performance of the Winter Springs General Employee Retirement System and stated, "I assure you our three (3) year returns remain quite competitive to our overall pier group. This results from two (2) key strategic decisions that we made within our product. One (1) was to keep it low leverage." Mr. Darling then added, "Second key strategy is that we kept our Fund a pure core Fund." In summary Mr. Darling expressed, "Generally and almost entirely, we did what we said we were going to do when you hired us. We managed this Portfolio conservably and we avoided many of the problems that were experienced by some other Managers in this space. We did not take excess risks and we did incur excess leverage. We have experienced losses but they are unrealized losses." CITY OF WINTER SPRINGS, FLORIDA MINUTES BOARD OF TRUSTEES SPECIAL MEETING - JULY 28, 2010 PAGE 5 OF 12 Mr. Darling explained, "Our returns are reflective of the market wide re- pricing and not reflective of any particular problems in the Portfolio. The Portfolio is ninety -one percent (91%) occupied. We have limited near term lease roll -over. So our net operating income is stable. We have no near term loan maturities that we will have any difficulty refinancing. Our Fund is liquid. We have no redemption queue. We actually have CZ1.- 41 capital that we can invest and take advantage of current market pricing. We can probably meet your rebalancing goals as quickly as anyone because a lot of the other quality Funds out there have a very substantial entrance queue that you will have to work your way through. Again, this is a high quality Portfolio. It will recover as the market recovers." r� Board Member Max Swaim asked for clarification regarding active pricing versus fundamentals to which Mr. Darling replied, "The point I was simply trying to make is that the most important thing in a commercial real estate Portfolio in the long run is its ability to generate — net operating income." Chairperson Fair inquired about the average occupancy rate over all the properties and Mr. Darling responded, "Ninety -one percent (91 %)." Discussion then ensued on the effects of the Portfolio in regards to American Realty Advisors' proactive decisions. Mr. Darling noted, "Our focus here is to promote stable income within the Portfolio. So, if that means working with the tenant, renegotiating an existing lease in exchange for an extended term, we're willing to look at that." Discussion then ensued on property type diversification and value add strategies. Tape 1 /Side B Mr. Devin C. Sullivan, Director Institutional Services, Intercontinental Real Estate Corporation, 1270 Soldiers Field Road, Boston, Massachusetts: introduced himself and then introduced Mr. Peter Palandjian, Chairman and Chief Executive Officer who provided the firm's history. Mr. Palandjian noted, "I wanted to make an important point before I leave this slide, which is, we only do real estate. We are not a wholly owned company owned by an insurance company or investment Bank. We don't have any other products. Any property we look to buy goes into the Fund that you'd be an investor in." Mr. Palandjian continued updating the Board with background of some key employees and additional information relative to the company. Following, Mr. Palandjian directed the Board's attention to page 9 of the presentation booklet entitled, "Intercontinental Real Estate Corporation, Presents: U.S. Real Estate Investment Fund, LLC (US REIF)" and stated, "This is the Fund that we hope you'll consider. The U.S. Refund as we call it, the U.S. Real Estate Investment Fund is an open -ended vehicle. CITY OF WINTER SPRINGS, FLORIDA MINUTES BOARD OF TRUSTEES SPECIAL MEETING - JULY 28, 2010 PAGE 6OF12 Now, the way that works is you can come in and out quarterly and we draw the money on a first come, first serve basis. So, if you put your money in we have to draw your money before we draw first dollar from another investor if they come in a subsequent quarter. But, if you came in one (1) quarter and Devin (Sullivan) carne in the same quarter, we have to take your money together. The same thing works on the way out. Should you want to redeem, you raise your hand, send us a letter and we have to get you one hundred 1 0 percent (100 %) out before we get another investor out who redeems in a subsequent quarter. If you and Devin (Sullivan) redeemed at the same time, we get you out dollar for dollar." Next, Mr. Palandjian explained, "The goal of the Fund is to do income, six to eight percent (6 — 8 %) cash on cash. We've done that from day one and it is really to do a net ten percent (10 %) on a total performance basis." Mr. Palandjian then pointed out that with fifty (50) years history, gives a broad range of Banks to work with and added, "We deal with all money centers in the U.S. (United States)." Continuing, Mr. Palandjian said, "In this Fund, it is important for you to know that every single mortgage is fixed and the blended cost; the capital in the Fund as you can see down at the bottom is five point eight percent (5.8 %) fixed. So, now while you might put me on my heels and make be defensive about sixty -eight percent (68 %) leverage, we love our leverage in the Fund. Our debt cost is five point eight percent (5.8 %) and we are promising you a ten (10), the debt is good." The U.S. Real Estate Investment Fund, LLC (US REIF) performance numbers were viewed next and Mr. Palandjian remarked, "If you invest, you'll do about nine percent (9 %) income." Following, Mr. Palandjian described the appraisal process and reviewed the Portfolio diversification by property type and region. On a final note, Mr. Palandjian discussed Fees and stated, "We take a Fee between seventy -five (75) and 110 basis points on assets under management — and I want to point out how that is a little bit different. We take it on your drawn capital, say you've committed five million dollars ($5,000,000.00) and we've taken two (million dollars [$2,000,000.00], we only calculate it on the two [million dollars] ($2,000,000.00). But, what is different is once we've taken your five [million dollars] ($5,000,000.00), we calculate it on the five (million dollars) [$5,000,000.00], forever. We don't calculate it on NAV (Net Asset Value). So if the five (million dollars) [$5,000,000.00], is worth eight (million dollars) [$8,000,000.00], we're still calculating it on five (million dollars) [$5,000,000.00]. That said, we do have a Performance Fee. We take a twenty (20) after a hurdle of an eight (8) and the way that works is, if we perform at an eight percent (8 %) return, we'll share in twenty percent (20 %) in everything above that. We get half of it at the end of the year. CITY OF WINTER SPRINGS, FLORIDA MINUTES BOARD OF TRUSTEES SPECIAL MEETING - JULY 28, 2010 PAGE 7 OF 12 The other half we wait two (2) more years for. And then the NAV (Net Asset Value) has to be pressure tested. If it went up, we don't get any more for the half we are waiting for. If it goes down, that half we're waiting for goes down by the — same amount. So, it's good, it's called a claw -back provision." C:51—a Discussion. C:=1.6 Vice Chairman Ben McMahan asked, "It looks like about thirty percent (30 %) of your ;; • leases are coming due in the next two and a half (2 1/2) years; — should I worry about that as far as your earlier statement about you are heavily invested in the midwest and that is an area I think is still suffering somewhat and may lag behind the rest of the country?" Mr. Palandjian responded, "No, I don't think you should for the following reason. The average lease in an office building is five (5) years, sometimes you see seven (7) or ten (10) years. So, twenty -nine percent (29 %) maturing in eleven (11) and twelve (12) is actually a very healthy number. It should be higher and it's not." Chairperson Fair inquired about this company's future investments. Mr. Palandjian suggested that they were looking at apartments, but like assisted living facilities, office space near hospitals or universities and grocery anchored shopping centers. Discussion ensued on building occupancies. Ms. Pamela McKoin, Vice President, Cornerstone Real Estate Advisers, LLC, One Financial Plaza, Suite 1700, Hartford, Connecticut: gave a brief history of the company and mentioned, "For this Fund, we are a U.S. (United States) Fund; it is domestic and we have three (3) regional offices that support this Fund." Ms. Denise Stake, Vice President, Cornerstone Real Estate Advisers, LLC, One Financial Plaza, Suite 1700, Hartford, Connecticut: continued the presentation and gave a brief background of the current market conditions and how the Fund is implemented. Ms. Stake then directed the Board's attention to Tab III of the presentation booklet entitled "Cornerstone Patriot Fund" and stated, "Patriot Fund is an open -end Fund. Its focus is on these high quality, well located assets in these — core barrier focus. We do have a tactical value add component up ten percent (10 %) of the Fund, now which it just recently changed." Next, Ms. Stake reviewed page 20 of the presentation booklet, pointed out the highlights of the Fund and noted, "There are sixteen (16) markets invested; actually by Friday there will be seventeen (17); we are purchasing an apartment in New Jersey. The number of investors here is nine (9). Actually as of July 1, [2010] it's up to sixteen (16) and we expect that to be over twenty (20) as of October 21 [2010]." CITY OF WINTER SPRINGS, FLORIDA MINUTES BOARD OF TRUSTEES SPECIAL MEETING JULY 28, 2010 PAGE 8 OF 12 Following, the page entitled, "Cornerstone Patriot Fund Investment Process" was reviewed and Ms. Stake mentioned she would be providing the Board with a copy of the formal strategy that they give to their clients every year. Tape 2 /Side A Ms. Stake then explained, "One of the key differences at our firm is the — investment committee meets before we actually bid. So the investment committee sets pricing, too." The "Valuation Policy" was discussed next and Ms. Stake provided an overview of the "Cornerstone Patriot Fund Portfolio Team ". In reviewing the return history, Ms. Stake remarked, "We've outperformed — one (1) of our objectives is to outperform to the ODCE (Open -End Diversified Core Equity), which is the open -end Fund universe." Continuing, Ms. Stake reported, "We've had strong income and been able to distribute on a quarterly basis to our clients. Some clients choose to participate in reinvestment and they certainly put this back in the Fund." The Fund's diversification was reviewed by property type, strategy, and geography. Discussion ensued on this Fund's guidelines followed by comments regarding the strategy of the Fund. Ms. Stake remarked, "Our financing is in great shape." In addition, Ms. Stake said, "The pricing of the Fund, which is on page 33 - current Valuation is very, I would say conservative, given what we are seeing in the marketplace. The general Valuation community is conceding right now, but there are certainly transactions that are exceeding at lower cap rates and lower target returns and we are seeing it that we have in the Funds, so we have a potential for some value gains in the Fund." Next was discussion of acquisitions and dispositions and lease expirations in which Ms. Stake commented it was a "Huge benefit to the Fund right now." In closure, Ms. Stake stated, "The strong financial sponsor, that's MassMutual (Financial Group) is a huge benefit to our company. They are a great parent. We have a stable and growing firm. We didn't have any layoffs. Our acquisition group is in place ready to go. We didn't reallocate our acquisition resources over the recent years. We have a strong upper quartile track record. We have an experienced portfolio management team. We've had strong cash distributions. We have the high core occupancy and limited near term lease roll over. We have low leverage. We don't have any legacy issues in our financing. We have cash available for investment to continue to grow the Fund and improve mix. CITY OF WINTER SPRINGS, FLORIDA MINUTES BOARD OF TRUSTEES SPECIAL MEETING - JULY 28, 2010 PAGE 9 OF 12 The Fund size leads to that more active Portfolio management which should lead to better performance and we've historically focused on core with no style drift and we plan on doing that going forward and we have no entry or exit queue." Board Member Swaim inquired, "What is your Fee schedule ?" Ms. Stake responded, "We have a sliding Fee structure." Discussion ensued on the Fee structure. Vice Chairman McMahan inquired about the geography diversification with over forty percent (40 %) in the pacific region. Ms. Stake commented, "We still view it as a strong growth market, just not as strong. The properties are across a number of different markets. The northern part of California is actually fairly strong in recovering and the economic base is very strong. So we don't think that is a huge risk." Discussion. Mr. West then asked Ms. Stake, "We swung from an exit to an entry queue. If there is a capital pledge, what is the expected time lag for a capital call. How would that work ?" Ms. Stake replied, "We believe right now if we were to commit, we could get them in October 1 [2010]." There were additional comments about barrier characteristics of property purchases. Mr. West then presented the Report entitled, "Real Estate Current Market Conditions & Core Manager Review, Second Quarter 2010" and referred to pages 18 through 20 labeled "Core Fund Manager Review" giving the Board a breakdown of the companies that presented. Board Member Vernon Rozelle referred to the Intercontinental Real Estate Corporation column and asked about the claw -back provision. Mr. West noted, "We will verify that." Chairperson Fair then pointed out, "American Realty (Advisors) and Intercontinental (Real Estate Corporation) are the only two (2) that are privately owned. They are not owned by an insurance company or a publicly traded company. They only do real estate. They don't do insurance sales and brokerage services and long term care and all these other things. So, they are very pure to what we are hiring people to do. Both of them seem to have a longer history." Further comments ensued on the companies that gave presentations this evening. Mr. Jack L. Evatt, II, Consultant, The Bogdahn Group, 4901 Vineland Road, Suite 600, Orlando, Florida: commented on the claw -back provision presented by Intercontinental Real Estate Corporation, in relation to The Bogdahn Group's "Core Fund Manager Review ". CITY OF WINTER SPRINGS, FLORIDA MINUTES BOARD OF TRUSTEES SPECIAL MEETING - JULY 28, 2010 PAGE 10 OF 12 Mr. West then remarked, "Our working experience with Intercontinental (Real Estate Corporation) — they have been very forthcoming as far as the level of transparency going 1=1 through our entire working history with them. That's been one (1) of the stand -out items r from our perspective." Regarding leverage, Mr. West noted, "All references to leverage this evening and what C..111.4 we have here, would be property level." mittz Chairperson Fair expressed, "Basically, our decision here is to add, because we want to rebalance back to the Investment Policy in the real estate sector and so is it, a) that we are 'fir replacing and adding or just adding, or potentially both ?" With further comments, Mr. West added, "The issue on the table was, `Do we replace American Realty (Advisors) and from our prospective, coming off a fresh research review and investment policy committee review, we're comfortable maintaining any client allocation, Fund allocation to American Realty (Advisors). So, our recommendation from our prospective would be to look to diversify and add an additional Manager so that we have diversification in that space, within that ten percent (10 %) allocation, with a target basically of five (5)." Chairperson Fair then inquired, "So how much are we talking about, really ?" Mr. West replied, "We are basically targeting a million dollars ($1,000,000.00) to each Manager, so about two million dollars ($2,000,000.00)..." Chairperson Fair clarified, "...So, you are wanting us to add four hundred thousand dollars ($400,000.00), well, three hundred —fifty thousand [dollars] ($350,000.000) to American Realty (Advisors) and a million dollars ($1,000,000.00) to one (1) of the other two (2) Managers, Cornerstone (Real Estate Advisers, LLC) or Intercontinental (Real Estate Corporation) ?" Mr. West then announced, "The source of Funds would be the Bonds." Discussion. City Manager Kevin L. Smith stated, "I would recommend the Board entertain a Motion to determine what you all want to do in regards to the Bogdahn recommendation — add, replace, and allocation of Funds." Further comments. Next, Board Member Swaim asked, "Should we wait until we hear from the Actuary before we do anything ?" Chairperson Fair responded, "No. Because of the time frame here that is involved, we can't delay investing the employees money here and getting the returns that this Investment Policy dictates that we have that the mandate is, just to hear from the Actuary. What the Actuary tells us is really of no material difference in sticking to our Investment Policy." CITY OF WINTER SPRINGS, FLORIDA MINUTES BOARD OF TRUSTEES SPECIAL MEETING -- JULY 28, 2010 PAGE 11 OF 12 Manager Smith commented, "That would be my recommendation also, if I may." Discussion. "I WOULD LIKE TO MAKE A MOTION WE SELECT INTERCONTINENTAL (REAL ESTATE CORPORATION) ADVISORS AND THAT WE MANDATE BACK TO THE INVESTMENT POLICY USING THEM AT ONE HUNDRED PERCENT (100 %) OF THAT MANDATE AND THEN KEEPING THE REST IN AMERICAN REALTY (ADVISORS). JUST KEEPING THEM WHERE THEY ARE, LETTING THEM STAY AND THAT BEING THE DIVERSIFIER." MOTION BY CHAIRPERSON FAIR. SECONDED BY BOARD MEMBER SWAIM." DISCUSSION. Tape 2 /Side B CHAIRPERSON FAIR REPEATED THE MOTION FOR THE BOARD AND STATED, "THE MOTION WAS THAT WE HIRE INTERCONTINENTAL (REAL ESTATE CORPORATION) AND WE TAKE ABOUT ONE POINT FOUR MILLION [DOLLARS] ($1,400,000.00) AND ALLOCATE BACK TO THE INVESTMENT POLICY FOR THE REAL ESTATE MANDATE IN THE POLICY AND THAT WE KEEP AMERICAN REALTY (ADVISORS) RIGHT WHERE THEY ARE, SO WE HAVE OUR TOTAL OF TWO MILLION [DOLLARS] ($2,000,000.00), ROUGHLY." MANAGER SMITH ASKED, "CLARIFICATION — DOES THE MOTION NEED TO INCLUDE THAT THOSE FUNDS WOULD COME FROM BONDS, OR IS THAT NECESSARY ?" CHAIRPERSON FAIR THEN NOTED, "THE SOURCE OF FUNDS WOULD CERTAINLY BE THE BONDS. WE KNEW IT WOULD BE THE CORE BOND FUND. I THINK THAT IS THE GALLIARD (CORE FIXED INCOME)." MR. WEST REPLIED, "YES." CHAIRPERSON FAIR NOTED, "THE SOURCE OF FUNDS WOULD BE GALLIARD (CORE FIXED INCOME)." DISCUSSION ENSUED ON THE TIMELINE. CHAIRPERSON FAIR STATED, "IT HAS TO GO TO THE COMMISSION. THIS IS OUR RECOMMENDATION TO THE COMMISSION AND THEN WILL GO TO THE NEXT COMMISSION MEETING AUGUST 9 TH , [ 2010], SO THAT IS THE NEXT MEETING. SO, IF THEY APPROVE OUR RECOMMENDATION THEN KEVIN (SMITH) WILL MAKE THAT DIRECTIVE TO DAVE (WEST) AND THEN DAVE (WEST) WILL PROCEED FORWARD WITH FIFTH THIRD (BANK), OUR CUSTODIAL BANK AND THOSE THINGS START TRIGGERING." CITY OF WINTER SPRINGS, FLORIDA MINUTES BOARD OF TRUSTEES SPECIAL MEETING — JULY 28, 2010 PAGE 12OF12 MR. WEST INDICATED, "WE DO NOT ANTICIPATE ANY ISSUES WITH THE AGREEMENT, INTERCONTINENTAL (REAL ESTATE CORPORATION) r HAVE WORKED WITH A NUMBER OF FLORIDA PUBLIC FUNDS PENSION ATTORNEYS AND HAVE BEEN VERY AGREEABLE. WE HAVE NOT ANY CONTRACTUAL ISSUES WE HAVEN'T BEEN ABLE TO WORK OUT. SO WE c WOULD ANTICIPATE A FAIRLY RAPID TURN- AROUND CONTINGENT Ian UPON THE CITY ATTORNEY HANDLING OF THE AGREEMENT." w-r. CHAIRPERSON FAIR THEN ASKED, "BUT YOU CAN GIVE US AN UPDATE AT OUR AUGUST MEETING ?" MR. WEST ANSWERED, "WILL DO." VOTE: VICE CHAIRMAN McMAHAN: AYE BOARD MEMBER WATKINS: AYE BOARD MEMBER SWAIM: AYE BOARD MEMBER ROZELLE: AYE CHAIRPERSON FAIR: AYE MOTION CARRIED. ADJOURNMENT Chairperson Fair adjourned the Special Meeting at 8:25 p.m. RESPECTFULLY SUBMITTED: GAYLE COUTANT ASSISTANT TO THE CITY CLERK NOTE: These Minutes were approved at the , 2010 Board of Trustees Regular Meeting.