Questions, answers on Elk Grove zoo financing webinar meeting
https://www.elkgrovenews.net/2024/04/questions-answers-on-elk-grove-zoo.html
Yesterday, the city of Elk Grove and the Sacramento Zoological Society held a Zoom webinar to provide additional information on financing the $302 million construction project. The 68-acre project in south Elk Grove will be formally approved by Mayor Bobbie Singh-Allen and her city council on May 8, although city officials are unable to provide a project start date or completion.
After covering information about the zoo layout and purpose that had been covered in previous meetings, the panelists provided financing information. During the meeting, the city provided a breakdown of the construction cost for the project's first phase.
Those cost are as follows.
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After discussing construction cost, the panel provided information on the entities who will pay for the facility. They are as follows:
- Bond financing - $115 million
- Elk Grove taxpayers - $93 million
- Development impact fees - $15 million
- Sacramento Zoological Society - $50 million
- Unsecured community partnerships - $30 million
After the three featured presentations, the meeting was opened for questions. The questions were written and sent to Elk Grove City Clerk Jason Lindgren, who screened them and presented them to the panelists.
Panelists from the city of Elk Grove included city manager Jason Behrmann, innovations czar and zoo relocation project manager Christopher Jordan, finance manager Matt Paulin, and Sacramento Zoological Society director Jason Jacobs. Lindgren filtered the questions and determined who should address the inquiries.
For the purposes of this story, important questions will be linked to the video posted on Elk Grove News's YouTube channel so readers can hear them in their entirety. The video links will be queued to the specific time marks.
We will briefly summarize the question and answer and which panelists responded. We have focused primarily on financial questions.
We spoke with four meeting participants who said the questions they submitted were not delivered as intended.
Question: Should voters have a voice at the ballot box on the project?
Answer from Behrmann: No, residents will not have an opportunity to vote on the project.
Question: What happens if bond interest rates substantially increase?
Answered by Paulin: City will have to reconsider issuing bonds as interest costs will increase substantially.
Question: What happens if one of the unsecured partnership monetary commitments fails?
Answered by Paulin: The project collapses.
Question: Will Elk Grove taxpayer have to provide annual operating subsidies to the zoo?
Answered by Paulin: No, the city does not anticipate providing annual cash subsidies.
Question: Will property taxes increase to pay for the zoo?
Answered by Paulin: No, the city promises not impose more property taxes than it already has
Question: What happens if bond interest rates increase?
Answered by Paulin: If interest rates increase substantially, the city would need to reexamine the project's long term viability.
Question: Is there a timeline and finance plan for future phases?
Answered by Jordan: No
Question: When was the last time a zoo built in the USA?
Answered by Jacobs: In the last 40 years there were three relocations but no new zoos.
Question: Did the city look at financial plans for other zoos to facilitate planning?
Answered by Paulin: No, the city is doing this on our own.
Question: Why didn't hold session as an open public meeting?
Answered by Jordan: The city though attendance would be higher and it would provide great access. While over 200 people registered, there was never more than 60 people viewing the event.
Question: When will the so-called Preview Zone open?
Answered by Jordan: We are not sure if it will open, no opening date was provided, and the entire project is dependent on the $80 million "partnership dollars."
Question: Is the Sacramento Zoo financial insolvent and who are the donors the zoological society has secured for their $50 million?
Answered by Jacobs: No, the zoo is not insolvent. Refused to say who has made financial commitments towards their $50 million pledge only to say they are "major corporations."
Question: Will all the funds needed for construction be secured by the time of groundbreaking?
Answered by Paulin: No
Question: Will there be more financing needed for future phases, and how much is needed?
Answered by Jordan: The future phases will have their own financing plans. The cost for the entire project will greatly exceed the $302 million for the first phase.
The zoo project will be approved at the May 8 Elk Grove City Council meeting, The only unresolved question is will it be a unanimous vote or will one or more city councilmen vote in dissension.
The entire webinar can be viewed in this video.
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4 comments
Not a very rosy picture based on the answers provided. Seems like the initial (first of four phases) plan is dependent on every financing aspect meeting their quota and costs not escalating prior to actual building which may be years away. If one aspect of financing falters, the project halts and we have another "ghost mall" or perhaps better described, "ghost zoo." We've been there, done that. So proud!
I can't wait until the zoo opens. I can hardly wait to visit the T Rex paddock!
So, between the SZS and EG internal fundraising, a total of 80 million in fundraising is needed for this first phrase. I hope EG and the SZS have a big Rolodex card, and I hope they don't call the same person!
While the City's innovation czar was spewing his words liberally in support of the project, the City Manager was taking a more quiet reserved tone with short quips as answers--in football terms, he was playing a Prevent Defense! He said as little as possible with short and direct answers, probably thinking to himself, "Please, I hope this thing doesn't unravel before I retire".
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