City of Portsmouth, New Hampshire 2022 - 2024 City Council, 31 Mar 2023

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From YouTube: 3.31.2023 City Council Special Meeting

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3.31.2023 City Council Special Meeting

A

Welcome back um I'd, wait a motion to close uh the.

A

Non-Public and to seal the minutes of the non-public.

B

Second, oh, oh, we have on zoom, so we're gonna have to oh we're. Gonna have to do roll call, votes.

C

Assistant mayor kelly here, oh it's, uh it's a oh. We have the non-publican to seal the minutes.

A

Oh yes, yes, counselor tabor, yes, counselor denton! Yes, council monroe, yes, councilor bagley! Yes,.

C

Council lombardi, yes, okay, council, blaylock, yes, councilor cook, yes, mayor mccackrin, yes, unanimous.

A

um Okay, so uh welcome do we need to take role for the public session or no? Oh, no. We took.

A

Rolling sorry, um so uh what we're going to to do uh today is we're going to hear an update on the.

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Call uh that the city had with uh the gsa today then um we'll have some. uh If there's questions.

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To the council, then we'll have uh public comment. It's always tricky to have public comment when.

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Folks sign up before they know what we're going to say, so I would ask that everybody stand up and.

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Line up to get a sense of how many people we're going to have speak of public comment after the.

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Comments are done, we'll try to ballpark it to get it to 45 45 minutes. I appreciate that that.

A

Everybody is passionate about this issue and wants to find out so with that I'm going to pass it over.

A

To the city manager, who's going to walk through the meeting, and I think the city attorney as well.

D

Thank you, your honor, um I think city attorney moral is going to give the city's remarks.

E

Okay, so, as everybody knows, we had a scheduled um meeting with gsa via zoom today, along with.

E

Our development partner, mr kane, and a number of his employees and and construction partners.

E

During that call, we provided information in regards to the status of our progress.

E

This that status is that, over the last several weeks, we have been working um extremely diligently.

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With our development partner to work on the construction cost estimates and on the pro forma.

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Meaning um what do we expect for rents? What do we expect for costs what's reasonable to.

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Expect for expenses in terms of tenants and what they put into their space called tenant.

E

um Fit ups, and so all of those issues are part of a pro forma that governs.

E

The cost of construction and the contributions between the development partner and the city.

E

We have not reached an agreement on those terms, despite our efforts.

E

There was an adjustment to the cost of construction based upon a couple of different.

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Variations of the community plan, we do agree on those costs. However, we do not agree on a pro forma.

E

And we had asked our development partner if they would consider profit sharing based upon the.

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Fact that the city is going to be contributing money to the project, we had asked that we'd be.

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um Paid back as an equity partner, the same percentage off the profits.

E

Our development partner has refused that request. Adamantly one other part of the puzzle is the.

E

Development agreement that we talked about at the last, I think the last special meeting we had.

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In that development agreement we were trying to get signed, it had termination rights. What happens.

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To this arrangement, if certain circumstances occur at the last meeting, there was no agreement on that.

E

But at five o'clock last night.

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We received a letter from our mr kane's attorney indicating that they would sign the development.

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Agreement containing all of those termination rights, so there was progress made on that front.

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In addition to the construction costs and the design, but we have not made.

E

Sufficient progress on the pro forma or on parts of the groundlings that would reflect revenue.

E

Sharing and potential profit sharing without the ground lease agreement and the pro forma agreement.

E

We cannot submit an application to the national park service, those documents, an agreement on the.

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Terms of those documents is prerequisite. They have to be part of the application, so um we advised.

E

um The gsa of that to representatives of the gsa were on the zoom call, along with a representative.

E

From the national park service, their comments were essentially that they were not optimistic.

E

That the city after this long period of time and and all of the events that have occurred.

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Surrounding this project, given the fact that we were still hadn't agreed to some of the.

E

Basic elements here that we would be able to go forward and um mr kelly indicated he could.

E

Not be supportive of the program, as he does not see a clear path forward, um but he did not make.

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A definitive statement to us in terms of where we go from here, he indicated that the gsa would.

E

um Be back in touch with the city early next week, so we will be talking to them then, um and.

E

It's not anticipated that there will be any change in circumstances between now and then.

E

um But we'll wait and see and have that conversation with the gsa next week.

E

Anything else I don't think so any comments or questions from the council.

A

Well uh for um public comment um again, who could stand up? We can move on to um to public comment.

A

And if we could stand up just so, we get an idea of how many folks are gonna peek on this and.

D

Your honor, if you're on zoom, can you please raise your virtual hand if you wish to speak? Thank you.

A

Okay looks like sunday lesson 15. So three minutes, uh please come up uh just state your name city and.

A

Look forward to hear what you said: roy household 777, middle road, portsmouth.

F

Well, it looks like the taxpayers are going to get hurt on this and use our.

F

Worse off than when you took over as city councilors,.

F

And you knew the determination you should have never canceled, because they've never.

F

Been a partner they've always been dictators to you, so I think that you people were wrong.

F

Which what you did on when you were talking to the king anyway? Thank you. Thank you. Roy.

G

Thank you, mayor city manager, city council, mary lou, mccullough wayne, 259, south street.

G

We are mired in a money pit and I think it is time to say enough. It.

G

On the article I read in this morning's portsmouth herald is it's obscene when.

G

I think about the taxpayers. Money that has gone in will continue to go in for.

G

Many many years, I just think it were really in the wrong direction, and I would hope that we have.

G

A definitive statement from the city council saying no more. Thank you. Thank you. Marilyn.

H

Esther kennedy 41 pickering ave. First, I took a half a day vacation from work today to thank you.

H

Last monday night I came forward and said that you had an illegal meeting. You weren't.

H

Following the rsas on the saturday previous and you had no public comment.

H

Today the meeting was appropriate and I appreciate the fact that you're willing.

H

To have public comment, so I want to first say thank you um second moving forward. I.

H

Did say in november of 2021 that we were giving you a gift and unfortunately, there.

H

Was so much animosity, people were not willing to receive that gift and now we're back there again.

H

I do hope that if we do not get a waiver that we decided to buy the property outright, which.

H

I believe was the direction that the council was thinking of going at that point. It could be.

H

A beautiful for to understand the total public. It would be a beautiful city council down there with.

H

Potentially elderly housing up here or we just level the whole thing and have a beautiful park.

H

That would be your pick, but I think maybe it's time to cut the cut losses say goodbye to our.

H

Developing partner, who has not been truthful now for three councils: three, you are the third there.

H

Was no agreement sign after the first council that was dealing with us? There was no agreement signed.

H

After the second council that was dealing this and now you're the third, so I hope that we maybe don't.

H

Go for the waiver, and we just say thank you. Thank you for being part of this, but uh it's time to.

H

Move on and that we truly look at public benefit of that property. Remember it was taken by the.

H

Federal government and let's give it back to the people for the people. Thank you. Thank you. Esther.

I

Richard huda, 280 south street, as I sit here and listen to the status update the one big.

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Question that comes to my mind, is: what's your next steps council, it's great to hear the status as a.

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Resident, I would like to know where you are going to take us next, that wasn't given to us.

I

Know what your scenarios are now, where are you going to take the citizens of portsmouth and.

I

What is going to be the cost on this? I spoke at the last meeting and I asked quite a few questions.

I

I got an answer to one. I did not get an answer to what the percentage share of the partnership was.

I

That makes a big difference and how you're going to pay for it. That also makes a big difference.

I

The other thing I'd like to bring to your attention is um there. There seems to be a.

I

Pattern here with our with our so-called partner of first, it was the fault of the last council.

I

Now it's the fault of the city manager in our negotiator and then we come back to the council.

I

Does anybody notice a trend here where it's always on the city side, that something is wrong.

I

Maybe it's time to walk away and let mr kane go. Oh and the threat of litigation look closely.

I

At that, as there is no basis for that again like there wasn't last time, thank you. Thank you. Petra.

J

Hello good day, uh steve beindoller, uh 120 ridges court in portsmouth.

J

I'm a little surprised we're back here again and we, as people have said, we were here.

J

A month or five or six weeks ago, and every respondent, with the exception I think, of mr duffy.

J

Were not in favor of spending under fifty thousand dollars and now we're deeper into a rabbit, hole or.

J

Successful, depending how you look at it, I right from the beginning from the land lease in the.

J

Last two councils ago have seen mr kane and his group. As being the mean spirited, may be a little.

J

Bit too strong understand uninterested in being a representative of a good part, a good community.

J

Member and a partner with the city, I think the council has been naive and how they've approached.

J

It I I I go back to what your father said: they're going to said, zona municipally step up, take the.

J

Gloves off and like he wants to sue, two million dollars would have been a nice way to spend, have 4.

J

000 hours of legal expenses, and now that money's gone we're getting further and further into this, I.

J

Don't see a way out of it, I think you should fight fire with fire if he wants to come forward. I would.

J

Further naively somewhat suggest you institute a possibly a new ordinance in the city if anyone's.

J

In litigation with a city or threatening litigation, they shouldn't come before city.

J

Boards, there's no reason there's a conflict of interest, there's no way he can come up and still.

J

Should not be able to come up and still develop property if he's threatened to sue the city where.

J

You're being dangled you're spending our money frivolously, I believe it's dangerous. President.

J

I urge you to stop back off zoned, to protect yourself to protect us there'll be another day.

J

And if he has to justify the money going forward, I want to suit lawsuit, go ahead and sue us.

J

I believe we have deeper parkers. We had a white night, a reasonable white night in mr benny bill's.

J

Still around look at other options and and walk away from this deal, it's a bad deal thanks, steve.

B

Good evening actually, good afternoon, mr mayor members of the city council,.

B

Paige trace 27 hancock street. Mr mayor, I am sad.

B

um I applaud you for being transparent today, but way back when that morning. That fateful morning.

B

That some of us showed up here for something entirely different and there was a meeting.

B

Going on upstairs with mr kane's car waiting outside in your station wagon in the parking lot.

B

um To say that there's been no transparency.

B

Is putting it lightly? Pastor, councilor kennedy is correct. We did give you a gift past counselor.

B

Whalen fired the development partner because there were outs in those two documents. And what did you.

B

Do I don't blame you, sir, for reinventing? If you will the department of the development partner.

B

And the partnership between the city and the development partner, but you, sir, were one of.

B

The two people left who knew the most about this project you and counselor tabor, and you gave that.

B

You gave that to the city manager.

B

And I applaud the city manager for doing what she could do over the past year. But you gave.

B

The project and the settlement agreement that you signed in april to the city manager, when you knew.

B

So much about it! Yes, it's your prerogative! You didn't have to do this. I understand that as mayor.

B

But you needed to step up for the 22 000 residents in this town and help protect them. And maybe you.

B

Thought you were, but what we have now, sir, is every single month. The city manager duly gets up and.

B

Says scattered darkness with intermittent lightness and that's about what we get.

B

And every member of the council here says nothing asks no questions in public.

B

And counselor cook you and counselor blaylock were the two that were most vocal before you.

B

Were sworn in and you never ask a question either of you publicly about this, so I please ask you you.

B

All know you now may get an out because mr falby called and said you could have it well. I hope you.

B

Take that out- and I hope, you're a little more transparent, as others have repeatedly asked you.

B

And no more history, lessons, mr bagley, you don't get off lightly because you don't know. Thank you.

K

Good afternoon peter harris 249 islington street.

K

Thank you city councilors, for um mayor councilman, our mayor, the catcher uh for having your meeting.

K

Today and sharing current update, um I have two real concerns related to where we are today.

K

That I look to get explanation on you. You had a settlement agreement last april.

K

And paid over two million dollars to the developer, reggae kane, michael caine. Do we.

K

Have any accounting and uh from a right to know perspective of what that amount? What consists of.

K

For the residents of portsmouth, why we spent what that money consisted of for.

K

Fees to the cane company radio kane, it seems significantly higher than the development costs.

K

Work that they would have done and that's a pretty large price tag.

K

And and I don't unders lastly, the other question is: I don't understand how we made a settlement.

K

Agreement last spring, without the terms that you've seen have announced currently that you.

K

Lacked today uh an out clause and some of the other pieces about profit sharing and so on and.

K

I don't understand how a year went by and now with those terms are being discussed. Thank you, peter.

L

Good afternoon city councilors good afternoon, mayor mceachron, um I'm kind of speechless. I.

L

Don't know really what to say other than I fired michael kane at the end of the council term, peter.

J

Just name it, my name is peter whale and I live at 100 gate street here in portsmouth and um yeah. I.

L

Was a counselor along with um the past council, we fired michael kane at the end of our term,.

L

And the reason why we fired him was that he he was not living up to his side of the bargain. He was.

L

Disruptive, he violated the development agreement just about everything you could think of. He.

L

Went on social media, he did it all. He called the project childish, I'm done with it. So we terminated.

L

Them this council brought him back. You brought him back and you signed a settlement agreement.

L

Which was so onerous for the residents of portsmouth that several residents sued you.

L

In superior court on that settlement, agreement, which left no out for the city and also left.

L

A 7.4 percent return for mr kane on this project, which all of you should realize.

L

Ties the residents of portsmouth to millions of dollars a year for the 75-year term of the lease.

L

It's crazy, it's obscene. I know you can't talk about it, but that's the big elephant in the.

L

Room here and I'm not sure how you walk, that back so mayor mckecker and I would urge you.

L

To take bold action now show some leadership. You were on a committee, you know what michael gaines.

L

About you know how he negotiates jettison. This partnership immediately stopped the bleeding.

L

The gsa may do it for you, but this council, you own it now. It's yours, get rid of this partnership.

L

Get a real partner, that's going to partner with the city forever. This is a 75-year marriage.

L

This pro forma, we don't even know his residence what's in the performer, what the lease agreement's.

L

Going to be, is it ten thousand dollars a month like it was before, which was crazy.

L

It's time the residents are telling you it's time. Let the building go, get rid of this partner.

L

And move on, thank you. Hey computer.

A

Is anybody else after uh bill want to speak, stand up because all right, that's just from a.

A

Time perspective, and then we have one hand on soon floor is yours bill, okay, thanks uh bill.

M

Downey 67 post street uh today, I'm less interested in moving actually moving forward, rather than back.

M

uh To the city attorney, I would ask: is there any way we could get those.

M

Specifics that you identified as far as the outs we know we had in 2019, but it'd.

M

Be really helpful to the citizens if we could get that sooner rather later,.

M

um Number two: um if you could also clarify in the event that the gsa passes on this option of the.

M

Public private, the mayor has said many times in the press that we would have first refusal. I was.

M

Told that by very competent council for the for several years. That was the case, but in the january.

M

11Th negotiation piece: it says in 2d that would go to auction, that's a significant difference and.

M

So if you could kindly clarify that that would be greatly appreciated. Most importantly, again,.

M

I'm looking to move forward as a community. I know there's been a lot of hurt, feelings and bad blood.

M

And uh I think that, from what I'm hearing the tea leaves here, it sounds like the gsa is probably.

M

Going to move on, I would also ask if we could get a sense of the timing. I know it's next week.

M

But one of the most painful things that I think I think I can speak for a lot of people is the lack.

M

Of transparency and timing, so if we could find out almost immediately what happened, it would be.

M

Greatly appreciated because I think I'm looking to move on myself personally I'd love to see us have.

M

An opportunity to change the zoning to municipal, possibly buy it triple the market. We get it for.

M

60 60 off- that's my hope, that's personal, but in the meantime I thank you for this meeting and.

M

City attorney, if we can get that information would be greatly appreciated. Thank you. Bill.

N

uh Good afternoon, everyone uh patricia bagley uh 213, pleasant.

N

It's really hard to know what to say right now, I'm kind of emotional and I'm surprised.

N

um I'm surprised, but not surprised that we got to this point where the developer, who is a bully.

N

And he operates by threatening to litigate and we knew that I mean he said the plan was unbuildable.

N

Financially, not feasible, it was cartoonish and we're still here talking about this.

N

um I'm mostly sad because I think we've had three mayors: three councils, two city attorneys, two city.

N

Managers and hundreds of residents involved in this project with hope and we've been to many.

N

Many meetings we've been to listening um listening sessions. We we have tried to contribute as much.

N

As we've been allowed to contribute with very little information, so that's pretty much all I.

N

Have to say I I hope we end this. I hope we never have another development opportunity with mr kane.

N

He is not a good person to be in business with. Thank you for listening. Thank you, pat.

A

Next uh rick beckstead: can you hear us armor.

O

Can you hear me I'm clear rick.

O

Okay, uh so uh I don't wear it again: uh rick actually said 1395 isn't in streets. um I like.

O

Many of the other speakers are speechless, not really sure what you're all planning on doing now.

O

But moving forward, what I would ask is that the public is allowed to get the information.

O

That we are promised back in april when you actually signed last year, this false.

O

As far as I'm concerned uh agreement uh with mr king, who has been difficult from the beginning,.

O

um You had said that you could justify the two million dollars that you had paid in.

O

And we were going to get numbers uh basically of his expenditure still to this day, we have not, if.

O

That was because of threat of litigation, um not sure, if still we're at that sort of litigation.

O

If we're going to lose the building entirely, I'd like to see that uh be opened up to the public, so.

O

That the public can actually weigh in on that and then to uh councilor tabern and mayor mceachron.

O

You partook in a meeting in october of 2021 just before the election.

O

And we had gone and asked as a council which had never really been followed up on to go.

O

And unseal the minutes of a meeting that took place and a council vote that took place. I'm.

O

Not going to divulge what it was, I'm not going to divulge, uh who said what, but I am going to.

O

Say that that october meeting was a unanimous decision by the entire council of a nine to.

O

Zero snowball vote uh to take action, and I would like those minutes to be unsealed to the public.

O

Maybe even the counselors that may not even be aware of it today had actually took in place.

O

Because it is very much a shame that we stand where we are, we did what we did again. We gave you.

O

A gift all you had to do was move forward. Mr kane is an unreasonable man and he has been from the.

O

Get-Go and unfortunately, we are where we are right now um and I know if there's any way possible.

O

um I think I know what's going to end up happening open market michael king is going to try to buy it.

O

And move forward uh without any of us and really give it to us, but those are my peers, so I would.

O

Ask that at least ma'am mceachron, if those two requests could be granted sooner rather than.

O

Later, uh I think both myself and the public would greatly appreciate it. Thank you. Thank you. Rick.

A

All right, um I'm gonna, it's not a a public.

A

Public hearing, so uh we won't need to close it, but are there any other questions from the council.

A

Counselor denton, I have a comment versus a question, so I'd like to start by thanking.

P

The public and the gsa for their patients through this process and thank the staff.

P

For their hard work and efforts throughout this negotiations are a large part of my day, job and.

P

I can say with certainty that every city council that I've served on has worked in good faith to.

P

Acquire this building through the process by submitting an application to the gsa.

P

Now the pro forma was essentially the ground rules of these negotiations and.

P

Without the ground rules, we could not come to an agreement and we reached an impasse in good faith.

P

And unfortunately, an application was not submitted by the deadline.

P

Of today, despite all of our good faith efforts throughout the years.

P

So again, I'd like to thank everyone. While we await the gsa's decision on what the next steps are.

A

Any other comments: council bluff. Thank you um I'll, reaffirm, council denton's comments.

Q

I just want to thank the city attorney city city manager for all their hard work on this.

Q

um Continue to work in good faith, I want to thank all the patients of the public. I know we've all.

Q

Been paying attention to this, we spent a lot of time and a lot of energy, and I appreciate that.

Q

um But thanks counselor, you know this is uh to.

A

One of the bill, downey saying you know we'll try to schedule the meeting. This is the intent.

A

Of this meeting, we knew that everybody was going to be focused on the meeting. uh The.

A

Gsa and to give the update um pat's still here, I think, pat, speaks for a lot of people speaks.

A

um In terms of the emotional amount of effort that's gone into this, I you know, I I can't.

A

It's hard to think that you know growing up going to the post office as a kid that would ever spend.

A

This much time thinking about this building, just literally in my dreams uh for the last three and.

A

A half four years I know people have spent a lot more time. uh Thinking about it, I just I.

A

Thank everybody for the comments today and the comments when they're less polite. You guys get.

A

To petition your government, you get to tell us uh what you feel about the job we're doing or.

A

Not doing that's your responsibility as citizens, I feel, like everybody, has met that responsibility.

A

In this in this uh in our city by the sea- um and I know that there's been a just an enormous.

A

um Amount of effort that has gone into this building, it's personally disappointing and.

A

I know that there are many in this room that are not sharing this feeling, but that we will not be.

A

Able to submit an application by the deadline- uh that's personally disappointing, because I.

A

Feel like the amount of effort, if it was judged on effort that the city of portsmouth put in.

A

Then we would have had a successful application, certainly the residents the amount of time. That's.

A

Went into us, so uh thank you for that. I wish we could have uh submitted an application um by.

A

The deadline- I understand, there's folks that are that- are looking for more uh declaratory action.

A

um We have a meeting on monday and we'll continue to keep folks abreast of that, along with the.

A

Conversations that we have for the the gsa, I will maintain um that it's been my goal and effort to.

A

Continually keep the city of portsmouth in the best legal and financial position uh when it comes.

A

To this project will continue to do so, and I just want to thank again everyone that that came out.

A

And that everyone that might watch this again on zoom for all the effort that you've brought to it.

A

Thank you, sir uh there's. Not a what there's not there's, not a q, a I'm happy to chat after.

A

Okay, your honor, I think only yeah members, there's only members that can say a point of.

A

Point of order.

G

Notification, because we in this audience, but each counselor what their opinions are about this.

G

Decision, you know, you know, we thought that today was the deadline of gsa and we just don't get this.

G

It happened on a saturday evening too. You came back from your private.

G

Session and nobody talked so so I I um I there's not a so- it's not a q, a it's, not a work session.

A

Maybe one day we can have a work session um on this there's. uh I think that if they're.

R

The idea that if we would feel uh good or bad about this decision, I am disappointed that we.

A

Could not submit an application uh to the national park service that we worked hard. I'm disappointed.

A

um That the efforts in the settlement agreement um were not successful into creating an application. I.

A

Continue to maintain that we put ourselves in the best legal position because of the fact that.

A

When it came to the the the previous votes that that we've made stating facts, there was a way to.

A

End to end a developer agreement, we didn't take those those steps to do so. uh We simply ended the.

A

Agreement without a notice to cure uh and because of their honor um legal inquiry, uh should we.

I

Continue to talking about the previous settlement agreement, you do have a right to know and you will.

A

Know uh we're continuing to send all the documents out. I'm sorry that uh folks uh don't feel as.

A

Though uh they uh they've been as transparent, we call this meeting two hours after the meeting with.

A

The gsa, in order to provide that information, so at this point I'll wait a motion to adjourn or you're.

S

On just two things, first of all, I think the mayor has no obligation to have a discussion here, but.

S

He's being generous to a fault, I think, because you want to know- and I understand that second.

S

One of the speakers said you now know your your options. We don't know our options yet.

S

The gsa will be getting back to us and it's very important that we recognize the fact that.

S

Not all the events have transpired here and I think that's something we as a council are.

S

Extremely careful about at the moment, we don't have a final determination from tsa.

S

um And I want to thank all of the participants in the portsmouth. Listen study circles about.

S

The mcintyre and, I believe, very much in the community plan and we tried to honor the input.

S

Throughout this process that we got, people wanted an observation that people wanted active gathering.

S

Space, they wanted more public benefit, they wanted less mass and density on both street and we've.

S

We've kept to those throughout the process and I'm disappointed that we can't get an application in.

A

Wait a motion to adjourn it's a little. Second, all in favor all right, oh wait.

E