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I Dodgers terminate the agreement, they would be responsible for defeasement of the bonds with an option to repurchase the property. Bond Counsel Robert Reid stated that at the time of the issuance of the bonds, all of the costs involved will be satisfied and the County will be reimbursed from the bond proceeds. At the time the transaction is consummated the County will be made whole. The bond issue is for an amount greater than the net dollars that go to the Dodgers and the capital reserve fund. In the event the Dodgers leave before the end of the initial 20 -year term, they have agreed to pay liquidated damages to the County by defeasement of the bonds. At that time the bonds would be released from indenture and the funds would be available for use for other purposes. The funds would be held either in cash or treasury securities in the defeasance escrow until the first call date. All costs, including redemption fees and the costs of setting up the defeasement, will be covered. The bond counsel would provide an opinion that the bonds are defeased and all liability on the part of the County would be ended. Administrator Chandler explained that the construction funds would be held in a trust account and requisitions would be submitted and approved solely with respect to the improvements outlined in the development agreements to be drawn. The capital reserve fund would have to be used solely for repairs and replacements to the facility and requisitions will also be required for those expenditures. Craig Callan, Managing Director at Dodgertown, noted that it is the Dodgers' intent to improve the facility and have expanded spring training here in Vero Beach. They are going to bring in their rehab players, a January workout team, and 2 adult baseball campaigns. There are provisions contained in their national association that prohibit them from signing a contract to that effect, but it is their intention to stay here. He has lived here for 22 years and it would make no sense for the Dodgers to bring other teams and events here and then move elsewhere. Administrator Chandler noted there are several other minor clarifications in the MOU and all changes have been approved by the Dodgers. Attorney Reid noted there is a City of Deerfield Beach case heard by the Florida Supreme Court regarding financing of sports facilities which was governed by the State's -1865 Constitution wherein municipalities were a creature of statute. Bonding authority for municipalities was r JULY 0 279 2000 -2- 0