Well – at least it looks like he is trying to be responsible with our tax dollars. Hope its not just all a song and dance.
October 14, 2015
Office of the Mayor
Paul R. Soglin, MayorMr. Robert P. Dunn, Principal JDS Development LLC
33 East Main Street Madison, WI 53703Mr. Kevin Conroy, CEO Exact Sciences Corporation 441 Channany Drive
Madison, WI 53719Dear Bob and Kevin:
One week ago, the US Prevention Services Task Force issued draft recommendations regarding Exact Sciences’ Cologuard test which resulted in a sharp market response to the Exact Sciences’ stock valuation. A week ago, I stated pu blicly that it was premature to come to any conclusions regarding Exact Sciences and in the next month the City would get better information on the long term consequences of that announcement.
With the benefit of a week’s time for JDS Development LLC and Exact Sciences to reflect on the impact of the USPSTF recommendation and the potential impact decision on the Judge Doyle Square project, I would like you to respond to the following questions concerning the provisions i n the Amended and Restated Development Agreement adopted by the Common Council on September 29, 2015. I have also had the opportunity to meet with the City Negotiating Team – and will review these matters with Council leadership today – in making this request of you.
1. What does the USPSTF decision mean to the EXAS business model for Cologuard?
2. What are EXAS’s plans to appeal the USPSTF decision? What is the timing of such an appeal process and historically, what is the likelihood that a USPSTF decision wou ld be amended?
3. What impact does the decision have on the EXAS’s plans to locate its headquarters and research facility at Judge Doyle Square?
a. Does the scale of the EXAS’s plans change? How?
b. Does the timing of EXAS’s plans change? By what degree?
c. Does the number of jobs to be created and located at Judge Doyle Square change?
d. What is EXAS prepared to com mit to at the present time? How would the commitments i n the Amended and Restated Development Agreement be altered? When would EXAS be prepared to execute a lease for office space at Judge Doyle Square and for how much space?4. Given the information that’s been presented publicly, what is the process to re examine the transaction and how long would such a re-examination take?
5. What is the position of the equity partners and the lenders on the project? How does this information affect the level of equity, debt and other security required for the project?
6. Would JDS Development LLC reconfigure its Judge Doyle Square proposal? How wou ld those potential changes impact the following?
a. the proposed land uses and their location on Blocks 88 and 105;
b. the configuration of the parking ramp (both public and private elements);
c. the size of the hotel;
d. the commencement and phasing of the development;
e. the financial aspects of the transaction:1 ) total development cost;
2) debt and equity to be provided for the private development component;
3) the cost of the pu blic parking;
4) the EXAS Jobs TIF commitment;
5) the expected prope1iy value to be generated by the project and the incremental property tax revenue stream to support the City’s investment;
6) the financial guarantees to be provided by EXAS and JDS Development LLC.I request that you provide your response by Wednesday, October 28, 2015 in order for my office and the City Negotiating Team to review any impacts that you identify. The City needs to determine the length and the impact of any potential delay on the project. I intend to promptly brief the City’s Board of Estimates on the status of the Judge Doyle Square project progress and proposed calendar.
Thank you.
Sincerely
Paul R. Soglin
MayorCc: Common Council Members
