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Competition. Other building owners in the area may believe that the City is unfairly competing <br />with them <br />Legal challenges. The uniqueness of this financing may cause a taxpayer to challenge the <br />validity of this project. Because it is unusual, the financing may be subject to some legal <br />scrutiny. <br />Bond rating. While this issue would not likely cause a rating decrease for the City, if the project <br />defaults the cost of debt service may inhibit the ability of the City to receive future bond rating <br />increases. <br />Difficulties of public /private partnerships. The public nature of arrangements which are <br />traditionally private may cause difficulties for the private partner and the City in this financing. <br />The City does have difficulty negotiating in private and may compound any potential future issue <br />as the project develops. <br />As I mentioned previously, we should touch base with Briggs & Morgan to discuss the legal <br />details of this type of financing. We look forward to discussing these issues further. <br />