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5. PUBILIC HEARING (Cont'd) Hr. Wiggins: that there might well be a demand in the future for transient (Cont'd) housing occasioned by the Century Center. Now, this is a ways down the line; it may or may not happen, but the change is projected here to accommodate it, should it happen, so that this could be brought about without going through this same process at a later time. So, we are incorporating not only the changes that are required, but the changes that prudence dictates may possibly be expected. 4r. Amaral: Didn't prudence dictate the expectation of transient housing when this project first was developed and when the bid speci- fications were issued? Wiggins: It did, and there was a problem, at that time, that a part of the HUD requirements are that a survey must be made esta- blishing a need. The survey was made; the survey did not establish the need at that time. Consequently, we would have not been in the position..,we possibly could have gotten a change... but we could not have awarded, and possibly, even today, we could not award the change to actually construct such a unit. However, some things have happened in the interim period: 1) The LaSalle Motor Hotel, which was in existence as a motor hotel at that time, no longer is a motor hotel, which substantially changes the amount of avail- able transient housing units in the downtown area. The other thing that will affect it, and couldn't be a part of it, was that, at that time, the Civic Center was a projected kind of thing, and, to this degree, it is still under the process of construction, but when the Civic Center is finally completed and is in operation, then it will create a substantial demand. This is the future. . Amaral: I understand. Is the proposed revision based on a new Study, as required by HUD? . Brownell: No. The Study... Wiggins: No, the Study... go ahead. Brownell: The fact is that, at any time that we sell land acquired with money from HUD, we have to have a Feasibility Study if the land is being sold for a hotel, motel, or a'motor hotel. Now, we had a Feasibility Study that came out negative, and so we could not sell it today for that use without a new Study. Amaral: One other question: At the time the bid was awarded, wasn't it common knowledge that the LaSalle was going under? Brownell: I don't know whether it was common knowledge, or not. I ... can't answer it; I don't know. M�. Wiggins: Well, it was common knowledge, I guess, that the National Bank had acquired a majority interest as a result of, -I guess, a - 7 -