23 Novernber 2016 David Peacock Choitman St. Louis Sports Commission 308 N. 21st Street Suite 500 St. Louis, MO 63103 Re: SC STL Deor Dave: write with one express purpose: to declare that Foundry St. Louis ("Foundry") will meet the $80 milion financial gap in $C STL's financial plans for a City of St. Louis Major League Soccer ("MLS") expansion franchise and stadium build, eliminating any "need" for City of St. Louis taxpayers to Cover the gap through taxpayer-subsidized corporate welfare. In so doing, Foundry's investment effectively guarantees City of St. Louis receives an expansion franchise under the verbal agreement reached with MLS. And this commitment ensures St. Louis fans are invested in SC STL, since a portion of Foundry equity is owned “in trust" by St. Louis citizens as a symbolic way of showing Foundry’s dedication to our City and region.’ As chief executive officer ("CEO") of Foundry, | founded the ownership group to ensure that if City of St. Louis acquired an MLS expansion franchise, it would do so the right way: doing ‘business in an open, transparent. diverse, and inclusive manner that did everything possible to ‘avoid public subsidies for a new stadium. In turn, Foundry would collaborate with office holders. community groups, and City leaders and citizens themselves, among other stakeholders, to make neighborhood redevelopment, needs of City residents, and racial equity and economic inclusion fop priorities. We have already met organizations ike NAACP, Forward Through Ferguson (“FTF”), and Little Bit Foundation, because: Foundry is an ownership group, yes, but it also represents an acceleration of the ‘community-wide discussion on pubiic transportation, public education, public safety, ‘and socioeconomic inclusion and racial equity. Building an MLS-caliber stadium and obtaining MLS and [National Women’s Soccer League ("NWSL")] clubs are not the » Additional details on Foundry equity held “in trust” for the citizens of St. Louis can be found below. But in short, 6.4% of Foundiry will be transferred to St. Louis Sports United ("STLSU") (www.stisport.org), @ nonprofit 501 (c) (4) that represents St. Louis region fans, taxpayers, and small businesses in all things sports-related. STLSU essentially serves os a counterweight fo the St Louis Sports Commission. same | FOUNDRY | aisatounystovscom Shove MO s08 SAINT LOUIS enenaranconconclusion of this effort, but rather the continuation of an already commenced citywide transformation. MLS in St. Louis cannot and should not serve as an anchor dragging on City finances and services. Rather, it should employ minority-owned consultants, vendors, and contractors, create salaried and high-wage jobs, spur population growth, and advance the conversation about racial equity and economic inclusion. With four principals as City of St. Louis residents, we know the City and its hardships. SC STL, with a group entirely comprised of County residents and out-of- town investors, clearly stands to benefit from City influence in its investment, management, and operations. As such, any MIS in St. Louis venture should — nay, must — create tax-revenue streams, not steat from them. It must shine spotlights on neighborhoods in desperate need for economic investment, not siphon capital and tax dollars away from those residents and communities. It ‘must partner with St. Louis Public Schools ("SLPS"), St. Louis Metropolitan Police Department and Fire Department, and Metrolink, not force lawmakers to cut back funding to schools, cops, and, transit in the face of dwindling City coffers. Soccer is a uniting force, a global game, played and beloved in hundreds of cuttures. it cannot Cure St. Louis’ problems, not even close. But it can spotlight our issues, instigate conversations and discussions, and focus attention on solutions in ways other sports and civic engagements cannot. But only if we do it the right way. can only imagine your thrill Thursday coupled with anxiety of making such a major announcement. You wanted SC STL's proposal to be welll received, and are excited to finally tell the public about your hard work. despite calls for your resignation from the Sports Commission. But such an announcement also comes with intense scrutiny and criticism. Thankfully you've been "here" before with the Rams. And limagine you are steeled to gripes about confcts-of interest, backroom deal-making, and taxpayer subsidies. stil, extending your hand to City of St. Louis taxpayers and asking them for $80 milion without providing any financial details must have been challenging. Sorry that so few appreciated your proposal. All the announced mayoral candidates quickly distanced themselves from the enormity of the ask. Aldermanic President Lewis Reed, a mayoral candidate, said, “[W}hateveris presented to {the Board] has fo have financial structure that protects the taxpayers and enhances the city as. whole.” Antonio French, Alderman for the 21st ward opposed the proposal, saying, "T]he people | tak to ion’ think this should be the priority. The people | talk fo want public funding going into their neighborhoods to improve their quality of life. They are sick and tired of public money going to the richest parts of town.”St. Louis Treasurer Tshaura Jones took to Facebook to negatively critique your offering. “Right ow, | have more questions than answers,” she wrote, adding, “I support a public vote for this, like | supported @ public vote for the football subsidy. But there are a thousand details, including the city's recent credit downgrade, that are going to have to be considered about the structure of the bonds. And someone is going to have to explain why only [Clty taxpayers will be on an $80 milion hook for a facility that serves the entire region. Even Aldenwoman Lyda Krewson, whose mayoral campaign is supported heavily by SC STL investor Bob O'Loughlin, said, "I like soccer. But I think we need to be careful with public subsidies.’ One City of St. Louis mayoral candidate did not even bother to comment on it. Jamilah Nasheed, Missouri State Senator, failed to make mention of SC STL in public, to news outlets, or en social media, to my knowledge. The aldermanic response, also, was tepid at best. 24th Ward Alderman Scott Ogilvie tweeted: “Services, not stadiums, grow population. ... like soccer. | would like an MLS team. City can be a Partner, but we have no business owning a stadium given our financial position." 6th Ward Aldenwoman Chistine Ingrassia, representative for SC SI's proposed site, said nothing regarding your Thursday announcement. Even 7th Ward Alderman Jack Coatar, facing a stiff reelection challenge due to his sponsorship of the Rams Stadium-funding legislation, kept mum. —his last Twitter post was about quail and pheasant hunting in Kansos. Neither did Missouri Governor-elect Eric Greitens have anything to say. Two officeholders did support your $80 milion toxpayer-financed plan — both, unfortunateh lame ducks who hold no current policy sway. Jay Nixon, « lame-duck governor, and Francis Slay, lame-duck mayor, cannot influence an MLS-stadium development to any significant extent. And both of them would be long gone by the time the plan's 40-percent public subsidy came to fruition. In fact, Goveror-elect Greitens? would likely oppose the SC STL stadium plan if Foundry’s reading of the tec leaves are correct, what with him having already called the Rams Stadium finance package, which you were instrumental in, « “scandal” rife with “coruption”. “| oppose welfare for billionaires.” Then-gubernatorial candidate Greitens' statement from. November 2015 seems temporally irelevant and could easily apply to your Thursday ask 2 In no way is Foundry attempting to speak for Governor-elect Greitens. While Foundry has a relationship with the Govemor-elect, it cannot and would never attempt to speak on his behalf. Foundry can only attempt to discem his policy goals from his previous comments, which. in thi policy reaim, seem to be pretty clear-cut.The Govemor-elect, though, continued, issouri legislature] should . .. woit until we have a governor they can trust not to burden generations of Missouri's children with stadium debt."3 Come January 2017, Mr. Greitens willbe that governor. AS already stated, | created Foundry St. Louis to avoid stadium proposals like SC STL made November 17, 2016, And while | understand why proposals like that are made, | vehemently believe that, to borrow from Alderwoman Krewson, "[W]e should be careful with public subsidies" — especially when City residents are, to borrow from Alderman French, “sick and tired of public money going to the richest parts of town.” People in City of St. Louis are desperate for public services and neighborhood revitalization. And this is not just in terms of taxpayer money, no. Thisis in terms of civic debate and time spent on THEIR issues within the halls and chambers of City Hall. Aldermanic debate on an $80 million public subsidy for SC STL diverts critical and crucial focus away from renovating crumbling Schools, repairing dilapidated streets, and policing insecure neighborhoods. But | embrace Alderman French (if | may return to his comments} nonetheless: "A soccer stadium is not my top priority. | believe our [Clity needs to start prioritizing the needs of the many over the wants of the few... {ut ilf it’s privately funded, great! I'll support it and buy season tickets.” “If t's privately funded, 100 percent with private dollars, I'llbe buying tickets and there on day cone," Alderman French repeated to another news outlet. Let's you ond I declore we have Alderman French's support, and together drive down to City Hall to sell Alderman French a pair of $C STL season tickets. Because by investing $80 milion to cover the financial gap in your MALS proposal, Foundry has completely eliminated ANY AND ALL burdens on the City of St. Louis taxpayers for MLS. Period. The Board of Aldermen can focus attention on the needs of City residents and not on another taxpayer-funded stadium project. But SC STL also gets so much more. SC STL receives the great work already commenced and completed by Foundry. SC STL investor Jim Kavanagh declared how important its for SC STL to “start philanthropic” efforts, but Foundry. has 10-months of community engagement SC STL can immediately utiize. Foundry hos thoughtful resolutions — from rehabbing old SLPS schools into neighborhood sports centers to volunteering with North City schaolchildren via Little Bit Foundation — that could make SC STL immediately cognizable in City of St. Louis communities. We're even cosponsoring a new civic Program in conjunction with 4 Hands Brewery that launches December 2016. Additionally, much of that painstaking work Mr. Kavanagh spoke of comes via Foundry's Charitable entity. 32 Panels Foundation (""32 Panels"). | started 32 Panels to work with existing neighborhood sports associations, and help create new ones, so the youth of St. Louis can 3 According to a November 1, 2015, news report from St. Louis Public Radio.blossom and develop through athletics. Aspen insiitute’s policy research, analysis, and recommendations from its Project Play drives much of 32 Panels' initiatives. ‘As mentioned, we've commenced partnership-building with FTF. a catalyst organization created upon conclusion of the Ferguson Commission's term. Tasked with fighting for racial equity in St. Louis, its Executive Director Nicole Hudson and I have a strong working relationship, and Foundry has discussed with FIF the opportunity to drive Foundry's community engagement. Foundry principals and | met with Aldophus Pruitt, President, and Cedtic Clarkson, Vice President, Of the St. Louis chapter of NAACP to discuss community involvement and minority businesses Parlicipation in any MLS project. St. Louis must demand that minority-owned enterprises, vendors, and contractors participate heavily in not just development of the club and stacium, but ints ongoing operations. I"ve also reached out to the St. Louis Mosaic Project, a key leader in our local international soccer community, hoping to converse on intra-urban soccer competition. These are the types of organizations we sought fo include at the table if and when MLS came to fruition, and we think you'll agree, as we move forward together. L could go on and on with Foundry's community involvement, like our forthcoming "Socks for Scarves" program that will help Little Bit Foundation stock up on supplies for public school Children heading into the winter, but | think you get the point. Through collaboration, cooperation, and private investment — and avoiding public subsidy — SC STL and Foundry con bring MLS to St. Louis the "right" way. Foundry is so committed to acquiring, financing, and operating an MLS club in such community-focused manner, one of our principals recently resigned to chair a new, 501(c) (4) Called St. Louis Sports United ("STLSU"). STLSU, as a local nonprofit. gives fans, taxpayers, and small businesses a strong voice in all things St. Louis sports, particularly ones that involve the use of public funds. He believes so strongly in this cause that he is transferring his stake in Foundry into G trust owned by STLSU. In short, the people of St. Louis now own a 6.4 percent stake in Foundry and thus. with Foundiry's $80 milion investment in SC STL, a stake in MLS. SC STL can join the Green Bay Packers in a unique, City-ownership model that creates ties-that-bind and loyalty amongst St. Louis! fan base. 4 The Aspen Insitute has found that poverty and lack of stable housing as the greatest factors in Predicting when children begin, and how long they continue, to participate in athletics and sports — which in tum leads to health, wellness, and nutritional conditions later in adulthood. This, in tum, disproportionately affects African-American children and other minorities. In so doing, Aspen Institute has found that this, much like other policy matters, amounts to racial inequity. Project Play contains numerous recommendations that Foundry via 32 Panels has and continue to adopt.Thank you for your time. Since March I've reached out to you several times to discuss how to Move MLS in St. Louis forward in the most innovative, inclusive, and fiscally responsible manner possible. Unfortunately, we never seemed able to connect. But now that Foundry has closed SC SIU's $80 milion funding gap. we as «City can come together as #OURSIL. collaborating and Cooperating to bring MLS to St. Louis. Kind regards, Dan Cordes Chief Executive Officer dan@tfoundrystiouis.com Ce: Erie Greitens, Governor-etect, State of Missouri Steve Stenger, Executive, St. Louis County Don Garber, Commissioner, Major League Soccer Mark Abbott, Deputy Commissioner, Major League Soccer Lyda Krewson, Alderwoman, City of St. Louis Lewis Reed, President, City of St. Louis Board of Aldermen Antonio French, Alderman, City of St. Louis Tishaura Jones, Treasurer, City of St. Louis. Jamilah Nasheed, Senator, State of Missouri Nicholas Mahrt, Chairman, St. Louis Sports United Frank Viverito, President, St. Louis Sports Commission Paul Edgerley, SC STL Jim Kavanaugh, SC STL