Honoring the Past ~ Preparing for the Future

August 2012

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ROSE BOWL ROUNDUP

The Rose Bowl Roundup is back with more information about the activities and people involved in this massive project. In this issue we'll tell you about:

Some opening thoughts

The schedule Construction progress

The gap, scope of work and financing

Local hiring NFL EIR available for public review

Good news! ESPN broadcast deal

Chris Rising: A legacy of leadership Duke Rose Bowl

Rose Bowl Legacy Campaign

Rose Bowl Premium Seating

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Read on, and be sure to send us your questions and comments.

We’d like to hear from you.

SOME OPENING THOUGHTS

We’ll never forget the end game: an enhanced and improved iconic

Rose Bowl set to host some of the world’s most memorable events for another 90 years.

Darryl Dunn,

CEO & General Manager, Rose Bowl Stadium

We’re excited by the progress of the Rose Bowl renovations and improvements and look forward to the UCLA-Nebraska opener in just a few weeks. But before this issue of Rose Bowl Roundup provides details of the renovation status,

I’d like to share just a few opening thoughts about the project. The improvements to the Rose Bowl are intended to preserve the majesty of the venue while enhancing the fan experience and solidifying the safety of the public. While providing new and exciting seating opportunities for a unique and premium experience, we’re also making long-sought and much-needed improvements to ensure that the experience remains memorable. We’re well aware of the enormous challenges a project of this magnitude presents. The phased bidding and building; the necessity to continue to be able to hold marquee events for our main tenants; the

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Tunnel 13 interior, July 16, 2012

Tunnel 13 Interior, July 16,

2012

unforeseen challenges in making improvements to an 90-year-old building; and yes, the difficult economic challenges we all face. But when faced with challenges big and small, we, as a staff and as a City, have made tough decisions for what is in the long-term best interests of the Rose Bowl and the City of Pasadena. No decision is without careful consideration, input from key constituents and an exploration of the best possible options. As we move forward, we’ll never forget the end game: an enhanced and improved iconic Rose Bowl set to host some of the world’s most memorable events for another 90 years. — Darryl Dunn

THE SCHEDULE – FORWARD PROGRESS CONTINUES

The Rose Bowl Renovation Project is in nearing the end of Phase II with work continuing on pace, despite the heat in Pasadena.

As always, Bernards|Barton Mallow made sure the facility was cleaned up and ready for the more than the 12,000 who turned out for the August flea market. Renovation work on the pavilion continued and the remaining areas of levels E, F and G will be ready in time for the UCLA football opener against Nebraska on

September 8. Phase III of the project will begin immediately after the 2013 Rose Bowl Game. All aspects of the ongoing work are monitored closely to ensure on-time completion.

CONSTRUCTION PROGRESS In the pavilion (press box). All elevated concrete has been placed on metal decks at the pavilion, and

most of the structural steel work has been completed. The precast seating trays have been installed, and the final two escalator trusses were erected. Interior construction in the pavilion continues. This

includes work on utilities, mechanical equipment and partitions. On the exterior of the South Press Box, the process of applying the plaster has made significant progress and the scaffolding has been removed.

Tunnel widening & more. During the month of July, all structural concrete installation for the

tunnels was completed, and the process of adding plaster finishes within the tunnels and at the entrances began.

Press Box central core, July 23, 2012

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South Press Box Progress, July 23, 2012

Painting, gate installation, planter walls and work on the arroyo stone veneer also began in July. Tunnel widening continued and the North Bowl concrete work and reinstallation of the bench seating was completed. Another important milestone. On July 12, the new 17Kv electrical system on the concourse was activated, a stage critical to the timely completion of Press Box elements.

What you don’t see. In addition to the visible progress of the pavilion, tunnels, scoreboards, railings and other areas, dozens of enhancements to the Rose Bowl, which you can’t see, are now completed. New fire alarm and security systems have been installed, along with P.A. systems and structural improvements.

GAP: OF WORK AND FINANCING Current situation. The Rose Bowl renovation, budgeted at $152 million, is now expected to cost nearly

$164.6 million, which includes $14 million of deferments. Options. The gap in funding can be filled by reducing the scope of the project, where possible with deferments; and utilizing a number of resources including the 2014 BCS revenues and Legacy donations. Reducing the scope would include deferring $14.3 million in improvements, as referenced above, will

reduce the project's funding gap to $25.3 million. Please note this is not finalized yet as the Tournament of Roses and UCLA contracts contain elements of the improvement plan that must be completed. Staff and city leadership have been meeting with our partners to reach a consensus on what elements can be deferred. Once scope the scope of deferments and the complex project completion issues are resolved, the Rose Bowl Operating Company (RBOC) operations pro forma can be updated and the most appropriate

gap-financing plan can be determined. Devising a financing plan In July, staff discussed several short and long-term financing options, including the following: 1. Internal borrowing from City’s pooled investment portfolio. The City manages its cash and

investments in a pooled account that has on average $300 million and sufficient liquidity to advance the Rose Bowl project $30.6 million. Typically, one of the advantages of internal borrowing is a lower borrowing cost than a public debt offering or a private placement. The staff is reviewing restrictions on lending from specific funds within the City’s portfolio as well as accounting requirements to ensure this option is viable.

2. Issue new financing – private placement bond. The Pasadena Public Financing Authority could

issue additional Rose Bowl variable-rate Lease Revenue Bonds that would be directly purchased by a bank. The arrangement would provide greater flexibility in the use of bond proceeds, an increased ability to redeem the bonds earlier than their maturities, and offer a lower cost of borrowing. This financing option would not be a restructuring and extension of the 2006 bonds. It would be a separate instrument backed by the City to take advantage of the City’s AAA credit rating.

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3. Restructure existing RBOC debt. By restricting the existing debt , it would extend the maturities on existing 2006 RBOC debt for 12 or more years while issuing additional debt to cover the gap. The revised annual debt service would be structured as close to the current service payments as possible.

Pasadena City Council Finance Committee meeting Rose Bowl officials went to the City's Finance Committee, on August 13, with a draft plan to defer $14.3 million in improvements to the stadium renovation. A concern was raised about some of the deferments, as they relate to existing contractual obligations. Pasadena District 7 City Councilmember Terry Tornek stated that he was troubled by the increase from

$152 million to $164.6 and suggested modifying contractual obligations. City Manager Michael Beck responded that the City would be defaulting on its contractual agreements with its tenants if it limited itself to building a $152 million project. Pasadena District 3 City Councilmember Chris Holden indicated that no one could know the feasibility of the newest proposal until updated revenue projections are provided in September by Finance Director Andy Green. Green is working with consultants to analyze what effect deferring parts of the project will have on projected revenues to help fund the construction. Green added that he is working to ensure that the final financial proposal does not affect the City's General Fund, which stadium and City officials have vowed to protect. Going forward The staff and City will continue to explore all financing options to obtain a favorable financial instrument and return to City Council and the RBOC for the required document approvals. The approval process must occur before the awarding of the next bid package for Phase III scheduled for October. To learn additional details about the upcoming Phase III work, potential deferments and financing options, download the package from the August 9 meeting.

Ad hoc committee appointed to document project With a concern with the in-progress changes to the cost and scope of the project and problems caused by insufficient documentation of past work, RBOC President Victor Gordo has appointed three RBOC members to an ad-hoc committee charged with reviewing the renovation project with the key goal of learning how the process could be improved for future projects.

Named to the committee are RBOC Directors Paul Arevalo, West Hollywood's city manager, Bill Cormier, who represents UCLA on the board, and Alex Aghajanian, an attorney with construction litigation experience, who represents the Tournament of Roses.

LOCAL HIRING PROGRESS Parsons and Clarence J. Broussard & Associates, Inc. (CBA) continue to mentor and support Pasadena First Buy Local (PFBL) to maximize the hiring of Pasadena residents to work on the project. The Parsons' Team, in collaboration with PFBL and Bernards|Barton Mallow, continue to work with the prime contractors and subcontractors on the project to identify opportunities for local hiring as well as encourage procurement from Pasadena-based businesses. Monthly we have been reporting projections of the local subcontracting / procurement values provided by the contractors working on the renovation. Pasadena First Buy Local (PFBL) has now set up a tracking system for local subcontracting / procurement so now we can report actual dollars reported as compared to projected dollars.

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The Rose Bowl Operating Company, PFBL and City staff report: 161 Pasadena residents have worked on the project. $883,575 has been paid to these workers, representing 8.4% of the construction certified payroll. $3.4 million has been paid in local subcontracting and procurement $5 million has been paid out in soft-cost expenditures $8.5 million is the projected total for Pasadena local procurement. Read more about local hiring efforts in the July Status Report.

ROSE BOWL-NFL DRAFT ENVIRONMENTAL IMPACT REPORT The draft Environmental Impact Report (EIR), to consider the potential impact of a temporary lease of the stadium by the National Football League was posted on the City's website on August 9. The public will have 60 days to review and comment on the report. The extension of the comment and review period, from the 45 days to 60 days, will allow more time to review the extensive draft report. In addition to the

public, the City will be sending the draft EIR to the Planning Commission and Parks and Recreation Commission for review. The following meetings will be held for the public can learn more about the EIR and comment on it: September 19 Special Planning Commission

6:30 pm, City Council Chambers, Room 249, 100 N. Garfield. St. September 27 Transportation Advisory Commission

6:30 pm, Rose Bowl Media Center, 100 Rose Bowl Dr. [Park in Lot F. Enter through Auto Gate A; Security will direct attendees to Media Center.]

October 2 Recreation and Parks Commission 6:30 pm, Rose Bowl Media Center, 100 Rose Bowl Dr. [Park in Lot F, enter through Auto Gate A, Security will direct attendees to Media Center.]

Review the entire draft report.

IS AN NFL TEAM COMING TO LOS ANGELES? All is quiet on the western front at this time. Neither Majestic Realty, proposing a stadium in City of Industry, or Anschutz Entertainment Group, proposing a stadium near LA Live in downtown Los Angeles, has secured a National Football League franchise at this point. If a Los Angeles team does become a reality, a temporary stadium will have to be leased while construction of a permanent NFL stadium takes place, which could be as early as the fall of 2013.

ESPN INKS LONG-TERM CONTRACT TO BROADCAST ROSE BOWL GAME

In yet another sign of the strength of the Rose Bowl Stadium, ESPN reached a new long-term agreement with the Tournament of Roses and the commissioners of the Big Ten and Pac-12 conferences. ESPN will retain the broadcast rights to the Rose Bowl regardless of the new college football playoff system. The new deal begins in the 2013 season and runs through 2026. The network’s current $30 million deal with the Rose Bowl Game runs through the 2014 BCS title game. The announcement came two days after an agreement was approved by university presidents on a plan created by the conference commissioners

and Notre Dame to create a four-team playoff, details of which are still being worked out.

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Christopher “Chris” Rising

The Rose Bowl Game will continue to be part of the postseason bowl rotation, hosting semifinal playoff games on two occasions between 2015 and 2026.The first championship game under the new system is Jan. 12, 2015

CHRIS RISING: A LEGACY OF LEADERSHIP

Chris Rising was born in Hollywood, but grew up with his brother and sister in La Cañada Flintridge with his mother, Sharon, and his Dad, Nelson. “I loved growing up here,” says Chris. “It’s a beautiful place. I

played baseball and football, and I got a great education.” Chris started out at Chandler School, overlooking the Rose Bowl from the east, and went on to Loyola High School in Los Angeles.

Chris loved and was good at football. In fact, he played on the Rose Bowl field while in high school — in the Shrine Game, in

which the top 30 players from

Northern California play the top 30 players from Southern California. He was an outside linebacker and notes that many of his team mates and competitors on the 1987 teams went on to play in the NFL. Running back Eric Bieniemy who lettered while at Bishop Amat High school, is the all-time rusher at the University of Colorado and was drafted by the San Diego Chargers. Pat Harlow, offensive lineman at USC was a first round draft choice of the New England Patriots. Chris won a football scholarship to Duke University. He’s proud to note that the only Rose Bowl game not played in California at the Rose Bowl was in 1942, when the teams traveled to his alma mater Duke (see following article.) Chris is “true to his schools.” Currently he serves as: chair and president of the Board of Trustees of Chandler School; a member of the Board of Regents of Loyola High School; a member of the Athletic

Advisory Board at Duke University; and a member of the Board of Overseers at Loyola Law School. He formally served as president of the Loyola High School Alumni Association. After graduating from Duke and Loyola Law School, he taught U.S. history and western civilization at his old alma mater, Loyola High School. Then he joined Pillsbury Madison & Sutro, now known as Pillsbury Winthrop, as an associate. He segued out of law and into real estate, spending several years at Cushman

Realty Corporation (CRC), where he worked in the Office of the President, under brokerage legend John C. Cushman III. He then served as a director at Cushman & Wakefield of California, Inc. (C&W), joining C&W after its merger with CRC in 2001. Currently, Chris is a managing partner at Rising Realty Partners (RRP), for which he manages the day-to-day business activities, while also serving on its investment committee.

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A crowd of 56,000 gathered at Duke Stadium (later renamed

Wallace Wade Stadium) for the January 1, 1942 Rose Bowl.

Photos courtesy of Duke University Archives

Chris and his wife, Anna Christine, met in Los Angeles, although she’s British. They have three children, twin daughters, Annelise and Arianee and a son, Nelson. All three, like their father, attend Chandler School. Chris loves bringing the family to UCLA football games at the Rose Bowl. Like other UCLA fans, he’s very excited about the upcoming season under Coach Jim Mora. “I see discipline and passion that will position UCLA well in the coming years.” Chris loves Pasadena and the Rose Bowl, and he’s proud to serve on the Legacy Board of Directors, along with his father, Nelson, to help raise money to finance the stadium’s renovation.

“The history of the Rose Bowl Stadium and Pasadena with its history and culture are intertwined. It was essential that this (the renovation) happen, to preserve this historic landmark while bringing it up to twenty-first century standards. Those stadiums that didn’t have community support are now gone.” Check out Chris’s Rose Bowl memory.

SOUTHERN HOSPITALITY AND A GREAT ROSE BOWL GAME

By Andrew Sinatra

In what was intended to be a celebration of Oregon State’s first Rose Bowl appearance and an opportunity for redemption in Duke’s second, the 1942 game became historic for many other reasons. On the morning of December 7, 1941—six days

after the two teams were announced—Pearl Harbor was attacked by the Japanese, taking the spotlight off of college football’s most storied event. Before fans were able to bask in the Southern California sun, both the 1942 Rose Bowl Game and Tournament of Roses Parade were cancelled. With new restrictions in place

regarding large group gatherings on the West

Coast, the game and parade were the first events to be cancelled in the wake of

the attack. Eager to restore some of the optimism that

had been

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thwarted by the attack, Duke proposed an alternative —playing host to the prestigious game in their own home stadium. Despite being a heavy underdog to a dominant Blue Devil team, the Oregon State Beavers agreed to travel cross-country to fulfill their Rose Bowl dreams. With its standard Southern hospitality and rain reminiscent of Oregon, Durham, North Carolina displayed the neutral elements of a standard bowl environment. With the help of in-state rivals University of North Carolina at Chapel Hill and North Carolina State University, portable bleachers were added to the 12-year

old Duke Stadium, raising capacity from 35,000 to more than 55,000. Even with football creeping back into the social landscape, World War II concerns were ever-present at the game. No more obvious than the case of Oregon State sophomore reserve—and Japanese-American—Jack Yoshihara, who was forced to leave school and eventually spend time in an Idaho internment camp, Yoshihara’s absence from the Rose Bowl festivities and game served as a stark reminder of a new world. The game would go on as planned, however—at least for Oregon State. In a back-and-forth defensive struggle, a rain-induced fumble on the opening kickoff by the Blue Devils set the tone for the rest of the game. Duke would fail to move the ball consistently until the fourth quarter, eventually running out of time, falling 20-16 in what some consider the biggest upset in Rose Bowl history. Soon after the conclusion of the gridiron battle in Durham, Oregon State and Duke saw players and coaches go to war. The bonds established on and off the field surrounding the 28th Rose Bowl Game continued onto the battlefields, with multiple participants crossing paths. While these encounters may have been coincidental, the bonds were not. The country was in a deflated

state, leaving sports as one of the few means of empowerment for the American people. With Duke representing hospitality and a welcoming spirit and Oregon State a never-say-die, underdog mentality, the country was given something to embrace as a representation of its own endeavors. Source: Article based on an “War and Roses” by Michael Penn, Duke Magazine, November-December 2011

ROSE BOWL LEGACY CAMPAIGN UPDATE

The Rose Bowl Legacy Campaign is a unique element of the renovation effort. Legacy Connections, the private 501C3 non-profit organization engaged in the Rose Bowl Legacy Campaign has a strong board of directors who have been soliciting donations and offering naming opportunities throughout the stadium.

The Rose Bowl Legacy Campaign goal is $20 million and to date they have pledges amounting to $8 million. The donations are from individuals and companies with an outstanding history of philanthropy and are considered to be reliable donors. Be sure to check out the Legacy Campaign website as well.

ROSE BOWL PREMIUM SEATING With the 2012- 2013 UCLA football season quickly approaching, Rose Bowl Premium Seating is showing off the new changes in the renovated Pavilion. This month we have invited and hosted many visitors to take a tour inside the Suites, which now display the new walls and cabinetry.

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In all, the Pavilion will house 54 Suites with 1,096 Suite Seat, along with 48 four-seat Loge Boxes with 192 seats, and 1,180 Club Seats. Suites are now being offered for the upcoming season while Loge boxes are on sale for the 2013- 2014 season and 100th Rose bowl Game. Club Seats are now available for the first time ever. To see the progress being made and hear about the extensive amenities, schedule a hard hat tour

by calling us at (626) 585-6800 or sign up online. Currently, the Rose Bowl Premium Seating sales team is offering newly remodeled suites for the 2012-2013 UCLA football season. Loge boxes are on sale for the 2013-2014 UCLA football seasons and the 100th Rose Bowl Game. And Club seats are being offered for the first time ever for the 2012-2013 season.

ROSE BOWL RENOVATION & IMPROVEMENT PROJECT

The project has five objectives: 1. Improve public safety 2. Enhance the fan experience 3. Maintain the Rose Bowl’s National Historic Landmark status 4. Develop long-term revenue streams 5. Improve stadium operations

More information

WE WANT TO HEAR FROM YOU! Send your questions and comments to

Audrey O’Kelley at aokelley@rosebowllegacy.com.

Honoring the Past ~ Preparing for the Future

Honoring the past ... Preparing for the future