Ric--

I am writing to confirm our discussion of yesterday afternoon.  After we
spoke, I conferred with John Watson who, like me, believed that we were
going to use terms of the Enron Field financing for the Arena, with a few
minor changes that we had discussed.  The term sheet that we originally
provided you during the summer reflected that arrangement.  We have
discussed that term sheet with the partners, believing it to be the deal,
and they have approved the garage loan on those terms.

John and I believe that the comments on the term sheet that you, James
Hernandez and Mike Bartolotta have provided us recently constitute a
significant departure from the Enron Field deal.  Although we understand the
arguments each of you have made in favor of such comments, these comments
nonetheless will need to be evaluated by a business representative from the
partnership and approved by the partnership.  I recommend that we schedule a
meeting next week so that we can discuss these issues and try to resolve
them.

Finally, John was disappointed to hear that the HCHSA will be unwilling to
prepay the $1.4 million amount needed by the referendum.  Because we
understand that the referendum campaign is in dire need of funding, we hope
that you might reconsider your decision not to prepay the $1.4 million until
after we have finalized the term sheet.

I will be unavailable for a great deal of the day today, but I will have
time to meet next week.  Please let me know when we might be able to get
together to discuss the term sheet.

Sincerely,

Michael S. Telle