Hasdc Letter To Controller

Dear Annise, At your request, electronic versions of HAS Development Corporation’s audit for 2007 is attached , and those for 2008, 2006 and 2005 will be sent by follow-up email due to capacity constraints. All of these were provided to the Mayor three weeks ago on June 26. I understand you have HASDC’s 2008 Form 990. Feel free to call me about any other inquiries you may have about HAS Development Corporation. As we discussed, HAS Development Corporation is a private nonprofit corporation established for the benefit of HAS, but governed by an independent board (i.e., the majority of the board is composed of independent directors not appointed by the City or by HAS). Accordingly, HAS Development Corporation is not controlled by the City or HAS. This was carefully considered in 2001 in order to provide insulation to the City from potential liability arising from overseas undertakings by HAS Development Corporation (that is, so any persons with claims against HASDC could not assert them against the City on the basis that HASDC is controlled by the City as is, for instance, a local government corporation). Instead of a relationship based on “control,” HAS Development Corporation’s relationship with the City was established contractually pursuant to Technical Services Agreements approved (like all City contacts) by City Council and countersigned by the Controller (I assume your office has them, but if not let me know so I can provide them). The City’s Technical Services Agreements govern the consulting arrangement between HAS and HAS Development Corporation, for which the corporation has assiduously paid HAS promptly at cost plus a mark-up of 80% for all consulting work provided by HAS. The City should have records of the billings and payments for all such consulting work and HAS should have records as to what it related to. Under the terms of the Technical Services Agreements, the work can only be done in overseas projects approved by the City Council or Mayor and under the direction of the Director of HAS.

Hank Coleman General Counsel HAS Development Corporation