CITY OF NEW HAVENOFFICE OF MANAGEMENT & BUDGET

165 Church Street, New Haven, CT. 06510Phone (203)-946-7921, Fax (203)-946-7924

May 6, 2013

Jorge Perez, PresidentNew Haven Board of Aldermen165 Church St. New Haven, CT 06511

Re: Order of the Board of Aldermen of the City of New Haven concerning the abandonment and discontinuance of portions of Wall Street and High Street.

Dear Aldermen Perez,

Attached for the Honorable Board’s consideration is a framework for a new agreement concerning the closure of portions of Wall Street and High Street and Yale University’s Fire Payment to the City.

As you are aware, the 1990 agreement (the “1990 Agreement”) between Yale University (“Yale”) and the City closed portions of High Street and Wall Street (the “Closed Streets”) and, in exchange, the University agreed to make Fire Payments to the City based on a formula outlined in the 1990 Agreement. The 1990 Agreement called for a review of the street closures after the twentieth anniversary of the same. In 2011, The Department of Transportation, Traffic and Parking submitted to the Board a report on the status of the street closure. The findings of the report concluded that the Closed Streets did not impede vehicular traffic in the Downtown and recommended their continued closure.

The 1990 Agreement also paved the way for better relations between the University and the City. Since then, the University and the City have collaborated on many initiatives including, most recently, New Haven Promise.

Recent discussions with Yale have moved toward the City abandoning the Closed Streets so as to facilitate Yale’s acquisition of an unencumbered fee simple title thereto, as the abutting property owner. Accordingly, the proposed Order provides that Yale will pay compensation to the City, based upon the fair market value of fee simple title ownership of the area of land constituting the Closed Streets, as shall be determined by an independent certified appraiser. In addition, Yale will confirm by letter (the “Fire Service Contribution Clarification Letter”) that going forward (and in accordance with recent practice) the voluntary fire service payments made under Section 1 the 1990 Agreement will not be set off against the additional voluntary contributions made by

John DeStefano, Jr.Mayor

Joe ClerkinBudget Director

Yale to the City, as described in the letter from Yale to the City dated March 22, 2005 (the “Contribution Letter”).

I attach copies of the 1990 Agreement (which will remain in effect, except as regards the Closed Streets), the original 2005 Contribution Letter, the proposed Fire Service Contribution Clarification Letter and a proposed Modification Agreement, deleting Section 3 of the 1990 Agreement, as described in Section 2 of the proposed Order.

The proposed Order and the new documentation to be entered into thereunder represents a mutually beneficial resolution of the issues surrounding the Closed Streets, which will continue the spirit of fostering good relations between the City and Yale. I look forward to the discussions ahead.

Very truly yours,

Joe ClerkinBudget DirectorOffice of Management & Budget