million of bond funds. Carley proposed to package this deal with a separate Social Service Building, which the City would commit to lease in its entirety prior to construction.
40. Harbit explained both of these concepts to Geoff Sears of Chemical Bank's Real Estate Division in his letter of July 18, 1986. There he stated that the compromise, in essence, was to build "half a courthouse" in the form of a Social Service Building, and to revise downward the size of the Washington Tower West. The letter contained an attached pro forma showing how the two projects would "fit together to create a viable development in downtown Newport News." More specifically, the pro forma for Washington Tower West showed "first year positive cash flow of approximately $20,000 and increasesthe Washington Tower West project anyway, without the UDAG.
48. Harbit failed to provide a lending commitment from a financial institution, in the form required by HUD, and requested in Mr. Tanner's September 3, 1986 letter.
49. In fact, on September 11, 1986, Mr. Harbit wrote Mr. Tanner, advising him that Carley would not be providing the lender commitment letter, stating that Chemical Bank, Carley's lender, would not provide such a letter, due to changes made in the leases for the Washington Tower West Building and the Social Service Building, by the city council in their meeting of September 9, 1986.
50. Mr. Sears, the Chemical Bank representative, testified, in his deposition, however, that he does not remember even a telephone call from Hr. Harbit about the City's action on the