Ted Strickland

August 2, 2007
Governor

MEMBERS Sandra M. Mills, CPA

Ronald A. Pizzuti Director of Finance, Accounting & Human Resources
Chairperson National Underground Railroad Freedom Center
Barbara S. Robinson 50 East Freedom Way
Vice Chairperson Cincinnati, Ohio 45202
George R. Oberer, Sr.
Secretary-Treasurer
Re: National Underground Railroad Freedom Center
Adam K. Brandt Information Request
Otto M. Budig, Jr.
Dear Sandi:
William A. Erdos

Julie T. Kunkel As discussed on the telephone, we are requesting a revised Business Plan
Harry J. Lehman approved by your Board of Directors which encompasses the operational,
Cynthia B. Thompson
financial and administrative changes which the Freedom Center is undergoing.
These items were discussed at the June 5, 2007 meeting between Commission
EX-OFFICIO staff members and members of the Freedom Center team. I realize you were
MEMBERS not present at that meeting, however, Mr. Pepper referred to a comprehensive
David Goodman review of the museum, operations, visitorship and programming. We need the
Ohio Senate supporting documentation of that review for the Freedom Center to be
Shawn N. Webster considered for future inclusion on a Commission Meeting Agenda.
Ohio House

Julie S. Henahan We understood that a complete review of the exhibition base and other visitor
Ohio Arts Council
amenities is being undertaken in order to assess whether these aspects
of the facility will require changes. Please advise us as to the results of this
EXECUTIVE DIRECTOR
review and the plans in this regard including costs of implementation.
Kathleen M. F ox, FASLA

Mr. Pepper also spoke of some new programming being developed, including
partnerships with school districts. It was mentioned that the Marketing team at
Proctor & Gamble would be putting in significant time to develop a new
marketing and audience development plan. Kindly, include the timeline for the
development and implementation of the new marketing plan as well as
narrative detailing the expectations that the new programming and marketing
will have on visitorship and returning visitor rates.

Mr. Pepper indicated that operations had been reviewed and a new model
developed for moving forward. As a part of this, expenses had been cut during
fiscal year 2006 and year-to-date 2007 with anticipated further cuts in 2008.
Please specifically outline these cuts along with any other changes in your
operational plan, and the expected impact these changes will make on your
programming, earned income, and fundraising goals.
At the time of the June meeting we had not received the final 2006 audit. Thank you for
recently submitting your audited 2006 Financial Statement. There is a surplus before
depreciation however, the Freedom Center did finish fiscal year 2006 with a deficit after
depreciation. We have been asked to focus on the pre-depreciation numbers but what, then,
is the plan for the replacement of depreciating assets, including refreshment of exhibits?
Where are the plans for the changing of exhibits going into the future and how will they be
financed? Kindly incorporate into your financial model plans to reserve funds for those
assets you plan to replace.

Also at the June meeting, fundraising was discussed. With Bridge to the Future completed,
we were told that the Freedom Center would next be engaging in an operating endowment
campaign. I believe a goal of five million dollars was set. What is the current status of the
new campaign and what is the overall plan and timeline for this goal to be met?

Requested submittals are summarized as follows:

1. Exhibition and Visitor Amenities

ƒ Report on the review of the exhibition base and visitor amenities, your plans for
changes and the associated costs

2. Programming Plan

ƒ Programming Plan for 2007

ƒ Narrative indicating new versus continuing programming and also what phase new
programming is at – e.g. is it still conceptual, is planning in process, or is planning
complete and dates solidified?
ƒ Revised Marketing Plan
ƒ Attendance & Re-Visit projections and supporting assumptions

In the future, please provide a programming synopsis of the previous year as well as the
programming plan for the upcoming year, on an annual basis as required by the
Management Agreement between the Freedom Center and the Commission.

3. Financial Plan

Please provide the updates and additional submissions listed below:

ƒ Compiled Financial Statement for fiscal year 2007 to date
ƒ Updated Pro-forma
ƒ Updated Narrative explaining the supporting assumptions to the pro-forma
ƒ Analysis of Earnings Projections – see attachment for an example of the last
submission we received in February, 2007
 ƒ Bank Statements/Investment Performance Updates, such as those referenced in the
attachment, in the email from you dated 1/12/2007
ƒ Exhibit Replacement Plan, including timeline and methods to finance replacement

In the future, please provide the Compiled Financial Statement, Analysis of Earnings, and
Bank Statements/Investment Performance Updates on a quarterly basis as required by the
Management Agreement between the Freedom Center and the Commission.

4. Fundraising Plan

ƒ Synopsis of the results of Bridge to the Future

ƒ Fundraising Plan for the Operating Endowment Campaign
ƒ Quarterly fundraising reports for the first two quarters of fiscal year 2007

Please continue to provide quarterly fundraising reports in the future as required by the
Management Agreement between the Freedom Center and the Commission.

The Commission adopted guidelines, based upon state law, bond documents and prudent
public policy, require the project sponsor be sustainable, demonstrate there exists a need
for the project and that the project be fully funded, among other things, prior to Commission
approval of expenditure of State bond funds on a project

Our submittal deadline for consideration for the November 2007 meeting is August 15, 2007.
Review of the items requested may generate additional questions and you may be asked to
provide additional information. We will follow up with you accordingly.

Thank you for your prompt attention to this matter.

Very truly yours,

Anthony Capaci
Project Manager

CC: Don Murphy

Gary Dowdell

Enclosures: (5)