It seems like the impasse lies in the 2 sides bring incapable of recognizing the others' proposal as a starting point for negotiation. There is a giant gulf between the two.
If you take out the personalities, looking at the 2 offers. One seems poorly thought out, incomplete, not researched and is insulting to anyone who may be looking at coming to a reasonable partnership.
The other includes all pertinent details, is full but concise, and seems absolutely ripe to negotiate off. Maybe it seems slanted towards the presenter, but that should be expected in a negotiation.
Stop wasting time and energy, you idiots (and I mean that sincerely). Counter the city's proposal and see how far it gets you. You might be pleasantly surprised.
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