Or PPT Troutdale's Future V8.1
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Transcript of Or PPT Troutdale's Future V8.1
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9/11/2009
September 2009
1
Welc ome to
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9/11/2009
September 2009
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1. WASTE:ItisagainstORHB3744 (2005)to
create/allowthedisposalofwaste
(MunicipalSolidWasteMSW)if
thereisanyotherknownalternative.
Sinceinceptionin2005,a43%
increaseinMSW andbylaw,itmust
stabilizeby2009. Multnomahis1of
3topnoncompliantcounties.ORS
459.015(1)ORS459.015(2)
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2. ENERGY:
DuetosuccessfulpassageofOregon
SB838,thepeopleofOregonwillbepayingforrenewablegenerators average50MWperyearand
25%by2025.
The math is stillright
$11,868 perc ap ita ->
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3. LOSSOFPROFITS:
Howevercreated,Troutdale,as
alowcommercialsuburb,is
notahighpriorityfor
restorationduringapoweroutage.
DOEestimatelosses:$228/per
capita,yr.evenwithoutaterrorist
attack.Inthestatewith#2Highest
unemployment,thisisstressful.
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4. TAXCODE:
PerTreas.Reg.Section
1.1038(f)(2)(ii)(c)
Troutdalemayuse
municipal(taxexemptbonds)for(x)onlyif(x)
uses>35%oftheMSW.
(Howdoes>35%$$$cure100%ofaproblem?)
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5. Ability:
Due
to
Troutdales
need
to
downscale
to
match
a
diminishing
budget(baseduponanticipateddiminishingtaxesduetothe
stateoftheeconomy)Troutdaleletgothestaffwhoperformed
EconDevelopment.
Gloryhoundingbehavior,ratherthanriskmitigationHowever,
Troutdalehasareputation,dueto____?
TDisanimmatureparticipant GDDA
TD has no p artners - Mc Minamins
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9/11/2009
September 20098
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NewCREBs:CleanRenewableEnergyBonds
Onlyforrenewableresources energy
New CleanRenewableEnergyBonds
EnergyImprovementandExtensionAct2008=$800MillionCREBs
AmericanRecoveryandReinvestmentAct2009=$1.6BillionCREBs
= $2.4BillionavailabletoPoliticalSubdivisions,Coops,Utilities
AProjectmustbringrequiredindependentengineerscertificate.
CREBsareawardedtothetaxpayer forthebenefitoftheapplicant.
CREBsmaymeet 70%ofconstructioncost.
Whereshall theother30%comefrom?
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WhoeverutilizestheMSWneedstoconsidereconomiesofscale. Itisfareasiertorepaytheloanfora500tpd facilitythan10individual50tpdfacilities.
WhenevertheOREPAcracksthewhiponthelaw,thefacilitywiththelowesttippingfeewillcommandthemarket. Thelawwillmostlikelybefeltinthemostnoncompliantcountiesfirst.
ItisagainstthelawtomonopolizetheMSWmarket itmovesaccordingtolowestpricedtippingfee. TheZESCproposalstandsheadandshouldersaboveotherproposalsinthatitdeclinesthetippingfees(they
mayreturntopoliticalsubdivision).
Stillunsolved: themissing30percent.
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Public/PrivateVenture
KeepsGovernmentoutofbusiness performingperobligationtoconduitcongressionallycreated
instrumentstothepeople. GovernmentmayutilizeCREBsperagreement(thisistechnically,then,aconvertibledebttoequityinstrument)toacquireanAssignmentofProceeds(cashflow fromZESC
profitcenters).
Weaknesses
GovernmentwillneverownasingleinchofthefacilityorIP.
GovernmenthasminorityinfluenceonORZESCLLCBoard.
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TIF proc edures Good for rea l esta te not renewa b le
energy.
For Renewable Energy-----
Tax Cred it Monetiza tion Investors seek certa inty in the ta x
c od e throughout deb t servic e.
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If the only way to solve Troutd a le sfive-fold p rob lem
requires utiliza tion of CREBs in a pub lic / p riva teventure
-and-
CREBs a re not performingthe usua l way,
what is the a lterna tive?
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Bank A Bank Bsells 100 worth of stoc k
pays 100 cash fo r stoc k
Op ening Leg
Bank A Bank B
pays 100 cash p lus repo interest
sells 100 worth of stoc k
Closing Leg
RatesAAA to AA 2.0%A 3.5%BBB 5%Sub-investment grad e 10%
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? WhatDeveloperwillbringabankpreparedtoallowCREBsascollateral
andprovide30%,too?
IF
1. The
CREBs
are
not
awarded
and
2. dNPV financingisnotforthcoming,
Then
what
Developer
has
an
debt
investor
standing
by
preparedtoprovidecollateralfornewtechnologyandunderwritetheneededpiece?
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ZESC: ZeroEmissionsSanitaryCombustion.
UsesadvancedIP vortexgrinders,reversevortextornadocombustors,plasmaassistedcombustion,nonthermal(inducedby
magneticfieldsratherthanheat)plasmatreatmentofeffluentto
removeO2duringheatphase=nosmokestack,coupledtohigh
efficiencygenerators. Upshot:designisNPR(NoPermitRequired)
compliant.
IndependentEngineerssignoffs 1yearcommercialallparts.
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TheNTPIPcomesoutofLANL,Dr.Rosochas 2006testimonybeforeDOE
isreleased. Dr.Rosochas answersandPowerpoint forKYEPAhavebeen
forwardedtoTroutdale.
FOR MORE INFO..See ZESC PPT
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Plan A Plan B Possib ility 1
CREBS
Dev.
FS - TD
FS - Dev.
Non-MOUPossib ility 2
Dev.
Inv.
Inte rim Construc tion Loan
Permanent Loan Upon Futureflow
BPO / APO
IP
Dev.
TD
BPOInv.
Dev.
TD
IPAPO
Revenuesharingarrangementbetweendevelop er anddeb t investor.
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Troutda le is poised :
Developer- Marni Zollinger (ZESC)
CREBs ava ilab le, dNPV possib le
Loc a tion- Ind ustria l Park?MSW from Metro No tipp ing fee
(Reserve) Deb t Investor- Mark Alexander
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EngineeringCerts alreadyprovided.
Facilitywillnothaveasmokestack,noairpermitting(exceptNPRprocedure
asconductedbyOBrien&Gere) needsbuildingpermitonly.
Facilityishighefficiency,exemptfromORSiting Committeecontrol
FacilityFERCEWG bondauthorityinplace
StandbyDebtInvestorscollateralauthenticationalreadyprovided,
ButwhohascheckedthewillingnessofthestandbyDebtInvestor,today?
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1. Introductions
2. Whatisyourenergybackground? WhyZESC?
3. Whatisyourfinancebackground?
4. WhatisyourcommitmenttoZESC?
5. WearelookingatanMOUthatwouldobligateTroutdaleto
finance50%ofaZESCfacility. IfCREBsarenotawardedand
dNPV financeisdenied,describehowyouarepreparedto
performsothatTroutdaleisntinanuntenableposition?
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Part 2
Marni Zollinger
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FIVE YEAR PLAN Phases 1-3
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Year 1 Year2 Year 3 Year 4 Year 5
P1: Build ZESC, TEDA
P2: ZESC Take Out, Muni
P3: D-BED (Bank)
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Build ing ZESC: Not a TD affa ir. After build ing -permit, this phaseestimated time req: 2-3 years.
TEDA: Troutdale Economic Development Authority
Prepare, autho rize, and empower a mirror of Gresham GDDA This entityc an mirror what is c om mon a nd p rep a re for what is uncommon: havingsome financ ia l ump h - a c ashflow and a ssets to b e leveraged by TD.TEDA a lso invites Institut iona l Investo rs to underwrite TD projec ts. TEDAmay la ter have a n ISDA ma steragreem ent with the D-BED.
The D-BED is no t yet o rganized , but is a possib ility if c urrent ac c essesto the Trea sury are made p ermanent. A permanent sta tus wouldc rea te a c onduit to c onduc t non-rec ourse REPO transac tions withthe Treasury even up on suc h things as ta x c red its.
ZESCs p rojec ted
a) REC a nd energy t ra nsac tions andb ) doc umented ba nk refusa ls to c ond uit
support our p lan.
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WhenZESCisoperationalandhascompleteditsmonitoredperiodtothesatisfactionofthePermanentLoanTakeOutpartners(JefferiesInvestmentBankorotheroption,ifbetter), TDCityCounciltoconsiderdecisiontoutilizeCREBs(returnedafterclosinglegofrev.repo)inorder
to
obtain
Assignment
of
Proceeds
(Title
to
Cashflow)
per
MOU. If
approved,CityCouncilappointsZESCboardmember(s). IsuggestCityCounciltopassmotiontoleveragethosenewassetsonnonrecoursebasisonly;somecashflow gotoTEDA,someforinvestmentandtheresttoCityBudget?
IrecommendtheZESCtitles(splitassignmentssothattheyaremoreeasilyleveraged)becustodied attheDBED.
Upon Ca p ita liza tion of the TEDA, offic ers and sta ff to be hired . AllCity Counc ilors to be TEDA o ffic ers, choosing foc us for development.City Counc ilors remunera ted ac c ord ing to desire to work a t TEDApart or full time.
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TroutdaleMunicipalUtilityDistrict: ThroughPacifiCorpInterconnect,
PacifiCorpwillknowEWGoutputthoughsoldtowholesalebuyers.
Beginprocessofnegotiationforownershipofmunicipallinesin
ordertogaincashflow betweenWholesaleandRetailprice(and
avoidRPSlawspremium). AskPacifiCorpforproposal(theyprovide
financing)inordertobuy(atFMV)yourownlines.
Rememberwhenconsideringtheircounteroffer,if,anythatthe
peopleofTroutdalefinancedthelines,notPacifiCorpinvestors. Ifnecessary(ordesired),condemn,inordertoown.
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Havingaccess(anISDAaccount)totheTreasury(theessentialpoweroftheDBED)isarareaccomplishmentnottobetreatedlightlyorasagiftforfriends.
Wehavethebeginningsofsuchinprogress. OneofZESCstasksthenextthreeyearswillbetomakethataccess permanent.
ZESCtopreparetheDBED:
Acommercial/municipallender
collateralwillbepriced(andrepriced)bytheTreasuryofficials,only
Willserveequallyandconfidentially
Willadvertiseonlythroughfrontentities,asanonrecourselender
MayexpandservicesthroughfrontentitiestohomeISDAaccounts
MarniZollingerorproxywillbeapermanentmemberoftheboard
MayinviteTDCityCouncilBoardrep/CitizenBoardrep
7membersontheboard
Openchairstobereplaced:one/year
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Within 5 years Troutda le to be
1. Energy independent, p roduc ing renewab leenergy in multi-fuel c apab le system (RPScompliant).
2. EPA and IRS c omp liant, solving both TDs and the
neighbor s p rob lems. TD is off the hook.3. Financ ia lly, on par with state.
4. Busting with wea lth a nd c rea tivity.
5. Politic a l Prac tic a lity; everyone likes suc c ess. If moving forward to a tta in this op tiona l future.... ->
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Counc il Meeting:Resc ind LtrLOIExec ute MOU
With MOU, Hartmann c an trigger Sena tor
Wydens p romise to endorse dNPV option(financ ing parity) for benefit o f Troutda le andZESCs.
_____________________________
TD c ity c ounc il to beg in p roc ess of TEDA- first step : lega l organiza tiona l and reg istra tion filings,
c onferring of powers.
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