05-07-2007 - Laserfiche WebLink

Commission Minutes-May 7,2007 3201 h. Contract approval: Flood lot leases for two county-owned properties in Noble Township; Mark Sand & Gravel Company-Class 13 gravel supply; Mark Sand & Gravel Company-bituminous overlay project on Cass County Highways 1 and 10. 6. RESOLUTION #2007-9, MIDA Bond application of Tharaldson Ethanol Plant I LLC Attorney James Stewart was present to discuss a MI DA Bond application for the Tharaldson Ethanol Plant I LLC Project in an amount not to exceed $102,000,000 for the purpose of financing solid waste disposal components of a 100 million gallon per year ethanol production facility located west of Casselton, North Dakota on a parcel north of 36th Street SE, south of the Burlington Northern Railroad tracks, east of 153rd Avenue SE and west of 154th Avenue SE. Mr. Stewart said solid waste disposal bonds issued pursuant to Section 142(a)(6) of the Internal Revenue Service Code may not be designated as qualified tax exempt obligations and do not count against the $10,000,000 limit for bank qualified bonds issued by the county in 2007. The county has no liability on payment of the bonds. Russ Newman, Vice President of Development for Tharaldson Ethanol Plant I, LLC, was also present. Mr. Wagner asked how approval of this request may affect the county's credit rating. Mr. Stewart said the bond issue is not treated as an obligation toward the county and the company is responsible for making payments on the bonds; therefore, the county's credit rating will not be affected. Mr. Wagner also asked if a cap exists on non-bank qualified bonds. Mr. Stewart said after approval by the board today his office will make an application to the state, which will be reviewed by the governor. The State of North Dakota has $258 million available to be issued on a first come, first serve basis. Mr. Stewart will meet with the project engineers to review the dollar amount and said it most likely will be reduced from $102 million. Mr. Stewart said in order for the Tharaldson Ethanol Plant to apply for this type of bond issue and be considered a solid waste facility, a certain percentage of solid waste has to be disposed of properly and made into animal feed. MOTION, passed Mr. Pawluk moved and Mr. Bennett seconded to adopt a Resolution Relating to a Project under the Municipal Industrial Development Act, Giving the Project Preliminary Approval, Subject to a Public Hearing (Tharaldson Ethanol Plant I, LLC Project). Discussion: Mr. Vanyo questioned the large portion of dollars being requested and whether a more accurate dollar amount is needed before approval. Mr. Stewart said when the public notice is published the dollar figure is set high with the expectation that the amount most likely will be reduced. Mr. Stewart said this application will be brought back to the commission on June 4th for a public hearing and then again for final approval. Mr. Newman said the project is on schedule and the site is in the process of being mobilized. Mr. Wagner asked how much of the state allocation has been used in the past and Mr. Stewart said North Dakota has historically been a low volume issuer. On roll call vote, the motion carried unanimously.