REQUEST FOR SPECIAL CONSIDERATION

IV. REQUEST FOR SPECIAL CONSIDERATION

Chairman Walker called for a motion to hear the Request for Special Consideration from Carbon, Sevier, Emery and Sanpete Counties.

Bruce Adams made and Naghi Zeenati seconded a motion to hear the Request for Special Consideration from Carbon, Sevier, Emery and Sanpete Counties. The motion carried unanimously.

The applicant presented a funding assistance request for a $53,000,000 loan for 30 years at 2.0% interest for an infrastructure project for the purpose of through-put capacity in Oakland, California consisting of the construction of a 330 acre multi-commodity deep draft marine terminal for the export of Utah goods to the Pacific Rim economies. The terminal would provide a single line service from the Western part of the United States. This project includes $200,000,000 in other local cash.

The applicant indicated that Utah goods could be transported internationally.

The Board acknowledged other large infrastructure projects they have funded to include $56,000,000 for the Seep Ridge Road in Uintah County and $29,000,000 for the Victory Pipeline in Duchesne County. Both of these projects have been beneficial to the areas where they were constructed as well as the rest of the state.

The Board expressed concern over the size of the project and other projects which may be presented to the Board as a result of this project.

The applicant indicated the rail spur linking existing rail lines to facilitate the land transportation is nearing the completion of NEPA and permitting.

The Board expressed concern about the legalities of the project.

The applicant stated that there have been and will be attorneys reviewing the process and concerns about utilizing this funding source. The project is contingent on a clean legal opinion to include the attorney generals’ office. It is ultimately dependent on working out the details. It was further indicated that the project has the support of the Governor, but there are no tax dollars going toward this project.

The Board counsel suggested there might not be sufficient specificity to authorize funding.

The applicant again indicated that there are many questions and there will be legal certainty prior to utilizing this loan. The counties cannot proceed in the process without a contingent commitment of funding and further indicated that the potential of this international market for the State as a whole is profound.

The Board asked about the availability of this significant project to Utah.

The applicant indicated their group was the first to discuss this project which has been 8 years in the entitlement phase working with 28 different agencies.

Bruce Adams made and Naghi Zeenati seconded a motion to suspend the rules and fund this project as a $53,000,000 loan for 30 years at 2.0% interest from the Major Infrastructure Set Aside Fund contingent on legal authorization. The motion carried with McKee and Winterton opposed.

Mike McKee, Naghi Zeenati, Gregg Galecki and Bruce Adams left the meeting.