Follow the money: How the Rough Ready deal worked

BY GORDON R. FRIEDMAN

To qualify for $8 million in state and federal tax credits, Ecotrust had to show Rough Ready mill upgrades cost $10 million. In
fact, only $3.58 million actually went to hard costs of the upgrades. Rough Ready was allowed to claim 40 percent soft costs on
top of that, bringing the total legitimate upgrade costs to only $5 million.

Source: Public records provided by Business Oregon

$3.1 million state tax
credit

$3.9 million federal

tax credit

 

 

 

 
  
 

One-day loan from
Chase Bank worth
$4.85 million

Tax credit sold for
$1.87 million

Tax credit sold for
$3.27 million

   

 


$10 million sawmill upgrades fund 



Here's where
that $10 million

 

 

   
   
   
  
 

 

 

 

 

 

went:

$4.85 million

goes back to 
Chase Bank to 
pay off one-day 

loan An LLC controlled by Jennifer 
and Link Phillippi uses the $4.85 $514 million was sent to an
million to "buy" 100 percent of Ecotrust subsidiary

Rough Ready mill assets from
a company they already control:
Perpetua Lumber Co.

 

 
  

 
 

Rough Ready LLC
(99 percent owned by the
Phillippis)

$4.85 million

 

Ecotrust subsidiary

  

 

 
   
 
 
 
   

The subsidiary sent
$300,000 to Ecotrust
CDE, the federally
approved tax credit
administrator, to
?21?0 handle tax credits



 

 
  
 

Project costs:
$3.58 million for: mill equipment, retrofittinq. construction
$662,000 expenses for: acquiring Rough Ready mi  
$420,000: fees

 
 

Ecotrust CDE: ends
up with $520,000