Tuesday, December 10, 2019 at 9:47:20 AM Mountain Standard Time Subject: Ques%ons Date: Thursday, November 7, 2019 at 10:06:37 AM Mountain Standard Time From: Pat Caldwell To: Dan.Joyce@malheurco.org CC: Stephanie Williams Dan, I am trying hard to understand the county’s decisions regarding going into the real estate and industrial development business beyond TVRC. The county is poised to assume several million dollars in debt that county taxpayers will have the duty to repay. As the county's top elected official, as the person who has represented the county by signing key documents, it seems appropriate for the community to hear directly from you about these maVers. Please consider these ques%ons and let me know if you need clarifica%on on any of them. I have sent similar ques%ons to Greg. 1. In July 2018, Malheur County executed a purchase agreement to pay $3.019 million for 290 acres of property for TVRC known as the Farmer property. In the county’s applica%on for the SPWF loan, the county said it will pay $2.3 million for 213 acres, including the 65 acres designated for the TVRC. 1. Is the county s%ll buying the remaining 77 acres of the Farmer property? If so, what is the source of funds? 2. If not, why has the county reduced the amount of the Farmer property? 3. Who made this decision? 2. Under the SPWF loan, the Malheur County Court is obliga%ng taxpayers to repay the loan if no other revenue source is available. 1. Has the court calculated what that debt service could cost county taxpayers? 2. Why do you believe the county should go into debt to fund private industrial development? 3. The original purchase and sales agreement for the Nyssa Industries property expired on Oct. 31, 2019, but we are told the agreement has been extended un%l Dec. 31, 2019. 1. What was the authority to extend the contract to Dec. 31? 2. There is no record that the Malheur County Court approved the extension. Is it correct that the full court didn’t vote in public session to amend the contract to extend the due date? 4. Greg Smith said he has been directed to include the Nyssa Industries property in the loan applica%on to Biz Oregon under the SPWF. 1. When, if ever, did the Malheur County Court act in public to seek a loan to buy the Nyssa Industries property? 2. If there was no County Court ac%on, what is the source of authority to seek a loan to buy this property? 5. Why do you want Malheur County to acquire the Nyssa Industries land? 6. Why do you want Malheur County to go into debt to buy private industrial land? 7. What should taxpayers understand about the possibility that they will ul%mately be responsible for repaying any loan obtained to buy this land? 8. In the county’s submission to ODOT in September 2018, the cost of geeng sewer, water and natural gas services to the Nyssa Industries property was es%mated at $5.3 million. Where do you expect Malheur County to get the money needed for this infrastructure work? 9. When is the last %me that Malheur County directly acquired industrial property for development? 1. What property was involved and when was it acquired? 2. How was the property developed and by whom? Page 1 of 2 3. What is the current use of that property? 10. Malheur County’s inventory shows about 540 acres of “shovel ready” heavy industrial land and another 67acres of “shovel ready” light industrial property available for development. The property is in private ownership. 1. Given this inventory, what is the proven demand for the Nyssa Industries property? 2. By taking public ownership of Nyssa Industries for development, Malheur County will be compe%ng with private land owners. Why is compe%ng with private business good public policy for Malheur County? Page 2 of 2