Tuesday, December 10, 2019 at 9:46:51 AM Mountain Standard Time Subject: Ques%ons Date: Thursday, November 7, 2019 at 9:58:43 AM Mountain Standard Time From: Pat Caldwell To: Gregory Smith & Company LLC Greg, We are seeking informa%on to explain to the community the status of Malheur County's efforts to go into the real estate and industrial development business. We are advised that you would provide responses to ques%ons about these maUers. Please feel free to provide any addi%onal informa%on you believe the community needs for clarity. 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? 4. Have the owners agreed to subdivide the property? If so, when? 5. The original purchase agreement priced the land at $10,000 an acre. Does that remain the price per acre? 2. In August 2019, you wrote that the county intended to acquire the en%re Farmer property and that there was no considera%on of dividing the property. If the county isn’t buying the en%re property, what changed? 3. The SPWF loan is for land acquisi%on only. How will services such as sewer, water, and streets be funded for the industrial park that is not part of TVRC? 1. Has the county es%mated those costs? 2. Has the county iden%fied a source of funds to pay for this infrastructure? 4. County commissioners say they want to proceed with the purchase of the Nyssa Industries property. 1. Did you recommend this purchase? If so, why? 2. Is the intent to borrow through the SPWF to buy the land? 3. What is the expected resource of repayment of this loan? 4. Is it accurate that county taxpayers will be responsible to repay this loan absent any other revenue source or land sale? 5. In MCED’s submission to ODOT in September 2018, the cost of gedng sewer, water and natural gas services to the Nyssa Industries property was es%mated at $5.3 million. 1. Is this es%mate s%ll accurate? 2. Where does Malheur County propose to the money needed for this infrastructure work? 6. 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? 3. What is the current use of that property? 7. Malheur County’s inventory shows roughly 540 acres of “shovel ready” heavy industrial land and another 67 acres 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? Page 1 of 2 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